Banks offer lending boost to accelerate solar uptake
New Zealand households are increasingly considering solar power as electricity costs climb, according to new research from Westpac NZ.
The nationwide survey of 564 people by research agency FiftyFive5 found nearly half of New Zealanders have installed or are considering solar panels, with cutting their power bills the key motivator.
Currently, 9% of respondents have solar installed, 13% plan to within the next 12 months, and a further 25% intend to longer term.
“Solar is a great option for many households and spring is a good time to think about it, as the days get longer and high winter power bills are fresh in people’s minds,” Sarah Hearn (pictured), Westpac NZ managing director of product, sustainability and marketing, said in a media release. “Getting set up now could help lower bills once winter rolls around again.”
Rising costs drive demand
Electricity prices have been rising faster than inflation in 2025, with many consumers facing hikes above 10%. Nearly 80% of respondents cited reducing electricity costs as a driver for considering solar, with 60% saying it was the main reason.
Other motivations included reducing climate impact (41%) and having backup power in emergencies (34%). Among those considering or already using solar, 68% said they were likely to install batteries – boosting reliability but adding to upfront costs.
“Solar is environmentally friendly, widely available, and can add value to a property,” Hearn said. “It is also getting cheaper to install and can deliver meaningful savings over time.”
Self-sufficiency and resilience
“It not only promotes energy self-sufficiency, but also community resilience to extreme weather and seismic events. It’s also cost effective,” Clark said. “Upfront capital costs of solar continue to fall, while operating costs remain minimal.”
Clark noted that while New Zealand has historically lagged Australia, adoption is now accelerating. Solar accounted for just 1.3% of generation in 2023 but has already risen above 2% in early 2025. MBIE projects this could rise tenfold by 2050, putting solar on par with geothermal and wind, underscoring both the opportunities and challenges ahead.
Financing support for households
Despite growing interest, upfront cost remains the biggest obstacle. Almost half of those not planning to install solar cited cost as the reason. A quarter of those intending to install said they were delaying by at least a year due to financial pressures.
“That’s where banks can step up – for instance, our Greater Choices home loan top up offers customers up to $50,000 of interest-free lending for up to five years for a range of home and vehicle improvements including solar panels and batteries,” Hearn said.
“We’ve lent more than $270m through Greater Choices since 2020, and we encourage customers to talk to us about what we can do to help reduce their energy costs, whether through solar panels, double glazing, insulation or a range of other options.”
Path ahead for solar
Solar currently contributes just over 2% of New Zealand’s electricity generation, but MBIE’s tenfold growth forecast highlights the scale of change required.
Clark said regulatory reform – including changes to the Resource Management Act and Overseas Investment Act – will be critical to reduce compliance costs and unlock investment in larger solar projects.
“Households have a part to play in increasing New Zealand’s overall generation. Banks are already encouraging this with no-or-low interest lending, but there’s more that can be done,” Hearn said.
“When asked what measures would encourage uptake, 31% of respondents cited better government incentives and 29% cited fair prices for selling electricity back to the grid. Nearly 80,000 households already have solar panels installed, and we were pleased to see recent changes announced by the Electricity Authority that will make it cheaper and easier for households and businesses to connect to the grid.”
Hearn added: “We see a bright future for solar and will continue our leading role as a lender to help ramp up generation across all levels, from household to commercial and grid-scale.”
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