Crown Loans

Objectives

To provide interest free loans to public sector organisations, to help accelerate the transition away from fossil fuels to low-emissions alternatives such as biomass and electricity and demonstrate Government leadership.

Important update

EECA’s Crown Loan Programme has now concluded in its current form.

EECA is evolving – we're working with the finance market to develop targeted investment initiatives that will support the adoption of new fuels and technology solutions across New Zealand’s regions.

Where to find more information

For specific inquiries related to Crown Loans and alternative options available in the market, please contact us via email: business@eeca.govt.nz

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What kind of project was this for?

Public sector organisations could use Crown Loans to fully or partially fund energy efficient equipment, including electric vehicles.

Eligible projects included energy-efficient equipment for new builds, retro-fits, and electric vehicles. For example:

Installing building management systems.
Installing and upgrading equipment such as energy efficient space heating, refrigeration, and lighting.
Installing commercial heat pumps and biomass boilers.
Installing solar water heating for swimming pools.
Purchasing electric vehicles (the price difference between an electric and a conventional vehicle and the cost of installing a charging point).

Crown loans were interest free with no procurement fee.

New technology increases control and brings healthy savings

Replacing two hospitals' old diesel boilers with electric heat pumps has saved Northland DHB hundreds of thousands of dollars on energy costs and maintenance a year, partly by putting heat only where it was needed. The programme got off the ground with a Crown loan.

Who could apply

Public sector organisations such as:

Government departments
District health boards
Crown owned companies
Territorial authorities
Regional councils
Universities
Polytechnics
Public and integrated schools

Energy efficiency projects are evaluated according to:

Payback period - five year payback on energy cost savings.
Carbon dioxide emission reductions.
Ability of the project to be a demonstration site for other government organisations, communities, and within the private sector.
Other benefits, such as reduced maintained costs, better air quality and industry development.

Co-funding was also available for projects to switch from fossil fuel heating to electricity heating, bioenergy or direct use of geothermal. For these projects there needed to be a reduction in carbon dioxide emissions of at least an 80% compared to fossil fuel energy.

The impact of Crown Loans

The Crown Loans Programme began in 1994 and ran through until 2025 – a total of 31 years. The loans were used for energy efficiency upgrades of air conditioning and chiller units (including HVACS), Building Management Systems, heating, lighting upgrades and more.

Programme achievements

406
Crown Loans were provided
$52m
was lent
252m kWh
p.a. in energy savings for the public sector
$13m
saved in ongoing energy use and maintenance costs