ASB unveils zero-interest solar loan to power rural energy savings

With average electricity costs for dairy farms forecast to reach $28,000 in the 2025/26 season, ASB has launched a new interest-free loan to help farmers cut costs, boost energy security, and reduce emissions.

The new ASB SMART Solar Loan offers five years interest-free on up to $150,000 for solar and battery systems, in what the bank is calling a market-leading offer aimed at improving resilience for rural customers.

“We’re stepping up with this strong offer for our rural customers, as we’re committed to investing in a more resilient future for regional New Zealand,” ASB rural general manager Aidan Gent says.

The loan draws on research from energy transition charity Rewiring Aotearoa, which found 66% latent demand for electrification among farmers—significantly higher than the 48% recorded in residential sectors. The study revealed that while most farmers had suitable rooftop or land space for solar installations, the high upfront cost remained the biggest barrier.

To support decision-making, ASB has partnered with Prism Earth to develop online tools allowing farmers to assess solar’s potential on their property. These interactive tools will allow users to map solar-suitable areas, estimate emissions and energy savings, and calculate payback timeframes for investments.

“From high-tech milking sheds to irrigation, farmers need affordable, reliable energy. Solar generation will help farmers work smoothly through power outages and extreme weather events, when rural communities are often the last to be reconnected,” Gent says.

“With cheaper energy from the day solar is up and running, and five years interest-free to get started, ASB SMART Solar will be the right call for many farmers.”

The programme launched at Fieldays on June 11 and the offer is available to existing and new ASB rural customers until December 15.

According to ASB’s modelling, a 250 square metre ground-mounted solar system could save up to $598,200 over the life of the panels, with a median installation cost of $110,600. Based on these estimates, farmers could begin to see a return on investment as early as year six.

Otago dairy farmer Otto Dogterom, who installed solar panels in 2021, says rising electricity costs were the key motivator.

“Power prices were going up faster than inflation and I wanted to insulate against further increases.”

He says his 240kWh ground system is ideal for powering irrigation across his 300-hectare farm, adding: “Sunny days are when irrigation is needed most.”

Dogterom says solar is not just good business but also good for New Zealand.

“It’s a way farmers can do our bit for the environment and make New Zealand as a whole more resilient.”

For larger solar projects, ASB says the SMART Solar Loan can be paired with its Business Sustainability Loan, which offers special variable rates on qualifying initiatives.