Government moves to make solar installations faster and cheaper

Installing solar panels could become significantly faster and cheaper under Government plans to remove regulatory barriers and simplify the approval process.

The Government has set a goal of making residential and small- to medium-scale solar installation in New Zealand the simplest in the developed world. Currently, some small-scale installations can require up to six separate sign-offs and five site visits involving four different entities before they can be switched on.

Regulation Minister David Seymour said the proposed changes could reduce approval costs for residential solar from about $640 to $200, while cutting approval times from around three months to six days.

Red tape targeted

The Government plans to trial a more proportionate, risk-based inspection model, which could allow accredited installers to complete work currently requiring an electrical inspector to visit in person. Mr Seymour said this could save consumers up to $600 and 45 days of waiting.

Planning barriers are also being targeted. Certain solar installations that currently require resource consent would be exempt, potentially saving consumers between $3,000 and $10,000 and up to 30 days.

The Government also intends to legalise plug-in solar, which could give renters and apartment residents access to solar technology without requiring traditional rooftop panels. Renters could take plug-in systems with them when they move home.

How can you finance solar?

Even if regulatory costs fall, installing a rooftop solar system can still involve a significant upfront expense.

Homeowners may choose to pay from savings or investigate whether the project can be financed through their mortgage. For example, it may be possible to refinance or increase an existing home loan to fund improvements, subject to lender approval

Borrowing through a mortgage can offer a different cost structure from some other forms of finance, but adding debt also means paying interest and potentially extending the time needed to repay the cost. It's therefore important to consider the total cost rather than focusing solely on the initial repayments.

Planning to install solar panels or make other improvements to your property? We're happy to help you explore your home loan options and assess whether using your mortgage to fund the project could suit your circumstances.