Most major banks offer zero or very low interest loans to help with upgrading your home or personal transport to more energy efficient options. 

How a loan might help

Shifting to more efficient electric appliances and technology is one of the easiest ways to lower your home energy costs. 

With a home energy loan, you could cut those costs sooner, saving your household more on energy over time. 

As with all big financial decisions, it’s good to get professional advice to help you weigh up the benefits, risks and costs.

On this page

What home energy loans can be used for

Each bank has its own products and criteria, but looking across the offerings of New Zealand’s big banks, it’s possible to get a home energy loan to pay for:

  • efficient electric appliances — things like a hot water heat pump or an induction cooktop
  • insulation — underfloor, ceiling or walls, and double or triple glazing for windows
  • moisture control — a ventilation system, extractor fan, ground water barrier, or waterproofing for walls and foundations
  • transport options — an electric bike, electric vehicle (EV), hybrid or plug-in hybrid car, or smart EV charger
  • renewable energy — a home solar system, solar water system, or a small-scale hydro, geothermal or wind energy system.

How home energy loans work

A home energy loan is usually added to a mortgage as a top up. Most banks offer an interest rate from 0% to 1%, except for Kiwibank which has a variable home loan rate.

The amount you can borrow and how long you get to repay a home energy loan varies by bank.

Things to be aware of

If you don’t pay back a home energy loan within the agreed time, the interest rate will rise to match your home loan rate. That extra repayment on top of your mortgage could be substantial, so it’s best to pay off a home energy loan as quickly as possible.

Ensure you read all loan terms before applying, and get in touch with your bank if you’re unsure about anything.

Current home energy loans in New Zealand

These banks offer some form of home energy loan to their customers:

For a comparison of loan options, view MoneyHub's home loan tops-ups(external link).

Energy-saving guides

Whether you get a green loan or not, these guides will help you to weigh up options and plan future purchases.

  • Is solar right for your home?

    Solar has come a long way and now offers great cost savings for most homes in New Zealand. Find out if solar is right for you.

  • Compare different EV options

    Not all EVs are the same. Compare battery electric, plug-in hybrid and standard hybrid vehicles to see which option best suits your travel and charging needs.

  • Plan your home energy upgrades

    Find opportunities to save by investing in key home appliances and technology, and making a plan for how you use energy in your home.