Half-a-million solar panels

The opportunity
Solar water heating is a huge sustainable energy opportunity that is largely being ignored in New Zealand. Heating water uses around 40 percent of a household’s energy. Solar water heating can provide at least half of this, or three quarters where it is used intelligently. The National Energy Efficiency and Conservation Strategy has a target of installing solar water heating on 10,000 homes annually, but this target will not be reached for several years. Even then, that goal is less than half the number of new homes built each year, so it is not even keeping up with growth.

The obstacles
The key problem in trying to move faster is that there is a serious shortage of trained installers and the industry is not geared for the scale of effort that is needed. The units are over priced compared with what could be achieved with a large-scale order. In this situation, just offering subsidies to householders to install a solar water heater will tend to drive the price up and lead to poor installations.

The Greens’ proposal
We 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.

Where would the solar water heaters go?
Some would be installed on state houses, where low-income families would benefit. Other government buildings with high hot water needs, such as prisons, schools and hospitals, would also be considered. The majority would be offered at cost to private households, with preference given to large low-income families and remote areas where the power lines need support.

How could low-income families afford solar water heaters, even if they cost less?
We would set up a solar loans scheme at modest interest rates so that the cost could be paid back out of power savings. Banks would be encouraged to offer solar mortgages, where the cost of a solar water heater is added to the total allowable mortgage, knowing that there is ability to repay from power savings.

What about after the five years?
It may be that after the five-year contract the scale of the industry is such that prices are affordable and no further government action is needed. If not, we would let another five year contract to continue the programme.