How Much Could You Save with Solar Power in Auckland?

Sunshine may be plentiful on the North Shore, but keeping the lights on can be a different story. With Genesis Energy stating that their energy bills will go up by $15 per month in 2025, many Aucklanders are looking for ways to slash their electricity bills. Solar power offers a compelling solution, but how much could you really save?

While the answer depends on your specific situation, several key factors can help you estimate your potential savings:

Location, Location, Location!

Sunnier suburbs like those on the North Shore generally see better solar production compared to areas with more shade. So long as the position the panels are placed are well thought out, modern panels will generate power on cloudy days. Online solar calculators that use your address can get you a ballpark figure but for a more precise estimate, contact a qualified Auckland solar installer such as Steel Solar & Electrical to have an expert come out and give you are precise idea of how much energy your home could generate, and how much money you can save. When a solar installation expert comes to your home, they will analyse your roof, sun exposure, and local power rates to create a personalised savings projection. Don't forget to inquire about time-of-use rates (TOU) offered by some providers. Solar panels generate power during peak afternoon hours, which often coincide with higher TOU rates, maximising your savings.

2. Know Your Power Habits

Take a look at your past year's electricity bills. Focus on the cents-per-kWh figure, which reflects the actual cost of electricity usage. Ignore fixed charges, as solar only impacts your energy consumption. Analyse your bills year-over-year to understand usage patterns. Remember, increasing electricity costs magnify the long-term benefits of solar power.

3. Calculation Time

Once you have a grasp on your location and power usage, it's time for some calculations. Multiply your average monthly electricity bill by 12 to get your annual usage cost. Solar installers can provide estimates on your potential power generation based on your roof and sun exposure. Combine that with your local electricity rate to calculate your yearly savings.

For example, imagine a home in West Auckland with an average monthly power bill of NZD$250. This translates to annual utility costs of NZD$3,000 (NZD$250/month * 12 months/year). Through a solar assessment, installers determine a 4-kW system would be suitable for this home's roof and sun exposure. Given Auckland's average solar irradiation, this system could potentially generate around 6,000 kWh of electricity annually. With an average electricity rate of NZD$0.33/kWh in Auckland, this 4-kW system could lead to annual savings of approximately NZD$1,980 (NZD$0.33/kWh * 6,000 kWh).

4. Funding Options

While New Zealand doesn't currently offer government rebates for solar installations, we do have many green funding options. For instance, the Westpac Warm Up Loan offers interest-free financing for up to $50,000 over five years and can be used for a variety of energy-efficient upgrades, including solar panels. Kiwibank's Sustainable Energy Loan provides a subsidy of up to $2,000 over four years for qualifying solar installations, making them more accessible for budget-conscious homeowners. For more information go to our Solar Funding page.

5. Think Long-Term

Solar panels typically come with 10-30-year production guarantees. This means decades of energy cost savings, even beyond your initial investment payback period. Remember, electricity prices are likely to continue rising, further increasing your long-term savings potential. Financing options can be structured to align with the timeframe when your solar power system truly starts paying for itself.

The Bottom Line

The future of solar power in Auckland looks bright, with decreasing panel costs and increasing electricity rates. By considering your location, analysing your electricity usage, staying updated on potential incentives, and taking a long-term perspective, you can make an informed decision about switching to solar.

Want to Learn More?

Fill out the form on our website's contact page or contact us today to discuss your solar options.