New Zealand power prices are climbing fast — jumping 9.4% between March 2022 and March 2024 alone.
But it hasn’t stopped there. Last year, experts warned of “double-digit price increases”. Then the Commerce Commission approved revenue increases for Transpower, which means the average household electricity bill is predicted to increase consistently — for the next four years. Now, in 2025, major power providers have already raised prices significantly, with key regions seeing 5% to 15% rises in energy costs. Looking back at the last decade’s 12% increase in electricity costs, it’s hard not to expect the same (or worse) for the future.
You, the consumer, are set to feel the squeeze. Fortunately, solar power offers a proven way to secure lower energy costs and gain energy independence.
That’s why more and more Kiwis are switching to solar in 2025 – to take control of their power bills, insulate against rising electricity prices and reduce reliance on the national grid.
Read on as we compare the cost of traditional energy vs solar energy to discover why a growing number of Kiwis are making the switch.
The Rising Cost of Traditional Energy in New Zealand
Back in 2023, the average NZ household consumed around 7,000kWh annually. At the time electricity prices were about 33.74 cents per kilowatt-hour (kWh), resulting in an average power bill of about $2,362 per year.
In 2025, New Zealand’s power prices have continued to climb, and with energy demand growing, these rising prices are unlikely to stabilise anytime soon. The unfortunate truth is that households relying solely on the grid remain vulnerable to rising power prices, while solar users enjoy greater control and long-term savings.
For those facing higher-than-average electricity prices, investing in solar power isn’t just about sustainability — it’s about securing financial stability and energy independence for now, and for your future.
The Cost of Solar Energy in New Zealand
Solar power system costs depend on system size and roofing type. Adding a battery increases the total cost but is optional.
Once installed, solar panels start cutting power bills, shielding homeowners from their ever-rising electricity costs. If you’re considering a solar battery, read more about whether a solar battery is worth it. For most households, a solar system pays for itself within 5 to 7 years — after which the savings continue to accumulate.
In fact, you could save a minimum of 50% on future energy bills by installing solar panels now, in 2025. Consider the full costs of remaining at the mercy of traditional power providers vs the freedom of controlling your energy future with solar.
Additionally, solar users can take advantage of government-backed financing options and competitive rates from energy retailers offering buy-back schemes for excess solar power exported to the grid. This means solar isn’t just about reducing your reliance on the grid – it can also create opportunities for savings through selling excess power.
Key Factors Affecting Solar Panel Costs
Roof Type
The type of roof affects installation complexity and cost. Metal roofs allow for easier installations, while tile, bitumen, or shingle roofs may require extra mounting components.
Switchboard Upgrades
Some homes may require switchboard upgrades before installing solar, leading to additional costs. Key considerations include:
- Is the board in a suitable location? (not too high)
- Is it made from asbestos-free materials?
- Is there space available for solar circuits?
- Are the cables compliant? (older VIR cables should be replaced)
Travel Costs
If an installer must travel long distances to remote locations, additional charges may apply.
System Size and Energy Needs
A larger system costs more upfront but delivers greater savings over time.
Solar Panel Return on Investment (ROI)
Solar power systems typically deliver a 10-15% ROI annually. As power prices rise, the payback period shrinks, making solar a smarter financial decision.
A well-sized solar system could reduce household power bills by 60-80%, depending on energy use and system efficiency. Even a modest system can help homeowners save thousands over its lifetime. Discover how much you might save here with our solar savings calculator.
Additionally, homes equipped with solar panels often see an increase in property value—making solar not just a cost-saving move, but a long-term financial investment.
The Future of Solar Power Costs in New Zealand
While the sharp drop in solar prices over the past decade has slowed, buyers can still expect gradual cost reductions and efficiency improvements. Additionally, battery storage is becoming more affordable, making solar even more viable for energy independence. For more, read about whether solar power will get cheaper.
One thing is certain – as more homeowners seek energy independence, solar will play an even bigger role in reducing reliance on the grid.
Make the Switch to Solar with Lightforce Solar
In 2025 the future is clear – solar power offers unmatched long-term savings, while grid electricity prices keep rising.
If you’re ready to switch to solar, get in touch with our expert team at Lightforce Solar. With over a decade of experience serving Kiwis, we’re ready to help you set up solar panels for your home so you can take control of your energy future!
