Could plug-in solar be the next step in clean technology trade?

Submitted by Damon Paling, Independent Director of Grin Natural and NZCTA executive committee member.

For much of the New Zealand–China trade relationship, the familiar story has been New Zealand sending food, fibre and other high-quality products north, while importing manufactured goods and increasingly sophisticated technology south.

Clean energy is already part of that relationship. New Zealand sources solar equipment and other renewable-energy technology from China, reflecting China's position at the centre of global clean-tech manufacturing. 

Plug-in solar could be a logical next step: taking technology already proven internationally and adapting it to provide a simpler entry point into household solar for New Zealand consumers.  On 17 August, the Government confirmed it will progress the recommendations of its Solar Regulatory Review, including legalising plug-in solar. The final technical and safety settings remain to be worked through, but the policy direction is now clear.  That potentially makes plug-in solar an opportunity worth watching for 2027 and beyond.

A missing middle in New Zealand solar?

 Plug-in solar is relatively simple in concept. A small solar array and micro-inverter generate electricity for use within the home, without the scale and complexity of a conventional rooftop system. It could therefore occupy a currently underdeveloped space in New Zealand: between having no solar and installing a full rooftop system.

 The opportunity is also broader than the term "balcony solar" implies. Subject to the eventual rules, applications could potentially include apartment balconies, townhouse patios, decks, garages, orchard and farm sheds, and other suitable locations. Over time, there could also be B2B applications across retirement villages, build-to-rent developments, community housing and new townhouse developments.

 Solar penetration remains relatively low. The Government's review noted that only around 3–4% of Kiwi households have solar, compared with more than 30% in Australia. That comparison needs some caution. New Zealand is not Australia. Our climate and sunshine hours differ materially by region, and Australia's combination of high solar irradiation, extensive detached housing and established rooftop-solar ecosystem cannot simply be transplanted across the Tasman. But that is also why a smaller, lower-commitment solar option is interesting.

Electricity economics are sharpening the proposition

 Kiwi households are also paying considerably more attention to energy costs.  MBIE's May 2026 survey put its modelled national residential electricity price at approximately 42 cents per kWh.  An illustrative 800W plug-in system has estimated annual generation of around 748–1,241kWh, depending on solar irradiation. A reasonable mid-case used in the assessment is around 950kWh annually. Actual outcomes would naturally vary considerably with geography, orientation, shading and household consumption.

 The underlying consumer proposition is nevertheless straightforward: use your solar rather than sell your solar. A household running appliances, a home office, hot water, heat pump may be able to consume a meaningful proportion of what it generates.  That does not replace rooftop solar. It potentially makes participation in solar accessible to a wider group of Kiwis.

China is already central to the solar story

China has built an extraordinary solar manufacturing ecosystem operated by companies including JinkoSolar, Tongwei, LONGi and Trina Solar.  The industry is spread across a number of specialist manufacturing clusters, such as in Jiangsu and Jiangxi to name just a couple.  China solar companies, such as Arctech, have an existing plug-in solar platform that is being considered as the basis for a potential New Zealand-specific product, bringing together Chinese product and manufacturing expertise with New Zealand regulatory, engineering and market capability. The underlying opportunity can be framed as proven Chinese technology combined with local regulatory knowledge, market development, and distribution.

As NZCTA Chairman John Cochrane puts it: “China is already an important part of New Zealand's renewable-energy supply chain, so plug-in solar should be seen as an extension of a relationship that already exists. China brings extraordinary scale, technology and manufacturing capability; the opportunity is to combine that with our local engineering, regulatory knowledge and understanding of Kiwi consumers.”

Importing technology — or adapting it together?

The opportunity should not be simply to import a European or Chinese plug-in solar product and change the plug. New Zealand has its own electrical standards, network requirements, housing stock and physical environment. Wind loading provides an obvious example. A solar array attached to a balcony can behave like a large sail. What works in one overseas market may not necessarily be appropriate for Wellington — or on an exposed New Zealand coastal property. Electrical safety, anti-islanding protection, mounting systems and potentially body corporate requirements all need to be addressed.

The more interesting model is therefore technology adaptation and co-development: Chinese manufacturers bringing proven platforms, engineering capability and manufacturing scale, while New Zealand partners help define a safe and fit-for-purpose local solution.

For NZCTA Committee Member Damon Paling, that is also characteristic of how the wider bilateral relationship is evolving:  “We often focus on what New Zealand can sell to China, but the relationship works both ways. China has developed world-leading capability in solar, batteries, EVs and other clean technologies. There is a real opportunity to combine that capability with local expertise and market knowledge to deliver better products and, ultimately, better outcomes for Kiwi consumers.”

We don't need to invent the category

We have the advantage of being able to learn from overseas experience. Plug-in solar has become particularly established in Germany, demonstrating how small-scale household generation can develop once regulation, product standards and consumer simplicity align. The Government itself has pointed to Germany and the UK when explaining its decision to legalise the technology.  We can therefore observe what has worked elsewhere while developing settings appropriate to our own electrical system, climate and housing environment.

The Government's broader objective is ambitious: to make New Zealand the simplest country in the developed world in which to install residential and small-to-medium-scale solar. Its review found that current installations can encounter multiple approvals and site visits, adding cost and complexity.   Plug-in solar will only fulfil its promise if the eventual regulatory pathway preserves its essential simplicity while maintaining appropriate safety.

A small solar product could lead somewhere bigger

Imagine a townhouse development where every home comes with solar. Or a retirement village incorporating small-scale distributed generation. Or an electricity retailer combining solar, battery storage, EV charging and smart energy management into a household proposition. None of that is guaranteed, and the first task is much simpler: establish whether plug-in solar can be made safe, compliant, useful and sufficiently straightforward for Kiwi households.

Plug-in solar will not solve New Zealand's energy challenges by itself. Nor will it suit every household or every region. But from 2027 and beyond, it could provide another practical option for Kiwis seeking greater control over their electricity use — and another example of the NZ–China relationship evolving beyond conventional trade into clean technology and new forms of value creation.