The New Zealand government's Budget 2026 includes a new 'Solar on Schools' fund that will help a limited number of schools install rooftop solar, batteries, and energy management systems, with a strong focus on schools facing high energy costs and upcoming boiler replacements.
For most principals, the fund is best seen as a useful opportunity if you are selected – and a clear signal that the Ministry of Education (MoE) expects schools to take control of energy costs and decarbonisation, whether or not you receive a grant.
How the fund works
The government has allocated $30M to a dedicated Solar on Schools programme within the Community Renewable Energy Fund, administered by EECA in partnership with MoE. The fund is expected to support rooftop solar for up to 500 schools, energy management systems for up to 150 schools, and some battery installations, with all projects completed by 2028.
On average for each chosen school, this represents $60,000 in funding– roughly enough for a 30 kWp system or a smaller system with limited battery storage. For many larger schools, this will be a useful start but will not fully cover their long-term energy and resilience needs, particularly where running large sites, multiple blocks, or significant heating loads.
The Solar on Schools programme is a clear indication that New Zealand schools are expected to start taking control of their energy costs and decarbonisation.
Which schools are likely to be prioritised
Because the fund is capped, not every school will be able to participate. The government has signalled that priority will go to schools that:
- Are experiencing energy or fuel insecurity
- Are facing higher-than-average energy costs
- Are scheduled for gas or diesel boiler replacements
- Have a clear need for greater resilience to outages or extreme weather
In practice, this means schools with diesel or gas boilers that have already engaged with the Ministry for targeted relief are at the front of the queue. The proposed solar systems are sized to work alongside the transition to electric heat pumps, helping reduce reliance on fossil-fuel boilers rather than maximising total solar capacity on-site.
What principals need to watch for
Two practical points for schools to consider are:
- Selection is expected to be finalised around July/August of 2026, and many schools may be tempted to “wait and see” before making any decisions about solar or heating
- The fund allocation is currently a one-off, time-limited boost – once the $30M is allocated, there is no certainty of ongoing entitlement
Meanwhile, the operational grant will only receive a 2% cost adjustment from 1st January 2027, at the same time as heat, lighting, and water are explicitly acknowledged as current cost pressures. Energy savings remain a live concern for schools.
Transitioning to solar power delivers an average saving of $8,000 per school per year. Each year of waiting to make the transition foregoes savings and locks in higher power and fuel bills.
For schools not selected, or needing more
There are 2,536 public and state-integrated schools in New Zealand, and, at most, the fund will only reach about 500 of them – roughly 20%. The Ministry has already been clear that if your school is not part of the programme, you can still choose to buy and own solar panels or lease them from a provider who retains ownership. For many schools, especially medium and large ones, a right-sized system (potentially with batteries) alongside further electrification would achieve materially greater benefit.
How Sustainable Finance can help
Sustainable Finance’s Solar IQ solution is designed to help schools adopt solar without needing upfront capital, whether or not they receive Solar on Schools funding. We focus on solutions tailored to your specific load profile and site constraints, not just a one-size-fits-all package. For principals, that means:
- A clear, data-driven business case that connects solar and electrification investments to operational savings and resilience outcomes
- Leasing structures that align repayments with expected power bill savings, so you can protect teaching and learning budgets while still addressing heat, lighting, and water cost pressures
- Flexibility to combine any grant funding you receive with additional financed capacity, enabling you to scale up beyond the MoE-proposed solution
The recent announcement provides a long-needed boost to schools facing increased energy bills and is an overdue investment in distributed solar generation across the education sector. If you're looking to accelerate your solar adoption journey, please get in touch with our team to learn more.