Labour unveils $160m household solar package funded from Gas Security Fund

Wednesday, 8 July 2026

The Labour Party is proposing to spend $160 million over four years increasing the take-up of home solar power if it wins the general election in November.

The funding would include $77m in subsidies to lower and middle income households, who would be eligible for “kickstart” grants of up to $3000.

Solar systems with batteries included typically cost about $20,000, the party estimated.

The National Party has proposed less generous assistance for home solar after the election.

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It has proposed investing $7m in a “home energy fund”, also supported by councils, which would offer low-interest loans to home-owners to install rooftop solar, batteries, heat pumps, insulation and efficient electric appliances, with loans repaid via people’s rates bills.

Labour leader Chris Hipkins said solar was the cheapest form of electricity available, but many households were “locked out” by the upfront cost.

Its SolarSaver scheme would create a one-stop shop that offered affordable finance, helped renters access solar for the first time, and provided “targeted grants” for families that needed extra support, he said.

The funding would include $30m for “community batteries” that would be designed to provide a shared back-up for multiple homes — with or without them investing in solar power — and $20m to underwrite loans provided to households by lines companies for solar and batteries.

The Energy Efficiency and Conservation Authority would receive $22m to deliver the services and there would be $4m set aside for “workforce development”.

Renters would be allowed as of right to use “safe plug-in solar panels” which Labour estimated could save them $300 to $400 a year.

That could involve an amendment to the Residential Tenancy Act to mirror regulatory changes that were being made overseas, energy spokesperson Megan Woods said.

Labour’s costings were based on an assumption that 25,000 households would take up the kickstart subsidies.

A new property-linked finance scheme that appears similar to National’s concept would allow households to repay the cost of loans to install solar systems, batteries and hot-water heat pumps through their rates bill.

National Party campaign manager Simeon Brown said Labour’s policy was “essentially National’s policy with a bigger price tag”.

“They’ve managed to take the same idea and make taxpayers pay more for it.”

But Woods said Labour’s package was fundamentally different.

Hipkins said its policy was much more comprehensive. “There's something for everyone.”

Labour said it would fund the initiative by “repurposing” the $200 million Gas Security Fund that the Government established to encourage gas exploration and storage projects.

Ministers have said they will soon decide which applicants would receive money from the fund, but Labour noted it was currently almost entirely unspent.

It is understood Labour intends to announce other elements of its overall energy policy at a later date.