When your solar panels make more power than your home is using, that surplus doesn’t vanish — it flows out to the grid, and your electricity retailer pays you for it. That payment is the buy-back rate (also called the export rate or feed-in tariff), and it’s one of the most misunderstood numbers in home solar. People often assume it’s close to what they pay for power. It isn’t — not even close. Here’s how buy-back rates actually work in New Zealand, what they’re worth, and why understanding them changes how you should think about your whole system.
What a buy-back rate is
Every kilowatt-hour your system exports earns you a credit at your retailer’s buy-back rate. In New Zealand that rate typically runs from about 8 cents to 17 cents or more per kWh, depending entirely on who your retailer is and which plan you’re on. Some pay a flat rate around the clock; others pay more at peak times and less off-peak.
Now hold that against what you pay for power: around 39 cents per kWh. The gap is the whole story. You’re selling your surplus for a third to a half of what you buy it back for. That asymmetry isn’t a scam — it reflects that retailers can buy wholesale power cheaply, and that exported solar tends to all arrive at the same sunny midday moment — but it has one big practical consequence.
Why this makes self-consumption king
Because export pays so much less than retail, the most valuable thing you can do with a unit of solar is use it yourself rather than sell it. Using it saves you 39c; exporting it earns you maybe 10c. So the goal of a well-run solar home isn’t to export as much as possible — it’s the opposite: to self-consume as much as possible and export only the genuine leftovers.
This flips a common intuition. A bigger system that dumps loads of power onto the grid at 10c isn’t necessarily better than a right-sized one you mostly use yourself. Buy-back is the consolation prize, not the main event.
How rates vary between retailers
Buy-back is one of the few solar variables you can control after installation, just by choosing your retailer — so it’s worth shopping around:
- Flat-rate plans pay the same per exported kWh all day. Simple, and fine if your export is spread out.
- Time-of-use plans pay more for power exported at high-demand times (often early evening) and less midday. These reward homes with a battery that can hold power and release it at peak.
- Bonus or capped schemes. Some retailers offer a higher rate but cap the paid kWh, or bundle buy-back with other plan features. Read what’s genuinely on offer, not just the headline cents.
Because the rate and structure differ so much, two identical solar homes on different retailers can earn meaningfully different export income. It pays to compare plans specifically on their solar buy-back terms — and to revisit it as offers change.
The 2026 reforms — buy-back is improving
There’s genuinely good news here. From 1 July 2026, the Electricity Authority requires larger retailers to offer time-of-use pricing and fairer rates for power exported at peak times. The intent is to reward households that send electricity to the grid when it’s most needed, rather than paying a flat low rate regardless. For solar owners — especially those who export a lot, or who have a battery to time their exports — this lifts the value of the surplus. It won’t fully close the gap with retail, but it makes the export side of the equation better than it’s been.
How to compare buy-back when choosing a retailer
When you weigh up retailers as a solar owner, look past the headline rate:
- The actual cents per kWh exported — and whether it’s flat or time-based.
- Your import price too. A great buy-back rate paired with an expensive purchase price can leave you worse off overall. Judge the whole plan, not just the export half.
- Any caps or conditions on how much export is paid, plus any plan fees.
- Whether the structure suits your home — flat-rate for spread-out export, peak-rate if you have a battery to shift exports into the evening.
The government-backed Powerswitch comparison tool is a neutral place to compare plans — including solar buy-back — without a sales angle.
The verdict
Buy-back rates in New Zealand run from roughly 8c to 17c+ per kWh, vary a lot by retailer, and are set to improve under the 2026 reforms — but they still pay far less than the ~39c you save by using your own power. The practical lesson isn’t to chase the highest export rate at any cost; it’s to design and run your system to self-consume first and export second, then pick a retailer whose buy-back terms suit how your home actually exports.
Want to know how much your home would self-consume versus export — and what that’s worth at real rates? Our free assessment models both sides so you can see the full picture.
Sources: Buy-back rate ranges and 2026 reforms per the Electricity Authority; retailer plan comparison via Powerswitch (Consumer NZ); retail price per MBIE. Rates vary by retailer and change over time.