New Zealand Moves to Slash Costs and Delays for Home Solar

The Government expects the proposed reforms to cut residential solar approval costs from about $640 to $200 and reduce the process from roughly three months to six days.

The New Zealand Government is moving ahead with recommendations designed to make residential and small to medium-scale solar installations faster and cheaper, including legalising plug-in solar systems and cutting several approval requirements that can currently leave households waiting months. Regulation Minister David Seymour and Energy Minister Simeon Brown say the changes will give more New Zealanders the option of generating electricity at home while reducing the regulatory costs attached to installing solar technology.

A Ministry for Regulation sector review found that some small-scale solar projects can require as many as six separate sign-offs and five site visits involving four different entities before being switched on. The Government expects the proposed reforms to cut residential solar approval costs from about $640 to $200 and reduce the process from roughly three months to six days.

Plug-in Solar Set to Become Legal

The biggest change will be the legalisation of plug-in solar, which could open solar generation to renters and apartment residents who cannot install conventional rooftop systems. Portable systems could also move with renters when they change homes, giving people who do not own property another way to use solar energy.

Seymour pointed to the use of plug-in systems in countries including Germany and the UK, arguing there was no good reason to prevent New Zealand households from accessing the technology.

Fewer Inspections and Faster Approvals Planned

The Government will trial a risk-based inspection system that could allow accredited installers to complete checks without requiring an electrical inspector to visit every installation. Officials estimate the change could save consumers as much as $600 and reduce waiting times by up to 45 days.

Processing times at electricity lines companies are also targeted for significant reductions. Standard residential solar requests could move from 10 working days to the next working day, while approvals for medium-sized installations could fall from more than 30 days to five working days.

For projects such as solar panels on farm buildings, approval costs could drop from as much as $11,000 to around $1,300, with processing times falling from six months to about one month.

Planning Changes Could Remove More Solar Barriers

Some larger, ground-mounted and specially located solar installations currently require resource consent, adding thousands of dollars and weeks to projects. The Government plans exemptions that could save consumers up to 30 days and between $3,000 and $10,000.

The Ministry estimates the full package could generate net benefits of $28 million to $50 million over 10 years through lower compliance costs, shorter delays and plug-in solar use.

Brown said rooftop solar connections are already increasing and reducing unnecessary costs could encourage further uptake. The Government has also doubled the amount of electricity homeowners can export to the grid, giving households more opportunity to make use of electricity generated from their rooftops.