Angry customers complain about SolarZero contracts

Customers angry at being stuck in what they say are expensive SolarZero contracts are turning to disputes resolution services for help.

SolarZero went into liquidation in late 2024. But its 15,000 customers remain committed to contracts now being serviced by Verofi through its SZ Servicing.

Some customers say they have lost guaranteed pricing and have seen their bills increase sharply, but have been quoted thousands of dollars to get out of their contracts.

Others say selling a house with a SolarZero contract in place is difficult.

SolarZero offered solar power systems on a lease arrangement, over a 20-year term. Customers are meant to save on their power, pay a lease fee, and export some power back into the grid.

One customer, Mark Wellington, told RNZ he had been a customer for about four years. But despite living alone and not using electricity for heating or cooking he was still facing large bills.

"My original price per kilowatt was 8c and 15c but now it's 26c and 15c [import and export] and I get a power bill every month in winter."

He said his battery storage was running out quickly every evening.

Another woman said she had experienced the same increase in price. She said the promise of 8c imported power over the long term was the incentive to sign up.

"Three years into my agreement, they raised our rates to time of use - an overnight 225 percent increase at peak time rate. Bearing in mind I'm still paying a monthly fee of $160 plus GST before I even use any power. There is no way I would have locked myself into a 20-year contract with those high fixed fees and not have an offer of price protection. I live with a disability and am on a fixed income. I just wouldn't have locked into anything for that long unless there was a certainty of costs."

Another customer, Rohan Metrani, said he and his wife lived alone but were spending $400 a month on power plus their SolarZero lease.

"It's not about savings anymore. It's become more of a liability at this stage."

In a statement, SZ Servicing said it had adjusted grid energy pricing for some customers in line with their contract terms and to reflect increases in the grid energy market.

"We understand any increase is frustrating, particularly for customers managing household costs. SZ Servicing has engaged directly with impacted customers to explain the changes and respond to any questions about their individual agreements."

Complaints resolution service Utilities Disputes said in the year to 31 March, SolarZero was involved in 20.8 percent of accepted deadlocked complaints despite having 0.5 percent of the market.

It received 440 complaints about solar overall, an increase of 105 percent on the previous year.

"We are seeing consumers raising concerns about their solar system failing to deliver the promised returns as well as difficulties in exiting the agreements for long term solar. These complaints make up a substantial portion of the complaints we have accepted for our formal investigation and conciliation process over the last year."

Commissioner Neil Mallon said he had been sharing his decisions with regulatory organisations to highlight concerns.

"Utilities Disputes is also working on some general guidance together for consumers to follow and intends to publish some more information about its concerns, particularly with long term subscription models for solar. If consumers have any concerns about their solar retailer, they should get in touch so we can talk them through their issues and potential solutions."

Some SolarZero customers said it was upsetting to see both National and Labour propose plans to help people put solar power systems on their houses.

"A long term loan to outright own the solar as an asset for my home while also lowering my power bill is something I would definitely pursue if I could get out of this SolarZero contract which has ended up being a total misrepresentation of what SolarZero promised us," one said.

"This announcement by Labour makes what we have gone through with SolarZero's arrangement seem even more nonsensical and unfair. I could be using that money that goes toward SolarZero's monthly fee to pay a long term loan for panels I would actually own and where I am free to shop around for the lowest electricity rates."

She said she felt the government had a responsibility to help.

"It backed SolarZero through the government's energy fund, and many of us signed up because we believed we were supporting a more energy-resilient New Zealand."

In a statement, Labour's energy resources spokesperson Megan Woods said the Solar Zero experience was partly why Labour's SolarSaver was designed to let households own their systems outright.

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