New highs being hit in solar generation

Another milestone was achieved in the week of 22–28 December when electricity demand was low and, for the first time, solar generation contributed more to the system than thermal generation (Figure 2).

Although solar power is intermittent (only makes power when the sun is shining), it helps save water in our dams and fuel in our thermal plants for when there is less sun or wind.

Plus, when there is plenty of solar and wind generation, wholesale electricity prices drop and this can eventually lead to lower prices for electricity customers.

Five large-scale solar farms are online

A large proportion of new electricity generation in New Zealand is from solar farms.

New Zealand’s first large-scale solar farm connected to the grid was Kohirā in Kaitaiā, in November 2023. Since then, four other large-scale solar farms have come online (Figure 3).

The 24MW Rangitaiki solar farm in the Bay of Plenty first began generating electricity in March 2024. Elsewhere in the North Island, two new grid-connected farms are currently generating and will soon be fully commissioned (Te Puna Mauri ō Omaru in Northland Te Herenga o Te Rā in the Bay of Plenty).

Lauriston Solar Farm (47MW) is currently the largest and only grid-connected solar farm in the South Island.

These farms will significantly increase New Zealand's solar capacity. For example, Te Herenga o Te Rā in Bay of Plenty, is expected to generate 69GWh annually when fully commissioned, enough to power more than 9,600 Kiwi homes.

More large solar farms are on the way

Aotearoa has great potential for solar generation. There is a high amount of sunshine energy per year, and the sun may help when the wind isn’t blowing, and the rain isn’t falling.

Investors are confident in the potential of solar generation, with the 2023 generation investment survey showing 45% of committed future generation is solar (652MW of capacity). Figure 4 shows all potential incoming solar generation, as reported in the same survey.

The most notable new solar farms include:

• Meridian Energy and Nova Energy partnering to build and operate the 400MW Te Rahui farm
• Contact Energy and Lightsource investing in the 168MWp Kōwhai Park farm, expected to be operational in 2026
• Genesis Energy and FRV Australia partnering to build the 40MW farm in Foxton, expected to begin construction in 2026
• Lodestone Energy’s 32MWp farm in Whitianga currently under construction and further solar farms in the planning stage.

Household solar generation is also increasing

Aotearoa’s solar generation isn’t limited to large grid-connected solar farms. Many Kiwis have also invested in solar panels for their homes and businesses. This smaller local generation is called distributed energy, as it typically remains within the local distribution network. This investment has been steadily on the rise for several years. As of December 2024, the capacity of residential, commercial and small business solar generation was estimated at 408MW (Figure 5). The industrial sector also has approximately about 200MW of solar generation capacity. For more information, you can read this article on both grid connected and distributed solar generation.

What we are doing to encourage new generation

Solar power is increasingly important to New Zealand as it provides a low-cost clean, renewable energy source. However, intermittent generation like solar and wind must be accurately forecast to allow the electricity system to coordinate itself efficiently.

To support solar and wind generation, the Electricity Authority has developed a hybrid forecasting arrangement to encourage better forecasts. This initiative will support the development of a market for intermittent generation forecasting and will foster innovation by creating competitive tension between the centralised forecaster and other forecasting providers. Procurement for the central forecaster is currently ongoing.

The Energy Competition Task Force is considering ways to fairly reward people with solar and batteries who export their household electricity (either solar generation or power in an EV battery) during peak times. This will help reduce wholesale electricity costs and lower lines costs, which benefits all New Zealanders. We welcome your feedback on these proposals. Read our New ways to empower electricity consumers guide and have your say by 5pm, Wednesday 26 March 2025.