Govt unveils new electricity rules to cut household power bills and boost solar uptake

New Zealanders will have more ways to save on their power bills under a suite of changes announced by the Electricity Authority, with the government promising fairer deals for solar users and time-based pricing from energy retailers.

Energy Minister Simon Watts and Associate Energy Minister Shane Jones say the reforms will put downward pressure on electricity prices and reward households that generate and export power back to the grid.

“The changes are welcome developments for consumers who are not getting a fair deal at present from the energy market,” Watts says.

“First, solar is getting another big boost – energy companies must now pay households with rooftop solar and battery who export their electricity to the grid at peak times a fair price for that electricity – this will help reduce power bills and encourage more solar installations and electricity generation.

“The large energy companies will also need to offer time of use plans by 30 June 2026 to provide better options for customers to save money by moving their electricity use from peak periods.”

Watts says the simple changes will help relieve cost-of-living pressure for Kiwi households and businesses already struggling with high power prices.

“New Zealand needs more electricity generation to power our economy, and Kiwis rightly expect abundant and affordable energy, which this government is taking action to deliver.

“The Government is working on a review of the electricity sector, with a focus on ensuring Kiwis get a fair price and aren’t hit in their pockets, and on addressing energy shortages.”

Watts says the new rules are designed to reduce power bills in the long term and increase adoption of solar and battery technology.

“The new rules announced today will give New Zealanders more ways to reduce their costs and will incentivise uptake of solar and battery systems, as well as drive power prices down over the long term. Ensuring energy companies pay a fair price for consumers exporting electricity to the network is one of the single best ways to help boost solar uptake to date.

“I want to see more New Zealanders benefitting from the smarter use of electricity. For this to happen, the electricity sector must appropriately reward consumers for the benefits they provide when they shift their power use away from peak times.”

Jones says decentralised energy systems will play an increasingly important role in the grid of the future.

“As our electricity market evolves, these small-scale systems will play an increasingly important role in enabling peak morning and evening demand to be met with local supply.

“With new, fairer rebates in place, there will be better opportunities for people to receive income from solar electricity they sell back to the grid.”

The reforms are based on the work of a Task Force established in August last year by the Electricity Authority and the Commerce Commission, with MBIE as an observer, following the 2023 winter power crisis.

The Task Force aims to remove barriers to entry for new generators and independent retailers, as well as increase consumer choice and resilience across the market.

“I thank the Task Force members and the Authority for their work in reaching these decisions. There is more work to do, and I look forward to further Task Force decisions in coming weeks,” Watts says.