New Zealand’s total installed solar power capacity is 420 MW as of April 2024. This represents a significant increase from 90 MW in 2018.⁹ In the 12 months leading up to December 2023, these installations generated an estimated 372 gigawatt-hours (GWh) of electricity, which accounted for about 0.85% of the country’s total electricity generation.⁷

Projections indicate a growth to 535 MW by 2030. This is primarily driven by an increase in grid-connected solar farm New Zealand projects. A significant portion of the growth will be driven by “distributed solar generation,” which involves installing solar panels on rooftops of homes and businesses, feeding surplus energy back into the local grid.⁹

• Hydroelectric: $0.06 – Hydroelectric power is a significant contributor to New Zealand’s energy mix due to its low operating costs and abundant water resources.¹⁰
• Geothermal: $0.07 – Geothermal energy is a clean and reliable source of electricity, making it a cost-effective option for the country.¹⁰
• Wind: $0.03-$0.07 – Wind power is the lowest-cost source of new-build electricity generation.¹¹
• Natural Gas: $0.08 – Natural gas is significantly more expensive compared to renewable alternatives.¹¹
• Solar: $0.03-$0.09 – Solar power has experienced significant cost reductions, making it one of the most cost-efficient sources of electricity generation.¹¹
• Coal: $0.07-$1.70 ¹¹

• Hydroelectric: 59% – Hydropower remains the dominant source, contributing significantly to the country’s energy security.¹²
• Geothermal: 15% – Geothermal energy is a valuable source of clean electricity in New Zealand, particularly in the Taupo Volcanic Zone.¹³
• Wind: 5% – Wind power is playing a growing role in diversifying the country’s renewable energy mix.¹³
• Natural Gas: 16% – Natural gas plays a crucial role in providing baseload power and meeting peak demand.¹⁴
• Solar: 1% – Solar power is becoming increasingly important in New Zealand, although its share remains relatively small compared to other renewables.¹⁵
• Coal: 7-8% – Coal’s share is decreasing as New Zealand moves towards a more sustainable energy future.¹⁶

New Zealand generally enjoys nearly 24 hours of electricity availability from the grid. This reliability is ensured by the use of high-voltage transmission lines across the country, allowing for efficient transfer of power even across long distances.¹⁷ Additionally, the abundance of rivers and lakes across New Zealand provides a secure source of hydropower, contributing to the overall stability of the energy supply.¹⁸

There were 56,041 solar power systems installed by the end of December 2023, with an average size of 6.1 kW for residential systems.⁷

• Installed: There are currently 10 utility-scale solar farms operational in New Zealand, with examples including Kapuni Solar Farm and Wairau Valley Solar Farm.¹⁹
• Projected: There are 22 utility-scale solar farms currently under development, planned, or seeking resource consent. Notable examples include Lauriston Solar Farm and Kōwhai Park Solar Farm.¹⁹

Specific data is limited. However, the market is likely small compared to grid-connected installations. Demand is expected to grow moderately, driven by remote homes, holiday homes, and energy independence interests.²⁰

• Current: The on-grid market is steadily growing, primarily driven by residential and commercial installations. New Zealand has a total installed capacity of 420 MW of grid-connected solar power.⁷
• Projected: Substantial growth is expected due to declining costs and government policies promoting renewable energy. Far North Solar Farm has committed to developing a 1.4 GW portfolio of large-scale solar PV projects across the North and South Islands.⁹

• Solar Power Jobs: $5,800²¹
• Solar Photovoltaic Installer: $6,800²²
• Solar Engineer: $9,600²³

New Zealand’s population is approximately 5.27 million as of July 2024.²⁴

Factory Rent:

• Auckland: $125 – $144 per square meter²⁵
• Wellington: $98 – $127 per square meter²⁶

Interest Rates: Commercial mortgage interest rates are typically 2% higher than residential rates.²⁷ The 1-year fixed commercial mortgage rate is currently around 6.85%²⁸

Industrial Electricity Prices: Approximately 17.8 cents per kWh.²⁹

Industrial Water Costs: Varies by location and usage. Typical charges range from $2.86 – $4.40 per m3 for non-potable and potable water.³⁰

Water Supply Unit for Commercial Use: $390.00 for a 1000-liter/day capacity.³¹

Electricity Generation

The electricity generation sector in New Zealand is primarily controlled by four major companies (Genesis Energy, Mercury, Meridian Energy, and Contact Energy) representing 92% of the market. There are over 200 generation plants across New Zealand capable of supplying electricity to the national grid. New Zealand is committed to achieving net zero greenhouse gas emissions by 2050, requiring increased electrification and a push towards renewable energy sources.³²

Transmission

Transpower, a state-owned enterprise, manages the national transmission network, with over 11,803 kilometers of high-voltage lines connecting generating stations to the grid and supplying distribution networks across the country.³³ Transpower also operates the HVDC Inter-Island link, enabling electricity transfer between the North and South Islands.³⁴

Distribution

29 distribution companies are responsible for distributing electricity from the national grid to local consumers through 150,000 kilometers of medium and low-voltage lines.³⁵

Retail

Retail companies purchase electricity from generators and sell it to end consumers. The retail sector is dominated by the five major generation companies (also known as gentailers), controlling 95% of the market.³⁵

Consumption

Nearly two million consumers use electricity from the distribution networks or directly from the transmission network, with consumption ranging from households to large industrial users.³⁵

Infrastructure Map

The New Zealand Energy Infrastructure Map provides a visual representation of the geographic distribution and operational status of generating assets, transmission lines, and gas production infrastructure across the country.³⁶

New Zealand has implemented various regulations and standards to guide the safe and efficient production and installation of solar panels. These regulations cover safety, operational efficiency, and environmental impact. They include:

• Standards New Zealand: AS/NZS 4509.1:2009 (stand-alone power systems), AS/NZS 5033:2012 (photovoltaic arrays), and AS 4777.1:2005 (grid connection) for installation and safety.³⁷
• Electricity (Safety) Regulations 2010: Regulations under the Electricity (Safety) Regulations 2010 set forth essential safety measures for electrical installations associated with solar energy systems.³⁸
• Council Regulations: Local councils may have specific regulations regarding the installation of solar panels, which could involve building consent, zoning laws, and safety codes.³⁸
• Electricity Industry Participation Code 2010: Any solar power systems that connect to the national grid must comply with Part 6 of the Electricity Industry Participation Code 2010. This includes requirements regarding the type of power inverters used and rules for interconnection to distribution networks.³⁸
• National Policy Statement for Renewable Electricity Generation (NPS REG): The NPS REG, aims to encourage renewable electricity generation.³⁹

The New Zealand government has implemented several initiatives to encourage the adoption of solar energy and promote a sustainable energy future. These include:

• Community Renewable Energy Fund: Provides funding to support community-led renewable energy projects, including solar. This fund is aimed at facilitating the installation of renewable energy systems in communities.⁴⁰
• Māori and Public Housing Renewable Energy Fund: Allocates $28 million for the trial installation of renewable technologies, including solar panels and batteries, on public and Māori housing. This program aims to reduce energy costs and emissions for public and Māori housing, which could pave the way for broader adoption.⁴¹
• Low-Interest Loans: Several banks offer low-interest loans specifically for solar power installations and upgrades, making it easier for individuals to invest in solar energy systems.⁴⁰
• Subsidies: While New Zealand does not currently offer direct subsidies or feed-in tariffs for solar power, there have been past subsidies. From 2007 to 2012, there was a $500 subsidy for solar hot water systems that met specific standards.⁴¹

Installed:

• Kapuni Solar Farm: 2.1 MW – Located in Taranaki, this is the largest solar farm in New Zealand. This project was commissioned in June 2021 and features 5,800 solar panels.⁴²
• Wairau Valley Solar Farm: 1.6 MW – New Zealand’s first multi-MW solar farm. It uses tracking frames to optimize energy generation and opened in March 2021.⁴²
• Wellington Solar Farm: 200 MW – Although initially a planned project, the solar farm is close to completing its construction phases and aims to power approximately 44,000 homes upon completing the operational setup.⁴³
• Kaitaia Solar Project: 39.4 MW – This project was completed in 2024, making it one of the largest solar projects in New Zealand. It’s developed by Lodestone Energy and generates approximately 55 GWh of clean energy annually.⁴⁴
• Edgecumbe Solar Farm: 32 MW – Also developed by Lodestone Energy, this solar farm started construction in 2023 and will generate approximately 53 GWh of clean energy annually upon completion.⁴⁵
• Ruakākā Battery Energy Storage System: 100 MW – This project will accompany large-scale solar facilities and provide storage. It is projected to be operational in late 2024.⁹

Projected:

• Lauriston Solar Farm: 63 MW – This project is now under construction, aiming to be completed and operational by the end of 2024. This is considered to be New Zealand’s largest solar farm. It is located in Lauriston, near Christchurch.⁴⁶
• Hawke’s Bay Airport Solar Farm: 10 MW – This project is expected to power domestic flights at the airport. It was announced in 2020 and aims to make the airport carbon neutral.⁴³
• Waikato Solar Project: 300 MW – Located in the Northern Waikato region, this project will be operated by Genesis Energy and aims to be operational by 2025.⁴⁷
• Kōwhai Park Solar Farm: 150 MW – This project is being co-developed by Contact Energy and Lightsource BP. It is being developed over 30 years, with 300 hectares of land planned for development.⁹
• 350 MW Solar Joint Venture: A large-scale solar project with a planned capacity of 350 MW, this joint venture aims to significantly contribute to New Zealand’s renewable energy goals.⁴⁸
• The Whakatāne Solar Project: This project involves a solar farm with a capacity of 115 MW.⁴⁹
• The Whitianga Solar Project: This solar farm will have a 37 MW capacity and is currently in the pre-construction phase.⁵⁰
• The Dargaville Solar Project: With a capacity of 52.15 MW, this project will consist of 97,000 solar panels covering 95 hectares of land. Construction is expected to begin in the final quarter of 2024.⁵¹
• Marton Solar Farm: 65 MW – This solar farm received consent in April 2024 and construction is expected to start soon in the third quarter of 2024. It’s part of the Far North Solar Farm’s 1.4 GW portfolio.⁵²
• Clandeboye Solar PV Park: A 24MW solar PV power which is currently at the permitting stage. It will be developed in a single phase.⁵³
• Mount Somers: This solar project is a part of a development that, together with other sites, will produce a significant portion of Lodestone Energy’s total generation capabilities. The construction will be between 2024 to 2026.⁵⁴
• Dunsandel Solar Farms: Dunsandel will produce 80 GWh per year and is located on a 100-hectare block.⁵⁵
• Tauhei Solar Farm: This is a significant upcoming renewable energy project located near Te Aroha. Developed by UK-based Harmony Energy, this photovoltaic power station aims to generate 147MW upon completion.⁵⁶

• Meridian Energy: A major renewable energy generator, Meridian Energy has been active in solar since 1998 and is committed to achieving 95% renewable energy generation by 2035. Meridian Energy has been developing several utility-scale solar projects in New Zealand.⁵⁷
• Lodestone Energy: Established in 2019, this company is focused on large-scale solar farm development and has been a key driver of the recent growth in utility-scale solar projects in New Zealand.⁵⁸
• JA Solar Holdings: Operating since 2016 and one of the largest global solar panel manufacturers, JA Solar has a significant presence in New Zealand.⁵⁹
• Harrisons Energy Solutions: Harrisons Energy Solutions, established in 1998, specializes in residential and commercial solar installation and maintenance services.⁶⁰
• ZEN Energy Systems: ZEN Energy Systems provides a range of solar products and installation services, focused on providing high-quality solutions for homeowners and businesses.⁶¹
• Solar City: A leading provider of solar energy solutions for residential and commercial customers in New Zealand, Solar City is providing all-in-one solar solutions, including solar panels, smart battery technology, and access to renewable electricity.⁵⁷
• NZ Solar Ltd: Founded in 2004, specializes in providing solar solutions for commercial buildings, rooftop mount solar solutions, solar hot water for the dairy industry, and solar roof panels.⁵⁷
• NZ Solar Power: Offers tailored solar power and energy management solutions for homes, businesses, and utility-scale projects.⁵⁷
• Far North Solar Farm (FNSF): Specializes in large-scale solar PV projects development. FNSF has committed to developing seven solar farms across the North and South Islands, with a total generation capacity of 1.4 GW.⁶²