National pledges solar loans for homeowners, planning reforms

Under the proposed Home Energy Fund, homeowners could borrow to install solar panels, battery storage, heat pumps, insulation and other energy upgrades, with repayments attached to their rates rather than paid upfront.

National is promising low-interest loans for home solar and batteries, and sweeping planning changes to make small-scale renewable energy easier to install, if re-elected.

Under the proposed Home Energy Fund, homeowners could borrow to install solar panels, battery storage, heat pumps, insulation and other energy upgrades, with repayments attached to their rates rather than paid upfront.

The fund would be supported by central government and participating councils, with the Crown taking a 20% shareholding via a one-off $7 million equity investment, and the balance funded by participating councils and the Local Government Funding Agency.

Because loans would be secured against the property and backed by Crown and local government balance sheets, National said they can be offered at competitive interest rates.

Homeowners would need at least 20% equity in their property to be eligible. Council participation would be voluntary, though National says it expects strong uptake based on advocacy from Local Government NZ.

Energy spokesperson Simeon Brown says just 3% of New Zealand households currently have solar, compared with about 9% in the United States and one in three in Australia.

"In a more volatile world and with more severe weather events, supporting households to have greater control over their power will help more families store affordable energy when prices spike, and keep the lights on during outages."

National said the fund was modelled on a scheme called for by Local Government New Zealand and Rewiring Aotearoa.

"We know that the biggest barrier to solar, batteries and other home energy upgrades is the significant upfront cost," said local government spokesperson Simon Watts.

"This will give Kiwis more control over their power bills rather than leaving them exposed to rising electricity costs."

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Alongside the fund, National was also promising to overhaul planning rules it says have made small-scale generation unnecessarily difficult.

RMA Reform spokesperson Chris Bishop cited a case where a council required a water discharge consent for ground-mounted solar because rain could run off the panels.

"That’s the kind of nonsense we’ll end," he said.

Under changes to the Resource Management system, National said it would make rooftop solar, ground-mounted farm solar, small battery storage and small micro-hydro installations permitted as of right.

"Together, our Home Energy Fund and consent changes will make it easier for Kiwis to use natural resources on their own land, with as little red tape as possible, making energy more affordable and building a more resilient New Zealand," Bishop said.

Labour's energy spokesperson Megan Woods.

Labour backs policy, says it won't help renters or those struggling most

Labour, while welcoming the policy's direction, questioned whether it would reach those who need it most.

"Solar is the future and an important part of our energy security, so anything that makes it easier and cheaper to install is welcome," energy spokesperson Megan Woods said.

"The scheme put together by Rewiring Aotearoa and Local Government is great if you already own your home, but there's no guarantee it will help renters and families who are struggling with their power bills right now."

Woods said the policy was positive but insufficient on its own, given the number of households under financial pressure — and accused National of a late conversion to renewables after three years of backing fossil fuels.

"National has been focused on reopening offshore oil and gas exploration and promoting imported LNG to manage energy shortages. Now with an election approaching, they're trying to present a different vision. They could have done this years ago."

She said National had cut funding to the Warmer Kiwi Homes programme and left households facing rising power prices and ongoing supply uncertainty, while Labour had consistently backed renewable energy.

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