The case for energy loans: read our latest explainer
Newsroom journalist Marc Daalder, who was facilitating the discussion on the first day of the Electrify Queenstown conference, reports on the Government's active consideration of one of the most critical proposals in Rewiring Aotearoa's manifesto: electrification loans (and not just for solar) for everyone.
As he wrote:
A new policy manifesto from electrification advocacy group Rewiring Aotearoa has notched a success already, with Energy Minister Simon Watts confirming he’s open to adopting one of its most critical proposals.
Nearly 60 policies are included in Rewiring’s roadmap to electrifying New Zealand, with each ranked on a 1-10 scale from lower to higher impact. The organisation has found electrifying the 84 percent of fossil fuelled machines in New Zealand which are economically and technology viable to electrify could save Kiwis $29 million a day by 2040.
The only policy ranked a 10 is making electrification loans accessible to everyone – with a specific idea mooted to leverage the high-quality credit rating of councils to access low-interest finance from capital markets, without the debt ending up on council balance sheets.
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.