Installing solar in NZ what you need to know
Thinking about getting solar installed? You're definitely not alone. Solar uptake across Aotearoa is growing quickly, but before you take the plunge, it pays to understand how the economics actually work.
Is solar right for your home?
Before looking at panel types or inverter brands, the most important question to ask is does your household profile actually suit solar? How electrified is your home already and how much time do you spend at home during the day?
If your hot water, heating, and cooking all run on electricity (rather than gas) and you have daytime usage to absorb that solar power then it almost certainly makes sense for you. However, if your house sits empty from 8am to 5pm, and you can’t move much power usage into daytime hours, it will be difficult to make the most of the energy you’re generating, unless you can capture it in a battery.
Be sure to get quotes from several solar installers. They’ll consider your electricity usage, the age and condition of your roof, which direction it faces, whether there is any shading from nearby buildings or trees, and help you understand how well solar could work for you.
Don’t get oversold, bigger isn’t always better. As the team at EECA point out in their solar guide for homes, solar makes the most financial sense when you can use the power directly as it’s generated.
A home battery changes the game by separating generation from immediate usage. Instead of sending your excess midday power out to the grid for a low buyback rate, a battery lets you bank that energy and use it when power is most expensive, like during the morning or evening peaks. While batteries add to your upfront setup costs, they significantly increase your self-consumption rate and give you more independence.
The fastest payback comes from using your own generation
A common misconception is that installing the biggest array possible guarantees a big payout from your power company every month. In fact, this may limit your choices, as some retailers base plan eligibility on system size.
With midday spot prices often near zero and more solar coming online all the time, buyback rates will gradually drop, reinforcing that the real value of solar comes from self-consumption. To dive deeper into where export prices are heading in NZ, check out our solar buyback rates blog post.
We recommend sizing your solar system for your own consumption, not export payouts. Depending on where you are in New Zealand, you’ll be faced with off-peak prices anywhere from 21c to 50c per kWh and peak rates from 28c per kWh to north of 60c. Avoiding these costs by using your own generation easily beats what you get from export rates.
The payback period for a standard residential solar installation generally sits around 7 to 8 years. Because panels last 25+ years, it is a solid long-term investment for reducing household overheads, but expecting your system to pay itself off in a couple of years isn't realistic in our market.
The price of electricity from the grid is only likely to increase, meaning the value you can get from avoiding these costs will make the solar story even more compelling over time. We definitely encourage you to do some research and see if solar could be right for you.
