Grid Supply and Solar PV

Electricity Rates
How they compare in NZ
Are we there yet?
SEANZ
30th May 2012

© Sustainable Electricity Association NZ 2012. This document may not be copied, reproduced, circulated
or published in part or whole in any format without the prior written approval of SEANZ and/or its author(s)
Notes, Methodology and Assumptions
This document details the cost position of grid supplied electricity versus solar PV
supply in NZ. The key question answered herein is:
o Has solar PV rates of generation reached grid parity - or are they lower?
This is based on a typical domestic/residential 2.88 kW system with system life of 25
years (life typically exceeds 25 years)
Assumes all PV power generated is used and not sold back to the grid
Solar PV generation rates calculated by total generated output over 25 years for the
specified location divided by total system cost (Installation plus 6% pa finance and
interest cost factored in for borrowed funds to implement system or opportunity cost of
non borrowed funds invested)
Retail electricity pricing from the grid is averaged across retailers by each location and
factors in fixed and variable costs. Each location has multiple retailers and plans
Solar PV system installed meets technical requirements – orientation, north facing at
recommended pitch, site specific factors addressed, completed to industry standards
All solar PV output data and information provided herein is accurate at time of
writing but may vary dependant on circumstances as defined by each individual
system installation
 Grid supplied
electricity retail
rates by location
cents/kWh unit

Source:
MED Quarterly Survey of
Domestic Electricity Prices
Feb. 2012
 Grid supplied
electricity retail
rates by location
cents/kWh unit

Darker/larger squares =
higher cost

Source:
MED Quarterly Survey of
Domestic Electricity Prices
Feb. 2012
 Solar PV generation
kWh yield by location

larger/darker circles = better

more generation capability

Source:
PVSol Pro v4.5 generated data
Generated solar PV kWh
rates by location

smaller/lighter = better
lower cost to generate a
kWh of electricity with PV

Source:
PVSol Pro v4.5 generated data
 So are we there yet?
Absolutely!
How far below grid rates are we?

© Sustainable Electricity Association NZ 2012

 Differential between
solar PV generation
rates and average retail
rates by location

larger/darker = greater
difference = more savings

Source:
MED Quarterly Survey of
Domestic Electricity Prices
Feb. 2012
and
PVSol Pro v4.5 generated data
Savings per annum
by location with
solar PV over
grid supply

Larger/darker green
circles = more savings

Smaller/darker red
circles = less
Explanatory Notes & Acknowledgements

The MED Quarterly Survey of Domestic Electricity Prices covers:

o Line charges and retail charges for a consumers using 8,000 kWh a year
o Lines charges and retail charges in general
o The line charge figures represent the total (fixed and variable) cost of
electricity transmission and distribution
o The retail figures show the total cost of electricity to a residential
consumer and include the line charge component
o GST and averaged discounts are included
o Electronic payment, direct debit, or fixed term contract discounts are not
included

Solar PV data is calculated and simulated using the commercial software

application PVSol Pro v4.5 from Valentin Software. The application is an
industry standard tool for defining solar yields and rates

The data referenced in all charts and maps are intended for use as
comparative data between locations and not as absolutes