National is proposing a Home Energy Fund that would allow homeowners to borrow for solar panels and energy upgrades at below-market rates, with repayments collected through council rates.
The scheme would require $7 million in Crown equity to establish, with loans expected to carry interest rates about 2 percentage points below floating rates. Homeowners could borrow for items including solar panels, batteries, heat pumps, insulation and efficient appliances, with loans secured against the property.
National energy spokesperson Simeon Brown said the fund would enable households to invest "in solar, batteries, insulation and other energy resilience measures without the large upfront costs". He said it would create "a stronger, more resilient energy system that gives New Zealanders access to a wider and more reliable mix of power when weather events or global shocks put pressure on supply".
The loans would run for at least 10 years with no early repayment penalties. Finance spokesperson Nicola Willis said the $7 million cost estimate was based on work by Local Government New Zealand, whose chief executive Scott Necklen welcomed the proposal.
Labour energy spokesperson Megan Woods criticised the scheme as too narrow, saying it would only help homeowners while missing renters, who make up about one-third of New Zealanders. Willis responded that landlords would benefit by improving their properties' value and appeal to tenants.
The proposal draws on an existing local government scheme that structured similar loans over 20-30 years.