Labour promises subsidies, new loan schemes for installing solar

Labour has joined the solar election policy contest, offering subsidies and two new loan schemes to remove the upfront cost of installing solar.

The SolarSaver policy package has some similarities to what National has also announced, with both parties proposing a new loan scheme secured against applicants' properties.

Like National's policy, Labour's Ratepayer Assistance Scheme would offer long-term, low-interest loans, and repaid through rates. Local Government New Zealand and Rewiring Aotearoa have both been calling for such a scheme.

In addition, Labour has proposed loans through lines companies, underwritten by the Crown, and paid back through power bills.

It would also offer $3000 kickstart subsidies for low and middle-income families, and set up a community battery fund to help neighbourhoods store power and share the savings across households.

Renters would also be able to access the kickstart subsidy to cover the cost of plug-in solar, with Labour saying it would fix the regulations to make plug-in solar more accessible.

Labour leader Chris Hipkins said the policy would remove the upfront cost that prevented many families from accessing solar.

"Renewable energy is the cheapest form of electricity available, but too many households are locked out by the initial cost. SolarSaver creates a simple one-stop shop, provides affordable finance, helps renters access solar for the first time, and offers targeted grants for families who need extra support," he said.

The party has costed the package at $160 million over four years, funded by repurposing the Gas Security Fund.

Of that, $22m would go towards further support for the Energy Efficiency and Conservation Authority, which applicants would use as a one-stop shop to help them decide what type of solar, and what finance scheme, best suited them.

Labour expected the subsidies, loan schemes, and EECA support would be up and running within twelve months of taking office.

Last month, National announced its election solar policy, which would also allow property owners to access low-interest loans, secured against their property, and repaid through rates.

National's Home Energy Fund, which the party said was a narrower version of the Ratepayer Assistance Scheme, would be jointly owned by central and local government, with the Crown putting in a $7 million equity investment for a 20 percent shareholding in the new entity.

The party would also allow people to install solar without the need for council consent.

National expected 80,000 people would take up its scheme over 15 years.

While National's policy document did not mention plug-in solar, energy minister Simeon Brown posted on social media on Tuesday that "work is underway" to develop plug-in solar standards.