Labour in the Greens’ shadow over solar
As sure as the sun shines, Labour likes to borrow the Greens’ ideas on energy and make a cut-price gesture to the issues we raise.
But we could be charitable and say that it is surely a coincidence that the day after Jeanette launches our policy to really rev up the solar water heating industry in New Zealand, Energy Minister Trevor Mallard announces the Government is to double the money it is spending on an interest-free loan scheme for installing solar water heaters.
That sounds impressive, until you hear that the funding is only going up from $200,000 to $400,000 a year. That is about enough to cover the $400 interest on about 1000 units (assuming the current average price of $5000 and an eight per cent interest rate being covered).
By comprison, we want to make solar water heaters a common sight. The Greens’ propose…
using the Government’s power of purchase to achieve significant economies of scale and build a stronger solar industry in New Zealand. We would call tenders to supply and install half-a-million panels over five years, enough to provide about 125,000 homes with solar water heating. Tenders could be for part of the contract, so all suitable tenderers could benefit. A competitive tender, plus a guaranteed sale for the successful tenderers over a planned five-year implementation period, would bring prices down. Industry would scale up production and take care of the training needs, because they would be required to install to specifications.
The benefits of the Greens’ proposal would be enormous. Around 40 percent of a household’s power bill goes on heating water, so a solar water heater would save the average family or flat $500 to $600-a-year under the current pricing regime, and a lot more if the Greens’ parallel proposal to move away from line charges was also adopted.
In turn, a mass move to solar water heating would head off the growth in electricity demand, allow some of the current capacity to go towards industrial development and save the environment from new power stations.
It’s time Labour got out of the shadows and put solar at the forefront of New Zealand’s energy future.
May 27th, 2005 at 12:22 pm
How would your policy encourage rental property owners to install solar panels? There would seem to be little point for rental property owners to install panels as they won’t see a return as the renter pays power, and it is not possible for renters to make capital improvements to rental properties? It could be a marketing opportunity for landlords, but few renters may want to pay increased rent in return for reduced power costs. Just a though. Given the increasing housing prices, renters could well become a more significant market. Also with the increase in high-density centrl city living, will these buildings be able to accommodate the large number of panels required to support the higher water use?