Govt Announces Electricity Market Reforms to Cut Bills and Boost Solar Uptake

In a significant move aimed at lowering power costs and encouraging renewable energy, the New Zealand Government has welcomed new reforms from the Electricity Authority (EA) that will enable households and businesses to make smarter energy choices and benefit financially from solar power generation.

Energy Minister Simon Watts and Associate Energy Minister Shane Jones jointly announced that the EA’s latest rule changes will deliver better pricing for solar users and expand access to cost-saving electricity plans. These changes are part of a broader effort by the Government to ensure fairer outcomes for consumers amid rising electricity prices and growing demand on the national grid.

Fair Payments for Solar Exports at Peak Times

One of the most impactful changes introduced is a new rule requiring energy companies to pay households with rooftop solar panels and batteries a fair price for electricity exported to the grid during peak demand periods. Currently, compensation for exported energy varies widely, and many households are underpaid for the value they contribute.

“Solar is getting another big boost,” said Minister Watts. “Energy companies must now pay a fair price to households that export electricity to the grid at peak times. This will help reduce power bills and encourage more solar installations across the country.”

The new payment scheme not only aims to improve household finances but also strengthens national energy resilience by supporting distributed electricity generation that can relieve pressure on the grid during high-demand periods.

Mandatory Time-of-Use Power Plans by 2026

Another important change is the requirement for all major energy retailers to offer time-of-use (TOU) electricity plans by 30 June 2026. These plans give consumers the option to shift energy usage to off-peak times when prices are lower—such as running dishwashers at night or charging electric vehicles in the early morning.

Watts explained that TOU plans are a “simple solution” that help Kiwis manage their power bills while supporting broader efforts to manage energy demand. “New Zealanders rightly expect abundant and affordable electricity. These changes are one way we’re delivering on that expectation,” he said.

Addressing Cost of Living and Energy Supply Pressures

The reforms come amid concerns over escalating energy prices and winter power shortages. The Government has launched a full-scale review of the electricity sector, focusing on improving price fairness, addressing market concentration, and supporting energy security.

The Electricity Task Force—established in August last year by the Electricity Authority and Commerce Commission, with MBIE participating as an observer—was formed in response to these issues, especially after the winter energy supply crisis. Its mandate is to improve competition, facilitate entry for new energy generators and independent retailers, and provide more diverse and consumer-friendly options.

“These changes announced today are just the start,” said Watts. “There is more work to do, and I look forward to further decisions from the Task Force in the coming weeks.”

Shane Jones: Smarter Energy Use is the Future

Associate Minister Shane Jones highlighted the increasingly vital role that small-scale distributed energy systems, like home solar panels and batteries, will play in shaping New Zealand’s energy landscape. As demand during peak morning and evening periods continues to rise, local generation becomes an important buffer against stress on the national grid.

“With new, fairer rebates in place, there will be better opportunities for people to receive income from solar electricity they sell back to the grid,” Jones said. “We need to ensure the electricity sector rewards consumers appropriately for the value they bring—especially when they shift usage away from peak hours.”

Towards a Cleaner, Smarter, and More Equitable Grid

Together, these reforms represent a major shift in how energy consumers are treated—transitioning from passive bill-payers to active participants in the energy system. By encouraging smarter consumption patterns and rewarding clean energy contributions, the Government hopes to lay the foundation for a more sustainable, resilient, and cost-effective electricity market.

Consumers can expect to see more changes as the electricity sector adapts to the new regulatory environment, and the Government has pledged to remain vigilant in ensuring that the benefits of reform are passed on to households and small businesses.