The Government Just Made Solar Better in New Zealand

Happy Couple Standying Near Their House With Solar Panels. Alternative Energy, Saving Resources And Sustainable Lifestyle Concept.

Here’s something that might surprise you: our National-led government just quietly made a positive move for rooftop solar. And honestly? I didn’t see it coming from this coalition.

Last week, Energy Minister Simon Watts and Building Minister Chris Penk announced something that sounds incredibly boring but is actually pretty exciting. They’re letting electricity companies run their networks with more voltage wiggle room, expanding from the current ±6% to ±10% range.

I know, I know. Your eyes are probably glazing over already. But stick with me, because this small change could be huge for anyone thinking about solar.

So What’s Actually Happening Here?

Here’s the thing about solar that most people don’t realize: when your panels are pumping out electricity on a sunny day, they’re actually pushing the voltage up a bit on your local power lines. Right now, if that voltage creeps above 244V, your inverter basically says “nope” and either dials back your solar export or shuts it off completely.

It’s like having a really productive day at work, only to be told you have to stop because you’re making everyone else look bad.

This rule change gives your solar system more room to breathe. Your inverter can keep doing its thing even when the voltage gets a bit higher. Simple tweak, big difference.

But Wait—There’s More: No More Consents for Rooftop Solar

The government also announced they’re removing the need for building consents for rooftop solar systems on existing homes. Despite the fact they probably didn’t need them anyway, it’s another positive move. Even better, for new homes, councils will now have to process solar-related consents in 10 working days instead of 20. That streamlining could save homeowners and developers time and money—potentially around $400 per day according to government estimates.

So between the technical rule change on voltage, and these practical planning announcements, the message is pretty clear: they want solar to be easier, faster, and more attractive for homeowners.

Why This Actually Matters (Beyond the Technical Stuff)

Your solar investment just got better. If you’ve got solar, or you’re thinking about it, this is good news for your wallet. Instead of watching your system get throttled back during those peak sunny hours (which is exactly when you want it working hardest), you’ll actually be able to export more of that excess power.

What does that mean in real terms? Better returns, shorter payback periods, and more confidence to go bigger with your system if you want to.

RNZ reckons this could unlock an extra 507 GWh of solar generation across the country. That’s like adding about 80,000 more typical home solar systems to the grid.

We’re finally catching up

Let’s be honest, we’ve been pretty conservative when it comes to solar in New Zealand. While our neighbours in Australia have been going gangbusters with rooftop solar, we’ve been a bit… cautious. Tight export limits, conservative grid rules, and frankly not much in the way of incentives.

This change signals that the government actually wants to make solar work better for people, not just talk about energy security in press releases.

It’s pragmatic, not political

What I find interesting is that this isn’t coming from the usual suspects you’d expect to champion solar. This is a centre-right government that’s typically pretty careful about climate interventions.

But the logic is pretty straightforward: power bills are going up, people are investing in solar and electric cars, and the grid needs to be flexible enough to handle it all.

So the message seems to be:

“If you want to generate your own power and sell some back—we’re not going to make it harder than it needs to be.” That’s actually pretty refreshing.

Let’s Talk Real Numbers

Let me break down what this might mean for an actual household. Let’s say you’re thinking about a typical 5kW solar system in Auckland:

  • Costs about $11,000 installed
  • Produces roughly 7,000 kWh per year
  • You use about 40% of that power directly, export the other 60%
  • You’re paying around 32 cents per kWh for power, getting about 12 cents for what you export

Before this change: Your system gets curtailed about 15% of the time during export. So you’re missing out on some of that income.

  • Annual savings: ~$1,263
  • Payback period: ~8.7 years

After this change: Curtailment drops to ~5%, so you’re exporting more power, more often.

  • Annual savings: ~$1,306
  • Payback period: ~8.4 years

That’s an extra $43 per year and a slightly shorter payback.

Not huge on its own, sure, but if you’ve got a larger system, live in an area with frequent export issues, or we see improvements to export rates or smart tariffs, this could become a much bigger deal.

The Bigger Picture

This isn’t just about solar owners getting a slightly better deal (though that’s nice). It’s about getting ready for what’s coming:

We’re going to need a lot more electricity in the coming years. Electric vehicles, heat pumps, and data centres are all adding load to the system. See my blog on why ‘Residential power is here to stay’ for more on this. The question is: where will that power come from?

Rooftop solar helps take the pressure off centralised generation and big infrastructure projects. It also adds resilience and self-sufficiency to homes and communities.

Why This Feels Like a Turning Point

You won’t see this on the front page of the newspaper, and it probably won’t trend on social media. But sometimes the most important changes happen quietly, in the technical details that most people never hear about.

This rule change represents a shift in thinking. Instead of asking: Can our grid handle all this residential solar or does it really work, it produces less during winter we’re finally asking: How can we make our grid work with residential solar?

That’s not just a technical difference, it’s a philosophical one. We know residential solar isn’t perfect, but I hate to point this out none of our options are. The conversation isn’t about that anymore, it’s about how do we use it to support a clean, resilient grid that brings cheap energy to everyone. It won’t work everywhere, but it certainly works in a lot of places so we should take advantage of that. The energy transition is about a range of solutions, hydro, wind and maybe even some carbon capture and storage along the way. There is no doubt residential solar will be a part of that.

And for anyone who’s been watching New Zealand’s slow progress on distributed energy, this moment feels like a real signal that we might finally be moving forward. So yeah, the government just made solar better in New Zealand. They did it without fanfare, without big announcements, and probably without most people noticing. But for the solar industry,  and for anyone thinking about joining it, this quiet little rule change might just be the beginning of something much bigger.

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