\u201cThe AEMC is exploring a model where a larger share of network revenue is recovered via fixed charges<\/a>, diluting the economic signal for DER investment and operation even if some dynamic price elements remain.\u201d<\/p>\n The new rules for Aotearoa came out of a consultation process<\/a>, last year, as a \u201cfirst step in our staged approach to ensure the pricing rules maximise the benefits of distributed generation so New Zealanders benefit.\u201d<\/p>\n The distribution rebate is paired with a mandate that large retailers must lead the way in tariff reform by paying \u201cfair\u201d rates for exports by July 1, or face more regulation.<\/p>\n The fair pay for solar effort is part of a requirement that retailers offer time-of-use plans, a form of tariff well known in Australia but still little used in New Zealand, to give people more choice.<\/p>\n Regulator encourages, not punishes<\/p>\n New Zealand has been slow to embrace rooftop solar because, without the impetus of government-funded subsidies such as have driven world-leading uptake in Australia, it remains an expensive investment for most households.<\/p>\n According to the Electricity Authority, New Zealand currently has 75,000 households with solar systems on their roofs and 14,700 who have batteries.\u00a0<\/p>\n Ministry of Business, Innovation and Employment (MBIE) advice to the government last year said it\u2019s the cheapest form of energy available to households, but the upfront cost \u2013\u00a0from $NZ8500 ($A7,000) for a mini 3 kW system<\/a> \u2013 is putting people off, according to documents recently uncovered by RNZ.<\/p>\n The government turned down the option of introducing Australia-like subsidies, offering instead building permit-free installations and the expansion of export limits.\u00a0<\/p>\n Without incentives in place to lower the up front cost, it\u2019s up to innovations by New Zealand\u2019s regulator to convince kiwis the starting price is worth it.<\/p>\n On this front, the NZ Electricity Authority is proving to be relatively progressive with reforms designed to encourage effective integration of DER that boosts its value, both to customers as well as to the grid.<\/p>\n This has included the recent confirmation of new rules that large retailers (those with 5 per cent or more market share) have to offer a pricing plan that gives consumers cheaper rates for off-peak electricity. <\/p>\n \u201cThis means we expect \u2018time-of-use\u2019 plans will be available to most New Zealanders by 1 July 2026,\u201d the Electricity Authority says.<\/p>\n This week, the Electricity Authority also doubled the kilowatt hour (kWh) export limit<\/a> for rooftop solar from 5 kWh to 10 kWh \u2013 or higher, if the local network allows \u2013 with the new \u201cflexible limit\u201d to come in from May.\u00a0<\/p>\n Tim Sparks, a manager at the Electricity Authority, says the limit was lower than it needed to be and meant that, at times, New Zealanders were paying for higher-cost electricity when cheaper rooftop solar was available.\u00a0<\/p>\n \u201cWe\u2019re also allowing lines companies to offer a dynamic or flexible export limit for residential connections, as an alternative to the fixed 10kW limit,\u201d Sparks said in a statement.\u00a0<\/p>\n \u201cLines companies will be able to flex above or below the 10 kW as conditions on the network change.<\/p>\n \u201cThis flexible approach future-proofs regulations. It opens the door to adopting smarter, more flexible technologies in the future, including vehicle-to-grid charging that returns electricity to the network from EV batteries.\u201d<\/p>\n
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