Vector, the country's biggest power distributor, is investigating ways to use late-life batteries from electric vehicles as a cheap form of energy storage for homes and businesses.
The company has been working with Melbourne-based Relectrify to see how batteries from a Nissan Leaf, the most common EV in New Zealand, would work when combined with smart battery control technology in a home.
Vector says packs of the re-purposed batteries were able to provide about 15 kilowatt-hours of usable energy, at power levels of up to 10 kW. That is enough to power a New Zealand solar home for one or two nights, it said.
Cristiano Marantes, Vector's head of engineering, says the country's growing EV fleet will generate an increasing supply of lithium-ion batteries. Even when they no longer have sufficient energy to power a car, they generally retain up to 80 per cent of their storage capability.
"We have successfully proven that with Relectrify control technology, these batteries can be kept out of landfill and hold significant value for further use," he said in a statement. "This is fantastic from both a business opportunity and sustainability point of view."