Why small solar buyback rates still make sense in NZ

Solar panels are so cheap now that even selling excess energy back to the grid at so-called “peanut” rates can still be a very good investment.

So let’s talk about solar the right way — not emotionally, not politically, and not based on what your neighbour reckons.

Most people say, “Selling solar to the grid isn’t worth it. It’s peanuts.”

And our response is always the same:
“Nothing wrong with peanuts”

Reality is, solar should be considered in the same way all investments are considered. The question is - What am I spending, and what am I getting?

The Abraham Argument (sorry, its a bit of fun)

In the book of Genesis, Abraham argues with God over the prospect of saving Sodom and Gomorrah from a terrible punishment.

Moses asked god - “Would you save the city for 50 righteous people?”
“How about 40?”
“30?”
“Come on… 20?”
“Wait — before you send the fire — how about 10?”

That same bargaining logic works beautifully with solar.

Let’s assume the absolute worst-case scenario and argue backwards.

Check Out Abrahams Sales-Pitch

Imagine this:

• 18 solar panels

• Cost: $5,000 (totally unreasonable)

• Annual generation: ~10,000 kWh

• Every single unit sold to the grid

• Buyback rate: 17c per kWh

Those panels would pay you $1,700 per year in solar buyback credits.

No self-consumption.
No batteries.
No optimisation.

Just exports.

That’s under a 3-year payback.

What do you reckon? Would you do it?

Moses - “I’ve got my hands on the stone tablets. And I’m telling you – you can’t get 18 panels for $5,000. But let me ask you…

How Many Donkeys Would You Trade For 18 Panels?

If exports alone deliver $1,700 per year in export credits, would you buy 18 panels if they cost:

• $12,000? (5.9-year payback)

• $14,000? (8.2-year payback)

• How about $16,000 and some unleavened bread? (9.4-year payback)

... $16,000 is about what 18 panels cost for most homes. You can forget the unleavened bread.

And by the way, Abraham forgot to tell you 👉 $1,700 is the worst this system could save you.

Why You'll Save More Than Moses Reckons

If you sell solar to the grid, Moses already told you its worth about 17c  per kWh (give or take).

But the solar you actually use is worth more!

It’s worth your retail rate — typically 35–45c per kWh incl GST.

That changes everything.

Also, If your roof is a decent north-facer with more than a 10° pitch, 18 panels won’t generate 10,000 kWh. They’ll generate more.

Good roofs regularly see 11,000 kWh with 18 panels (460w assumed).
Great roofs can push 12,000+ kWh per year!

Tearing Down The Strawman Argument

In the real world:

• 18 panels typically save ~$2,500 per year without a battery

• Add a battery and that can push closer to $3,500 per year (use our Solar Broker service to iron out the finer details).

So, if Abraham were here, he wouldn’t be arguing about buyback rates.

He’d be covering the city in panels to power his DC powered grain mills.

Because if you can spend $16,000 today and save $2,500 per year as a minimum, you’re looking at roughly a 6 year payback with some conservative inflation on the savings.

Over 25 years? That’s $80,000+ in savings when you bake in 3% inflation.

The Takeaway

Solar exports aren’t the dream scenario.

They’re the floor.

And when the floor already looks this good… the upside takes care of itself.

Disclaimer: You may not be able to sell all of what 18 panels can generate. There are limitations in a few regions. However - those limitations become entirely irrelevant if your home pulls ~2.5kW of energy during the peak hours between 10 & 2.
Pool Pump, Spa, Hot Water Cylinder, Aircon in summer + Fridge and Freezer all add up to a hell of a lot more than a 2.5kW energy demand.

Most networks have unlocked 10kW solar buyback on one phase, instead of the previous 5kW buyback per phase. If you have multiple phases (2 or 3) you can get away with 40 - 50 panels with practically zero generation impacts due to the export limit. If you have a battery, unused daytime solar energy goes into the battery!

Not all retailers offer the high buyback rates to solar systems with an inverter larger than 10kW. Check that before proceeding. As at May 2026, Ecotricity and Electric Kiwi offer great buyback rates for residential solar systems with an inverter larger than 10kW.