Can I Claim Solar Panels on Tax in NZ? (2026)

The Honest Short Answer

The short answer depends entirely on what you do with your solar. Here's the honest summary:

If you're in the first row (owner-occupier), the rest of this guide is a quick read. The section that applies to you is short. If you're in any other row, keep going. Each audience has its own section below.

If You're an Owner-Occupier

If You're a Residential Landlord

Residential buildings have not been depreciable since 1 April 2024 (the 2024 reform reinstated commercial-building depreciation but excluded residential). But plant and equipment attached to a residential rental IS still depreciable. Solar PV is plant and equipment, not part of the building structure.

• The depreciation rate depends on classification. EECA cites 16% diminishing value (10-year life) for commercial-scale, but residential rental classifications can vary.
• GST is NOT claimable on a residential rental install. Residential rental income is GST-exempt.
• Mortgage interest is 100% deductible against rental income from 1 April 2025.

For the full landlord story (chattels valuation, depreciation rate negotiation, the legal trap most landlords miss on on-selling solar to tenants, and the worked example for a 6.6kW Auckland rental), see our solar panels for rental property NZ guide. The depreciation mechanic alone can shift the payback maths meaningfully for a landlord.

If You Have a Business or Commercial Premises

What this means in practice

Say a business installs a $25,000 commercial solar system. They claim back $3,260 GST on day one (15% of the GST-inclusive price). The remaining $21,740 capital cost is depreciated over the asset's useful life at the rate IRD has assigned. At 16% DV, the first-year depreciation deduction is around $3,478, which at a 28% company tax rate reduces tax by roughly $974. By year five, cumulative tax savings can be a meaningful portion of the install cost.

Talk to your accountant about your specific rate and timing. The depreciation rules change and the worked example above is illustrative, not prescriptive.

Lifestyle Block or Mixed-Use Property

Lifestyle blocks often have mixed use: house (private), farm shed or workshop (income-earning), grazing block (potentially income-earning).

• Subpart DG of the Income Tax Act 2007 governs mixed-use assets. If your solar serves both private and income-earning uses, the deductible portion is the income-earning percentage.
• The apportionment can be based on physical separation (separate meters for each use) OR on a reasonable use-based formula. Your accountant works this out.
• Get a separate meter at install time if you want clean apportionment. Worth $500-$1,500 for the metering work to avoid years of apportionment debate.
• Same depreciation principles as the business case, just scaled by the apportionment factor.

For the farming-specific deep-dive, see our solar for farms NZ guide.

If You Run an Air BnB or Short-Term Rental

Air BnB / Bookabach / short-term rental income is generally a taxable supply (unlike residential rental).

• If your annual turnover from this activity is under $60,000, you can choose whether to register for GST. Most don't.
• If you go over $60,000 (typical for a productive holiday home in Queenstown or Wanaka), GST registration becomes compulsory.
• Once GST-registered, you can claim the GST on the solar install (subject to apportionment if you also use the property privately).
• Depreciation works similarly to residential rental: plant and equipment is depreciable, building is not.
• Mixed-use asset rules (Subpart DG) apply if you also live at the property part of the year.

A GST-registered Queenstown Air BnB owner claims back $2,608 GST on a $20,000 install. Private-use weeks shrink the depreciation deduction proportionally. Apportionment is an accountant conversation.

Is Solar Buy-Back Income Taxable?

For a typical residential homeowner exporting excess solar to their power retailer, the buy-back credit is generally not taxable income. The IRD's position is that small-scale private generation is not a taxable enterprise. The credit is effectively a discount on your power bill, not income.

• For a landlord: buy-back income earned on a rental property IS taxable as part of rental income.
• For a business or commercial premises: buy-back income IS taxable business income.
• For a lifestyle block or large rural property exporting significant amounts: this can get murky. The Income Tax Act's distributed-generation provisions may apply. If your export volumes are large enough that the activity looks like an income-earning enterprise (for example, a 30 kW system on a small property exporting most of the production), IRD's general anti-avoidance and "trading" tests may apply. Talk to your accountant.

GST: When It's Claimable and When It Isn't

The general rule: GST claim follows the GST registration of the activity. If the install supports a GST-registered activity, you can claim. If it supports private or GST-exempt activity, you can't.

The Depreciation Maths

IRD's general depreciation determination (IR265) lists rates by asset class.

• Solar PV is typically classified under "Generators and ancillary equipment" (confirm class as of the 2026 financial year with your accountant).
• EECA's published commercial-scale solar modelling cites a 16% diminishing-value rate (10-year asset life). Equivalent straight-line rate is around 10.5%.
• Battery storage can be classified separately (typical asset life 10 years, similar DV rate).
• Inverters can be classified separately (typical asset life shorter, 7-10 years).
• A chattels valuer or your accountant assigns the line items at install time. Cost $300-$600. Worth doing for any rental, business, or mixed-use install.

Documentation You'll Need

If your situation qualifies for any tax claim:

• A full GST-inclusive itemised invoice from your installer
• Separate line items for panels, inverter, battery, mounting, and electrical work (so the chattels valuer can apportion)
• Your installer's GST number on the invoice
• A chattels/plant valuation report if you're a landlord or mixed-use property owner ($300-$600)
• Asset register entry for each component
• Bank statements showing payment dates (timing matters for depreciation)
• For Air BnB: turnover records (the $60k threshold check)
• For business: evidence of business use (location, percentage, supporting business activity)

Keep all of the above for at least seven years (IRD's standard retention period for tax records).

When to Talk to an Accountant

If you're an owner-occupier, you probably don't need an accountant just for this. The answer is "you can't claim it" and the conversation ends there.

If you're a landlord, business owner, lifestyle-block owner, or Air BnB host, the conversation is worth its weight in cumulative tax savings. Most chartered accountants charge $200-$400 for a one-hour consultation. The advice routinely returns 10x to 50x that over the asset life.

Solar Scout doesn't recommend specific accountants. Ask your existing accountant about solar tax treatment, or search the Chartered Accountants Australia and New Zealand member directory at charteredaccountantsanz.com for a registered NZ practitioner.

Frequently Asked Questions