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Honest guide · updated June 2026

Is solar worth it in New Zealand?

For most homes that use power during the day: yes. EECA and Consumer NZ put the typical payback at around 7–10 years, and EECA estimates a return of roughly 6–14% a year on a well-positioned 5kW system. After payback, your generation is essentially free for the rest of the system's life.

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The single biggest factor: self-consumption

Solar pays off fastest when you use your own generation rather than exporting it. Grid power costs around 35c/kWh, but the surplus you export earns only the retailer's buyback rate (currently roughly 11–23c/kWh, with no national feed-in tariff). So every unit you use yourself is worth far more than one you sell back. Shifting daytime loads — hot water, laundry, dishwasher, EV charging — is the easiest way to improve your return.

Solar is likely worth it if…

  • ✓You use a fair amount of power during daylight hours (or can shift usage — dishwasher, washing, hot water, EV charging — to the day).
  • ✓You own your home and plan to stay a while, or your roof is north, east or west facing with little shading.
  • ✓Your power bills are high and rising, so every self-consumed kWh saves you more.

Think twice if…

  • •You're out all day and use most of your power at night, with no battery and a low export buyback rate.
  • •You're likely to move within a few years (though solar can still add to resale appeal).
  • •Your roof is heavily shaded, very small, or faces mostly south.

Returns vary by region

Sunnier, higher-yield regions reach the top of EECA's return range. On EECA's modelling, Queenstown sees the highest returns (7–14%), with Auckland (6–12%), Christchurch (6–11%) and Wellington (up to ~10%) close behind. Even in the lower-yield south, solar remains worthwhile for daytime power users. Explore solar by region →

Frequently asked questions

What return does solar give in NZ?+
EECA estimates an internal rate of return of roughly 6–14% per year for a well-positioned north-facing 5kW system, with returns at the higher end in sunnier, higher-yield regions. That typically works out to a payback period of around 7–10 years.
Does a battery make solar more worth it?+
Not usually on cost alone — EECA's view is that panels without a battery generally give the best financial return today, and Consumer NZ notes a battery tends to lengthen payback. A battery can still be worth it for backup power or if you can't use much power during the day.
Will solar add value to my home?+
A quality, well-installed system with transferable warranties can add to a home's appeal, though the clearest financial benefit is the power-bill savings while you live there.

Sources

Figures on this page are indicative guidance, not a quote. Verified as at June 2026 — always confirm current pricing and rates with your installer or retailer.

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