Solar panels in New Zealand 2026: costs, buy-back rates and payback

Marlborough, Nelson and Tasman get the best returns from rooftop solar in New Zealand, but with power prices rising year after year it has become a question for households from Auckland to Christchurch. The numbers are decent but not spectacular, and they depend more on when you use power than on how big the system is.

What a system costs in 2026

EECA, the government’s energy efficiency agency, publishes indicative prices:

• 3 kW (about 7 panels): around $8,500
• 5 kW (about 12 panels): around $11,500
• 10 kW (about 24 panels): around $20,000

A battery adds $5,000 to $15,000. EECA’s combined examples run from $13,500 for a small system with a 5 kWh battery to $40,000 for a large system with 20 kWh. AA Directions put the median installed solar system at $15,000 in its winter 2026 issue. Treat all of these as ballpark figures and get several quotes.

How much you save

EECA estimates annual savings of $1,000 or more for a typical household, and a medium 5 kW system produces around 50% to 80% of the power an average three-person household uses. Location matters: on its figures a 5 kW system saves about $1,467 a year in Marlborough and $1,047 in Southland. Payback is typically 7 to 10 years, EECA says, and can stretch to 10 to 12 depending on circumstances. Panels last about 25 years.

EECA also notes interest rates of 0% to 1% on some home energy loans, and an average 1.34% uplift in sale price for homes with solar. Put your own quote and usage into our solar calculator before trusting any payback figure, including ours.

Is your house a good fit?

EECA’s checklist is a useful first filter. Solar suits you better if you already use a lot of electricity, especially during the day (a heat pump, electric hot water, an EV, someone working from home), if you have enough roof or ground space facing the sun, and if the roof will not need replacing in the next decade. Planned renovations that touch the roof or wiring are a reason to wait. And you need to be comfortable with the upfront cost, or with a loan.

Buy-back rates: the weak link

When your panels produce more than the house uses, the surplus goes to the grid and your retailer pays a buy-back rate. Each retailer sets its own. Powerswitch keeps a table of retailers’ solar rates, updated in September 2026, but it leaves them out of its savings estimates, so a plan that ranks well on price may pay little for exports. Compare the buy-back rate and the import rates together, on Powerswitch or through our comparison page.

Buy-back is normally worth less than what you pay for power. Every unit you use yourself saves the full retail price; every unit you export earns only the buy-back. That is why running the dishwasher, washing machine, hot water cylinder or an EV charger in the middle of the day often does more for your payback than extra panels.

New: lines companies must pay for peak exports

The Electricity Authority has decided that households should be paid more for supplying power to the grid when it is most needed. Under its Energy Competition Task Force, distributors must pay rebates for exports at peak times from 1 April 2026, for households and small businesses with connections up to 45 kVA, with rebates based on long-run marginal cost from 1 April 2027. A second change sits with retailers. Under initiative 2C, large retailers had to have plans available by 1 July 2026 that pay households a fair rate for power sold into the network at peak times. In practice, both changes reward a battery that discharges into the evening peak. How much reaches you depends on your lines company and retailer, so ask both, and compare the peak buy-back rate as well as the flat one.

Batteries

EECA’s battery add-on range of $5,000 to $15,000 is a big share of the total. A battery lets you store midday solar for the 5 pm to 9 pm peak and, with the new peak export rebates, sell some back when it is worth most. Whether it pays depends on the gap between your peak rate and your buy-back rate. Ask the installer for a payback figure with and without the battery.

Permits and paperwork

You need your lines company’s approval before connecting a system that exports, and an import/export meter to be paid for exports, according to the Electricity Authority. The Authority’s Code (Part 6) sets the connection process for small generators. EECA says a ground-mounted system does not need a building consent but must still follow the Building Code, district plan rules and other legislation, and rural installs may need a resource consent. Your installer normally handles the applications.

What changed in 2025 and 2026

• 1 April 2026: peak export rebates from distributors began.
• 1 July 2026: large retailers had to offer plans that pay more for exports at peak times.
• May 2026: Electricity Authority changes on export limits took effect.
• 8 September 2026: the Authority opened consultation on further connection improvements and on how the rules would treat plug-in “balcony” solar, which is not yet permitted in New Zealand but could suit renters and apartment owners.

Pitfalls

Oversizing. A system much bigger than your daytime use exports most of its output at the buy-back rate.

Roof condition. EECA advises against installing on a roof that will need replacing within about 10 years.

Ignoring the tariff. After installation, re-run a comparison: a plan with a good buy-back rate and a cheap night rate often beats your old plan.

Hard-sell quotes. Get at least three quotes, ask for itemised panel, inverter and battery prices, and check the warranty.

For a reminder when your power plan is up after installation, set a free contract alert, and use our bill guide to check the first bills with solar.