Shedding light on solar power

Bay of Plenty residents could save $300 a year on their power bills by switching to solar power, says energy spokesperson for the Green Party Gareth Hughes.

Gareth visited Tauranga this week to promote the party's ‘Switched On' plan for cheaper, cleaner, smarter power for New Zealanders.

Energy spokesperson for the Green Party Gareth Hughes. Photo by: Zoe Hunter.

During his visit, Gareth also visited Mount Maunganui renewable energy company PowerSmart Solar to learn about the benefits of reduced reliance on big power companies and lowering power bills.

The MP says solar power is a fantastic opportunity particularly for BOP, which is one of the sunniest regions in the country.

'Tauranga's annual electricity bills are up by $407 in the last five years, but with well over 2200 sunshine hours a year in the BOP, the region stands to gain a lot from solar power.”

The Green Party's Solar Homes policy plans to give Kiwi households low cost loans to go solar.

'What we're seeing is super profits being made by the now privatised electricity companies directly coming out of local households and businesses,” says Gareth, who says the party's long term goal proposes to restructure the electricity market through NZ Power.

By doing this, the party plans to save families $300 a year on their power bills.

In the short term, the party is proposing a ‘progressive pricing' system where the first block of electricity that's provided by electricity companies is at a cheaper rate than subsequent blocks.

'This will save people money straight away,” says Gareth.

'It also acts as a bit of an incentive to go solar, invest in energy efficient appliances or take advantage of the insulation scheme.”

Since energy companies became privatised, Gareth says power bills have seen an upsurge, producing the fifth highest power price increase in the developed world since NZ has had a current electricity market.

'It's really important that we structure an electricity market which works for New Zealanders, not just for the power companies and their profits.”

Gareth also visited Papamoa College to talk to students about his recently launched Internet Rights and Freedoms Bill, which aims to protect human rights in the online environment.

4 comments

More dreams

Posted on 12-06-2014 08:58 | By nerak

Solar is a great idea, but: http://www.stuff.co.nz/business/money/9755423/Is-solar-power-worth-it ‘But for many people, the economics of household photovoltaic (PV) panels simply do not add up.' 'unless a household was at home using electricity during the day, the proposal would end up costing consumers.” "I think that owning a PV system under their scheme will cost $250 a year." ‘But no electricity company buys power back for the same rate it sells it to households.' Other than panels, costs include installation, building consents, distribution company applications, electrical wiring and inverter technology. Furthermore, inverters, which cost about $3000 for a 3kW system, generally need to be replaced at least once during a system's lifetime. "The inherent costs of solar are more expensive than grid-supplied electricity at the moment." A Consumer NZ study in November also found the economics wanting and suggested people would be better off putting their money in the bank.


What we would all like

Posted on 12-06-2014 11:36 | By Babz

but the cost of installing and maintaining does not give a sound economic return and $300 per year saving is negligible in this day and age. We are building right now and were looking forward to using solar energy but that idea is dashed after weighing up costs and returns. So disappointing. I read the same article and also the Consumer NZ study when researching the pros and cons of solar energy.


Affordability

Posted on 12-06-2014 14:23 | By Kaimai

The economics don't stack up - the cost of a solar system is greater than the savings - solar power works if you're off the grid, or when the cost of installing the lines are prohibitive. Another great idea from the Greens but at least this one is more realistic than printing money!


Naysayers

Posted on 13-06-2014 17:30 | By ronillian

I had a 3.8 kW system installed on my house. Not only have my power bills been drastically reduced, but the economics stacks up well, contrary to the other comments with a 6% return WITH depreciation factored in. Return on initial investment, even with the low feed-in prices offered by retailers (who see solar PV generators as competitors and therefore do their best to disincentivise them) is better than the same money in the bank. And yet I'm also doing something constructive to help the environment. A win-win surely!


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