By Solar Republic Limited

02/26/2025 As the world continues to shift towards renewable energy, solar power has emerged as one of the most popular and accessible options for homeowners and businesses alike. With advancements in technology and increasing demand, the cost of solar power systems has been steadily decreasing. But what can you expect to pay for a solar power system in 2025 in New Zealand? And more importantly, is solar power worth the investment? In this article, we’ll break down the costs, factors affecting pricing, financing options, and key considerations to help you make an informed decision.
The Cost of a Solar Power System in 2025 in NZThe average cost of a solar power system in 2025 is projected to be between $15,000 and $25,000 for a typical residential installation, depending on the size, location, and quality of the system. This price range typically includes the cost of solar panels, inverters, mounting hardware, installation labor, and permits. On a per-watt basis, solar systems are expected to cost around $2.50 to $3.50 per watt in 2025, down from previous years due to technological advancements and economies of scale.
For a 7 kW system (a common size for residential homes), the total cost would range from $15,000 to $21,000.
Factors Affecting the Cost of a Solar Power SystemSeveral factors influence the cost of a solar power system, including:
System Size:Larger systems with more panels will cost more but can generate more electricity.
To estimate the ideal system size for your home, use our free solar calculator! This tool provides a rough estimate of the system size and number of panels needed.
For example, for a household with a monthly electricity bill of $150 (power bill), the recommended system size is 5kw
The required number of panels is 12：

Note: These calculations are based on New Zealand’s average household data—such as the national electricity rate of $0.28 per kWh and an annual output of 1,300 kWh per 1 kW solar system. For a tailored solution, contact our solar advisors. They’ll assess your unique needs, including peak energy usage times, roof angle, shading, and local weather patterns.

Location:Solar installation costs vary by region due to differences in labor rates, permitting fees, and sunlight availability.
Product Quality:High-efficiency panels and premium inverters may cost more upfront but can offer better long-term performance.
Roof Type and Condition:Complex roof designs or the need for roof repairs can increase installation costs.
Suitable Roof Materials:

• Asphalt Shingles: The most common and easiest to install solar panels on.
• Metal Roofs: Durable and compatible with clamp-based mounting systems.
• Concrete or Clay Tiles: Possible but may require specialized mounting hardware.
• Slate Roofs: Can support solar panels but need extra care to avoid cracking.
• Flat Roofs (TPO/PVC): Use ballasted mounting systems to avoid roof penetration.

Challenging or Unsuitable Roofs:

• Thatched Roofs: Fire risk and structural instability make solar installation unsafe.
• Severely Aged or Damaged Roofs: Panels cannot be installed until repairs or replacements are done.
• Roofs with Asbestos: Requires professional asbestos removal before installation.
• Complex Roof Shapes: Multiple angles or obstructions (e.g., chimneys, skylights) increase installation difficulty and cost.
• Heavily Shaded Roofs: Limited sunlight exposure reduces solar efficiency; consider ground-mounted systems instead.

If your roof falls into the “challenging” category, consult our team for alternative solutions like ground-mounted solar or structural upgrades.
Local Rebates:While New Zealand doesn’t offer government solar rebates like Australia, major banks provide Green Home Loan options to ease financial pressure.

• ANZ: Up to $80,000, 1% fixed for 3 years
• ASB: Up to $80,000, 3-year fixed rate
• BNZ: Flexible terms, up to $80,000
• Kiwibank: Up to $2,000, no extra fees for existing customers
• Westpac: Up to $50,000, interest-free for 5 years

Other financing solutions, such as Q Card, may also be available. For details on the best financing options for your solar installation, visit our dedicated Green Home Loan for solar panel syste.
Battery Storage:Adding a solar battery for energy storage will increase the total cost but provide backup power and greater energy independence.
Finance Options for Solar Power SystemsSolar power systems are a significant investment, but there are several financing options to make it more accessible:
Cash Purchase:Paying upfront offers the highest long-term savings and the best return on investment (ROI).
Solar Loans:Many lenders offer loans specifically for solar installations, allowing you to spread the cost over several years. As mentioned earlier, major New Zealand banks provide Green Home Loans with low or zero interest rates, making solar financing more affordable.
Leasing:Solar leasing allows you to install a solar system with little to no upfront cost, paying a fixed monthly fee to use the system rather than owning it. However, leasing options in New Zealand have faced significant challenges. For example, SolarZero, one of the leasing providers, has entered liquidation, causing uncertainty for its customers. This highlights the risks associated with solar leasing in New Zealand.
Our Recommendation:
If you own your property and have high electricity usage, purchasing a system outright or using a low-interest Green Home Loan is often the best option for long-term energy savings and investment security.
Power Purchase Agreements (PPAs):Under a PPA, you pay for the electricity generated by the system at a predetermined rate, often lower than utility rates. Advantages of PPAs: No Upfront Cost – You start saving on electricity without a large initial investment. Lower Energy Costs – PPA rates are typically lower than retail electricity prices, leading to savings on power bills. No Maintenance Worries – The provider takes care of repairs and system upkeep. Predictable Pricing – Many PPAs offer fixed or gradually increasing rates, helping with long-term budgeting. On the other hand, PPAs are more common for businesses and large-scale solar users in New Zealand rather than homeowners. PPAs often lock you into a contract for 10–25 years, which may not be ideal if you plan to sell your property. Since you don’t own the system, you miss out on full financial benefits, such as increased property value and maximum long-term energy savings be sure to carefully evaluate the contract terms and consider the long-term commitment’s impact on your business. It is recommended to consult professionals or lawer to determine the best energy solution for your needs.
Government Incentives:Currently, New Zealand does not offer direct government incentives for solar power installations.
Buyer’s Guide: What to Look for in a Solar Power SystemWhen shopping for a solar power system, consider the following:
System SizeEnsure the system is sized correctly to meet your energy needs.
Efficiency HigherEfficiency panels generate more electricity in less space.
WarrantyLook for panels and inverters with long warranties (25 years for panels, 10-15 years for inverters).
Installation CompanyChoose a reputable installer with experience and positive reviews.
Why Choose Solar Republic?

• Expertise and Experience – Solar Republic has years of experience in designing and installing solar power systems across New Zealand. Our team consists of certified solar professionals who ensure each system is tailored to your energy needs.
• High-Quality Products-We use only top-tier solar panels, inverters, and mounting systems, ensuring maximum efficiency and durability.
• Custom Solutions-Every home and business is unique. We provide personalized solar solutions based on your energy consumption, roof type, and budget.
• Transparent Pricing and Financing-No hidden costs. We offer clear, upfront pricing along with Green Home Loan financing options to make solar more affordable.
• Reliable Installation and Support-Our skilled technicians ensure seamless installation with minimal disruption. Plus, we provide ongoing monitoring, maintenance, and customer support to keep your system running optimally
• Sustainability Commitment-We are passionate about helping New Zealand transition to clean, renewable energy, reducing carbon footprints, and lowering electricity bills.

Contact us today for a free consultation and quote.
Battery StorageIf you want backup power or to maximize self-consumption, consider adding a solar battery.
Is Solar Power Worth Investing In 2025 In New Zealand?The return on investment (ROI) for a solar power system depends on several factors:

1. Upfront Cost:

One of the key factors influencing the payback period of a solar system is the initial installation cost. The lower the upfront cost, the quicker homeowners and businesses can recover their investment through energy savings.
In recent years, the overall cost of solar power systems has been steadily decreasing. This trend is driven by:
Falling Solar Panel Prices – Advances in manufacturing and increased global production have led to a significant reduction in panel costs.
Lower Battery Storage Costs – As demand for solar batteries grows, economies of scale and technological improvements have made storage solutions more affordable.
Competitive Installation Pricing – With more solar providers in the market, installation costs are becoming more competitive, further reducing the overall investment needed for a system.
While prices have come down, the financial benefits of solar remain strong, particularly as electricity prices continue to rise. Investing in solar now can lock in long-term savings and provide energy independence for years to come.

2. Energy Savings: The amount you save on your electricity bill will directly impact ROI.

3. Incentives and Rebates: Let us expect local incentives from NZ government soon .

4. System Lifespan: Solar panels typically last 25-30 years, providing decades of savings.

5. Electricity Rate Trends: Rising utility rates can increase the value of solar energy over time.

Solar Saving Calculator:To determine if solar power is worth it for your home, contact us for a free proposal today. We will provide you customize design solutions and give you a clear idea how much you can save.
Take one of our clients as an example:

• System Size: 8.36 kW
• Estimated Annual Electricity Bill Savings: $2,163
• Total System Price (Including GST): $16,500
• Estimated Net Savings Over System Lifetime: $32,65
• Payback Time: 7 Years (Can be sooner with battery)

Conclusion: Is Solar Power Worth It in 2025 In New Zealand?In 2025, solar power continues to be a smart investment for many homeowners. With declining costs, generous incentives, and the potential for significant energy savings, solar power offers both financial and environmental benefits. By understanding the costs, financing options, and key factors affecting ROI, you can make an informed decision about whether solar power is right for you.
As technology continues to improve and the world moves towards a greener future, there’s never been a better time to consider going solar. So, take the first step today and explore how solar power can transform your energy bills and reduce your carbon footprint.