Solar projects increase reliability of power supply for communities
Published: 4 July, 2025
Loans from the Regional Infrastructure Fund for 3 solar energy projects will make local electricity supply more secure, building community resilience.
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Three loans were announced by the Government on 23 June 2025 for solar projects at Rakiura Stewart Island, Hawke’s Bay and Bay of Plenty. The loans will be managed by Kānoa – Regional Economic Development & Investment Unit.
The three projects are:
- Rakiura Stewart Island – a suspensory loan of up to $15.35m to Southland District Council to build the first stage of a solar farm, and network upgrades, replacing high-cost, diesel-generated electricity for the island’s 494 permanent electricity connections
- Ongaonga, Hawke’s Bay – a loan of up to $8m to local lines company Centralines Ltd to build a 35ha solar farm to generate 52GW annually and provide about 9,000 electricity connections in Central Hawke’s Bay with a local source of generation
- Te Kaha, Bay of Plenty – a loan of up to $4.75m to Te Huata Charitable Trust to build an 804kW-peak solar farm to ensure reliable electricity supply to about 320 homes and businesses.
The projects will create up to 130 jobs in total during construction.
The Rakiura Stewart Island project is expected to reduce diesel consumption by 200,000 litres within 2 years of running. During construction, about 40 high-skilled workers will be required.
When complete, more competitive energy costs will help business growth on the island including in aquaculture, tourism and hospitality.
The Ongaonga solar farm will improve electricity network resilience and support more competitive pricing for residents and commercial customers. Power could also be supplied to the national grid at peak generation. Up to 80 roles are expected to be needed during construction.
The Te Kaha project will provide more reliable, competitively priced power for a Māori community that regularly suffers electricity outages. The solar farm battery will have storage capacity for up to 72 hours which will protect the community from power outages.
Reliable power will also help the Ōpōtiki region with its bid to become an aquaculture centre of national significance. During construction, up to 12 people will be employed.
All 3 loans will assist communities who were unable to obtain full investment from other sources.