{"id":352667,"date":"2026-03-28T19:45:11","date_gmt":"2026-03-28T19:45:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/352667\/"},"modified":"2026-03-28T19:45:11","modified_gmt":"2026-03-28T19:45:11","slug":"is-a-90000-green-loan-the-cheapest-way-out-of-nzs-fuel-bill-crisis-all-things-property-under-oneroof","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/352667\/","title":{"rendered":"Is a $90,000 green loan the cheapest way out of NZ\u2019s fuel bill crisis?, All things property, under OneRoof"},"content":{"rendered":"

– An energy expert suggests borrowing $90,000 for green upgrades could be the cheapest way out of the energy crisis.<\/p>\n

– Rising fuel prices due to the US-Israel war on Iran have increased interest in green loans and electric vehicles.<\/p>\n

– Rooftop solar and electric appliances offer significant savings, with banks offering low-rate loans for sustainable options.<\/p>\n

An energy expert says borrowing $90,000 to go green could be the cheapest way out of the looming energy and fuel crisis.<\/p>\n

His statement comes as two New Zealand banks are seeing an uptick in enquiries in green loans in recent weeks.<\/p>\n

The US-Israel war on Iran<\/a> has resulted in dramatic increases in fuel and energy prices. Concerns are growing that the global economy faces a \u201cdoomsday scenario\u201d if the region\u2019s oil and gas sites are damaged and Iran fully closes the vital Strait of Hormuz, through which 20% of the world\u2019s oil supplies flow.<\/p>\n

In New Zealand, the Government is weighing up its options<\/a> as petrol prices hit $4 a litre<\/a> in certain parts of Auckland. Rising energy bills were already a concern<\/a> before the conflict, and there are fears that they will hit new highs in the months ahead.<\/p>\n

Rewired Aotearoa chief executive Mike Casey estimated Kiwis would need to spend around $90,000 to make almost everything in their homes more sustainable. That would include switching out gas appliances, including a heat pump water heater ($8000) and cooktop ($2000), installing rooftop solar ($18,000), getting a battery ($10,000) and buying an electric medium SUV ($55,000).<\/p>\n

\"Rooftop<\/p>\n

Petrol prices in New Zealand have been creeping closer to the $4 a litre mark since the start of the Iran war. Photo \/ Michael Craig<\/p>\n

\"Rooftop<\/p>\n

Car dealers have noticed an uptick in enquiries for EVs since the outbreak of the war. Photo \/ Jason Oxenham<\/p>\n

That was a lot to stump up, but the savings on power and fuel bills would be considerable \u2013 at least $4700 a year, Casey argued. Even those adding to their mortgage to finance the work would save more than $3000 a year over the life of their loan.<\/p>\n

Some of the major banks offered higher-equity borrowers loans with 0%-1% rates for a limited period to help fund some of these sustainable options. But even borrowing at a rate of around 5.5% still made financial sense, Casey said.<\/p>\n

\u201cAlways look at rooftop solar. If you\u2019ve got a spare $20,000 on your mortgage, you are probably 95% better off taking that money out and putting roof-top solar on your roof because you will save so much money doing so.\u201d<\/p>\n

He also advised replacing gas appliances with their electric equivalent. \u201cOne thing that we know for certain is that solar on the roofs of New Zealand homes is an absolute economic slam dunk. It almost doesn\u2019t matter if you have gas in the home, or how many people you\u2019ve got or how much energy you are using, because there are retailers buying it back off you.\u201d<\/p>\n

Discover more:<\/p>\n

– Tony Alexander: The golden rule when the world’s on fire – nobody knows anything<\/a><\/p>\n

– NZ’s house of fun for sale: Thousands of toys in home where playtime is never over<\/a><\/p>\n

– Bargains for $100K-plus: Coastal town where homes are cheaper than Auckland deposits<\/a><\/p>\n

Casey said the Iran conflict would drive interest in electric vehicles. \u201cProbably what this Iran situation has done has made people want to move to electric vehicles a lot sooner. But my theory is that by 2040, every machine in a home will be electric. You will still have fossil fuel cars, but they will be antiques, they will be people\u2019s prized possessions because it just doesn\u2019t work out economically for us to continue to do our daily commutes in fossil fuel vehicles.\u201d<\/p>\n

Robert McLachlan, a professor in applied mathematics at Massey University, said the number of people installing rooftop solar panels had risen by 60% a year over the last three to four years. \u201cOnly 2% or 4% of houses might have solar, but if this surge continues, it\u2019s going to be very noticeable \u2013 you will be seeing them everywhere,\u201d he said.<\/p>\n

A PV rooftop solar system might cost $10,000 to buy and install, but the energy cost savings were over $1000 a year, he said. \u201cThere\u2019s no question it stacks up.\u201d<\/p>\n

\"Rooftop<\/p>\n

Smoke and flames rise at the site of airstrikes on an oil depot in the Iranian capital of Tehran. The US-Israel air strikes on Iran began a month ago. Photo \/ AFP<\/p>\n

\"Rooftop<\/p>\n

Prime Minister Christopher Luxon and Finance Minister Nicola Willis announce the Government\u2019s fuel assistance package. Photo \/ Mark Mitchell<\/p>\n

McLachlan, whose work centres on climate change and the environment, said the conflict in the Middle East would likely result in more sales of electric cars (they currently make up 3% of New Zealand\u2019s vehicle fleet).<\/p>\n

\u201cFrankly, it\u2019s a mystery to me why more people aren\u2019t doing it. A second-hand EV really doesn\u2019t cost any more than your equivalent petrol car.\u201d<\/p>\n

McLachlan, who owns a 2018 Hyundai Ioniq, said EVs were \u201csuperior\u201d because they were cheaper to maintain and operate. \u201cI can see why everyone is freaking out. Just imagine if there really is a supply shock where you literally can\u2019t go and buy any. OMG it will be a massive unrest,\u201d he said.<\/p>\n

\u201cThe quicker we can make this transition happen, there\u2019s no question. It\u2019s just a win-win.\u201d<\/p>\n

Turners Auto Retail chief executive Greg Hedgepeth said the company\u2019s dealerships had seen a spike in interest in EVs in recent weeks. Some of the big banks also reported a lift in green loan enquiries.<\/p>\n

\"Rooftop<\/p>\n

BNZ says more customers are using its green loan to make their homes sustainable than to buy electric cars. Photo \/ Alex Burton<\/p>\n

ASB reported a 33% rise in the number of customers taking out an ASB Better Homes Top Up loan since the war had broken out. There was also a 46% increase in customers visiting its Better Energy Calculator.<\/p>\n

BNZ head of sustainable finance partnership Alex West said there was initially a lot of demand for electric cars when its green loan first launched, but more customers were using the loan to make their homes more sustainable.<\/p>\n

\u201cRenewable upgrades like solar panels continue to draw more interest as more customers look for alternative ways to power their homes, although we have not seen a noticeable spike in enquiries in the past few weeks.\u201d<\/p>\n

BNZ Head of Sustainable Finance Corporate and Institutional Business Adam Coxhead said the savings in many cases comfortably outweighed the cost of financing rooftop solar.<\/p>\n

\u201c… when most of the electricity generated is used on\u2011site, solar can materially reduce power bills from day one.\u201d<\/p>\n

Coxhead said there was also growing interest from business customers who wanted more certainty over their energy costs and less exposure to volatile electricity and gas prices.<\/p>\n

New Zealand Green Building Council chief executive Andrew Eagles said solar and hot water heat pumps \u201cabsolutely\u201d paid off for households, but for some, the upfront investment was too great.<\/p>\n

The bank-based green loans only benefitted those with substantial mortgages, he said, which meant lower-income and older households were often locked into high-cost electricity because they couldn\u2019t afford to upgrade. \u201cEconomics is not the barrier. Access to finance is.\u201d<\/p>\n

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