Power prices are rising. Petrol is soaring. For a growing number of Kiwis, spending tens of thousands on solar panels and/or an electric car is beginning to look like a smart financial strategy. Would either work for you? Frances Cook outlines eight factors to consider first.
1. Is your power bill already hurting?
Start with the obvious. If your power bill makes you wince every month, that’s your first signal.
The average household is now paying around $200 a month for electricity, and many are well above that. Prices have been climbing steadily for years, and there’s no sign of that slowing down.
In the recent cost-of-living increases, power prices have been a big underlying factor.
StatsNZ tracked them going up 6.2% in the year to April 2025, after increases of 4.6% in 2024 and 4.9% in 2023. That’s well ahead of general inflation, which was already bad enough.
Consumer NZ has also warned of double-digit increases this year, with more rises expected in the years ahead.
Solar works best when it’s replacing a big, unavoidable cost. If your bill is low, your savings will be lower too, which stretches out the payback time.
2. Do you own your home and plan to stay?
This is not a quick flip.
Solar doesn’t reliably add to your home’s value. The payoff comes from years of reduced power bills, not a higher resale value.
That means it works best if you not only own your home, but you’re planning to stay put for a while.
Pull out a year of power bills. See what you spend.
The average New Zealand household solar installation costs $16,500. So divide that average number of $16,500, by your yearly power spend, and it will give you roughly the number of years it takes for the system to pay itself off.
Then remember that most solar systems are designed to work for around 25 years. How many years will you get power for free?
3. Can you access a good finance deal?
Most people don’t have the solar investment cost lying around in cash, but the right financing makes the idea work.
Many banks offer “green loans” for solar and electric cars, often at very low interest rates of between 0–1%.
They often have a shorter payback period, between 3-5 years.
Direct your former electricity spend to the loan and pay it off within that time period, and you’ve got a pretty good deal.
4. Will your roof do the work?
Not all roofs are equal.
The ideal setup is north-facing, minimal shading, with enough usable space. If your roof ticks those boxes, you can often get away with a smaller, cheaper system and still get strong output.
A good installer should be able to show you exactly what your system would generate, based on your specific house. So shop around for quotes, and generation estimates.
5. Do you use power during the day?
Solar generates power when the sun is out. Which creates a simple rule: the more of that power you use yourself, the better the economics.
Households that benefit most tend to work from home, or have someone home during the day.
Otherwise, you might need to get smart with timers for running your appliances, or install a battery, in order to get the most out of it.
6. Are you realistic about 'making money'?
This is where many solar expectations need a reset.
Solar is excellent at reducing costs. It is not particularly good at generating income.
Yes, you can sell excess power back to the grid, but it’s typically at a fraction of the price you pay for electricity.
The real financial win comes from avoiding costs, not earning from power exports.
For many it’s better to be home during the day using the power, or to invest in a battery to ensure you’ve stored the power, as any power sold back to the grid will only make a small difference to your bill.
7. Are you prepared to spend on an EV that matches your commute?
One of the big factors in how much an electric car costs is how far you can get on its battery charge, otherwise known as its range.
If you just rock around your city, with an average commute to and from work, you might not need to spend much on the latest, greatest EV.
If you’re on the road more often for work or play, you might need to spend a bit more.
So start by thinking about your life, how much you drive your car, and how much you might need to invest to make it worthwhile.
Frankly, most driving is boring. It’s the same loops on repeat, with commuting, school runs, errands. If that’s you, you probably don’t need a long-range, high-spec vehicle.
Electric cars are also often cheaper to maintain, as they have fewer parts than a petrol-powered engine. So factor that into consideration.
8. Can you do both?
If you get both solar and an electric car, for a reasonable cost, then you’re away laughing.
Suddenly both your power and your petrol bill are replaced by sunshine power.
If you’re home during the day to plug the electric car in to solar’s peak times, that’s really making the most of the upgrade.
You end each day with a full tank once again.
Charging overnight from the grid is still likely cheaper than petrol (depending on your power plan), but charging with electricity you generate yourself will clearly be much cheaper again.
Really, the biggest question isn’t whether solar and an electric car are worth it. It’s whether they’re worth it for your lifestyle, and whether you’ll make the most of them.
The information in this article is general in nature and should not be read as personalised financial advice.
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