NZ Green Party launches Solar Homes policy

New Zealand’s Green Party yesterday announced a policy intended to make it easier for households to afford solar power, thus removing a key barrier to the uptake of the technology.

According to Green Party co-leader Dr Russel Norman, “Power prices have risen 22% since National came to power [in 2008], which means energy companies are making big profits while ordinary New Zealanders struggle to pay their bills.” Andrew Booth, CEO of SolarCity NZ, added that the government has done nothing to help citizens sustainably battle these increases, having withdrawn “all support for solar over the past two years”.

Under the new Solar Homes initiative, households will be able to get low-cost loans from government to install their own solar panels. The loan will be repaid through rates, and any excess power generated can be sold back to the grid. Once the low-interest loan is repaid, the family will own their solar power system outright.

The loans will be cost neutral to the Crown, with an estimated administration cost to the Energy Efficiency and Conservation Authority (EECA) of less than $1 million a year. The system is claimed to leave people about $100 better off a year - producing $1000 of electricity a year at current prices, but only costing $900 a year, over 15 years, to pay off. After that the system will continue to produce free electricity for the lifetime of the panels.

In addition to the benefits to households, Dr Norman said the initiative “will underpin dramatic growth in the industry, with a target of 30,000 installations in the first three years. Our plan to grow this smart, green industry will create around 1000 new jobs.”

Booth said the system finally brings New Zealand into step with other leading global economies which have “recognised the important role that consumers can play in the electricity market, both as generators and as a source of clean power”.

“In Germany, the government helped kickstart solar uptake, and now homeowners generate 51% of Germany’s renewable energy, and more than 250,000 new clean tech jobs have been created,” Booth noted.

“A loan scheme for solar and a fair feed-in tariff, as proposed by the Green Party, will provide a natural cap on electricity prices by levelling the playing field with other forms of generation and increasing competition in the market.

“I believe the Green Party’s scheme will undoubtedly result in more New Zealand households installing solar, so they can make the most of the sun’s free energy, while helping create new jobs in one of the fastest growing sectors in the world.”

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