The 'Electric Election': energy policies, side by side
Rewiring Aotearoa’s research has shown that there is plenty of latent demand for solar and batteries, but there are a number of barriers standing in the way. Where the Government and regulators could make changes to help unlock that potential, we’ve told them and, to their credit, they have tried to address many of those issues. Last week, we were critical of the Government’s energy reforms, as were most other commentators. But this week we’re happy to be celebrating the letter that Energy Minister Simon Watts has sent to the heads of all 29 electricity distribution businesses.
In it, he said that “we want to see a much larger number of Kiwi homes adopt rooftop solar and batteries to reduce their own bills and support system resilience. Connection times and export limits are currently one barrier that reduces the attractiveness of these systems for households.”
The Minister is firing a warning shot at electricity distributors: speed up your approvals - or, better yet, make them automatic. Allow at least 10kW export limits unless you can prove genuine safety or technical concerns. This isn't a gentle suggestion, it's a clear message that rooftop solar and batteries are non-negotiable parts of our energy future, and EDBs need to get on board.
Down south, Aurora has led the way on this and already increased the export limit to 10kW, but we have heard from other customers around the country that their EDBs have decided not to.
The Government hasn’t gone as far as regulating this increase, which could be an option, but it is clear that the burden of proof is now on the EDBs to show why they are unable to heed the Minister’s clear wishes.
While exports are normally a cherry on top of the solar sundae, an increase to the export limit will speed up payback and could be a significant additional revenue stream for those with larger systems. It will also stop renewable energy from being wasted as it is currently when it could instead be used to benefit the country.
The letter also said that “the Government is firmly committed to electrifying the economy to achieve climate goals and enhance economic resilience”. Backing an LNG terminal that will lock us into years of expensive foreign fuel and create unnecessary emissions does not seem to gel with that goal, even if it is intended to solve our dry year risk.
There are other solutions, including a lot more solar on our homes, farms and businesses, and at grid-scale. The Government has made a number of changes to incentivise uptake, whether it’s increasing the voltage range, creating a solar SWAT team within EECA to help farmers, making it easier to get consents, or removing income tax from exports, and that’s positive, but they are relatively small.
Solar is the one thing that is guaranteed to reduce customers’ energy bills, so we would love to see as much financial support for solar and batteries as there has been for oil and gas recently.
If your EDB isn’t delivering, let us know. And if you think we need more support for solar and batteries, let the Minister know.
Politicians are being urged to adopt stronger electric vehicle incentives ahead of the election. Climate and energy advocacy group Rewiring Aotearoa is arguing that EVs are one of the most effective long-term solutions for rising transport and energy costs. They're promoting an EV Salary Boost proposal, which would allow workers to access EVs through pre-tax salary arrangements – similarly to already existing schemes in the UK and Australia. Policy and Government Relations Spokesperson Ngaio Neumegen told Kerre Woodham that even with the rising cost of power, it's still cheaper to run an EV than a car running on imported fuel.
A proposal that would let New Zealanders lease an electric car using their before-tax pay has not won a commitment from either National or Labour, with the 7 November election days away. Under the EV Salary Boost, put forward by Rewiring Aotearoa and Drive Electric, an employee would lease a new or used EV for three to five years. The payments would come out of their pay before tax, lowering the cost of running the car. The idea is based on Australia’s novated leasing system, though the groups say they are not proposing a direct copy.
Read moreDownloadDrive Electric says responses from National, Labour, the Green Party and The Opportunity Party show there is a foundation for more stable, long-term transport electrification policy after the election. This is a $120 billion opportunity over the next decade to reduce our dependence on importing fossil fuels.
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