by Antonia Newcomb

As the country’s first independently built solar generator and recently approved electricity retailer, Lodestone is scaling at pace to meet the growing demands of electrification and decarbonisation. 

In five short years, Lodestone Energy has emerged as one of Aotearoa New Zealand’s most innovative contributors to the renewable energy transition. The commissioning of its third and largest solar farm, Te Herenga o Te Rā, marks a major milestone in the company’s journey, and has cemented solar generation as a valuable contributor to New Zealand’s zero-carbon energy future.

Why Solar?

Solar-based generation is now the lowest-cost new energy source available globally, and New Zealand is only just catching on. Established in 2019, Lodestone entered the market as the economics of photovoltaic (PV) technology reached a tipping point. While much of the world had already embraced large-scale solar, New Zealand had remained staunchly reliant on hydro, gas and slow-to-consent wind farms.

But the signs were clear. Demand for electricity is forecast to grow by 55–80 per cent by 2050, driven by the electrification of transport, industrial heat and new digital infrastructure. In parallel, the open, deregulated nature of New Zealand’s electricity market has created strong investment signals for where and when new capacity is needed.

Lodestone recognised solar’s unique advantages in this context: rapid deployment, low impact, low cost, and complementary to New Zealand’s existing hydro resources. Solar production, which peaks in summer, allows hydro lakes to be preserved for winter – improving system resilience and price stability.

A solar farm in every community

Lodestone wants to see a ‘solar farm in every community’. By building farms that are the right size and in the right places, every community stands to benefit from a clean source of locally generated electricity.

Lodestone’s distributed model, which includes farms in Kaitaia, Edgecumbe and Waiotahe, Whitianga and Clandeboye, will help to ease pressure on the national grid and promote greater energy resilience in remote communities. Te Herenga o Te Rā, in Waiotahe, is capable of powering 9600 homes – more than double the number of dwellings registered in the Waiotahe and Opotiki districts combined.

Economically, the farms’ construction delivers value through job creation, providing opportunities for workers to upskill in a prospering industry. Importantly, in the longer term, with scale and increased supply, solar will begin to put downward pressure on pricing.

In the decade ahead, Lodestone aims to meet five per cent of the nation’s electricity demand with solar. It is building a strategic portfolio of more than 18 farms nationwide, with five already built or under construction, another four fully consented, and many more in planning.

Customers seeking value and certainty

Lodestone’s success relies heavily on long-term partnerships with forward-thinking commercial customers. Organisations like The Warehouse Group and Inghams New Zealand have shown industry leadership, unlocking valuable solar projects through 20-year commitments.

By stepping outside traditional channels, these customers gain long-term stability and affordable pricing, and can fast‑track their decarbonisation goals.

At the heart of these agreements is Lodestone’s Virtual Rooftop Solar product, which matches 100 per cent of a customer’s forecast electricity demand to certified renewable energy generated by Lodestone’s farms. This appeals to customers looking for a 100 per cent renewable energy supply, who don’t have the real estate for an ‘owned solution’ and/or want to avoid the capital outlay and logistical challenges required to establish a rooftop solution.

‘Our customers are using Virtual Rooftop Solar to achieve long-term cost certainty and accelerate their sustainability goals. It’s a scalable, flexible solution that can move and grow with their business,’ explains Sarah McHardy, Lodestone’s General Manager, Customer.

Spotlight on Waiotahe: Te Herenga o Te Rā

Earlier this year, Lodestone Energy commissioned Te Herenga o Te Rā in the Waiotahe Valley, Bay of Plenty. The 42-megawatt peak farm will generate approximately 69 gigawatt hours of clean electricity annually – capable of powering 9600 homes.

While this project has delivered meaningful new capacity to the region, there is a deeper story of collaboration that has underpinned its success. In the years of planning that led to the farm’s commissioning, Lodestone has worked closely with local iwi Te Ūpokorehe. An open relationship, based on common values, was forged in the early stages of planning, and flowed right through to the gifting of the site’s name: ‘Te Herenga o Te Rā,’ translating to ‘The Mooring Place of the Sun’.

The 71,000 bifacial panels track the sun east to west and absorb sunlight from both sides, making the farm 30–40 per cent more efficient than a conventional fixed-roof installation. With a projected lifespan of 35 years, the farm stands to serve this community for decades.

Agrivoltaics: shared value

All Lodestone’s farms are designed for dual-purpose farming – an approach known as agrivoltaics. At Te Herenga o Te Rā, solar panels are elevated two metres off the ground, and are spaced to enable agricultural activity beneath and between rows. This protects infrastructure from flood risk while allowing 80 per cent of the land to remain agriculturally productive.

As seen on Lodestone’s first two farms, sheep will soon be introduced to graze the site, offering a supplementary income stream. The sheep and panels have a symbiotic relationship with the stock; the sheep provide natural vegetation management around the arrays while the panels provide shade and shelter from the increasingly extreme weather conditions.

Building for the future

Lodestone’s approach is simple, but to the point: build the right-sized farms, in the right places, using the best technology, at pace. With three farms successfully commissioned, and another two in construction, its model is proven, its customer base is growing, and investor confidence is strong. Lodestone is delivering on its promise to make solar a valuable contributor to New Zealand’s energy mix.