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Solar power in New Zealand
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Solar power in New Zealand is increasing in capacity, in part due to price supports created through the emissions trading scheme. As of the end of May 2025, New Zealand has 633 MW of grid-connected photovoltaic (PV) solar power installed, of which 205 MW (32%) was installed in the last 12 months.[1] In 2024, 601 gigawatt-hours of electricity was estimated to have been generated by grid-connected solar, 1.4% of all electricity generated in the country.[2] As of the end of November 2024, 67,000 solar power systems had been installed in New Zealand. For new installations added in November 2024, the average residential system size was 7.3 kW and the average commercial system was 25 kW.[1]
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Installations by type
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Residential systems
Although there are no subsidies for small-scale solar in New Zealand, the declining costs of photovoltaic have driven strong growth in household installations in recent years. In 2009, the average turnkey price for a standard 3-kilowatt (kW) PV system was about NZ$40,000;[3] by 2024 the average residential system size had increased to 7 kW while the average cost had fallen to NZ$16,500.[4]
Rooftop and other small photovoltaic systems with a capacity of up to 10 kW are classified as small-scale distributed generation under Part 6 of the Electricity Industry Participation Code. These systems must be approved by the local electricity distribution business (EDB) before they are connected to the grid, but EDBs cannot unreasonably refuse connection if the equipment meets technical standards. Inverters are required to comply with AS/NZS 4777, and most networks limit export to 5 kW per phase.[5][6][7]
Such systems generally do not require building consent when installed on existing roofs. Consent may be needed, however, for building-integrated PV(e.g. where the panels act as roof cladding), in heritage or design-sensitive zones, when breaching height-to-boundary restrictions, or for ground-mounted arrays larger than 20 square metres (220 sq ft).[8]
Commercial and industrial systems
The largest solar power system on a school in New Zealand was officially opened in a ceremony in February 2019 at Kaitaia College. Kelvin Davis, unveiled a plaque to acknowledge the installation of the 368 solar panel project which is spread across the rooftop of multiple buildings on the school campus.[9]
By January 2014, solar photovoltaic systems had been installed in 50 schools through the Schoolgen program, a program developed by Genesis Energy to educate students about renewable energy, particularly solar energy. Each school has been given a 2 kW capacity PV system, with a total distributed installed capacity of 100 kilowatts-peak (kWp). Since February 2007, a total of 513 megawatt-hours (MWh) of electrical energy have been recorded.[10]
In January 2020 Foodstuffs announced it would be installing a 1.1 MW PV array on its new Auckland distribution centre.[11][12] In October 2020 Watercare Services installed a 1 MW floating array on its Auckland wastewater treatment plant.[13]
Grid-scale plants
In July 2019 Refining NZ announced plans for a 26 MW solar farm at the Marsden Point Oil Refinery, but by May 2020 the project was on hold.[14][15] In February 2020 Genesis Energy Limited announced plans for a 300 MW facility in the Waikato.[16]' In September 2020 Hawke's Bay Airport announced plans for a 10 MW farm on unused airport land.[17] In May 2020, the Ministry of Business, Innovation and Employment released a study that considered the economics of grid-scale solar and gave forecasts to 2060, showing that New Zealand has potential for gigawatts of grid-scale solar.[18]
In February 2021 Far North Solar Farm applied for resource consent for a 16 MW farm at Pukenui on the Aupouri Peninsula in Northland.[19] The development subsequently stalled due to a lack of network capacity.[20]
In 2021, Kea Energy commissioned a solar power plant in the Wairau Valley in Marlborough with a potential capacity of 2.2 MW, with current plans to build capacity up to 1.85 MW as at March 2021.[21] In June 2021, the Todd Corporation commissioned a 2.1 MW solar plant at Kapuni in south Taranaki. The facility includes 5800 solar panels and was claimed to be the largest grid-connected solar plant at the time.[22]
In December 2021 Christchurch Airport announced it would be hosting a 150 MW plant at Kōwhai Park, to be scaled up over 30 years.[23][24] On 30 December 2021 Island Green Power announced plans for a 200 MW solar farm in Waikato.[25] In April 2022 Helios Energy announced plans for a series of farms with a combined output of 1 GW.[26] In May 2022 Far North Solar Farm announced a partnership with offshore investment fund Aquila Capital to build 1 GW of generation.[27]
In May 2021 Lodestone Energy announced plans for five solar farms in the upper North Island, capable of generating 400 GWh annually.[28][29] The 32 MWp Kohirā solar farm, northwest of Kaitaia, began generating electricity in November 2023.[30] As the first solar farm to exceed 10 MW, Kohirā was also the first required to participate in the wholesale electricity market.[31]
As of August 2025, grid operator Transpower has 57 solar projects totalling 10,892 MW its generation pipeline. Of those, ten projects totalling 1,646 MW are in the delivery stage (i.e. detailed design or construction)[32]
Operating
Proposed and under construction
Only solar plants over 5 MW generating capacity are listed.
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Cost-effectiveness
Retail buy-back rates for solar power exported to the grid range from 5 to 23 cents per kilowatt-hour, plus 15% GST if the system owner is GST-registered.[112] The financial return for PV systems depends largely on maximising on-site consumption, as self-consumed electricity offsets retail power prices of around 30–35 cents per kilowatt-hour. Common methods to increase self-consumption include running appliances during daylight hours, using energy management systems, or installing battery storage.[113]
The effective cost of electricity from rooftop PV is estimated at around 11 cents per kilowatt-hour, compared with about 35 cents from the grid. Reported payback periods for households range from five to seven years, with shorter times for users with high daytime demand.[114] Financing costs can significantly extend the payback period, though some banks offer low-interest "green loans" for solar installations.[115]
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Statistics
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See also
- Solar power
- Photovoltaic power station
- Energy in New Zealand
- Electricity sector in New Zealand
- Renewable energy in New Zealand
- Wind power in New Zealand
- Ocean power in New Zealand
- Geothermal power in New Zealand
- Biofuel in New Zealand
- Hydroelectric power in New Zealand
- Solar hot water in New Zealand
- Renewable energy commercialisation
- Renewable energy by country
References
External links
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