If you’re looking to upgrade your home or car to more energy efficient options, banks offer green loans and mortgage top ups with super low interest rates to help with upfront costs. The upfront cost may be more, but electric systems are often cheaper to run and can save you money over time.

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To help Kiwis make the move to more energy-efficient options, most New Zealand banks offer discounted financing options and home-loan top ups. These loans are all slightly different, with varying interest rates and terms. But given many offers feature interest rates at 1% or even 0%, they could help you overcome the initial cost and save you money in the long run. But if you haven’t paid back the full amount by the end of the loan duration, interest rates will rise.

The maximum borrow amount tends to be between $50,000 and $80,000. Loan duration can be anywhere from three to ten years.

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Each bank has specific criteria about what their sustainable finance options can cover. But most loans can help with things like:

• buying energy-efficient appliances, like a heat pump (including hot water heat pumps) or an induction cooktop

• making your home drier, warmer and more energy-efficient, by installing insulation, double-glazing and ventilation systems

• switching to cleaner transport, like an electric bike, an EV, hybrid car, or smart EV charger

• upgrading to renewable energy sources, like solar power systems and batteries

• installing sustainable water systems, like rainwater tanks.

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As with all big financial decisions, it’s good to get professional advice. You’ll also want to have a good look at your specific situation, now and in the future, to weigh up the potential benefits and risks.