Is solar worth it in NZ? When it makes sense (and when it doesn't)
The honest answer? It depends. Every solar installer will tell you yes — that's their job. We're not installers, we don't take commissions, and we've got no reason to push you either way. This guide gives you the real numbers from government sources and helps you figure out whether solar makes sense for your specific home.
SolarScout TeamThe honest answer
- 1For most Kiwi households: Yes, solar pays back in 5–10 years with 10–15% annual returns — better than term deposits
- 2But it's not for everyone: Low usage, heavy shading, or planning to move soon? The numbers probably don't stack up
- 3The real question isn't "is solar worth it?" — it's "is solar worth it for MY house?"
The honest answer: it depends on your situation
For most Kiwi households with decent sun and reasonable daytime electricity use, solar pays back in 5–10 years and delivers 10–15% annual returns. That beats term deposits, and it's competitive with most investments — except you're also hedging against rising power prices.
But if you have low electricity usage, heavy shading on your roof, or you're planning to move in the next few years, the equation changes. The upfront cost stays the same while the savings shrink.
The difference between a good solar investment and a poor one usually comes down to three things:
1. How much electricity you use during daylight hours
Solar generates power 9am–4pm, peaking around midday. If you're home during those hours, you'll use more directly. Every unit you use saves ~34c. Every unit you export earns just 12–17c.
2. Your roof situation
North-facing roofs generate the most power in NZ. East or west orientations work but you'll get 15–25% less output. Heavy shading from trees or buildings can cut production by 50–80%.
3. How long you're staying
With payback periods of 5–10 years, you need to stay past that point to see returns. Selling in three years? You might not recoup your investment.
When solar IS worth it
Solar works best when your situation ticks several of these boxes. You don't need all of them, but the more you have, the stronger your returns. EECA's research on nearly 50,000 New Zealand homes found that "households that consume more electricity, particularly in the morning and daytime, see the best financial returns."
Signs solar is likely worth it for you
- •High daytime usage: WFH, retired, stay-at-home parent, heat pump running during the day
- •North-facing roof with minimal shading from trees, buildings, or hills
- •Planning to stay 7+ years — enough time to complete payback and see returns
- •All-electric home (or heading that way): heat pump, hot water cylinder, induction cooking
- •EV owner who can charge during daylight hours
- •Monthly power bill over $200 — more spend to offset means better returns
You can check your roof orientation on Google Maps satellite view. Look for obstacles that might cast shadows during the middle of the day.
When solar probably ISN'T worth it
Solar doesn't make sense for everyone. Here's when the numbers typically don't stack up — these aren't dealbreakers, but they change the equation significantly.
Signs solar probably isn't worth it
- •Low electricity usage (under 5,000 kWh/year or ~$150/month) — not enough spend to offset
- •Heavy shading from trees, buildings, or hills during peak sun hours
- •East/west only roof — EECA found these produce "significantly lower overall generation"
- •Planning to move within 5 years — won't complete payback before selling
- •Roof needs replacement soon — you'll pay to remove and reinstall panels
- •Peak usage mornings/evenings only — most generation gets exported at lower rates
Before installing solar on a low-usage home: Try switching power companies first ( Powerswitch.org.nz). You might save more with zero upfront cost.
The real NZ numbers (backed by government data)
Here's what the actual data shows for residential solar in New Zealand. All figures come from government sources or industry bodies — not installer marketing.
System costs (EECA, 2025)
| Size | Panels | Price (installed) | Annual Output |
|---|---|---|---|
| 3 kW | 7 panels | $8,500 | ~4,000 kWh/yr |
| 5 kW | 12 panels | $11,500 | ~6,500 kWh/yr |
| 7 kW | 17 panels | $14,000–$18,000 | ~9,000 kWh/yr |
| 10 kW | 24 panels | $20,000 | ~13,000 kWh/yr |
Payback periods (multiple sources)
| Source | Payback | Notes |
|---|---|---|
| EECA | 7–10 years | Typical for average-high daytime use |
| RNZ | 5–8 years | Experts quoted in 2025/2026 reporting |
| SEANZ | 6–8 years | Based on $12,000 system, $1,500–$1,800 savings |
| Consumer NZ | Under 10 years | For systems under $10,000 |
The self-consumption insight
This is the most important number most people miss:
~34c
Value per kWh you USE
8–17c
Value per kWh you EXPORT
Every unit you use yourself is worth roughly double what you'd get exporting it.
Three real household scenarios
To show how the numbers actually work, here are three Kiwi households with different situations. One is a clear yes, one is marginal, and one is a clear no. Your situation will fall somewhere on this spectrum.
The Wilsons
Solar sweet spot
6.8 years
payback period
Cost
$12,500
Savings/yr
$1,850
Self-use
55%
20-yr return
$24,500
Strong yes. High daytime usage, good roof, planning to stay long-term.
Household profile
- •Auckland, 3-person household
- •Power bill: $280/month ($3,360/year)
- •Both adults work from home 3 days/week
- •All-electric: heat pump, hot water, induction
- •North-facing roof, no shading
The Nguyens
Marginal case
12.5 years
payback period
Cost
$9,000
Savings/yr
$720
Self-use
35%
20-yr return
$5,400
Marginal. Low daytime usage, most generation exported. Could work if staying 15+ years.
Household profile
- •Wellington, 2-person household
- •Power bill: $150/month ($1,800/year)
- •Both work full-time away from home
- •Gas hot water and cooking
- •North-facing roof, some afternoon shading
The Patels
Not recommended
22+ years
payback period
Cost
$8,500
Savings/yr
$380
Self-use
25%
20-yr return
Negative
Not worth it. Low usage, wrong orientation, heavy shading, short timeline.
Household profile
- •Christchurch, rental investment property
- •Tenants' power bill: $90/month
- •Property will be sold in 3 years
- •East-facing roof only
- •Large pohutukawa shading morning sun
Want the real answer for YOUR home?
Generic calculators use national averages. Ours uses your actual power bill to estimate your specific payback period and savings.
Scout my SavingsWhat the critics get wrong
You've probably seen skeptical takes on solar — on Reddit, in comments sections, from that one guy at work. Some concerns are valid. But some are based on outdated information or misunderstandings.
"NZ doesn't get enough sun"
Actually: According to NIWA data, Auckland receives more usable sunlight than Germany. Even Invercargill — New Zealand's southernmost city — gets more solar irradiance than Germany. Germany has over 60 GW of installed solar. If it works there, it works here.
"Solar panels don't last"
Actually: Modern panels are warrantied for 25 years and typically last 30+. Degradation is around 0.5% per year — after 25 years, panels still produce about 87% of original output. Inverters need replacement after 10–15 years, which is normal maintenance.
"Buy-back rates are too low"
Actually: This misses the point. Self-consumption matters more. Every unit you use directly saves ~34c. Every unit you export earns 12–17c. The strategy isn't to export everything — it's to use as much as possible yourself.
"People are getting rid of their panels"
Actually: Most removals are for roof repairs, system upgrades, or end-of-life replacement (25–30 years). Very few are due to dissatisfaction. The NZ market is still young — most panels haven't reached end-of-life yet.
"The 20% rule limits solar"
Actually: The '20% rule' most commonly means sizing your system 20% larger than calculated needs — a buffer for inefficiencies. It's a practical guideline, not a roof coverage restriction in most NZ areas.
How to finance solar (without breaking the bank)
The upfront cost is the biggest barrier for most households. Good news: New Zealand's major banks offer some of the best solar financing in the world.
| Bank | Rate | Max | Term | Best For |
|---|---|---|---|---|
| ⭐Westpac | 0% | $50,000 | 5 years | Most homeowners |
| ANZ | 1% | $80,000 | 3 years | Larger systems |
| BNZ | 1% | $80,000 | 3 years | Existing BNZ customers |
| ASB | 1% | $80,000 | 3 years | Existing ASB customers |
| Kiwibank | ~8.5% | No max | 7–10 years | $2,000 cashback option |
What this means for a $15,000 system:
Westpac 0% (5yr)
$250/month
Total: $15,000
ANZ 1% (3yr)
$423/month
Total: $15,228
Q Card 25.99%
~$350 initially
Total: $18,500+
Avoid Q Card, Gem, or similar high-interest products for solar — the rates will eat your savings.
Frequently asked questions
Still have questions? Email us.
Ready to find out if solar works for YOUR home?
Solar works for most Kiwi households — but not all. The only way to know is to run the numbers on your specific situation: your roof, your usage, your power bill.
Our installer network is rated 4.7★ average across 1,400+ Google Reviews
Related guides
Sources & Verification
Government Data
Last verified: January 2026. Costs and savings vary by location, usage patterns, and system configuration.