7141 (2026). Hon Dr Megan Woods to the Minister for Energy

7141 (2026). Hon Dr Megan Woods to the Minister for Energy: What advice, if any, has he received on how increased household solar could reduce power prices, broken down by projected price decreases and the scenarios under which they would occur?

Hon Simon Watts: Solar generation is an intermittent form of generation. This means the electricity system cannot rely on solar to provide long-duration back-up, and those either selling solar or using it to meet their own electricity needs have to rely on some form of firm (often thermal) generation as back-up when the sun does not shine. It is more helpful to consider the emissions impact of the electricity system as a whole. We are currently on track for an electricity system that is over 95% renewable. That level of renewables is only made possible by having reliable firm generation available for when intermittent generation is unable to meet demand. MBIE's Climate Impact Analysis for LNG shows a small decrease in emissions. Having reliable back up, in the form of LNG availability, enables more renewables and a less emissions intensive mix of thermal back up for that renewable generation (including solar).