Meridian changes solar buyback rates

Meridian changes solar buyback rates

Meridian Energy is changing its buyback rates for new customers looking to install solar PV from 1 December this year.

Meridian’s current export rates are 25 cents for the first 5 kWh per day and 10 cents thereafter. The new rates will be 7 cents/kWh in summer (1 October to 30 April) and 10 cents//kWh in winter (1 May to 30 September).

Meridian External Relations Manager Guy Waipara says the current rates were set at a time when solar uptake was in its infancy and it was financially viable for Meridian to offer good rates to those exporting into the electricity grid.

“Meridian solar customer numbers have gone from about 50 customers in 2011 to just over 2,500 customers currently. This year alone we have grown our solar residential customer base by about 1,000 customers,” says Guy.

“Unfortunately we can no longer sustain rates that provide huge incentives to sell back onto the grid and that are far greater than wholesale market rates for electricity. Unlike other overseas markets such as Australia, the New Zealand residential solar market is not subsidised. Under the current rates, those who don’t want or can’t afford to install solar are effectively subsidising those who can.

“When solar customers sell back to the electricity grid they are operating as market participants and the buyback rate needs to be sustainable for us as much as customers. The new rates closely align with what you pay to purchase power generated from hydro, wind and geothermal sources.”

Guy says that the price of electricity varies seasonally, with lower prices in summer when demand is lower and higher prices in winter when demand is at its peak. This is reflected in the 7 cents and 10 cents buyback rates for the different seasons.

“Meridian certainly wants to support small scale solar customers but the solution has to be fair for them and fair for customers who don’t want to install solar,” says Guy.

“The changes are for new solar customers only. However the rates for existing solar customers are significantly above market rates for electricity so we will need to look at what tariffs we can offer these customers in the New Year.”

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