Farmers would be able to finance solar, batteries and micro hydro on farm through their rates under National’s Home Energy Fund policy released yesterday, which Rewiring Aotearoa CEO Mike Casey says could become a world-leading finance product.

“It feels like all my Christmases have come together at once,” he says.

He had no warning of the announcement beyond a 9:30 call from National’s Local Government spokesperson Simon Watts the night before, only telling him a ‘big’ announcement was coming and that he would be happy about it.

He says the policy has near-universal political support, with the Greens, Labour and NZ First all backing it. His focus now is getting it passed under urgency before the caretaker government period, so it could be running by next winter.

“Let’s put on our big boy and big girl pants and let’s get done what needs to be done for New Zealanders.”

Casey says Rewiring Aotearoa floated the idea of low-interest, long-term flexible finance about nearly a year ago, with the aim of making it available to rural New Zealanders.

“My main focus here was making sure that this wasn’t just a product that was rolled out to residential or urban New Zealanders; it was something that was also available to rural New Zealanders.

The fund applies to every rateable property.

Farmers currently miss out on the green loans banks offer at 1% or 0% because their property is rurally zoned. The Home Energy Fund offers finance secured on the property at about a 3.5% to 4% interest rate, about 1.5% below market, over long, flexible terms repaid through rates.

“Energy is a massive opportunity for farmers to lower their farm input costs from day one.”

He says the savings could be used to repay the loan faster or put towards other parts of farm operations.

National says the fund requires almost no taxpayer or ratepayer funding. A ratepayer’s bill rises only if they elect to take the loan, and the debt sits on the property, transferring to the next owner at sale.

They will also make small-scale renewables largely permitted under its new Resource Management system. Casey says a farmer should be able to install about one megawatt of ground-mounted solar without consent, alongside new rules for batteries and micro hydro for on-site use.

“Farmers pretty much have their own private oil well and refinery on farm.”

CountryWide CONNECT with Andy Thompson & Sarah Perriam-Lampp is our daily rural show livestreamed from 11am-1pm. Visit country-wide.co.nz on how to watch/listen or download the CountryWide CONNECT mobile app, available on Apple iOS and Android.