Savings

What’s the ROI?

How Much Can Solar Panels Save?

The savings from solar panels depend on whether you include battery storage or not. Below is a breakdown of how much you can save and the return on investment (ROI) for both options, calculated annually and compared to standard financial investments.
Total Cost and Payment Options

Without a Battery

A typical 5kW solar system generates 6,500–7,500 kWh per year, covering much of a medium-sized home’s power needs.

Annual savings: $800–$1,500 on your electricity bills, depending on your usage and export to the grid.

Payback Period:
Since a 5kW system costs between $9,000–$12,000, it will typically take about 6–10 years to recoup your investment through savings on electricity bills.

Annual ROI:
For a $9,000 system, the ROI would be about 9%–16.6% per year based on $800–$1,500 annual savings.

For a $12,000 system, the ROI would be about 7%–12.5% per year.

The ROI is calculated as the annual savings divided by the upfront cost of the system.

With a Battery

  • A battery storage system allows you to store excess solar power for nighttime or cloudy day use, increasing the amount of power you consume from your panels.
  • Annual savings: $1,500–$2,500 by reducing your reliance on the grid.
  • Payback Period:
    • A 5kW system with a battery will cost between $19,000–$27,000 (including both the solar system and battery).
    • The payback period for systems with batteries is typically 8–12 years, depending on the system size, usage, and local grid buy-back rates.
    • Annual ROI:
      • For a $19,000 system, the ROI would be about 9%–13.2% per year based on $1,500–$2,500 annual savings.
      • For a $27,000 system, the ROI would be about 6%–9.3% per year.

Comparison to Standard Financial Investments:

  • Average savings account interest rate in New Zealand is about 1%–2% per year.
  • Stock market returns (e.g., the NZX 50 Index) historically average around 6%–8% per year.
  • Solar ROI (especially without a battery) often outperforms savings accounts and many conservative investments, making it an attractive alternative for those looking to invest in long-term returns while reducing energy costs.

The best first step?

Get a proper assessment of your home. Every property is different, and a professional can tell you exactly what kind of setup would work best for your situation.

Start Here
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