Kiwis wanting to save time and money on their solar panel installation could do so with the legalisation of plug-in solar systems, a sector review has found.
A typical system costs between $8500–$11,500 and pays itself off over time, yet only 3-4% of households currently have solar, the review said.
The Ministry for Regulation launched a sector review into residential solar installation in May, with the aim of "reducing unnecessary cost, delay and complexity for households" across Aotearoa.
Today, the review pointed out solar panels could deliver meaningful cost savings for households, but found installing them in New Zealand was often a slow and complex process.
In its findings released this afternoon, the Ministry for Regulation's Sector Review Report recommended legalising plug-in solar "because there was no good for reason for preventing Kiwis using it".
In response to the report, Regulation Minister David Seymour said: "Plug-in systems can be used by renters and people living in apartments who can’t access traditional rooftop solar. If they’re good enough for Germany and the UK, they’re good enough for us,."
Under the current rules, connecting a solar panel system with a standard inverter directly into a household power point was not permitted due to serious safety risks if the plugs were exposed or handled incorrectly.
So, how do plug-in solar systems work? And how much could you theoretically save by installing one? Here's everything you need to know:
What are plug-in solar systems?
Plug-in solar systems are small, portable solar power kits that connect to a home through a standard wall socket, according to information from non-profit organisation Rewiring Aotearoa.
It said usually the units are made up of one or two solar panels with a built-in microinverter, which converts sunlight into electricity that can be used directly by household appliances.
Unlike traditional rooftop solar, they do not require specialist installation or wiring by an electrician, users simply mount the panels in a suitable sunny location, such as a balcony, terrace, roof or garden, and plug them into a power outlet.
How do they work?
The systems were designed to reduce a household's reliance on grid electricity rather than replace it altogether, Rewiring Aoteaora said.
Rewiring Aotearoa figures show a typical plug-in solar unit could generate enough power to offset about 7-15% of an average New Zealand home's daily electricity use, helping lower power bills.
The party says it would be funded by repurposing the coalition's gas security fund. (Source: 1News)
Some systems could also be paired with portable batteries, allowing excess energy generated during the day to be stored for use later.
Because they were a relatively inexpensive, portable and easy to install, plug-in solar systems could particularly benefit renters, apartment residents and people who cannot install traditional rooftop solar.
The systems are already widely used overseas, especially in Europe, where they are often mounted on apartment balconies and are commonly known as "balcony solar" or "balcony power plants".
How much could you theoretically save?
According to Seymour, implementing the recommendations in the report would take installation approval for residential solar from about $640 and three months, down to $200 and six days.
"For small-medium scale solar, such as a farmer installing panels on a milking shed, it would take installation approval from up to $11,000 and six months, down to $1300 and one month.
"The ministry estimates that the recommendations could deliver net benefits of between $28 million and $50 million over 10 years. This is through lower compliance costs, reduced delays, and the use of plug in solar.”
The review found that Kiwis would benefit from moving to a more proportionate, risk-based inspection model. It found that requiring an electrical inspector to check every solar installation in person was too expensive, too time consuming, and absolutely unnecessary.
“Accredited installers can do the same job, without the call out costs or delays, because they’re already there. This could save consumers up to 45 days of waiting, and $600.”
The Review found that planning rules can create barriers for some solar installations, particularly larger or ground-mounted systems, and installations in heritage or outstanding natural landscape areas. These often require resource consents which add cost, delay and uncertainty. The report recommends exempting these types of solar installations from needing resource consent. This could save consumers up to 30 days of waiting time and between $3000 and $10,000.
What happens next?
Energy Minister Simeon Brown welcomed the proposals in the report, saying the Government now needed to prioritise it.
“New Zealanders want more control over their power bills and want to harness the power of the sun. These proposals will help give power back to the people by making solar uptake cheaper and faster,” Brown said.
“The Government is focused on ensuring New Zealand has access to affordable and reliable power with these proposals building on what the Government is already delivering, from fast-track consenting big renewable projects, to doubling the export limits for households exporting power back to the grid. This Government is delivering on that agenda.”
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