New Zealand’s solar energy industry is experiencing a dynamic shift, particularly when it comes to the value of exporting excess power back to the grid. For years, solar owners received modest compensation for surplus energy, but recent developments are changing that landscape, making solar more lucrative than ever.
Historically, feed-in tariffs for solar exports in New Zealand hovered around 5-10 cents per kWh. However, as the national grid faces increasing pressure to meet growing electricity demands, particularly with the rise of electric vehicles and home electrification, energy retailers are rethinking their approach. We’re now seeing companies offering higher rates to homeowners for the energy they contribute.
Some retailers, like Our Energy, have embraced spot pricing, allowing customers to earn between 40 to 80 cents per kWh for their exported power during peak times. This innovative pricing strategy mirrors wholesale electricity prices, giving homeowners the chance to capitalize on high demand periods. By contrast, more traditional companies like Meridian are also stepping up, now offering 17 cents per kWh, with expectations that this will continue to rise as grid demand increases.
The Growing Demand for Clean Energy
New Zealand’s transition to a low-carbon economy is creating more opportunities for solar owners. The government’s goal to reach 100% renewable electricity by 2030 means the grid is more reliant on clean energy sources like solar. As a result, the value of distributed energy resources—such as solar power from households—is growing. This is a trend that’s likely to continue as the nation’s energy infrastructure becomes more decentralized.
Solar’s Rising Popularity in New Zealand
Solar installations in New Zealand have surged in recent years, with more than 60,000 homes now equipped with solar panels. Solar energy accounted for 0.8% of the country’s total electricity generation in 2022, but this number is growing steadily. This rise is not just driven by environmental concerns but also by the increasing financial benefits that solar brings, including the ability to sell excess power back to the grid at favourable rates.
The Future of Solar Export
Looking ahead, as the demand for electricity increases, so too will the value of the energy you export. Homeowners can expect to see more retailers adopt competitive pricing models like spot pricing, where earnings fluctuate based on real-time grid needs. With the New Zealand government incentivizing the transition to renewable energy and businesses competing to attract solar customers, the financial returns from solar exports are set to improve further.
In short, the solar industry in New Zealand is evolving. With export rates rising and the grid becoming more dependent on renewable energy, solar panel owners are better positioned than ever to benefit from both savings on their electricity bills and new income from exporting power. Investing in solar is no longer just a way to reduce your carbon footprint—it’s also a smart financial decision.
