Aidan Gent: ASB General Manager for Rural on the loans for farmers to install solar and battery systems on their properties

ASB is offering loans to help farmers balance their energy costs. 

They’re offering five-year, interest-free loans of up to $150,000 for the installation of solar and battery systems on their properties. 

The bank said farm electricity costs are rising, with the average 2025/26 season power bill expected to be around $28,000 for owner-operated dairy farms. 

Research found most farms have rooftop space available for solar, and 60% of farmers say they have land that could be used for solar without reducing production. 

Rural General Manager Aidan Gent told Kerre Woodham the main barrier to electrification in rural areas was a lack of understanding as to what it would mean for them to electrify their farms, as well as what the cost and payback would look like. 

He says the bank is trying to ease access to capital, but also provide tools that help bring it to life. 

Electrifying rural areas would also be a major boost to resilience, Gent says, as in the event of a major weather event like Cyclone Gabrielle, it’s much easier to distribute power from farmers’ set ups rather than waiting on the main lines to be repaired. 

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Episode Transcript

Speaker 1 (00:06):
You're listening to the carry Wood and Morning's podcast from
News Talk SAB.

Speaker 2 (00:11):
Farmers are being offered five year interest free loans to
install solar battery electricity systems. ASB has launched smart solar loans.
They launched it at Field Days, saying a typical owner
operated dairy farm will spend abound twenty eight thousand dollars
on electricity this year. Bank research has found most farms

(00:34):
have rooftops space available for solar sixty percent of farmers,
so they have land that could be used for solar
without reducing production. ASB rural manager Aidan Gent joins me, now,
very good morning to you.

Speaker 3 (00:49):
Morning Carrie. How are you very well?

Speaker 2 (00:50):
Are you at Field Days already?

Speaker 3 (00:52):
Not yet, I'll be making the pilgrimage this afternoon.

Speaker 2 (00:56):
Excellent. The best way to go is up the river
in a jetboat. Just just saying just if you're interested. Now,
is this about reporting on net zero for the ban?
Is this about the bank having to know do your
net zeros in your and your greenhouse scares emissions and
coming up with ways to achieve those targets?

Speaker 4 (01:17):
No, first person, foremost is actually a financial driver for farmers.
So we know this is a way they can both
save money on farm and actually in regional New Zealand
improve that energy security and energy resilience. And whilst there
are some emissions savings, it's probably more of the resilience
and economic benefits upfront for this one that make the
most sense.

Speaker 2 (01:36):
Farmers are pretty canny business people, you know, they know
their onions when it comes to making the farm turn
a profit for them and where they can where they
can make savings. Wouldn't they have gone to solar before
now if it added up for them?

Speaker 3 (01:51):
Yes?

Speaker 4 (01:51):
And look, I'm a dairy farmer in a personal capacity,
so I get their natural cynicism around around is it
too good to be true? Look this the regard to
shown us two things. One that there is a is
actually a hired latent demand for electrification in rural New Zealand,
and was when we did the same survey with residential
customers in towns. But secondly, the biggest barriers have actually

(02:11):
been understanding what it would mean for them to electrify
their farms and then secondly what their cost and payback
would look like. So well, I guess we're trying to
We're trying to access capital a bit easier, and we're
trying to provide tools that help bring that to life.
Because from an economic perspective, in our payback the average farmer,
it's probably in the six to ten year range for
a payback of electrification. It stacks up financially, and with

(02:34):
the way on farm costs are, the stuff needs to
stack up financially before other factors are thought about.

Speaker 3 (02:39):
Yeah.

Speaker 2 (02:39):
Absolutely, and given that they are much higher users than
your average tiany, you can see the return would come
that much quicker as well. What's in it for the bank?

Speaker 4 (02:50):
Was it for the bank to two things? One, we're
really proud supporters of food and fiber and we think
this actually helps the resilience of our food and fiber sectors.
So it's a way of us that are I guess,
putting our money where our mouth is in a way
around supporting sector. And the second one is we think
it actually works the regional New Zealand. So if we
had another Gabrielle and we had more farmers electrified, you
know you can distribute power in those remote communities far

(03:12):
easier from the farmers set ups rather than waiting for
the main lines to be repaired. So we think there's
a huge regional New Zealand positive story here as well,
and something we're hoping that this accelerates that conversation on
farm with this offer.

Speaker 2 (03:26):
Yeah, I mean, any flood, any snowstorm, any major weather
event can put out farms for a week up to
a week ten days in the worst case scenarios. And
if it does, if alternative power systems make them more resilient,
that's got to be a good thing.

Speaker 3 (03:45):
Absolutely.

Speaker 4 (03:46):
We found through Gabriel that those farmers have had their
former generation in some way, shape or form, got through
slightly easier than those who didn't. And it's simple maths.
At the farm at the end of the power line
is looked after last compared to the ones in the
cities or close to metropolitan metropolitan areas. So resilience is
a huge opportunity here. And equally, you know the chance

(04:07):
that you know, maybe a Thursday or rugby game or
rugby training could be those bloodlights could be powered by
the farmer next door, right, So it actually helps that
helps that community story in regional New Zealand as well.

Speaker 2 (04:17):
I'm just yeah, I'm just wondering why they haven't done
it before. Now, do you have any stats on how
many on how many farmers have switched to solar.

Speaker 4 (04:27):
Ye, so within within our portfolio in the last six months,
we've only had sort of a handful I think maybe
a dozen total that have made that move. There's two
components here. One, the cost of panels and batteries has
reduced exponentially, so you know, that's well over halves in
the last few years. That economic stack up. More combined
with the fact that power prices are rising and there's
a bit of a resilience issue and our energy infrastructure.

(04:49):
You know, we're only one bolt away from north and
not having a power pylon again for a while. So yeah,
there is certainly the resilience story as well. But yeah,
I guess the panels reducing in battery technology really enhancing.
So panels now you can have a warranty for up
to twenty five years, batteries at least fifteen years out
of them, so that life cycle is far longer than

(05:09):
it would have been five years ago. It's quite a
rapidly moving space.

Speaker 2 (05:12):
Do you think there might be a wee bit of
resistance because it looks like you're giving into the greenies
and that everyone's got a bit tribal over the last
few years, are there an oscar.

Speaker 3 (05:23):
I don't think so. We've been very intentional.

Speaker 4 (05:25):
And when the tools are available on our website which
have the calculator and the ability to matt we're on
a farm, it could go. It's focused first and foremost
is actually around saving you money on farm. So how
do you actually improve the profitability of your farming business
first and foremost? And I think that's what good sustainability
actually looks like. It's something that delivers financial, environmental and
social benefits all alongside each other, which is this is

(05:46):
ultimately trying to achieve and I think.

Speaker 2 (05:47):
It will interest free loans.

Speaker 3 (05:51):
Like it's not read as I'll take it personally absolutely.

Speaker 2 (05:55):
How do you define a farm? How big does it
have to be? I've got a little lifestyle block up north.

Speaker 3 (05:59):
I'd be oh, we always have a chat after this.

Speaker 4 (06:04):
But we farms have all users all around New Zealand
from the top to the south, and we fully expect
that we'll have every range of farming enterprise popping their
hands up and talking to local ASP team about this
because there is no there's no minimum sort of size
for what one of you know. You might only have
a couple of water pumps to power or a shed
to power versus a full and irrigation set up in

(06:26):
cow Shit and Canterbury, So it will cover the full
range of water farmers.

Speaker 3 (06:29):
In New Zealand.

Speaker 2 (06:31):
Well, how do people find out more? They don't have
to go to field days? Do they battle the truth?

Speaker 4 (06:36):
I don't have to, but if they do, we've got
some great coffee and great food in our tents.

Speaker 3 (06:39):
But no look to two ways.

Speaker 4 (06:41):
One the ASB website ASB dot co dot Nz will
talk to the local asp team who everyone in the regional
New Zealand should should should know a lot about. So
we're here, we're ready, and equally we're looking forward to
people just having a play when the tour becomes available
on the website to see what it looks like, because
I think for a lot of farmers just understanding it
and feeling it touching it will go a long way

(07:03):
to taking that cynicism out. Potentially have referenced earlier.

Speaker 2 (07:08):
Sorry so when is sorry? I must have missed that?
When is the calculator up and running on the website
very shortly?

Speaker 4 (07:14):
So I've play I've had to play with the pilot
one of my for my own farm and quite quite
like the results, so really looking forward to that when
this guess for its final testing to go life okay.

Speaker 2 (07:25):
Well, we'll let people know when it's up and running.
Good to talk, Thanks so much for your time. Thanks Garry,
have a great there you ton asb Royal manager Aiden Gent.

Speaker 1 (07:33):
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