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Solar Finance · Chattel Mortgage

Solar chattel mortgage

Fund solar on chattel mortgage and own it from day one, with GST on the asset claimable upfront. Indicative rates From ~7.6% p.a. (prime borrower) — subject to credit.

Quick answer

Solar finance structured as chattel mortgage means you own it from day one, with GST on the asset claimable upfront. Commercial solar finance funds rooftop and ground-mounted solar PV systems, inverters, battery storage and EV charging infrastructure for NZ businesses. Typical structures are hire purchase or chattel mortgage on the installed system, with terms 60–84 months matched to the useful life.

Is chattel mortgage right for solar?

A chattel mortgage gives day-one ownership and lets a GST-registered business claim the GST on the equipment upfront, while you depreciate it over its life.

About solar finance

Commercial solar finance funds rooftop and ground-mounted solar PV systems, inverters, battery storage and EV charging infrastructure for NZ businesses. Typical structures are hire purchase or chattel mortgage on the installed system, with terms 60–84 months matched to the useful life. The economics often allow energy bill savings to cover the finance payment from year one. Indicative rates from ~7.6% p.a. for prime borrowers, with both new commercial properties and retrofits eligible.

Why chattel mortgage

  • ✓You own the asset from day one — it sits on your balance sheet immediately
  • ✓Claim full GST on the asset cost in the period of purchase (subject to GST basis)
  • ✓Claim depreciation and the interest portion of repayments
  • ✓Fixed rate, fixed payments — easy to budget
  • ✓Lender registers PPSR security; otherwise unencumbered by lender ownership

Trade-offs to weigh

  • –You bear depreciation risk over the term
  • –Sale before end-of-term requires paying out the loan first
  • –Asset and liability both on balance sheet — increases gearing optics

Solar finance at a glance

Indicative rate
From ~7.6% p.a. (prime borrower) — subject to credit
Typical term
60–84 months matched to useful life
Deposit / LVR
Up to 100% on new commercial installation from a recognised installer
Lenders
UDC Finance, Heartland Bank, BNZ Asset Finance

What you can fund

Rooftop solar PV (commercial buildings, factories, warehouses)Ground-mount solar arrays (farms, large sites)Battery storage systemsInverters and grid-connect equipmentEV charging infrastructureSolar monitoring and metering

How chattel mortgage is treated

Ownership from day one You (business)
Who claims depreciation You
GST treatment Claim full GST on asset cost upfront (cash/invoice basis)
Typical term 24–60 months

See the full breakdown in the chattel mortgage guide, compare all four structures on the comparison page, or read more on solar finance.

Rates, terms and LVR are indicative market ranges for guidance only — not a quote, not financial or tax advice, and subject to lender credit approval. Confirm tax and accounting treatment with your accountant.

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Frequently asked questions

Yes. Chattel Mortgage is a common way to fund solar for New Zealand businesses — it means you own it from day one, with GST on the asset claimable upfront. A chattel mortgage is a finance structure where you (the business) take legal ownership of the asset on day one, and the lender registers a security interest over it on the Personal Property Securities Register (PPSR). You pay regular instalments over the agreed term, claim depreciation and the interest portion of each payment, and you can claim the full GST on the asset cost upfront in your next return. All applications are subject to lender credit approval.