Jun 13, 2025
Government follows up farm solar package with positive changes to residential solar rules

More good news for New Zealanders looking to reduce their energy bills and the country's emissions, with Ministers Simon Watts and Chris Penk announcing a number of incentives for residential solar that Rewiring Aotearoa had been advocating for.

The main changes are: 

  • The Government is expanding the permitted voltage range for electricity networks, so Kiwis with solar panels can send more power back to the grid.
  • Changes are being made to clarify that a building consent is not needed to install rooftop solar panels on existing buildings.
  • Councils will be required to process building consents for new homes with solar panels within 10 working days, down from the standard 20 working days.

"These are really positive signals from the Government and a good package of incentives for homeowners, farmers and developers," says Rewiring Aotearoa CEO Mike Casey. "There have been a number of positive announcements for the rural sector recently, and we have been asking for more focus on New Zealand households that are losing faith (and money) in the energy system, so it's great to see more action in this space and we think it will speed up adoption and increase the size of the systems being installed."

Currently, there are arbitrary restrictions on the amount of power those with rooftop solar can export to the grid. Higher export limits should incentivise bigger systems to be installed and that will increase savings for homeowners and also help bring down the price of electricity for everyone on the network.

"It's important that the regulator enforce the networks to do what the Government has approved in the near future and we'll be keeping an eye on them to make sure it happens," he says. "We need them to fast track networks actually approving increased limits to 10kW and would expect all networks have this finished by the end of the year, and most should be able to do it within weeks."

Casey says the arbitrary 5kw export restrictions from the networks were based on everyone in the street having solar, but that is definitely not the reality in New Zealand at the moment.

"The networks will scream and shout about too much solar on the network but they're wrong. South Australia didn't start to see problems until they hit three to five times the amount of solar that New Zealand currently has and there are no problems now and some areas are at 70% penetration. New Zealand sits at around 3% and we are also doing this at a time when batteries and EVs are economic and can use a lot of that solar. Also, if the networks are worried about it, they have enough time to sort it out as demand grows."

Australia's average solar system is close to double the size of New Zealand's and Casey says that is partially due to solar installs being specced to the size of the export limit.

"The country is screaming out for more generation and we know there is currently spare solar energy being curtailed by the networks that could be helping in a dry year. We want to encourage the biggest possible solar systems because it reduces the costs for the homeowner and for everyone else on the network."

Casey says changes to consenting rules could be helpful for farmers wanting to install solar on existing buildings and the fast-tracking of consents for homes with solar is basically like a T2 lane on the motorway.

Discussions are ongoing about a long-term, low-interest loan scheme for electrification upgrades, which would include solar. This was deemed to be the most impactful idea in our recent policy manifesto and will help overcome one of the biggest barriers to uptake, upfront costs.

"We also know solar can be something of a gateway drug for EVs and help convince people to get off gas hot water, heating and cooking because when you're generating your own cheap energy on your roof, it makes sense to use as much of it as possible."

As the release says: 

Common sense changes in the energy and building consent systems will drive greater residential solar uptake in New Zealand, Energy Minister Simon Watts and Building and Construction Minister Chris Penk say.


“New Zealand’s residential uptake of rooftop solar is lower than many other countries. This Government wants to change that so more Kiwis can generate, store, and send their own electricity back to the market. This will allow them to save on their power bills and contribute to a more secure electricity system,” Mr Watts says.


“Rooftop solar will play a crucial role in supporting energy security and reducing emissions. But our networks need to be able to better support the growing flow of electricity from consumers, while also dealing with growing demand for more electric vehicle charging.

“That’s why we are expanding the voltage range from +/- 6 percent to +/- 10 percent to manage the changing flow of electricity from rooftop solar and EV charging. This will future proof our electricity system and help electrify the economy.  


“Modelling suggests this change could boost solar investment and overall generation by a whopping 507 GWh through increased solar connections. This is great for the security of our energy supply.”


Mr Penk says the building consent system can help accelerate the shift towards renewable energy.  


“We need the right incentives in place to make rooftop solar a realistic option for Kiwis.


“The Government is focused on getting people into safe, affordable homes faster – and we want those homes to be sustainable and future-ready.


“With the energy system preparing for a surge in residential solar, the consenting process needs to play its part to support the transition.  


“We are proposing changes to the Building Act, that will make it clear that a building consent is not needed to install rooftop solar panels on existing buildings.  


“Right now, decision-making is inconsistent between councils – creating unnecessary barriers for homeowners who want to take responsibility for their environmental impact and make sustainable choices.


"As a further incentive, we are also proposing that Kiwis who choose to include solar panels in the design of new homes will have their entire building consent fast-tracked and processed in 10 working days instead of the standard 20 working days, saving Kiwis around $400 a day in time and consenting costs.”

“Delivering the best outcomes for New Zealanders is incredibly important to Minister Penk and me. Expanding the voltage range could help avoid hundreds of millions of dollars in infrastructure upgrade costs to accommodate rooftop solar and EV charging being passed on to Kiwi households,” Mr Watts says.

“Combined, these common-sense and cost-effective changes will boost the resilience of New Zealand’s electricity supply, make it easier and cheaper for Kiwis to build sustainable homes, and spur New Zealand’s residential solar market into the future.”

Notes to editors:
  • New Zealand appliance standards have aligned with international +/-10% voltage requirements since the 1980s, meaning compliant appliances should already operate safely within the new voltage range.
  • Consumers using older devices that don't meet New Zealand or international appliance standards may use a surge protector, but consistent high-end voltage delivery is unlikely.
  • The expert modelling referred to in this release was prepared by grid connection specialists, ASNA.
Read moreDownload the document here

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