Upcoming Regulatory Changes Requiring Major Power Retailers To Offer Off-Peak Pricing

The Electricity Authority has introduced a new rule requiring major power retailers to offer off-peak or time of use pricing plans by 1 July 2026.

Written by

Dean Dunning

Published on

July 27, 2025

A Game Changer for Solar Households
The Core of the Reform
Key Benefits for Solar and Battery Owners
No Battery You Still Benefit
How It Works in Practice
Recommendations for Customers
Potential Challenges
Broader Implications for Sustainability
Final Thoughts

A Game Changer For Solar Households

Exciting developments are underway in New Zealand’s electricity sector. The Electricity Authority has introduced a new rule requiring major power retailers to offer off-peak or time of use pricing plans by 1 July 2026. The goal is to create a fairer, more efficient energy system, especially benefiting households with solar panels and battery storage.

This update is a significant step toward supporting smart energy use, lowering bills, and empowering solar-powered homes. Here's what the change means, how it works, and how to make the most of it.

The Core Of The Reform

Retailers with 5 percent or more of the electricity market such as Contact, Meridian, and Mercury will be required to offer time of use pricing. That means households will have access to electricity plans with cheaper rates during off-peak times like overnight and higher rates during peak demand such as mornings and evenings.

Many smaller providers including Octopus Energy and Ecotricity already offer flexible plans and are attracting customers with smart usage habits. But this reform ensures that the majority of New Zealanders, not just early adopters can now benefit from smarter pricing.

Key Benefits For Solar And Battery Owners

This change is especially impactful for homes with solar and battery systems. Here's how it works:

During the day, your solar panels generate power to run your home and charge your battery
At night, when the sun goes down, you can recharge your battery using cheap off-peak grid power
The result is effectively charging your battery twice a day once with solar and once with affordable off-peak energy which cuts reliance on expensive peak-time electricity

Even in regions like Wānaka, where extended cloudy periods reduce solar output, households with batteries can shift more of their usage to off-peak times. This reduces power bills while keeping your home energy-resilient.

Time of use pricing can also bring higher export rates during peak periods. Instead of earning the standard 17 cents per kilowatt hour, you might earn up to 40 cents per kilowatt hour during high-demand winter evenings. With the right setup, you can export stored energy from your battery when it’s worth the most.

No Battery You Still Benefit

Homes with solar only and no battery also gain more control. By choosing a time of use plan, you can reduce your exposure to high peak-time charges. But adding a battery maximises the advantage, allowing you to store your solar energy and avoid paying high evening rates.In both cases, the difference between peak and off-peak rates can improve return on investment, shorten payback periods, and make solar even more compelling.

How It Works In Practice

To access time of use pricing, you’ll need a smart meter that records half-hourly or day night usage. Most homes already have one, but check with your retailer to confirm or arrange an upgrade.

Charge EVs overnight, for example from 11 p.m., for half the cost of daytime rates
Use delay timers on dishwashers and washing machines to run them at night
Add timers to hot water cylinders or heat pumps to restrict use to off-peak periods
Use solar monitoring apps or smart home systems to automate energy use and savings

Recommendations For Customers

Request your usage data from your retailer and review your half-hourly patterns
Use tools or spreadsheets to simulate how much you could save
Compare plans from both major and smaller retailers
Talk to your solar provider for personalised advice
Consider smart home integration to shift your usage away from peak pricing

Potential Challenges

Not every household will benefit equally. Some retailers may raise peak rates to balance the discounts offered during off-peak times. For example, a flat rate of 35 cents per kilowatt hour might become 48 cents at peak and 24 cents off-peak. If you can’t shift your usage, you may end up paying more.

Broader Implications For Sustainability

This reform supports New Zealand’s move to a more sustainable energy future. Encouraging the use of solar, batteries, and time-shifting reduces grid pressure and cuts fossil fuel reliance.

The Electricity Authority is also reviewing export pricing and network charges, so keep an eye out for further updates that could benefit solar households.

Final Thoughts

This regulatory change gives you more control over your energy use and costs. If you already have solar or are considering it, now is the perfect time to:

Understand your usage
Explore your pricing options
Shift your usage away from peak pricing
Talk to solar experts about maximising value

At Think Solar, we’re here to help you make the most of these changes. Get in touch for personalised advice and take the next step toward lower bills and a greener New Zealand.

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