Low cost energy
Rooftop solar is the cheapest source of energy a household can use, with zero emissions.
Given the right circumstances, solar panels can pay themselves off in around 8 years, then deliver free energy for the next 20.*
If you’re looking to install a rooftop solar system, there are options to buy the panels outright, or finance your purchase over a number of years, with many lenders offering low-interest ‘green’ loans.
What you need to know
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Upfront costs
Around $10,000 for a medium-sized installation which provides approximately half of the energy needs for an average household (without EVs).
For households with EVs, larger installations could be worthwhile.
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Savings
If you include the upfront costs, divided over the 30-year lifetime of your solar panels, electricity from rooftop solar works out about 75% cheaper than electricity purchased from the grid (6c/kWh compared to 24c/kWh) when finance costs are excluded.**
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Finance options
There are finance options available that can offer zero upfront costs and low interest rates.
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Features
- Zero operational emissions
- Increased resilience when coupled with home batteries
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Lifespan of tech
25 to 30 years. During this time there will be a small decrease in output from the panels (approximately 0.5% per year) and it’s likely that you’ll have to replace the inverter.
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Install
You’ll need to have your rooftop solar system installed by an expert (this must meet current standards).
For an average 3-person household that has all electric appliances, and where people are home during the day, the costs saved on electricity will pay off the upfront costs of rooftop solar after around 8 years.
EECA analysis using the Gen Less solar power calculator*
Why install rooftop solar
- Increasing affordability — The upfront cost of installing rooftop solar has been consistently decreasing over the years as systems are more widely adopted. If it hasn’t stacked up for you previously, it may make more financial sense now.
- Power your big energy-users — Hot water, electric vehicles, swimming pools, spas and hot tubs can all be powered using energy generated from your solar PV system.
- Better value during the day — If you’re at home during the day, or can utilise smart tech like a home energy management system to optimise charging, wash loads, or water heating for this time, you’ll utilise more of the energy that you generate.
- Sell the excess — You can sell the electricity you don’t use to your retailer (although, this is typically for less than you’d pay to buy it from them).
- Zero emissions — Installing solar will reduce your home’s emissions by utilising your home-generated renewable energy, rather than grid electricity (which is around 80-85% renewable).
- Never mind the clouds — While solar panels will produce the highest output in the sunniest regions, they perform well all across the country.
- Minimal maintenance — The life expectancy of a solar panel is 25 to 30 years, with only minor decrease in output during this time — approximately 0.5% per year.
How rooftop solar works
Rooftop solar converts sunlight into electricity, using solar photovoltaic (PV) panels that are positioned toward the sun. They work by harnessing light energy (photons) to produce an electric current.
Solar PV panels can be installed on the roof of your home, garage, or even in your yard — wherever they will capture the most sunlight.
Solar systems can either be connected to or independent of the New Zealand grid. Generally, maintaining a grid connection will cost less than enabling your system to provide you with constant power — unless you live somewhere without existing lines.
Grid-tied solar — Most homes with solar panels stay connected to the electricity grid. They pay for electricity when the solar system doesn’t generate enough electricity – and can sell excess electricity that isn’t used back to retailers (or store it in a home battery).
Off-grid solar — Some houses in New Zealand are completely independent of the electricity grid and rely on very large systems, batteries, or fossil fuelled back-ups to store and power their homes outside of daylight hours.
Better with batteries?
Like solar panels, home batteries are becoming more affordable and accessible for New Zealand homes. As these prices drop, New Zealand homes and communities can benefit from the cost savings and resilience they offer.
- A home battery can store solar generated electricity to be used within the home when it’s dark outside — meaning less ‘additional’ electricity needs to be purchased from the grid outside of daylight hours.
- Batteries can provide backup power in an emergency, which can be particularly beneficial in rural areas.
- Batteries are being installed in NZ homes for around $7,000 to $14,000 — and may be financed at a low interest rate using a green home loan.
Assess the value of solar for you
Answer a few questions about your house location and power use, and you’ll get a detailed report estimating how much value you could get from solar.
Common questions
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Installing rooftop solar
Before committing to a rooftop solar system, it’s important to consider factors like how much sunlight your property gets, your roof’s orientation, system sizing and any requirements from your local council or electricity supplier. A solar energy professional can help you answer all of these questions.
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Find a licensed installer
SEANZ (Sustainable Electricity Association of New Zealand) is the representative body for the solar electricity industry. We recommend consumers use SEANZ members to provide advice, quotes and undertake solar installation work.
Switch on energy efficiency
Powering your home with efficient appliances could save you thousands in energy costs.
Use our calculator to work out which appliances offer the best long-term savings for your home.
Even if you’re not planning on upgrades any time soon, it can be helpful to think ahead and have an energy plan for your home.
Read next
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Green loans for your home
Discounted finance options as low as 0% are available to help you transition your home or car to be more energy efficient.
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Is your power plan right for you?
Power bills take up a big chunk of household expenses, but switching to a better plan could save you money.
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Buying a smart EV charger
Home smart chargers will save time and money when charging your EV.