Source: Electricity Authority
The Electricity Authority Te Mana Hiko (Authority) wants to remove barriers so more electricity from small-scale solar, wind and solar farms, and other distributed generation can power the country.
Distributed generation – including solar and battery systems installed in homes and businesses – is on the rise, supporting the national electricity grid that runs the length of the country.
We need to maximise the value of these clean, cheap and localised energy sources to strengthen the electricity system, boost resilience in communities, and lower costs for all New Zealanders in the long run.
The Authority is now seeking feedback on proposed rule changes to increase the amount of electricity distributed generators can supply to networks at any given time.
Authority General Manager Networks and System Change, Tim Sparks, says under the current industry rules, lines companies have wide discretion to set limits on the amount of electricity that can be supplied – or ‘exported’ – to their networks.
“Export limits are an important way for lines companies to stop their networks from being overloaded. The limits also keep the power quality consistent, which protects the network equipment, and ensures a consistent and reliable supply of electricity,” Sparks said.
“However, some rules are outdated, and we need to keep up with the pace of change by setting export limits that benefit consumers.
“Our concern is that low export limits are an inefficient use of electricity. This electricity could be put to better use by supporting the wider network and benefitting all New Zealanders.
“Currently, most lines companies use a 5kW export limit for residential solar on homes and businesses. However, at least one lines company has recently increased its limit to 10kW, and we think others can do the same,” Sparks said.
As a first step towards more efficient limits, the Authority is proposing a default 10kW export limit for small-scale generation, such as residential solar. The Authority is further proposing lines companies must use a standard, industry-developed assessment method if a limit lower than 10kW is needed. The Authority is also proposing that industry develop an assessment method for setting export limits for larger generation, such as solar and wind farms.
“We want people who have invested in distributed generation to get a better return on their investment by being able to export more electricity. This may also encourage more people to invest and install larger systems that both meet their own needs and have extra capacity for export to support networks,” Sparks said.
The Authority welcomes feedback on its proposals as set out in the consultation paper by 5pm, 19 November 2025.
In a future stage of the ‘Network connections project’, the Authority will consider further ways to increase the amount of electricity that can be shared from larger distributed generators, to ensure the network and all New Zealanders get the full benefits it brings.
Background
This consultation is the first part of Stage two of the Authority’s broader ‘Network connections project’ that is reviewing rules around application processes and standards so networks can operate efficiently, competitively and reliably.
Stage one was recently completed and included a suite of rule changes to improve the application processes for connecting to local lines networks, making processes faster, easier, more consistent and more equitable. The next part of Stage two will consider the application processes for small-scale distributed generation and fees paid to distributors to process connection applications.
Notes: The Electricity Authority is an independent Crown Entity with the main statutory objective to promote competition in, reliable supply by, and the efficient operation of, the electricity industry for the long-term benefit of consumers. The additional objective of the Authority is to protect the interests of domestic consumers and small business consumers in relation to the supply of electricity to those consumers.
