New Zealand's most southern school is hoping a climate friendly initiative will also save it money

Education Minister Chris Hipkins has announced 53 schools will receive funding as part of the Sustainability Contestable Fund, for money-saving and emission-reducing projects.

Halfmoon Bay School, on Stewart Island, will install a series of solar panels and battery storage to reduce dependence on diesel.

Principal Kath Johnson is hoping it will cut the school's electricity bill - which is about three times higher than what it would be if they were on mainland New Zealand.