Why Farms Are Investing in Solar
For Waikato dairy and rural operations, electricity is one of the largest costs you can actively manage. Solar lets you generate your own power during the hours you already use the most, and the way farms run makes that a strong fit.
Electricity is a top farm cost
Milk cooling, vacuum pumps, water pumps, refrigeration and hot water heating draw substantial power, and power prices keep rising.
Solar peaks when you need it
Milking, cooling and pumping run through the day. That daytime load aligns naturally with solar generation, so farms get strong self-consumption.
You can stack the funding
A 0% bank loan, a 20% year-one tax deduction and (when open) government co-funding can combine to lower the real cost of going solar.
Long-term certainty
A well-designed system gives you greater control over one of your most volatile input costs for 25+ years.
Typical Electricity Savings
A Waikato dairy shed is one of the most energy-intensive rural businesses in New Zealand. Understanding where that energy goes is the first step to cutting it. Here's where farm electricity is typically used, and why solar lines up so well.
Milking system + water pump
of farm electricity, during fixed milking windows
Milk cooling & refrigeration
the third-largest single energy user on most dairy farms
Hot water heating & washdown
concentrated around milking times
Non-irrigated dairy use
per cow per year (standing DairyNZ benchmark)
The structural opportunity: milking peaks land around 5–7am and 2–5pm, while rooftop solar peaks from 10am to 3pm. There's solid overlap on the afternoon milking, but the morning milking is often dark, which is exactly why battery storage matters for farms. See how we design farm solar around real loads →
What Will Farm Solar Actually Cost?
Farmers rightly think about cashflow and total cost before returns. The real cost of a farm solar system is rarely the sticker price. GST is claimed back, a 20% year-one tax deduction applies and low-interest finance spreads the rest. Here's an indicative worked example on a typical Waikato dairy, so you can see the actual outlay rather than just the price tag.
Indicative worked example, 350-cow Waikato dairy
- System: 100kW solar + 50kWh battery~$200,000 ex GST
- GST input claim (15%)−$30,000
- Investment Boost (20% × 28% company tax)−$11,200
- Year-1 depreciation (tax-effected)−~$4,500
- Effective post-tax year-1 cost~$154,000
Estimated Payback
With ASB 0% finance on up to $150,000, most of the outlay is spread over five years at no interest. Indicative payback for a well-sized Waikato farm system sits around 5–7 years before any future grant, depending on how much power you use during daylight, your tariff and system size. We model payback from your actual power bills and load profile, not a generic assumption.
Indicative only. Assumes an NZ company structure with taxable profit, GST-registered, and reasonable install timing. The Investment Boost benefit only lands in year one if the farm has the profit to absorb the deduction; break-even or loss-making years carry it forward. Sole-trader, partnership and trust rates differ. Always confirm the numbers with your accountant before you sign.
Every farm is different.
Funding eligibility, taxation, finance approval and investment returns depend on your business structure, lender and financial circumstances.
The information on this page is general guidance only.
Always confirm funding, tax treatment and finance options with your accountant, financial adviser and lender before making investment decisions.
Funding, Finance & Grants
Few of these levers work alone. Stacked correctly, they cover most of a mid-scale farm install. The table below is the up-to-date reference for what's open, closed and possible right now. We keep it checked against EECA, ASB and IRD and review it regularly.
ASB Rural SMART Solar Loan
- Up to $150,000
- 0% interest
- Five-year term
Offer available to eligible ASB Rural customers until 30 June 2027 and may be withdrawn at any time.
| Funding / finance option | Status | What it offers |
|---|---|---|
ASB Rural SMART Solar Loan ASB Rural customers; farm property as security; primary production revenue. | Open | 0% interest, 5 years, up to $150,000. Offer live to 30 Jun 2027 (may be withdrawn). |
IRD Investment Boost Live since 22 May 2025. No upper limit. A deduction, not cash. Talk to your accountant. | Open | 20% of asset cost deductible in year one; remaining 80% depreciates normally. |
ANZ Good Energy Agri Loan SEANZ-accredited installer required. | Open | Up to $80,000 per trading group. 1% fixed for 3 years, then floating, 5-year max. |
Westpac Sustainable Farm Loan Rate discount, not a rebate. | Open | 0.20% margin discount on rural lending when the farm passes the Sustainable Farm Standard. |
BNZ Agribusiness Sustainability-Linked Loan Terms set case-by-case with your agribusiness manager. | Open | Interest savings linked to agreed environmental targets. |
Rabobank NZ rural finance No published rate; arranged case-by-case. | Open | Sustainability-linked rural finance via your relationship manager. |
EECA Solar helpline for farmers 0800 300 643 · solar@eeca.govt.nz | Open | Free independent guidance on sizing, quotes, payback and connection. |
EECA Solar on Farms Demonstration Fund 37 farms, 3,751 kWp confirmed as at 22 May 2026. Up to $200k/farm (40% inverter+battery, 20% panels+racking). | Closed | Round 1 applications closed 16 Oct 2025. Approved farms must complete installs by 30 Jun 2026. |
Future EECA funding rounds Subscribe to EECA Solar on Farms updates for earliest notice. | Possible | No future round is officially announced. EECA's pattern is pilots followed by wider rollout. |
Government Programmes
EECA Solar on Farms Demonstration Fund
ClosedRound 1 applications closed on 16 October 2025. The 37 approved farms (3,751 kWp confirmed as at 22 May 2026) must complete their installations by 30 June 2026. The fund offered up to $200,000 per farm, up to 40% of inverter and battery costs and up to 20% of panels and racking, with a $450/kWh battery cap and $100,000 battery component cap. It is not open to new applications today.
Possible future rounds
PossibleNo future round has been officially announced. EECA's pattern across decarbonisation programmes has been pilots followed by wider rollout, but nothing is confirmed. The most useful step is to subscribe to EECA's Solar on Farms updates for earliest notice, and to have a shovel-ready farm assessment ready so you can apply quickly if a round opens.
EECA Solar helpline for farmers
OpenFree, independent guidance on system sizing, savings, payback, comparing quotes and connection issues. Call 0800 300 643 or email solar@eeca.govt.nz.
Bank Finance
Several NZ banks offer green agribusiness finance for on-farm solar. We don't recommend one over another. We lay out the verified options and you choose with your rural banker.
ASB Rural SMART Solar Loan
0% interest for 5 years on up to $150,000. Offer live to 30 June 2027 and may be withdrawn at any time. Available to ASB Rural customers with the farm property as security and primary production as the main revenue source. View on ASB →
ANZ Good Energy Agri Loan
Up to $80,000 per trading group. 1% fixed for 3 years, then floating, 5-year max term. Requires a SEANZ-accredited installer. View on ANZ →
Westpac Sustainable Farm Loan
A 0.20% margin discount on rural lending when the farm passes the Westpac Sustainable Farm Standard. A rate discount, not a rebate.
BNZ Agribusiness Sustainability-Linked Loan
Interest savings linked to agreed environmental targets. Terms set case-by-case with your agribusiness manager.
Rabobank NZ rural finance
Sustainability-linked rural finance arranged case-by-case through your relationship manager. No published rate.
Tax Incentives
IRD Investment Boost
Live since 22 May 2025, the Investment Boost lets businesses immediately deduct 20% of an eligible new asset's cost in the year of purchase, with the remaining 80% depreciating at normal rates. Solar PV on income-producing farm property qualifies, and there is no upper limit on the asset value.
It is a tax deduction, not cash. The benefit only lands in year one if your farm has the taxable profit to absorb it. Break-even or loss-making years carry the benefit forward as a tax loss. Company, sole-trader, partnership, trust and Māori-authority rates differ. View on IRD → and talk to your accountant before you sign.
Frequently Asked Questions
Is there a government grant for farm solar right now?
The EECA Solar on Farms Demonstration Fund (Round 1) is closed. No grant is currently open for new farm solar applications through that programme. The reliable, currently-available levers are the ASB Rural SMART Solar Loan at 0% interest and the IRD Investment Boost 20% year-one tax deduction. We explain every option honestly on this page, with status dates.
What's the status of the EECA Solar on Farms fund?
Round 1 applications closed on 16 October 2025. The 37 approved farms must complete their installations by 30 June 2026. The fund offered up to $200,000 per farm, up to 40% of inverter and battery costs and up to 20% of panels and racking. There is no open round today.
Will there be another EECA funding round?
No future round has been officially announced. EECA's pattern across decarbonisation programmes has been pilots followed by wider rollout, but nothing is confirmed. The most useful step is to subscribe to EECA's Solar on Farms mailing list so you hear about any new round first, and to have a shovel-ready assessment ready.
How does the ASB Rural SMART Solar Loan work?
Eligible ASB Rural customers can borrow up to $150,000 at 0% interest for five years for on-farm solar and battery systems, with the farm property as security. ASB lists the offer as available until 30 June 2027 and notes it may be withdrawn at any time, so it's worth applying early rather than waiting.
What is the IRD Investment Boost and does it apply to farm solar?
The Investment Boost lets businesses immediately deduct 20% of an eligible new asset's cost in the year it's purchased, with the remaining 80% depreciating at normal rates. Solar PV on income-producing farm property qualifies. It has been live since 22 May 2025 and has no upper limit. It is a tax deduction, not cash. The benefit depends on your taxable profit, so talk to your accountant.
Can I combine a bank loan with the Investment Boost?
Yes. The two work independently. A 0% or low-interest loan funds the upfront cost, while the Investment Boost reduces your taxable income in year one. Other agribusiness green loans (ANZ, Westpac, BNZ, Rabobank) can also be combined. Your accountant can confirm how the deduction lands for your structure and profit level.
Do I need a battery to qualify for funding?
The closed EECA demonstration fund required battery storage. The ASB loan and the Investment Boost do not require batteries, though many farms add one because early-morning milking falls outside solar generation hours. We design every system to be battery-ready so you can add storage later if the economics suit.
How long until farm solar pays for itself?
Typical indicative payback for a well-sized Waikato farm system is around 5 to 7 years, before any future grant. This depends heavily on how much power you use during daylight, your tariff and your system size. We model payback from your actual power bills and load profile, not a generic assumption.
What if I'm not an ASB rural customer?
Other banks offer green agribusiness finance: ANZ Good Energy Agri Loan (up to $80,000 per trading group), Westpac Sustainable Farm Loan (margin discount), BNZ Agribusiness Sustainability-Linked Loan and Rabobank NZ (case-by-case). We don't recommend one bank over another. We explain the options and you choose with your rural banker.
How do I get a farm solar funding assessment in the Waikato?
Request a free, no-obligation assessment. We visit your farm, review your power bills and ICP, look at your shed and load profile, and show you the funding and finance stack that fits, with honest figures and no pressure.
Why Solar Waikato?
We're a local, qualified electrical contractor, not a nationwide broker matching you to three strangers. Your farm system is designed, installed and serviced by the same registered Waikato team, end to end.
300+ installations
Over 300 solar systems installed across the Waikato, farms, businesses and homes.
Waikato experience
Local to Hamilton and the surrounding districts. We understand Waikato sheds, seasons and supply.
Rural expertise
We design around real operational loads, milking times, hot water cycles, pump schedules, not theory.
Registered electricians
Designed, installed and commissioned by qualified, registered electricians.
Ongoing servicing
Monitoring and local support from the same team who installed your system.
ESCOUT optimisation
Optional energy intelligence to keep improving self-consumption over time.
Optimising Your Solar Investment
Once your solar is installed, the next opportunity is making sure more of what you generate is used on-site. ESCOUT is an optional energy intelligence platform we're developing to help you understand how energy flows through your farm, how your system is performing and where further savings are possible.
It's an add-on for customers who want deeper insight over time, not something you need to go solar. Explore ESCOUT
Want to know when new funding becomes available?
Register your interest and we'll notify you when new farm solar funding or finance opportunities open in the Waikato, including any future EECA round. It's the fastest way to hear first, with no obligation.
Book a Farm Solar Funding Assessment
Free, no-obligation. We visit your farm, review your power bills and load profile, and show you the funding and finance stack that fits, with honest figures and no pressure.
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