Green Energy Loan Options – What Banks Are Offering
When money is tight, improving your home can feel out of reach. With the rising cost of living, many homeowners are feeling the pressure, and important upgrades often get pushed down the priority list. The good news is that banks across New Zealand offer Green Energy Loan options, giving homeowners an affordable way to invest in a warmer, drier, and more energy-efficient home without the upfront financial strain.
What is a Green Energy Loan?
A green energy loan is a type of home loan or loan top-up that helps cover the cost of energy-efficient upgrades. These upgrades might include insulation, solar power, ventilation systems and installing a heat pump.
Unlike standard loans, green energy loans usually come with favourable terms such as low or zero interest rates, no establishment fees, and flexible repayment options. They’re designed to make it easier for you to take practical steps toward reducing energy use, lowering power bills, and creating a healthier indoor environment.
Most of the major banks have green energy loan options. Let’s look into what options are currently available from Westpac, ANZ, ASB, and BNZ.
Westpac Greater Choices Home Loan
Westpac’s Greater Choices Home Loan offers one of the most generous green energy financing packages in New Zealand. With this option, you can borrow up to $50,000 interest-free for five years to invest in energy-efficient home improvements.
Key benefits:
- Pay 0% interest for five years on loans up to $50,000.
- Make lump sum repayments or repay early with no prepayment penalties.
- Available to both new and existing Westpac Choices home loan customers.
- No establishment fees.
Eligible upgrades include:
- Heat pumps (including hot water heat pumps)
- Insulation
- Double glazing
- Ventilation systems
- Solar power systems and batteries
To apply, you’ll need a quote from a qualified provider. At Healthy Home Team, we can help you arrange this quote and guide you through the pre-approval process, making it easy to take the next step towards a healthier home.
ANZ Good Energy Home Loan
ANZ’s Good Energy Home Loan is a top-up option that allows you to borrow between $3,000 and $80,000 at a fixed rate of just 1.00% p.a. for three years. It’s designed to support homeowners who want to lower their energy costs.
Key benefits:
- Fixed interest rate of 1.00% for three years.
- Loan top-ups from $3,000 to $80,000.
- After the initial term, choose from ANZ’s Special or Standard fixed rates or revert to the floating rate.
Eligible upgrades include:
- Heat pumps: Fixed, multi-split, or ducted systems.
- Insulation: Ceiling, underfloor, and/or wall insulation.
- Ventilation: Balanced or positive pressure systems, including heat recovery.
- Water heating: Heat pump or solar water heaters.
- Solar power: PV panels, planning, consent, installation, and related infrastructure.
- Solar batteries: Lithium-ion or lead-acid, including inverters and technology to support battery storage.
With ANZ’s Good Energy Home Loan, you can make significant changes that reduce your power bills and increase your home’s comfort all year round.
ASB Better Homes Top Up
ASB’s Better Homes Top Up gives you the ability to borrow up to $80,000 at a fixed rate of 1% p.a. for three years. To qualify, you need to have at least 20% equity in your home, and the work must be completed by a professional installer.
Key benefits:
- Fixed rate of 1% for three years.
- Loan amounts up to $80,000.
- Supports a wide range of home performance upgrades.
Eligible upgrades include:
- Professional insulation (ceiling, underfloor, or walls).
- Heat pump installation.
- Extractor fans or kitchen range hoods venting outside.
- Ground moisture barriers to reduce dampness: Professionally installed.
- Ventilation systems: Positive or balanced pressure.
- Solar solutions: Panels, batteries, and inverters: Professionally installed.
- Solar hot water systems for energy-efficient water heating.
To apply, you’ll need a quote or invoice dated within the last 60 days. At Healthy Home team we can provide a qualifying quote and help ensure your project meets the eligibility criteria.
BNZ Better Future Home Loan Top-Up
BNZ’s Better Future home loan top-up gives you the ability to borrow up to $80,000 to invest in energy-efficient upgrades, off offering highly competitive pricing for eligible improvements.
Key benefits:
- Borrow up to $80,000 at 1% p.a. fixed for three years
- Available for a wide range of home performance upgrades
- Multiple top-ups allowed (up to the $80,000 cap at the 1% rate)
- Can also be used for EVs, PHEVs, hybrids, chargers, and e-bikes
Eligible home upgrades include:
- Insulation: ceiling, wall, or underfloor
- Ventilation systems: balanced or positive pressure
- Heat pumps: fixed or ducted systems
- Water heating: heat pump or solar systems
- Window glazing: double, secondary, or triple glazing
- Solar power: panels, batteries, inverters (including planning and installation)
- Rainwater tanks: including pumps, filters, and connections
To apply BNZ requires proof of costs, such as a valid quote or purchase agreement. Requirements vary depending on the upgrade, but generally include a quote for supply and installation, and proof of installation dates. At Heathy Home Team, we can help you with these requirements.
Take the First Step Toward a Healthier Home with a Green Energy Loan
Even though finances are currently tight, green energy loans make it easier to access the upgrades your home needs, helping you save money in the long term. Whether you’re considering new insulation, a heat pump, or a full solar power system, these financing options can make it possible.
Contact Healthy Home Team today to arrange a free quote and get started with your Green Energy Loan application.