The Mystery of Missing Solar Subsidies: A Closer Look at New Zealand’s Solar Energy Policy

Solar PV array installed at the beehive, Wellington NZ


As a country committed to renewable energy, New Zealand has set an ambitious goal of achieving 100% renewable electricity by 2035. However, solar energy adoption remains low, partly due to the lack of government subsidies for residential and commercial installations. Let’s explore the reasons behind this policy choice and its implications for our nation’s renewable energy landscape.

Weighing the Costs and Benefits

One possible explanation for the absence of solar subsidies is the government’s cost-benefit analysis. With over 80% of our electricity generated from renewable sources, primarily hydroelectric and geothermal power, investing in a nationwide solar subsidy program may not yield significant additional benefits in terms of emissions reduction and job creation.

Capitalising on Existing Renewable Resources

New Zealand is fortunate to have abundant hydroelectric, geothermal, and wind resources. The government might prefer to focus on expanding these established sectors rather than investing in solar subsidies, thus maximising our nation’s existing strengths in renewable energy.

Letting Market Forces Drive Solar Adoption

Our government may believe that market forces should determine the pace of solar energy adoption. As the cost of solar panels continues to fall, solar energy becomes more economically viable without the need for government intervention, encouraging a more efficient and competitive market.

The absence of solar subsidies in New Zealand has impacted the growth of our solar industry, but we continue to make progress towards our renewable energy goals through other means. As solar technology improves and costs decrease, we may see solar energy becoming more competitive in our nation, even without government support.

Related Articles

Empowering Homes and Businesses with Clean Energy

Empowering Homes and Businesses with Clean Energy

Discover the efficiency and sustainability of solar panels with Sunshine Solar, New Zealand’s premier solar energy provider. Learn how our state-of-the-art solar panels can reduce your energy costs, increase your property value, and support global environmental efforts. Schedule your free consultation today and start your journey towards a greener future with top-quality solar solutions.

Harness the Sun: The Power of Solar Panels

Harness the Sun: The Power of Solar Panels

Sunshine Solar is at the forefront of delivering innovative solar panel solutions to homes and businesses throughout New Zealand. Our expertise and commitment to quality ensure that each solar panel system we install maximizes efficiency, durability, and environmental...

Embrace a Sustainable Future: The Advantages of Solar for Houses

Embrace a Sustainable Future: The Advantages of Solar for Houses

Transform your home with efficient and sustainable solar solutions from Sunshine Solar, New Zealand’s premier provider. Discover how our solar systems designed for houses can reduce your energy bills, enhance your property’s value, and promote environmental stewardship. Start your journey to a greener, more cost-effective home today with a free solar consultation.