The case for energy loans: read our latest explainer
Batteries in homes and businesses may seem individually small, but they could have a significant impact on the security and resilience of New Zealand’s power system. For example, 120,000 homes (or 5% of households in New Zealand) with a medium-sized battery could potentially reduce the peak electricity load by as much as our largest hydro power station, Manapouri. That’s why we’re asking the powers that be for something called symmetrical export tariffs so that customers with solar and batteries are paid fairly for their contribution, the payback time will be reduced and more people will have the confidence to invest in these technologies so the price of electricity can be reduced and we can keep the lights on in the event of an emergency.
Batteries in homes and businesses may seem individually small, but they could have a significant impact on the security and resilience of New Zealand’s power system.
As an example, 120,000 homes (or 5% of households in New Zealand) with a medium-sized battery could potentially reduce the peak electricity load by as much as our largest hydro power station, Manapouri.
While these batteries would not hold as much energy as Manapouri, they could output the same amount of power for an hour or two when the system really needs it.
That’s why we’re asking the powers that be for something called symmetrical export tariffs so that customers with solar and batteries are paid fairly for their contribution, the payback time will be reduced and more of them will have the confidence to invest in these technologies.
Many of us will be on what industry people call a ‘time of use’ electricity tariff. That means we probably pay more for our power during ‘peak periods’ - usually breakfast time and dinner time - than we do over the rest of the day. This reflects the underlying costs of providing electricity. However, if we have solar and a battery, and produce more energy than we consume (known as ‘export’), we don’t get paid for this export at anywhere near the same rate.
If a customer pays a higher price to consume power at peak times, they should get paid that higher price if they export power and help a neighbour reduce their use.
That’s not happening in New Zealand at the moment, and we think it should be made mandatory.
If that changed, homes, farms and businesses with solar and batteries could be paid around twice what they’re currently being paid for export at peak times, while lowering the price of energy for all New Zealanders and providing a more secure and resilient electricity system overall.
It’s time to level the playing field for New Zealand energy customers.
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.