Jul 2, 2025
RNZ
Media
Higher electricity bills lead to 'extreme power rationing'

While we like to talk about the economic, environmental and resilience benefits of using more electricity, there’s no denying that the news is dominated by stories about increasing electricity prices. Yesterday, RNZ looked at the increasing numbers of pensioners who are struggling to cope with higher bills and have resorted to "extreme power rationing". One of the only ways to bring electricity prices down is with rooftop solar, so we're working on a range of schemes to make that happen.

It’s depressing. It’s ineffective. And when the cost of generating electricity has never been cheaper through rooftop solar, it’s hard to swallow.

Those who have the capital or can access a loan have a very strong economic incentive to invest in solar (and, to a lesser degree, batteries) because they’re basically buying a few decades of cheap energy upfront and locking in that low price.

But what about everyone else? What about the approximately one third of New Zealanders who rent? What about those who are asset rich but cash poor and can't deal with too many cost increases?

It’s important to point out that electricity is still cheaper for households than using other fuels, but one of the only ways we can actually bring electricity prices down is by getting more solar on rooftops (or replacing the fixed costs with something smarter).

We know the biggest barrier to uptake is upfront costs. That’s why we’re working hard on a number of schemes to address that.

🏦 We’ve been advocating for long-term, low-interest loans for electrification upgrades that will be tied to properties and delivered through the proposed Ratepayer Assistance Scheme. The idea has bipartisan support in Central Government and a number of councils are also getting behind it.

😎We’re working on a solar for renters scheme that will reduce costs for tenants and incentivise landlords to put panels on their properties.

🔌We’re exploring the potential of plug-in solar for New Zealand households. While these systems only supply a small amount of electricity, the balcony solar movement has taken off in places like Germany and Spain and systems are now even being sold at Ikea.

Hardship will always be an issue, but if we embrace modern technology and find ways for more people to access it, energy hardship doesn't need to be a big part of that.

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