The case for energy loans: read our latest explainer
With a classic Kiwi combination of pride and self-doubt, we charge our glasses after another big week of electric momentum; Auckland gets a glimpse of its first electric ferry from EV Maritime; Whakatane finds a clever way to get past the upfront costs and start running on the sun; a big study shows how pervasive EV myths have become even though they are "demonstrably false"; and our misperceptions continue when it comes to fires at battery energy storage systems.
Charge your glasses
The Rewiring Aotearoa team has been on a high this week, with a number of announcements that are set to speed up our electric mission.
We’ve announced the Queenstown Electrification Accelerator, which aims to turn Queenstown into the world’s most electric destination; rural solar has never made more sense after announcements from Simon 'MegaWatts' Watts, ASB and Farmlands; and the Government has changed export limits and consenting requirements to make solar even more of an economic slam dunk on residential rooftops.
We’re doing all of this work for the people who use the energy system. And we’re making sure they have the lowest bills, lowest emissions and highest resilience.
We’re proud of what we’ve been able to achieve so far and of the wins we’ve had (especially given we're playing in 'hard mode' for climate action), but we’re not slowing down and we’ll be maintaining the pressure on the incumbents and decision makers. We’re confident there’s more good news where this came from, and now is the time to ramp things up, so feel free to chip in if you want to keep the momentum going.
Floating assets
Some of the Rewiring team were lucky enough to get a ride on Naut’s electric boat in Queenstown recently, but that was more about fun than function, so we were excited to see EV Maritime’s electric ferry on the water in Auckland this week.
As Auckland Transport said: “These cutting-edge vessels will primarily operate between Half Moon Bay and Downtown Auckland, with occasional routes to Devonport and Hobsonville Point. Each ferry can carry up to 200 passengers.”
The carbon-fibre composite boat is a lot lighter than traditional vessels, which helps with efficiency, range, and durability. And it can also charge like a wounded bull at up to 2.2 megawatts.
It’s not taking passengers just yet, with testing and crew training still ongoing, but it is a big milestone for AT’s Mission Electric.
Recently, we covered Tasmanian company Incat’s launch of the world’s biggest electric vehicle and, as we said then, the fact that these massive ships are now being run with batteries shows how far the technology has come and what we could achieve in other areas.
Money for jam
Finding ways to get past the upfront cost barrier is crucial when it comes to installing solar, but there are numerous ways to skin this particular cat and Whakatane, a place renowned for copious sunshine, has shown what’s possible, with the Whakatāne District Council set to embrace solar on three facilities: The Dog Pound, Resource Recovery Centre, and Main Council Building.
The project is funded through the community financing initiative, which offers a fixed 3.5% interest rate for five years and a 10-year repayment period.
“It’s great to see Trust Horizon’s low-cost, sustainable financing underpinning Council’s move to solar and its transition away from fossil fuels,” says Trust Horizon Chief Executive, Derek Caudwell. “It’s another innovative way we can support the community.”
In our policy manifesto, the number one thing we're hoping to get across the line is a scheme that gives everyone access to low-interest long-term loans for electrification upgrades. We believe the best way to do that is through the proposed Ratepayer Assistance Scheme and The Post's Harriet Laughton looked at that scheme and what that might mean.
We also need a lot more innovation from the private banking sector. Short-term, hard-to-get green loans simply don't cut it, but, as Mike Casey said recently, if the banks do this right and start financing solar and storage for their customers, they could become big players in the energy space.
Myths and legends
A big study published in Nature Energy on attitudes to EVs in Australia, Germany, Austria, and the United States has shown that misinformation is pervasive - and some of the myths are even believed by EV owners - even though they are demonstrably false.
As the ABC reported:
Researchers found that many people expressed "legitimate anxiety" that EV batteries may run out before reaching a destination.
But there were several misinformation-related concerns that were so "grounded in myth" even EV owners agreed with them.
Many people largely believed reports that batteries were made to be deliberately non-upgradeable.
Consumers were also under the impression that EVs emit electromagnetic fields that can damage health, are less safe in a collision, and produce more carbon emissions over a lifetime than traditional cars.
We've been doing our bit to change perceptions on all forms of electrification with our explainers, FAQs. regular media appearances and Mike Casey responding to naysayers on social media, but the neighbourhood effect is real and the proof is in the pudding. There's no substitute for the real thing and, as one of our favourite EV-related YouTube channel sshows, actually experiencing something can change your perspective pretty quickly.
Myths may slow this transition down, but the myth that cellphone radio waves were dangerous was also quite prevalent for a while and it didn't stop mobile phones from taking over. Given all the benefits, we reckon the same will eventually be true of EVs.
Safety in numbers
Speaking of misperception, humans aren't very good at figuring out what they should be worried about. Based on ACC claims, we should really be steering clear of avocados, showers and stairs but instead we’re worried about sharks. The same is true when it comes to battery fires, as this graphic shows.
As Jan Rosenow said: "Since 2012, there have been just 28 reported thermal incidents at battery energy storage system (BESS) projects across the US and Canada. While these events attract attention, the reality is that—given the vast number of operational hours for BESS installations in North America—the actual rate of incidents remains extremely low."
In the last Electric Avenue of 2025, we look at the two biggest trends in the world of energy; the Government goes electric for its fancy fleet upgrade; Nick Offerman offers his services to a US campaign extolling the virtues of EVs; Australia shows what's possible in new homes when you add solar, batteries and smart tech; a start-up selling portable solar and battery systems that wants it to be as easy and common as wi-fi; and The Lines Company looks to put some solar on the roof of the Ōtorohanga Kiwi House.
Read moreDownloadWhen it comes to electric farming, "the numbers are becoming undeniable," says Nicholson Poultry's Jeff Collings. With 60kW of solar, a Nissan Leaf as a 'farm quad', electric mowers, an electric ute that can run a water blaster, and even a chicken manure scraper made out of a wrecked Tesla that, as Rewiring's Matt Newman says, looks a bit like something out of Mad Max, "almost everything is electric". There aren't many others in New Zealand who have gone this far down the electric road. And, with his electric Stark Varg, the fastest off-road motorbike in the world, he's obviously having plenty of fun on that road, too.
Read moreDownloadRNZ's Kate Newton reports on the "madness" of thousands of new piped gas connections being installed into houses every year, despite dwindling supplies and higher lifetime costs.
Casey said it was positive that the numbers showed people starting to leave the gas network of their own accord, but not all households were in a position to make that choice.
"If we don't plan for a decommissioning of the gas network, then it's going to be a chaotic transition, where vulnerable New Zealanders really suffer."
As the research of Rewiring and others has shown, gas is expensive, it's getting more expensive, it's terrible for your health when burned inside and there are substitutes available right now that, on average, do the same job for less money over the long run for households, would save the country billions on health costs and lost productivity, and don't pump out unnecessary emissions.
Around 300,000 homes and businesses have connections to the gas network (it’s estimated another 300,000 use more expensive bottled gas, mostly in the South Island). The number of active connections has started to decline recently and the country’s largest gas network, Vector, is forecasting no new residential or commercial connections after 2029.
Upfront capital costs are the main barrier for many homes, which is why we're working hard on a low-interest, long-term loan scheme that can be used to pay for electric upgrades, including hot water heat pumps. This would mean paying for a new thing with a loan would be cheaper than paying to run the old thing.
Read more about the scheme here.
Disconnection costs are also a major barrier. We have seen examples where households permanently disconnecting from the network have been charged between $1,000 and $2,000 to have a meter permanently removed (i.e. digging up the pipes to the road), even though it should only cost customers $200 to have the connection capped at the house.
RNZ even reported a case where a business customer was quoted $7,500 but took the case to Utilities Disputes, where complaints about disconnection costs have been rising.
The Australian Energy Regulator and the state of Victoria have now capped the disconnection fees to a few hundred dollars to stop this kind of behaviour and protect households.