Green Loans and Grants: Making Home Upgrades Affordable

The upfront costs of installing new insulation, getting a heat pump, or fixing the fireplace can feel overwhelming for many families. It’s easy to put these important upgrades off when money is tight, even though they make your home warmer, healthier, and more energy-efficient in the long run. The good news? There are affordable ways to help make these changes, thanks to green loans and government grants that can help cover the cost.

Think of green loans as a helping hand for homeowners wanting to make eco-friendly upgrades. These loans are specifically designed to make improvements like better insulation or getting a heat pump more affordable. Many New Zealand banks offer green loans with low or even no interest, which means you can upgrade your home without the stress of huge repayments.

Here’s a quick look at some options:

• ANZ Good Energy Home Loan: Borrow up to $80,000 at a 1% p.a. fixed rate for three years. This can help cover the cost of insulation, heat pumps, or even solar power.
• Westpac Greater Choices Home Loan: Offers an interest-free loan of up to $50,000 for five years. It’s perfect for heat pumps or insulation upgrades. 
• BNZ Green Home Loan: Borrow up to $80,000 at a 1% p.a. fixed rate for three years to fund home insulation, ventilation, or heating systems. Find out more here.
• ASB Better Homes Top-Up: Borrow up to $80,000 at a 1% p.a. fixed rate for three years for upgrades like heat pumps and insulation. Explore this option on the ASB website.

These green loans allow you to spread the cost of your home upgrades while reaping the benefits of lower energy bills and a cosier home.

Before you start thinking about taking out a loan, you might be eligible for the Warmer Kiwi Homes programme, which can cover up to 90% and, in some cases, 100% of the cost of insulation or heating for your home. It’s a game-changer for many Kiwi families.

Here’s what’s covered:

• Insulation: Grants cover 80-90% of ceiling and underfloor insulation costs. If you have a Community Services Card or live in a lower-income area (Deprivation Index 9 or 10), you’re eligible for the higher subsidy.
• Heating: Once your home is properly insulated, grants cover up to 80% of the cost of an approved heater (such as a heat pump, wood burner, or pellet burner) for your main living area. This funding is capped at $3,000, including GST.

Are You Eligible?

• You must own and live in a home built before 2008.
• You need to either hold a Community Services Card

or

• You live in a qualifying area (based on the Deprivation Index).

If you’re unsure whether you qualify, GreenSide Energy Solutions can help you check eligibility and guide you through the application process.

Upgrading your home doesn’t have to be out of reach. With green loans offering affordable financing and the Warmer Kiwi Homes grant taking care of most upfront costs, you can make your home warmer, healthier, and more energy-efficient today.

At GreenSide Energy Solutions, we specialise in making these upgrades as simple and stress-free as possible. Whether it’s improving your insulation or installing a heat pump, we’ll work with you to find the best solution for your home and budget.

Ready to get started? Contact us for a free home energy assessment, and let us help you access the financial support you need to create a cosy, efficient home.