Energy Affordability Loans for Ratepayers
Cheap and easy loans that will allow homes to upgrade to electric machines, solar and batteries.
Why?
Rewiring Aotearoa’s research has identified accessible and affordable long-term finance as the biggest barrier to going electric.
Although it’s becoming more affordable and the economics more than stack up, upfront costs remain a hurdle for many.
To ensure every New Zealander has access to the upfront capital, Rewiring Aotearoa is working with the local government sector to supercharge the proposed Ratepayers Assistance Scheme (RAS) with Electrification Loans included.
Although it’s becoming more affordable and the economics more than stack up, upfront costs remain a hurdle for many.
To ensure every New Zealander has access to the upfront capital, Rewiring Aotearoa is working with the local government sector to supercharge the proposed Ratepayers Assistance Scheme (RAS) with Electrification Loans included.
How will it work?
These loans will offer attractive, low interest, long-term loans to every rateable property in New Zealand with flexible repayment options.
Low interest rates
These could be perhaps 1–1.5% below average mortgage rates (approximately 4–4.5%, assuming a 5.5% mortgage rate).
Flexible terms
Provide rate payers with terms such as longer payback periods, no fees for early repayments, and flexible payment options, which could include deferral of repayment until the sale of the property for certain households.
For all ratepayers
Financing for all ratepayers of participating councils. This differs from green loans offered by banks which tend to be only available for customers who have a significant portion of their mortgage remaining.
Easy application and installation processes
There is likely to be an online portal where you can explore different solar and electrification upgrades, find accredited installers, and then come back when you are ready and apply for the loan in a few short steps. Because the loan is linked to the credit ratings of the councils and central government, rather than individual homeowners, and the loan is secured against the property, the loan process will be straightforward and fast.
The RAS builds on an established successful model used by councils to access credit via the New Zealand Local Government Funding Agency (LGFA). Using the LGFA, councils reduce borrowing costs while providing investors with a stable return on investment. It is important to note that, because the loan is tied to the individual rateable property and no one shareholder owns more than 20%, the debt from these loans will not appear on the books of the councils, or central government.
The wider RAS includes additional elements to assist older New Zealanders to be able to afford to stay in their homes, and unlock additional housing development.
The wider RAS includes additional elements to assist older New Zealanders to be able to afford to stay in their homes, and unlock additional housing development.
What's Needed?
We’re confident the RAS and electrification loans can be enabled quickly, it could be up and running by the middle of 2026.
Achieving this would require initial capital investment, establishing the necessary legal, financial, and digital arrangements, along with a few key legislative changes. Eight councils, plus EECA, have committed the further funding required to get the RAS ready for final equity investments from councils and central government. Rewiring Aotearoa is closely involved in RAS development.
Perhaps the biggest hurdle is the required legislative changes, which while relatively small and simple require Parliamentary time. We’re advocating this be prioritised very early in 2026 to unlock the significant cost of living and wider benefits for ratepayers as soon as possible.
Achieving this would require initial capital investment, establishing the necessary legal, financial, and digital arrangements, along with a few key legislative changes. Eight councils, plus EECA, have committed the further funding required to get the RAS ready for final equity investments from councils and central government. Rewiring Aotearoa is closely involved in RAS development.
Perhaps the biggest hurdle is the required legislative changes, which while relatively small and simple require Parliamentary time. We’re advocating this be prioritised very early in 2026 to unlock the significant cost of living and wider benefits for ratepayers as soon as possible.
FAQs
Who will be able to access the loans?
Every council will be able to elect to offer all, some or none of the RAS offerings (including electrification loans). Every ratepayer in a participating council’s jurisdiction will be able to apply for loans available to them.
Every council will be able to elect to offer all, some or none of the RAS offerings (including electrification loans). Every ratepayer in a participating council’s jurisdiction will be able to apply for loans available to them.
Does the scheme include subsidies?
Not in its current design. In the future, the platform established by the RAS may be used to package and present any subsidies on offer. This combination of loans and grants will be particularly important for low income households who stand to benefit most from the savings electrification offers.
Not in its current design. In the future, the platform established by the RAS may be used to package and present any subsidies on offer. This combination of loans and grants will be particularly important for low income households who stand to benefit most from the savings electrification offers.
What’s in it for councils?
Councils who contribute funding will have an equity stake, with a return on their investment once the RAS starts making a surplus. Assisting ratepayers in their region to electrify also furthers progress on councils’ climate and sustainability goals, and lowers the cost of living for residents who take up the loans.
Councils who contribute funding will have an equity stake, with a return on their investment once the RAS starts making a surplus. Assisting ratepayers in their region to electrify also furthers progress on councils’ climate and sustainability goals, and lowers the cost of living for residents who take up the loans.
Can renters benefit?
With the right incentives, we believe landlords are likely to take up the loans on offer, especially because of the potential ability to defer payment until sale of the property. Rewiring Aotearoa is working hard on further innovation to complement the RAS and ensure all renters can benefit from electrification.
With the right incentives, we believe landlords are likely to take up the loans on offer, especially because of the potential ability to defer payment until sale of the property. Rewiring Aotearoa is working hard on further innovation to complement the RAS and ensure all renters can benefit from electrification.
What will the scheme look like?
1) House sees what is available
Household jumps on an online portal, potentially hosted by EECA, and sees what products their council has elected to make available in their area.
Household jumps on an online portal, potentially hosted by EECA, and sees what products their council has elected to make available in their area.
2) Select upgrades, see approved tradies
Use the portal to explore solar and electrification upgrades and view accredited installers.
Use the portal to explore solar and electrification upgrades and view accredited installers.
3) Get quotes
Request and compare quotes from accredited installers you found in the portal, then choose your preferred option.
Request and compare quotes from accredited installers you found in the portal, then choose your preferred option.
4) Apply
Apply for a RAS loan, with any eligible ratepayer approved if they meet the simple requirements.
Apply for a RAS loan, with any eligible ratepayer approved if they meet the simple requirements.
5) RAS pays tradie
Work is completed by accredited installers and as soon as you are happy with your installation, the RAS pays the tradie.
Work is completed by accredited installers and as soon as you are happy with your installation, the RAS pays the tradie.
6) Household pays off over time
Repay a low interest, long term loan with flexible options, including longer payback periods and, for some households, deferral until the property is sold.
Repay a low interest, long term loan with flexible options, including longer payback periods and, for some households, deferral until the property is sold.
Cost of living busting numbers
Here are the estimated cumulative net savings for a typical NZ home that installs a 9 kW solar array with a low interest RAS loan, repaid over 25 years.
Repayments are included, so savings build each year, from about $1,100 in 2025 to roughly $26,000 by 2055. Solar helps lock in cheaper energy, reduce exposure to power price rises, and ease cost of living pressure.
Repayments are included, so savings build each year, from about $1,100 in 2025 to roughly $26,000 by 2055. Solar helps lock in cheaper energy, reduce exposure to power price rises, and ease cost of living pressure.
What can the community do?
Talk to your local council
Approach your local elected officials and council staff to encourage them to support the RAS by signing up as a partner council and contributing to the establishment costs. Use your experiences and stories from the community to explain the need for electrification loans, and sell them on the benefits.
Approach your local elected officials and council staff to encourage them to support the RAS by signing up as a partner council and contributing to the establishment costs. Use your experiences and stories from the community to explain the need for electrification loans, and sell them on the benefits.
Generate grassroots interest
Get locals excited about electrification loans. These loans will provide an option for households to access flexible, low interest loans that will significantly reduce power bills.
Get locals excited about electrification loans. These loans will provide an option for households to access flexible, low interest loans that will significantly reduce power bills.
Continue to encourage electrification
While these council backed loans will support all ratepayers to access the benefits of electrification, we encourage all New Zealanders who can access the upfront finance to make the switch now. The sooner you invest, the sooner your household (and wallet) will see the benefits of electrification.
While these council backed loans will support all ratepayers to access the benefits of electrification, we encourage all New Zealanders who can access the upfront finance to make the switch now. The sooner you invest, the sooner your household (and wallet) will see the benefits of electrification.
Encourage uptake
When these loans are online, Electric Communities will be key to educating residents on taking advantage of the loans, and continuing to advocate for the benefits of electrification.
When these loans are online, Electric Communities will be key to educating residents on taking advantage of the loans, and continuing to advocate for the benefits of electrification.
Support us
Your donations help our team keep the momentum of rapidly electrifying Aotearoa New Zealand within our key focus areas of community, government and industry.
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