Are solar panels worth it in NZ?
For most NZ homes with an unshaded, roughly north-facing roof and a power bill over $200 a month, solar panels are worth it — with a typical payback of 10–15 years, followed by another 10–15 years of largely free power. But solar doesn't suit every home, and a good installer will tell you honestly when it doesn't.
This guide covers the four things that decide it, the honest cases where solar isn't worth it, and how to work out your own numbers.
The short answer
Solar is worth it for the majority of NZ homeowners because NZ power prices are among the higher in the developed world, and every unit you generate and use is a unit you don't buy from a retailer at 25–33 cents per kWh.
It's clearly worth it if you have a north, east or west-facing roof with little shading, a power bill over about $200/month, and you use a reasonable amount of power during daylight hours. It's more marginal if your bill is very low, your roof is heavily shaded, or you're about to move.
The four factors that decide it
- Your roof — orientation, pitch, shading and condition. North-facing is best; east/west generate 15–25% less; heavily shaded or south-only roofs are often marginal.
- Your power bill — the higher your bill, the more you save and the faster it pays back.
- When you use power — power used during daylight saves the full retail rate; exported power earns only the lower feed-in tariff. Daytime users pay back faster.
- Your power rate — high-rate plans benefit more from self-consumption.
Regional sunshine also matters — see the regional savings estimates for NZ.
Payback and lifetime savings
A typical grid-tied NZ system pays for itself in 10–15 years. After that, you're generating largely free power for the remaining 10–15 years of the panels' 25-year life — the period where solar delivers its biggest net savings.
Sunnier regions (Bay of Plenty, Marlborough, Nelson) with high daytime usage tend to see payback closer to 10 years; lower-sun regions or low-usage homes closer to 15. See what solar panels cost in NZ to weigh the upfront figure against the return.
When solar is NOT worth it
Being honest about this matters — solar doesn't suit every home. It's often not worth it if:
- Your power bill is very low (under about $100/month) — the payback period stretches out a long way.
- Your roof is heavily shaded — trees, hills or neighbouring buildings can cut generation below the point where it stacks up.
- Your roof needs replacing soon — you'd want the roof sorted first, since removing and refitting panels adds cost.
- You're moving within a few years — though solar does add to resale value, you may not reach payback before you sell.
A reputable installer will tell you if any of these apply to you. There's no national rebate propping up the numbers either — see NZ solar subsidies and rebates — so the case has to stand on savings alone.
5 kW or 10 kW — what makes sense?
Bigger isn't automatically better. The right size is matched to your daytime consumption, so you self-consume most of what you generate rather than exporting it at the lower buy-back rate.
As a rough guide: a 5 kW system suits smaller households or lower daytime use; a 6.6 kW system fits most NZ homes and is the most common choice; and a 10 kW system suits large households, high usage, or homes with EV charging. Your installer sizes this precisely at the assessment.
Common questions
Are solar panels worth it in NZ?
For most NZ homes with an unshaded, roughly north-facing roof and a power bill over $200/month, yes — solar typically pays for itself in 10–15 years and then generates largely free power. It is more marginal for very low bills, heavily shaded roofs, or if you plan to move soon.
What is the payback period for solar in NZ?
Typically 10–15 years for a grid-tied system. Sunnier regions with high daytime power use tend to see payback closer to 10 years; lower-sun regions or low-usage homes closer to 15.
Is solar worth it in NZ without a government subsidy?
Yes for most suitable homes — the case for solar in NZ was never built on a rebate. The savings come from avoiding retail power prices, not a government payment. There is no national solar grant in NZ as of 2026.
Is a solar battery worth it in NZ?
A battery increases how much of your own power you use in the evening and adds backup during outages, but it adds significant cost. It is worth it for households with high evening usage or who value backup; many start with panels only and add a battery later.
Should I get a 5 kW or 10 kW solar system?
Size the system to your daytime power use, not the maximum that fits. 5 kW suits smaller households, 6.6 kW fits most NZ homes, and 10 kW suits large households or homes with EV charging. Your installer sizes it precisely at the assessment.