Solar project begins on Rakiura / Stewart Island
Published: 22 May, 2026
Physical works have started on a major renewable energy project on Rakiura / Stewart Island that will significantly reduce the island’s reliance on diesel-generated electricity and help deliver cheaper power and a more resilient network.
A $15.35 million loan from the Regional Infrastructure Fund (RIF) will help Southland District Council strengthen the Island’s energy resilience and bring cost relief to a remote community that does not have the convenience of connection to the national grid.
Stewart Island only has about 494 permanent electricity connections and relies entirely on diesel generators for its electricity supply. This means households and businesses on Rakiura currently face electricity prices more than double those of the mainland.
The project is being delivered by the Council through the Stewart Island Electricity Supply Authority, which owns and operates the island’s electricity system.
It involves installing a solar farm and battery system, along with electricity network upgrades and smart meters. Once complete, it is expected to cut electricity prices by up to 35 cents per kilowatt hour, reduce diesel use for power generation by up to 75%, and lift renewable electricity generation on the island to about 45%.
The project is expected to be completed in early 2027.