Solar Power Savings & Costs
Switching to solar power is one of the smartest investments you can make for your home in Wanaka, Hawea, or the wider Southern Lakes region. Rising electricity prices and the push for cleaner energy mean that more Kiwis are choosing to generate their own power. With the right solar system you can lower your bills, add value to your home, and future-proof your lifestyle.
Why Solar Power is a Smart Investment
Installing solar is not just about saving money on today’s power bills. It is about creating long-term energy independence. A typical 5 kW solar system in Central Otago can generate around 7,000 kWh of electricity each year. If you pay 35 cents per kWh, that means about $2,450 in annual savings. Over the 25-year lifespan of your panels, the savings can reach more than $60,000.
On top of that, solar adds value to your home. Buyers know they will enjoy lower running costs and a more sustainable lifestyle. For many homeowners, solar pays for itself in as little as 7 to 10 years.
Selling Power Back to the Grid
Any excess solar power you generate during the day can be exported back to the grid. Your energy retailer pays you a credit for every kWh you supply. While feed-in tariffs are usually lower than what you pay for electricity, it still helps reduce your monthly bill.
For example:
Power exported: 2,000 kWh per year
Export rate: 12 cents per kWh
Annual credit: $240
This means you are not just saving on the power you use, you are also earning from what you share.
The Role of Battery Storage
Adding a solar battery makes your system even more powerful. Instead of exporting your excess power to the grid at a lower rate, you can store it for evening use when electricity costs are higher.
Take a 10 kWh battery as an example:
Daily storage use: 8 kWh
Power cost offset: 35 cents per kWh
Daily saving: $2.80
Annual saving: Over $1,000
A battery also provides security. If the grid goes down, you can keep your lights, fridge, and essential devices running. For homes in Hawea, Wanaka, and Cromwell where outages do happen, that peace of mind is worth a lot.
Example Cost and Savings Breakdown
| System Size | Estimated Cost | Annual Generation | Annual Savings | 25-Year Savings |
|---|---|---|---|---|
| 5 kW Solar Only | $12,000 | 7,000 kWh | $2,450 | $60,000+ |
| 5 kW Solar + 10 kWh Battery | $22,000 | 7,000 kWh + storage | $3,450 | $85,000+ |