Construction has begun on a major solar energy project on Stewart Island aimed at reducing the island’s reliance on diesel-generated electricity and lowering power prices.
Regional Development Minister Shane Jones and Associate Regional Development Minister Mark Patterson announced the start of work on the Government-backed project, with Patterson visiting the island to turn the first sod.
“The Regional Infrastructure Fund (RIF) provided a $15.35 million loan to Southland District Council to help strengthen the Island’s energy resilience and bring real cost relief to a remote community that doesn’t have the convenience of connection to the national grid,” Jones says.
“The start of construction reflects strong community support and careful local planning. It responds directly to the challenges they have identified including high power costs, supply risk, and long-term resilience,” Patterson says.
Stewart Island has about 494 permanent electricity connections and currently relies entirely on diesel generators for electricity supply.
The Government says households and businesses on the island face electricity prices more than double those on the mainland.
The project is being delivered by Southland District Council through the Stewart Island Electricity Supply Authority, which owns and operates the island’s electricity network.
It includes the installation of a solar farm and battery storage system, along with electricity network upgrades and smart meters.
The Government says the project is expected to reduce power prices by up to 35 cents per kilowatt hour and cut diesel use for electricity generation by as much as 75%.
Construction is expected to be completed in early 2027.
The project is also expected to support about 40 fulltime-equivalent jobs during construction, while lower energy costs are expected to provide long-term benefits for tourism, aquaculture and other local industries.

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