New SEANZ Report: New Zealand’s Big Energy Switch — And Why It Matters to You
By Kristy Hoare on in New Zealand Energy News
Most of us don’t think too much about how electricity is made - until we get a large bill or a power cut. But behind the scenes, big decisions are being made by Government, industry regulators, and energy companies that will shape how New Zealanders get power for the next 20–30 years.
That’s why SEANZ (Sustainable Energy Association of NZ) has released a series of reports called The Big Switch, requested by Energy Minister Simon Watts, and shared with Government agencies including MBIE, EECA, Commerce Commission, and the Electricity Authority. These reports aren’t just industry talk - they outline how solar, batteries, and smart technology could help make New Zealand’s energy cleaner, cheaper, fairer, and more resilient.
Although it's a lengthy read, so here's an easy to digest, with all the major issues and ideas SEANZ wants those high up to focus on.
The Big Problem: Our Energy System Still Thinks Power Is “Scarce”
(p2–4)
Even though solar and batteries are now affordable and more accessible, NZ’s energy system still behaves like electricity is a limited resource. Hydro lakes get low in “dry years,” so we fall back to burning fossil fuels (mainly coal and gas). That adds pollution, cost, and uncertainty.
The Opportunity: Solar + Batteries Could Change Everything
(p6–10)
SEANZ modelling shows that if NZ added:
- 3 GW of solar - we could almost eliminate coal use.
- 8 GW of solar + batteries - we could ditch coal and gas.
That’s huge. And much of it could come from rooftops, small businesses, farms, schools, and community solar - not just big solar farms.
Because once solar panels and batteries are installed - there’s almost no fuel cost. The sun is free.
But Our Current Energy Rules Are Holding Solar Back
The report highlights how the energy market and rules are still designed for giant power stations — not everyday Kiwis generating power at their homes or businesses.
Here are the challenges SEANZ points out:
Issues Holding Us Back (with report page refs)
- ❗NZ energy market encourages scarcity pricing — prices go up when supply is tight, which rewards fossil fuel peaker plants. (p14)
- 🔌 Home and business solar generators (called “prosumers”) have very limited ways to sell back power — only one retailer is allowed per connection. (p14)
- 🏗 Energy infrastructure (metering, pricing, data systems, grid settings) is not yet designed for flexible, two-way energy flow. (p17)
- 🏢 Large gentailers (generator + retailers) have too much control over market competition. Hard for small players to enter. (p19–20)
- 💰 Upfront cost of solar and batteries is still a barrier for many households and businesses. (p18)
- 📡 No proper systems to let home batteries, EV chargers, and solar systems support the grid during peak times (even though they could!). (p16–17)
SEANZ’s Solutions - The "Big Shifts" New Zealand Needs
This is where the report gets exciting. SEANZ lays out five key shifts that could totally modernise our system.
🔄 1. Replace Fossil Backup with Batteries — “Firm Without Fossils” (p15)
Instead of burning coal or gas during peak hours or dry years, use:
large battery systems
community batteries
home and business batteries (yes, yours!)
Cheaper, cleaner, faster to install.
🎯 2. Stop Thinking Just “kWh” - Think Energy Services (p15–16)
Instead of just selling power units, the market should reward things like:
backup during storms
grid support
flexible timing (battery charging, EV charging)
In other words — batteries and smart solar tech should get paid for the services they provide, not just the energy.
🧑🤝🧑 3. Open the Market to New Players — Not Just the Big Gentailers (p16)
Let everyday Kiwis, farmers, iwi, solar cooperatives, schools, and businesses generate, store, share, and sell power.
Right now, it’s technically possible — but legally very difficult.
💸 4. Make Clean Energy the Cheapest Way to Cut Carbon (p17)
Solar and batteries are one of the fastest and most cost-effective ways to get rid of fossil fuels.
Yet NZ is still relying heavily on burning coal and gas in Huntly.
SEANZ says: we don’t need to be doing that anymore.
🗺 5. Future-Proofing the Grid — Data, Connections & Smart Tech (p17)
We need:
- Better-metering rules
- Fairer network pricing
- Safe, smart data systems
- EVs and home batteries that can “talk” to the grid
- Tech is ready. The rules aren't.
SEANZ’s Key Recommendations to Government
(p18–22)
Recommendation
Why It Matters
Offer long-term low-interest loans for solar + battery installations
Makes solar affordable to more households and businesses (p18)
Allow more than one retailer per property (ICP)
Lets you sell energy to whoever gives you the best price (p21)
Enable peer-to-peer energy trading (neighbour selling to neighbour)
Encourages local energy sharing and community solar (p21–22)
Modify market rules to allow battery aggregators and energy sharing platforms
Unlocks the value of home batteries, EVs, smart appliances (p16)
Prevent gentailers (generator + retailer companies) from blocking competition
More fairness, lower prices (p19–20)
Why This Matters to You
These decisions will affect:
- 💰 How much you pay for power
- 🌧 Whether we burn coal in dry years
- 🔎 Whether you can get paid fairly for your solar
- 🚗 Whether your EV or home battery can help power your house during outages
- 💡 Whether your solar investment benefits just you — or your whole community
Final Thought
This isn’t just an industry conversation. It’s a household, community, and national conversation.
The way we design our energy system now will decide whether New Zealand becomes renewable, resilient, and affordable…
or keeps relying on coal, diesel generators, and rising power prices.
SEANZ is pushing for a system that empowers everyday New Zealanders - not just the big energy companies.