The Hidden Economics of Solar and Battery Systems in New Zealand: 2024 Insights
By Kristy Hoare on in Solar Power News In New Zealand
Solar energy is more than a technological shift—it's an economic decision, and every household’s journey to sustainability carries its unique story of cost, value, and return. From our annual survey of MySolarQuotes.co.nz users, we now have a clearer picture of what Kiwis paid for solar power and battery systems in 2024. Let’s unpack the numbers and explore the trends from the unique “organic” solar market in New Zealand - which interestingly still has no Government incentives!
Key Takeaways at a Glance
- Solar Panel System Costs: Prices vary widely depending on the provider, brand, and installation specifics.
- Cost Efficiency with Larger Systems: Larger systems offer better cost efficiency, with the price per kWh decreasing as system size increases.
- Average Price For A Solar Power System: The typical solar power system size from our dataset was a 7kW, the average cost for this system size was $16,492.
- Battery Systems Prices: The average battery cost is $1,249.79 per kWh, with smaller systems offering affordability and larger systems offering better value per kWh.
- 2025 Price Outlook: Brace yourself for steady prices or tiny shifts as global markets play tug-of-war with supply, demand, and tariffs.
The survey sample is from Kiwis who used MySolarQuotes.co.nz to find quotes from New Zealand's best solar companies, 96 respondents kindly shared price information with us that we could use to inform others curious Kiwis.
The Real Costs For Solar Power Systems In New Zealand: Size Matters
From scaffolding charges to premium panels, the price of solar power systems is anything but standard. Here’s the lay of the land from 2024:
| System Size | Average Price | Minimum Price | Maximum Price | Average $/kW |
| 4kW - 4.9kW | $11,182 | $8,600 | $13,000 | $2,601 |
| 5kW - 5.9kW | $13,723 | $10,083 | $18,000 | $2,672 |
| 6kW - 6.9kW | $16,172 | $13,500 | $21,000 | $2,556 |
| 7kW - 7.9kW | $16,492 | $12,000 | $22,000 | $2,263 |
| 8kW - 8.9kW | $18,999 | $11,700 | $25,000 | $2,308 |
| 9kW - 9.9kW | $21,526 | $18,580 | $24,000 | $2,329 |
| 10kW - 10.9kW | $22,800 | $17,000 | $27,000 | $2,266 |
| 11kW - 12kW | $22,007 | $15,800 | $28,215 | $1,901 |
Note on sizes: To figure out how many solar panels are in each system size, consider that one solar panel is 440W (watts), and 4000W is required for a 4kW system (4000/440=9). Therefore a 4kW system is a 9 panel system.
Why The Wide Range In Prices?
Think of buying a solar power system like a coffee, you could order a flat white, or an almond milk double shot macchiato latte. Some Kiwis stick to the essentials, while others pile on the extras. And just like that unexpected public holiday surcharge, there are those occasional unavoidable costs.
Key Factors:
- Optional Extras: Add-ons like hot water diverters or appliance controllers can increase the cost.
- Micro-Inverters: Unlike traditional string inverters, micro-inverters improve performance but can add a few thousand dollars to the price tag.
- Premium Panels: Some homeowners choose top-tier solar panel brands like Aiko, SunPower, and REC for their superior quality—at a higher price tag.
- Premium providers: Some solar panel installers just cost more. Even though the people who participated in the survey sought to find three quotes, they didn’t always choose the company that was the cheapest.
- Unavoidable Extras: Sometimes, additional costs were incurred. The unlucky ones had to pay for:
- Scaffolding (required for 2+ story homes)
- Switchboard upgrades to meet electrical standards
- Tricky roof materials or complex installations
Key Insight: Bigger systems offer better value per kW. While a 4kW system averages at $2,601 per kW, an 11-12kW system drops to $1,901 per kW, making larger installations a smarter long-term investment for households anticipating higher energy needs, like adding EV chargers or transitioning appliances from gas to electricity.
Solar Battery System Prices: The Price of Independence
Only 16 out of 96 survey respondents were able to provide the cost of adding home batteries. This is likely because most didn’t install a battery—after all, only about 1 in 3 Kiwis typically do. Additionally, many respondents couldn’t separate the battery cost from the overall system price. Despite these limitations, here's what the small dataset revealed:
Home Solar Battery Price Results
| Metric (per home battery system fully installed) | Value (prices include GST) |
| Average cost per kWh | $1,249.79 |
| Average battery size | 11.79 kWh |
| Average price paid | $14,396 |
| Lowest price paid | $8,000 for a 6 kWh battery |
| Best value system | $9,000 for a 9.6kWh |
Key Insights:
- Battery Cost Per kWh: The average price per kWh is $1,249.79, which sets a benchmark for assessing battery affordability in the market (since we don’t have much previous data on battery prices in NZ).
- Average Battery Size: The average battery size installed was 11.79 kWh, suggesting that most homeowners are opting for medium-to-large systems, potentially to meet higher energy demands or to increase energy independence.
- Overall Costs: The average total price paid for a battery system is $14,396, indicating that energy storage is still a significant investment for many.
The lowest price paid was $8,000 for a 6 kWh battery, which implies that smaller systems can be more accessible for those on a budget. - Best Value System:
The best value was $9,000 for a 9.6 kWh battery, equating to $937.50 per kWh. Indicating the batteries below $1000/kWh can be hunted down in the NZ market.
What’s Next for Solar Prices in 2025?
Solar power systems in New Zealand became significantly more affordable in recent years, largely thanks to a steep drop in global solar panel prices. In 2023, solar panel costs reportedly plummeted by an incredible 50%. While this massive price collapse didn’t fully extend to New Zealand—likely due to our smaller market size—we still reaped some benefits. For example, a 3kW solar power system that cost $10,000 at the beginning of 2024 was reduced to $8,000 by year’s end.
The dramatic price drop was primarily driven by global oversupply, according to industry reports. However, these unsustainably low prices depend on how quickly the solar industry consolidates. If disruptions, like additional U.S. tariffs on Chinese-manufactured panels (the world's largest producer), occur, price stability could take longer to achieve.
I don’t think we will see any major solar power system price changes here in New Zealand during 2025. A slight decrease or minor increase seems more probable, reflecting global market adjustments rather than major local shifts.
Will Prices for Battery Systems Change in 2025?
Over the past five years, the cost of solar battery storage systems has inched downward—but not nearly as dramatically as the headlines would have you believe. While manufacturing costs have decreased significantly, these savings haven’t fully trickled down to consumers.
Looking ahead to 2025, it’s unlikely we’ll see much change in battery prices. On one hand, advancements in technology and manufacturing efficiency could lower production costs slightly. On the other, rising material costs will likely offset those gains. As a result, battery prices are expected to remain relatively flat, continuing the slow and steady trend we’ve seen in recent years.
Final Thoughts
Yes, solar and battery systems are a significant investment, but they’re also a ticket to long-term energy independence and peace of mind. With low-interest loans from major banks, more Kiwis are taking the leap into renewable energy without the immediate financial pinch.
Ultimately, investing in solar is about more than just the numbers. It’s about taking control of your energy future, contributing to a cleaner environment.
I’ll be back at the end of 2025 for another look at the numbers. Stay tuned by subscribing to the monthly newsletter.