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WE Share — Business Solar Finance Guide

Helping New Zealand businesses understand how to finance solar and battery systems that lower costs, build resilience, and align with sustainability goals.

☀️

Why Business Solar Finance Matters

Solar is now the cheapest form of energy in the world. For NZ businesses facing record electricity costs, financing solar is no longer a “green option” — it’s a commercial strategy.

Key Insights

  • Electricity costs have risen ~8% annually (10% expected in 2025).
  • EECA estimates 12–14% ROI on well-sized solar systems.
  • With solar, businesses can turn a fixed expense into an owned energy asset.

💡 How to Approach Solar Finance

When assessing finance pathways, balance cash flow, ownership, and long-term value. Key questions to ask:

  • Do you want to own the system or pay per kWh?
  • How long will you occupy your current site?
  • Will the system appear on your balance sheet?
  • Are sustainability credentials or ESG reporting important to your brand?

Goal: Align repayments with solar savings — so your monthly finance cost ≈ energy savings from day one.

1️⃣

Purchase — Full Ownership

Best for: Businesses with strong cash reserves or capital budgets.

Structure

Pay upfront, own the asset, and claim full financial benefits.

Key Features

  • Immediate ownership and control.
  • Eligible for Investment Boost (20% first-year deduction) plus depreciation.
  • Lowest lifetime cost and highest return.
  • Consider: Upfront capital requirement and ongoing maintenance responsibility.
2️⃣

Bank “Green” Business Loans

Best for: SMEs and corporates financing sustainability projects.

Bank Product Typical Amount Notes
ANZ Business Good Energy Loan Up to $3 m Discounted rate; solar, batteries, EVs eligible.
ASB Sustainable Business Loan Case-by-case Rate discount for verified sustainability projects.
BNZ Green Business Loan Up to $3 m Solar and battery upgrades qualify.
Westpac Sustainable Business Loan Case-by-case Funds low-carbon projects and equipment.
Kiwibank Sustainable Energy Loan Up to $50 k Residential focus; limited commercial availability.

Key Points

  • Terms 3–7 years typical.
  • Ownership remains with borrower.
  • Combine with Investment Boost and depreciation benefits.
3️⃣

Asset Finance / Hire Purchase

Best for: Businesses needing fast approval with equipment-secured lending.

How it works

Financier owns or secures the equipment until final payment.

Pros

  • Low upfront cost.
  • Payments align with solar savings.
  • Ownership transfers at term end.

Cons

  • Slightly higher rates than senior debt.
  • Early repayment penalties may apply.
4️⃣

Operating Lease / Payment Plan

Best for: Tenanted sites or businesses prioritising cash-flow stability.

Structure

Financier owns the system; business pays a fixed monthly fee. Options at term end: buy, renew, or remove.

Pros

  • $0 upfront, predictable Opex.
  • Includes monitoring and maintenance.
  • May stay off balance sheet (check accounting standards).

Cons

  • Higher total cost of ownership.
  • Limited flexibility for system changes or early exit.
5️⃣

On-Site Power Purchase Agreement (PPA)

Best for: Medium-to-large users with strong daytime load and long-term site control.

Structure

Third party funds, owns, and maintains system. Business buys generated power at agreed $/kWh.

Pros

  • $0 upfront; no asset risk.
  • Stable long-term energy pricing (10–20 yrs typical).
  • Maintenance, insurance, and performance risk handled by provider.

Cons

  • Locked-in term; buy-out costs apply.
  • Not eligible for Investment Boost or depreciation.
6️⃣

Off-Site / Corporate PPA

Best for: Multi-site businesses seeking renewable supply without on-site installation.

Structure

Contract with a utility-scale solar or wind generator (physical or virtual PPA).

Pros

  • Renewable credentials and long-term price hedging.
  • Enables carbon-reduction reporting.

Cons

  • Contract complexity.
  • Suited to larger energy users or consortiums.
7️⃣

Community & Council Pathways

Best for: Local SMEs, schools, or community facilities.

Examples

  • WE Share Pilot: Wholesale-priced systems for the current pilot stage of 50 additional installs under community-ownership model.
  • EECA Business Co-funding: Support for energy innovation and efficiency.
  • Local Board Grants: Targeted sustainability and resilience funding.
Option Upfront Term Owner Cash-Flow Impact Investment Boost Eligible?
Cash Purchase High n/a Business Highest savings after payback ✅ Yes
Bank Loan Low–Med 3–7 yrs Business Payments ≈ savings ✅ Yes
Asset Finance Low 3–7 yrs Business (end of term) Fixed repayments ✅ Usually
Operating Lease $0–Low 3–7 yrs Financier Fixed Opex ❌ No
On-Site PPA $0 10–20 yrs Provider Pay-per-kWh ❌ No
Off-Site PPA $0 7–20 yrs Generator Hedged energy price ❌ No
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Next Steps

Action Steps

  1. 1️⃣ Review the finance options above and shortlist what fits your business.
  2. 2️⃣ Gather your last 12 months’ electricity data and interval loads.
  3. 3️⃣ Talk to your bank, accountant, or WE Share representative to model payback and savings.
  4. 4️⃣ Register your interest in the WE Share Pilot Program to explore community-aligned commercial solar solutions.

Disclaimer

Information current as of 30 Oct 2025.
This guide is provided for education and community facilitation. It does not constitute financial, tax, or legal advice. Always seek independent professional advice before entering any finance or energy agreement.

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