Rising power prices vs. solar savings

Why rising energy prices make solar a smart investment


As Aotearoa moves toward a more sustainable future, one thing is becoming increasingly clear — the cost of doing nothing is catching up with us. Rising electricity prices continue to bite, while the cost of solar energy systems is falling. That gap means one thing for Kiwi households and businesses: there’s never been a better time to invest in solar.

More people asking the right question: can I afford not to go solar?

Here we break down the costs and savings.

Power prices keep rising

In the last five years, average residential electricity prices in NZ have increased by over 20% — and there’s no sign of that slowing down. Power companies cite infrastructure upgrades, generation costs, and rising demand as key drivers. Unfortunately, this leaves Kiwi households paying the price.
For example, a typical NZ household using 8,000 kWh/year would have paid around $2,300/year in 2019, and faced bills closer to $2,900/year in 2024.

Solar costs keep falling


While power prices rise, solar installation costs have steadily fallen thanks to improved technology, better efficiency, and a growing local solar industry.
The average cost to install a 5kW system in New Zealand is now around $11,000–$13,000, compared to $15,000+ just a few years ago.
With systems lasting 25+ years and minimal maintenance required, the upfront investment quickly pays for itself.

Solar savings add up


Rising energy prices + falling solar costs = faster return on investment for NZ households and businesses.
Example:
5kW solar system cost: $12,000
Annual power bill without solar: $2,700
Estimated solar savings per year: $1,500–$1,800
Simple payback period: 6–8 years


And after that? You’re essentially generating free power for the next 15–20 years.
In fact, with power prices increasing, those savings grow every year — future-proofing your home against energy price increases.

Solar savings per year breakdown

Here’s a typical savings scenario for a 5kW residential system:

Note: These figures factor in average annual power price increases of 3–5%.

And after that? You’re essentially generating free power for the next 15–20 years.

In fact, with power prices increasing, those savings grow every year — protecting your home from unpredictable energy price increases and reducing annual energy costs.
Every year without solar locks you into rising electricity costs. With lower solar prices and faster payback periods, investing in solar isn’t just about going green — it’s a smart financial move.

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