Banks’ climate rivalry heats up

Westpac says it will lend up to $10,000 interest-free for five years to its home loan customers to improve the energy efficiency of their homes.

The bank’s chief executive, David McLean, said its new ‘‘Warm Up’’ loans could be used by Westpac home loan customers to install heat pumps, solar panels, ventilation, double glazing or insulation.

The bank is competing with rivals to brand itself as the most climate-friendly of banks.

Its Westpac Warm Up loans have upped the ante on ANZ, which offers ‘‘Healthy Homes’’ mortgage top-ups of up to $5000 to customers wanting to improve the energy efficiency of their homes with no interest to pay for four years.

McLean, who is planning to install solar in his own home, was unsure what the interest-free loans would cost the bank as it was uncertain what proportion of current home loan customers would apply for them.

The loan limit had been set at $10,000 because that was a realistic total considering the costs of installing energy efficiency solutions in homes, he said.

The move was partly inspired by a survey Westpac commissioned which found the vast majority of people felt businesses should be doing more to reduce their climate impact.

In all, 88 per cent of respondents felt business needed to commit to more carbon reduction.

‘‘That’s why we’re committed to offering products and services that can cut our customers’ costs and their carbon footprint,’’ he said. ‘‘Our new Westpac Warm Up loan offering is one way we can help New Zealanders make their home more energy-efficient, while also improving the quality of our housing stock for future generations.’’

STUFF Solar is a small but growing part of New Zealand’s energy supply system. At the end of 2019, it was estimated to be producing around a quarter of 1 per cent of our electricity.