Powering and heating your business with gas is an increasingly expensive option for Kiwi small businesses. With this in mind, the NZ Government is introducing the Gas Transition Loan Guarantee Scheme to ease the cost of switching to other energy sources.
What the Gas Transition Loan Guarantee Scheme offers
If you meet the eligibility conditions, the Gas Transition Loan Guarantee Scheme will provide bank loans to help your business transition away from, or reduce, your natural gas use.
Under the scheme, the Crown will guarantee 80% of each supported loan in return for banks passing on lower interest rates to borrowers. This will make it far cheaper to take out loans to replace ageing gas-powered assets and equipment.
The scheme is expected to be operational from July or August 2026 and will be available for three years.
Who’s eligible for the scheme?
Let’s take a look at the eligibility criteria for the scheme and what investments will be covered by the Government’s new scheme.
To be eligible for the scheme:
– Your business must be operating in New Zealand and have annual gas use of at least 1000GJ.
– The scheme will support investments in energy efficiency, fuel switching, and other technologies that reduce natural gas (piped gas) consumption.
– Supported projects must deliver at least a 15% reduction in natural gas use, and that reduction must come from genuine efficiency improvements or fuel switching – not reduced production.
– There is a $50 million maximum borrower limit.
Once the Gas Transition Loan Guarantee Scheme is available, we’ll be happy to help you review your eligibility, cost out your investment and apply for the loan.