Solar Buyback Plans: What Deals are Power Companies Offering?

Installing solar panels isn’t just about going green and saving on your power bill, they can also be a way to make money by selling excess energy back to the grid, commonly know as buy-back.

So, when running the numbers on solar’s suitability for your home, it’s important to factor in buy-back rates when determining whether solar is right for your household.

In the following guide, we take a look at what you should keep in mind when setting up solar, and some of the deals on offer from power companies.

Setting up solar: dealing with power companies

Of course, when assessing solar’s suitability for your household, it’s important to weigh up the short-term costs versus the potential long-term savings. Tools such as the Energy Efficiency and Conservation Authority’s solar tool, available here at the Gen Less website, a good starting point.

Almost all solar systems require installation by a licensed electrician or inspector, and it’s worthwhile shopping around to get a gauge on the types of deals being offered.

Power companies sometimes work in conjunction with solar installers. So getting in touch with different retailers in your area when seeking out an installer can be a good starting point.

Most households that install a solar system will remain connected to the mains power grid. This is so they have a ready supply of power during times of high demand and at night.

If you plan on exporting excess electricity into the grid, you’ll need to arrange for your power company to install an import/export meter, capable of recording the import and export usage to the network.

When setting up your meter, it’s important to confirm:

• How much the meter will cost to install
• The tariff options available with the meter, including what you will pay for electricity and the buy-back rates on offer
• Your contract length
• Any limits on the size of your solar system. Often they are limited to under 10kW

Power company solar offerings

The following are some of the solar offerings available from different power companies around the country. Prices are subject to change, so it’s important to follow up with retailers to determine buy-back rates and import/export meter installation costs.

Octopus Energy

Octopus Energy has a world-wide business based on green power and high-tech electricity solutions. If it seems weird that Octopus offers night pricing, when solar panels aren’t working, Octopus’ rates take into consideration those with batteries, who are able to export power at any time of the day:

• Buy-back rate: Peak: 20c per kWh | Off-peak: 10c per kWh | Night: 5c per kWh
• Import/export meter: $199

Electric Kiwi

Electric Kiwi’s MoveMaster plan encourages users to move their electricity usage off-peak by offering lower off-peak tariffs. Off-peak power usage can also help reduce carbon emissions, as off-peak electricity is more likely to be produced using cleaner generation. To make the plan even greener, it offers a competitive solar buy-back rate:

• Buy-back rate: 12.5c per kWh on MoveMaster plan (8c/kWh on Electric Kiwi’s other plans)
• Import/export meter: available through Zen Energy. Free quotes available from their website.

Genesis Energy

Consumers can request a solar consultation via the Genesis Energy website, with Genesis-approved installers located at select major centres around the country. HomeGen, available to Genesis electricity customers with approved generation equipment with less than a 50kW output, allows for unused electricity to be sold into the grid.

• Buy-back rate: 12.5c per kWh (appears as a separate credit line on a customer’s regular bill)
• Import/export meter: $127 (including installation)

Meridian Energy

Meridian Energy advises that it will work alongside customers or their solar provider to ensure an import/export meter is installed. Customers are able to make a solar enquiry via the Meridian website.

• Buy-back rate: If you sign up to Meridian Energy’s five-year, fixed-rate solar plan, you will receive the great buy-back rate of 17c/kWh for length of your contract. Otherwise it offers 12c/kWh on its other plans, if you don’t want to lock yourself into a long-term contract. Applicable for all solar panel systems with a rated capacity of up to 10kW. Consumers interested in equipment that generates more than 10kW need to talk to Meridian about their options
• Import/export meter: Consumers need to get in touch with Meridian regarding cost

Frank Energy

For customers who have a solar system of 50kW or less, Frank Energy offers a buy-back rate that sits in the middle of the current rates on offer from the range of power companies.

• Buy-back rate: 11c per kWh
• Import/export meter: Consumers need to get in touch with a retailer regarding cost

Powershop

Powershop advises that it will buy back any excess generation from customers with a solar installation of under 10kW, and an appropriate import/export meter.

• Buy-back rate: 13c per kWh
• Import/export meter: $150 (meter and installation fee)

Mercury

Mercury offers solar buy-backs nationwide, and is currently running a fantastic buy-back rate in conjunction with Harrisons Solar.

• Buy-back rate: 8.5c per kWh
• Harrisons Solar buy-back rate: 18c per kWh
• Import/export meter: From $195 (free when you sign up to the Harrisons Solar offer)

Harrisons Solar are currently running a promotion with Mercury. This offer is only available if you install a new Harrisons Solar PV system and sign up on a 2 year residential electricity contract with Mercury. Mercury will buy back your extra solar generation at 18c per kWh (excluding GST). For more information, click here.

Nova Energy

Nova Energy states that it can pay for excess power exported by residential customers with solar panels rated to generate up to 10kW. The buy-back power charges are clearly shown on their bills.

• Buy-back rate: 10c per kWh
• Import/export meter: Nova says that it can assist with import/export meter installations

Contact Energy

Contact Energy advises that for customers looking to set up a solar system, it can install an import/export meter for either less or greater than 10kW output. Customers can apply via Contact’s website.

• Buy-back rate: Customers will see the amount of distributed generation they’re selling on their electricity bill, where applicable. You need to get in touch with Contact personally for buy-back rates
• Import/export meter:  installation will incur a cost of $200

Ecotricity

Ecotricity says that its ecoWHOLESALE and ecoSAVER plans are designed to support the uptake of solar installations. It has partnered with solar specialists around the country to help with the installation process.

• Buy-back rate: up to 18.4c per kWh
• Import/export meter: a charge of $80 applies for meter installation

Flick Electric

Further information on pricing can be found at individual retailer websites. This should be used as a starter guide and not considered an actual quote.

Compare electricity providers with Canstar Blue

If you are considering solar, the right power plan is paramount. But finding the right provider can be a real challenge. Less than half of Kiwis believe they are getting a good deal on their power, yet only 12% of us have actually changed our electricity provider in the last 12-months.

If you are looking to change electricity providers, or are unsure if you are getting the best deal, Canstar Blue can help. We rate NZ power companies for customer satisfaction and value for money, see the table below for some of the results, or you can click on the button below for the full results of our survey.

Canstar Blue’s latest review of NZ power companies compares them on customer satisfaction. The table below is an abridged version of our full results, available here.

Compare electricity providers for free with Canstar Blue!

About the author of this page

This report was written by Canstar Content Producer, Caitlin Bingham. Caitlin is an experienced writer whose passion for creativity led her to study communication and journalism. She began her career freelancing as a content writer, before joining the Canstar team.