{"id":365591,"date":"2026-04-06T01:15:16","date_gmt":"2026-04-06T01:15:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/365591\/"},"modified":"2026-04-06T01:15:16","modified_gmt":"2026-04-06T01:15:16","slug":"as-petrol-power-prices-soar-should-you-switch-to-solar-power-and-an-electric-car","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/365591\/","title":{"rendered":"As petrol, power prices soar, should you switch to solar power and an electric car?"},"content":{"rendered":"

Power prices are rising. Petrol is soaring. For a growing number of Kiwis, spending tens of thousands on solar panels and\/or an electric car is beginning to look like a smart financial strategy. Would either work for you? Frances Cook outlines eight factors to consider first. <\/p>\n

1. Is your power bill already hurting?<\/p>\n

Start with the obvious. If your power bill makes you wince every month, that\u2019s your first signal.<\/p>\n

The average household is now paying around $200 a month for electricity, and many are well above that. Prices have been climbing steadily for years, and there\u2019s no sign of that slowing down.<\/p>\n

In the recent cost-of-living increases, power prices have been a big underlying factor.<\/p>\n

\"Power<\/p>\n

Power is not predicted to get any cheaper. (Source: istock.com)<\/p>\n

StatsNZ tracked them going up 6.2% in the year to April 2025, after increases of 4.6% in 2024 and 4.9% in 2023. That\u2019s well ahead of general inflation, which was already bad enough.<\/p>\n

Consumer NZ has also warned of double-digit increases this year, with more rises expected in the years ahead.<\/p>\n

Solar works best when it\u2019s replacing a big, unavoidable cost. If your bill is low, your savings will be lower too, which stretches out the payback time.<\/p>\n

2. Do you own your home and plan to stay?<\/p>\n

This is not a quick flip.<\/p>\n

Solar doesn\u2019t reliably add to your home\u2019s value. The payoff comes from years of reduced power bills, not a higher resale value.<\/p>\n

That means it works best if you not only own your home, but you\u2019re planning to stay put for a while.<\/p>\n

\"The<\/p>\n

The average New Zealand home solar installation costs $16,500. (Source: istock.com)<\/p>\n

Pull out a year of power bills. See what you spend. <\/p>\n

The average New Zealand household solar installation costs $16,500. So divide that average number of $16,500, by your yearly power spend, and it will give you roughly the number of years it takes for the system to pay itself off. <\/p>\n

Then remember that most solar systems are designed to work for around 25 years. How many years will you get power for free?<\/p>\n

\"Check<\/p>\n

Check to see if your bank offers a good “green loan”. (VORONA)<\/p>\n

3. Can you access a good finance deal?<\/p>\n

Most people don\u2019t have the solar investment cost lying around in cash, but the right financing makes the idea work.<\/p>\n

Many banks offer \u201cgreen loans\u201d for solar and electric cars, often at very low interest rates of between 0\u20131%.<\/p>\n

They often have a shorter payback period, between 3-5 years. <\/p>\n

Direct your former electricity spend to the loan and pay it off within that time period, and you\u2019ve got a pretty good deal. <\/p>\n

4. Will your roof do the work?<\/p>\n

Not all roofs are equal.<\/p>\n

The ideal setup is north-facing, minimal shading, with enough usable space. If your roof ticks those boxes, you can often get away with a smaller, cheaper system and still get strong output.<\/p>\n

A good installer should be able to show you exactly what your system would generate, based on your specific house. So shop around for quotes, and generation estimates. <\/p>\n

5. Do you use power during the day?<\/p>\n

Solar generates power when the sun is out. Which creates a simple rule: the more of that power you use yourself, the better the economics.<\/p>\n

Households that benefit most tend to work from home, or have someone home during the day. <\/p>\n

Otherwise, you might need to get smart with timers for running your appliances, or install a battery, in order to get the most out of it.<\/p>\n

\"Solar<\/p>\n

Solar power works most effectively in households that use power during the day. (Source: istock.com)<\/p>\n

6. Are you realistic about ‘making money’?<\/p>\n

This is where many solar expectations need a reset.<\/p>\n

Solar is excellent at reducing costs. It is not particularly good at generating income.<\/p>\n

Yes, you can sell excess power back to the grid, but it\u2019s typically at a fraction of the price you pay for electricity.<\/p>\n

The real financial win comes from avoiding costs, not earning from power exports.<\/p>\n

For many it\u2019s better to be home during the day using the power, or to invest in a battery to ensure you\u2019ve stored the power, as any power sold back to the grid will only make a small difference to your bill.<\/p>\n

7. Are you prepared to spend on an EV that matches your commute?<\/p>\n

One of the big factors in how much an electric car costs is how far you can get on its battery charge, otherwise known as its range.<\/p>\n

If you just rock around your city, with an average commute to and from work, you might not need to spend much on the latest, greatest EV. <\/p>\n

If you\u2019re on the road more often for work or play, you might need to spend a bit more. <\/p>\n

\"The<\/p>\n

The further your commute, the more you’ll want to spend on your EV. (Source: istock.com)<\/p>\n

So start by thinking about your life, how much you drive your car, and how much you might need to invest to make it worthwhile. <\/p>\n

Frankly, most driving is boring. It\u2019s the same loops on repeat, with commuting, school runs, errands. If that\u2019s you, you probably don\u2019t need a long-range, high-spec vehicle.<\/p>\n

Electric cars are also often cheaper to maintain, as they have fewer parts than a petrol-powered engine. So factor that into consideration. <\/p>\n

8. Can you do both?<\/p>\n

If you get both solar and an electric car, for a reasonable cost, then you\u2019re away laughing. <\/p>\n

Suddenly both your power and your petrol bill are replaced by sunshine power. <\/p>\n

\"Sunshine:<\/p>\n

Sunshine: drying your clothes, powering your house and maybe your car as well. (Source: istock.com)<\/p>\n

If you\u2019re home during the day to plug the electric car in to solar\u2019s peak times, that\u2019s really making the most of the upgrade. <\/p>\n

You end each day with a full tank once again. <\/p>\n

Charging overnight from the grid is still likely cheaper than petrol (depending on your power plan), but charging with electricity you generate yourself will clearly be much cheaper again. <\/p>\n

Really, the biggest question isn\u2019t whether solar and an electric car are worth it. It\u2019s whether they\u2019re worth it for your lifestyle, and whether you\u2019ll make the most of them. <\/p>\n

The information in this article is general in nature and should not be read as personalised financial advice.<\/p>\n","protected":false},"excerpt":{"rendered":"Power prices are rising. Petrol is soaring. For a growing number of Kiwis, spending tens of thousands on…\n","protected":false},"author":2,"featured_media":365592,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[20105,111,43,139,69,2114,244],"class_list":{"0":"post-365591","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-zealand","8":"tag-consumer-affairs","9":"tag-new-zealand","10":"tag-news","11":"tag-newzealand","12":"tag-nz","13":"tag-opinion","14":"tag-personal-finance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/365591","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=365591"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/365591\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/365592"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=365591"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=365591"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=365591"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}