Farm solar loams to cut energy costs
ASB has introduced the ASB SMART Solar Loan, offering rural customers up to $150,000 interest-free for five years to invest in solar and battery systems.
This initiative aims to help farmers reduce energy costs, enhance energy security, and lower emissions.
The loan is available to both existing and new ASB rural customers, provided the solar equipment is professionally installed on their rural property. The offer is valid until December 15 and may be withdrawn at any time.
Addressing rising energy costs in agriculture
With the average electricity bill for owner-operated dairy farms projected to reach $28,000 in the 2025/26 season, ASB’s SMART Solar Loan provides a timely solution.
Solar systems can reduce energy costs by up to 40-70% annually, freeing up cash for reinvestment into the farm.
Tailored solutions for diverse farming operations
Recognising the unique energy demands of different agricultural operations, ASB has engaged Prism Earth to develop online interactive tools.
These tools will assist farmers in assessing the benefits of solar for their specific business needs, including mapping optimal locations for solar installations and calculating potential energy and emissions savings.
Research-backed insights driving the initiative
ASB’s collaboration with energy transition charity Rewiring Aotearoa revealed a 66% latent demand for electrification among farmers, compared to 48% among residential respondents.
The primary barrier identified was the high upfront cost of solar installations. The research also indicated that most farms have available rooftop space for solar, and 60% have land suitable for solar without impacting production.
According to the research, a 250m² ground solar system could save farmers up to $598,200 over the lifetime of the panels from avoided grid costs, with a median installation cost of $110,600.
In this scenario, an ASB SMART Solar customer could expect to pay back their solar setup from as early as their sixth year of generation.
Enhancing energy resilience in rural communities
ASB general manager Rural Aidan Gent (pictured) emphasised the importance of energy resilience.
“We’re stepping up with this strong offer for our rural customers, as we’re committed to investing in a more resilient future for regional New Zealand,” Gent said in a media release.
“From high-tech milking sheds to irrigation, farmers need affordable, reliable energy. Solar generation will help farmers work smoothly through power outages and extreme weather events, when rural communities are often the last to be reconnected.
“With cheaper energy from the day solar is up and running, and five years interest-free to get started, ASB SMART Solar will be the right call for many farmers.”
Additional support for larger projects
For farmers undertaking larger solar initiatives, ASB SMART Solar lending may be used in conjunction with ASB’s Business Sustainability Loan, which offers special variable rates on eligible projects.
The ASB SMART Solar Loan was launched at National Fieldays on June 11, with new solar tools and an energy calculator available shortly after on the ASB website.
For more information, visit ASB SMART Solar Loan.
