The New Zealand Government has just announced sweeping reforms to the electricity sector designed to benefit households, especially those with solar panels or considering solar installation. These changes introduce mandatory Time Of Use (TOU) pricing and require energy retailers to provide fair buy-back rates for solar users, marking a major shift toward empowering everyday Kiwis to save money and accelerate the countryβs clean energy transition.
What are the Time of Use (TOU) Pricing Changes?Β
By the end of June 2026, all large electricity retailers with over 5% market share must offer customers at least one plan with TOU pricing. These plans charge different rates based on demand:
- Off-peak periods (overnight, midday, weekends): Significantly cheaper rates for electricity use.
- Peak periods (weekday mornings and evenings): Higher prices to reflect demand.
For families with a solar panel system for the home, during the summer months, you can save more by using your solar-generated power during expensive peak times. If you install batteries, you can use battery power during peak times as well. Homeowners can also benefit financially by shifting power-intensive tasks (like charging an EV or running major appliances) to off-peak times.
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Big News: Fairer Buy-Back Rates for Solar ExportsΒ
A longstanding frustration for solar panel owners has been the low rates paid for exporting excess power back to the grid. Starting July 2026, all major energy companies must offer βfair ratesβ for this exported solar electricity. The goal is to reward households for contributing to the energy supply, particularly when demand is high.
Competitive buy-back rates naturally strengthen the case for solar panel installation. Recent figures show leading retailers already offer up to 40 cents/kWh for exported electricity during peak times, with most rates between 8 and 21 cents/kWh. With these changes, expect to see payback periods for solar power systems shrink and returns on investment grow.
More Good News for Solar Panel Installation in NZΒ
Beyond pricing and buy-back rates, new government regulations also make solar installation NZ-wide easier and more attractive:
- Rooftop solar panels on existing residential buildings no longer require building consent.
- New homes with solar panels must receive consent within 10 working daysβhalf the previous waiting time.
- Network upgrades will accommodate more solar power and EV charging, future-proofing your investment.
The Solar Opportunity: Why Now Is the Time
With power retailers soon required to offer TOU plans and better buy-back rates, interest in solar panels NZ is at an all-time high. Whether looking for off-grid solar systems in rural locations or a solar panel system for home use in Auckland or across the country, these regulatory changes make solar power systems even more compelling.
Solar panels NZ cost remains the lowest itβs ever been, averaging around $2,000 per kW installed for home systems (4β5kW systems are typical). Financing and green loans are readily available. Most families can expect a 5β7-year payback, 10β15% annual returns, and decades of low-cost, low-emissions energy.
If youβre considering upgrading or expanding your solar power system or want to compare options from solar panel installers, now is the ideal time to act and enjoy both energy savings and income from your solar exports.
AA Solar is here to help you navigate these new opportunities. Contact our expert team for advice, a free quote, or to learn more about how a solar installation in NZ can put you in control of your energy future.
For the latest rates and full details on the governmentβs announcement, see the Electricity Authority, MBIE, and trusted consumer resources for solar in New Zealand.
https://www.beehive.govt.nz/release/electricity-sector-changes-create-more-ways-save
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