NZ Backs Solar Power Surge with $28M Boost for Three Regional Projects

In a significant step toward achieving its long-term renewable energy goals, the New Zealand Government has announced funding for three large-scale solar power projects across regional communities. Through the Regional Infrastructure Fund, loans totaling up to $28.1 million will be directed to projects in Rakiura/Stewart Island, Hawke’s Bay, and Bay of Plenty. These developments are expected not only to advance clean energy access but also to improve local energy security, boost community resilience, and create up to 150 construction jobs.

Powering the Regions: Project Breakdown

The three projects are strategically located to maximize local benefits, reduce fossil fuel dependency, and strengthen regional economies. Below is a detailed look at each:

1. Rakiura/Stewart Island Solar Farm and Network Upgrade

• Loan: Up to $15.35 million (suspensory loan)

• Recipient: Southland District Council

• Objective: Construct the first phase of a solar farm and upgrade the existing energy network.

• Scope: Replace expensive, diesel-generated electricity that currently powers the island's 494 electricity connections.

• Impact:

  • Cut diesel use by 200,000 litres within two years.

  • Lower energy costs to stimulate tourism, aquaculture, and hospitality sectors.

  • Employ around 40 skilled workers during construction.

• Significance: This project marks the island’s transition from energy dependency on fossil fuels to a self-reliant, renewable model.

2. Ongaonga Solar Farm, Central Hawke’s Bay

• Loan: Up to $8 million

• Recipient: Centralines Ltd, a regional lines company

• Scope: Build a 35-hectare solar farm with an annual output of 52 GW hours.

• Reach: Serve approximately 9,000 electricity connections in Central Hawke’s Bay.

• Impact:

  • Strengthen network resilience.

  • Create 80–100 jobs during construction.

  • Supply surplus electricity to the national grid during peak production.

  • Enhance affordability for residents and businesses.

3. Te Kaha Solar and Battery Project, Bay of Plenty

• Loan: Up to $4.75 million

• Recipient: Te Huata Charitable Trust

• Objective: Install an 804 kW-peak solar farm with battery storage.

• Scope: Deliver reliable electricity to about 320 homes and businesses in a Māori community often impacted by power outages.

• Impact:

  • Battery system can store power for up to 72 hours, enhancing energy continuity.

  • Support Ōpōtiki’s ambitions to become a national aquaculture hub.

  • Create up to 12 jobs during implementation.

  • Drive local economic activity by stabilizing power for marine farming and small enterprises.

Government Leaders Voice Support

Regional Development Minister Shane Jones emphasized that these investments are central to the Government’s plan to double renewable energy generation by 2050. “These projects will support economic prosperity and improve resilience in communities that have long faced energy supply challenges,” he said.

Energy Minister Simon Watts added, “Solar power is playing an increasingly important role in increasing electricity generation in New Zealand. These projects not only reduce reliance on fossil fuels but also help secure affordable and dependable power for rural areas.”

Associate Regional Development Minister Mark Patterson, who personally attended the Rakiura/Stewart Island announcement, noted the significant cost savings residents are expected to enjoy. “The Regional Infrastructure Fund is helping communities that can’t attract private investment on their own. It’s delivering critical infrastructure with long-term social and economic benefits,” Patterson said.

A Renewable Future Within Reach

These solar initiatives underscore a broader national effort to decarbonize energy systems, boost rural development, and meet international climate commitments. By ensuring clean energy reaches even New Zealand’s most remote corners, the government is delivering on both climate action and equitable development.

With construction set to begin in 2025, these projects are expected to serve as models of regional sustainability and pave the way for additional renewable energy infrastructure across Aotearoa.