Solar water heaters save electricity, but not when it's needed most on cold dark days in winter, a new report from the Parliamentary Commissioner for the Environment says.
Commissioner Jan Wright released her report into solar water heating and renewable energy on Thursday.
The report looks at the extent to which solar water heaters could help reduce the need to build more fossil fuel power plants which emit carbon dioxide, the major climate-changing greenhouse gas.
"While solar water heaters save electricity, they are least effective when savings are needed most - on the cold dark days in winter when people have their heaters and lights running and fossil fuel plants are cranked up to meet this peak demand," Dr Wright said.
Even in large numbers, solar water heaters don't help to flatten this peak demand.
However, Andrew Booth, chief executive of solar power company SolarCity, said Dr Wright's findings are "out of step" with guidance from the International Energy Agency (IEA).
The IEA has encouraged all OECD countries to increase their funding for solar hot water heating and cooling, Mr Booth said.
NZN