A New Zealand researcher is calling for a major rethink of how the country supports vulnerable households through winter, arguing that long-term investment in residential solar power could deliver greater benefits than the current Winter Energy Payment scheme.
By elocal Business Desk
The proposal comes as power prices continue to rise and concerns grow about household energy affordability and New Zealand's long-term energy resilience.
Is The Current System Still Working?
The Winter Energy Payment currently provides $20 per week for eligible single recipients and $31 per week for couples and those with dependants during the colder months.
However, University of Otago senior research fellow Kimberley O'Sullivan believes the payment is increasingly struggling to achieve its original objective.
"As taxpayers, we should be asking, is this the most sensible long-term policy we've got? Or could we bridge in something else to replace it?" O'Sullivan told RNZ's Nine to Noon.
She argues that rising living costs mean many households are using the payment to cover basic expenses such as food and rent rather than directing it specifically toward heating.
"It's not directly tied to electricity. So while the intent of it is to increase the amount of power that can be used in winter... more and more it's likely to just be covering the other basics and keeping the lights on rather than heating."
Rising Power Prices Add Pressure
Research conducted several years ago found that heating a single child's bedroom throughout winter could consume a substantial portion of the payment.
Since then, electricity prices have continued to rise.
O'Sullivan says this raises questions about whether ongoing direct payments are the most effective use of public funds when energy costs show little sign of easing.
A Solar Alternative
Instead of continuing to expand support payments, O'Sullivan suggests a long-term programme of solar subsidies targeted toward lower-income households.
Under such a scheme, government assistance could help households install rooftop solar systems, permanently reducing electricity costs rather than providing ongoing seasonal support.
"If we were able to introduce a solar scheme that would help with those lower-income households to provide them with a renewable energy source that would help keep their household costs down, then we might be able to reduce the energy payment over time and not need it anymore."
She said different approaches would be required for owner-occupiers, renters and those living in social housing.
Beyond Lower Power Bills
O'Sullivan argues the benefits of residential solar extend beyond reducing household expenses.
Increasing distributed solar generation could improve community resilience during severe weather events and reduce dependence on centralised electricity infrastructure.
"Increasing the amount of solar that we have residentially is going to do other things too. It's going to help us when we have severe weather events so that we have less people who are out for more time when the grid goes down and provide a bit more resilience there."
The comments come at a time when energy security has become a growing national issue.
Recent discussions around LNG imports, declining domestic gas production, rising electricity demand and concerns about supply reliability have all highlighted the importance of diversifying New Zealand's energy sources.
Energy Independence And Security
O'Sullivan also questioned policies that could increase New Zealand's dependence on imported fuels.
"When we are looking at doing other things that are going to increase our reliance on carbon fuels and make us more dependent on energy that's produced outside of New Zealand... I think we've all seen recently there's some significant risks around that."
Her argument is that expanding residential solar generation offers a practical way to improve both affordability and energy independence.
A Growing Debate
The proposal is likely to generate debate among policymakers, energy companies and taxpayers.
Supporters argue solar subsidies could create long-term savings, reduce pressure on the electricity grid and strengthen household resilience.
Critics may point to the upfront costs of large-scale subsidy programmes and the challenges of extending benefits to renters and apartment dwellers.
What is becoming increasingly clear is that New Zealand faces a broader conversation about how best to balance affordability, energy security and sustainability.
For many households struggling with rising living costs, that conversation is no longer theoretical. It arrives with every winter power bill.
As O'Sullivan concluded:
"Solar is really a no-brainer in terms of what it can do."
Source: RNZ Nine to Noon interview with Kimberley O'Sullivan, University of Otago.