PĀNUI PĀPĀHO / MEDIA STATEMENT

• National’s Home Energy Fund has the potential to be energy’s Kiwisaver moment. Offering New Zealanders low-interest, long-term loans for electric upgrades paid through the rates is a huge win and will offer guaranteed relief from rising energy bills.
• Solar, batteries and space and water heat pumps come at a higher upfront cost but are much cheaper to run. That’s why access to finance is a crucial component when it comes to lowering energy bills and why finance was ranked as the number one solution in Rewiring’s policy manifesto.
  A loan scheme has broad support across the political spectrum. So why wait? Let’s get it underway this term. And let’s extend the terms of the loans to get the full benefit.
• Changes to planning rules will allow more New Zealanders to generate and store their own energy. This is particularly important for farmers as they can reduce energy bills and help reduce wholesale electricity prices.

June 25: Rewiring Aotearoa CEO Mike Casey says he’s “doing the RAS hands today” after National backed the Ratepayer Assistance Scheme and announced a Home Energy Fund along with changes to planning rules that will speed up adoption rates of solar, batteries and electric appliances.

“We have been pushing the RAS for a long time alongside Local Government New Zealand and finance was ranked as the most effective measure in our policy manifesto last year, so we’re very happy to see it announced. This is not ‘downward pressure on prices’, which simply has not worked. Helping homeowners access this technology is a way to guarantee bill reductions.”

As the National press release says, the high upfront cost of electric appliances puts them out of reach of many households, and existing green loans from commercial banks are limited.

“That’s why we have advocated for a fit-for-purpose public solution. We think this could be the energy equivalent of KiwiSaver, because it helps individual households and will also increase the nation’s prosperity. Our Electric Homes and Vehicles report will be released next week and it shows just how big that opportunity is.”

Importantly, Casey says this is not a subsidy. This is a finance mechanism that uses the power of Goverment to lower interest rates and better matches the loan terms to the lifetime of the products.

“National says the loans will need to be paid off over ten years. We think that needs to be longer, so some design changes will be required to make the most of this. Our numbers show homes could save up to $2,000 per year AFTER paying off a loan and interest, but they are based on loan terms for solar of 30 years, while batteries and heat pumps are over 15 year terms.”

UPDATE: Loan terms and maximums are to be decided on when the policy is enacted and it's thought terms will be extended to match the business case.

Given the idea of loans for energy upgrades has broad political support, Casey says this could be put in place before the election to help New Zealanders struggling with high energy bills.

“The business cases for the Ratepayer Assistance Scheme has been in front of the Government since last year and almost all of the parties, over 20 councils and all of our community groups support the scheme. While we welcome the announcement from National and are proud to have our name associated with this, there is still plenty of time for this Government to get the ball rolling on the RAS in this term so that loans can start flowing and New Zealanders can start saving.”

Casey says New South Wales recently enabled a similar energy loan scheme, but also offered grants for low income households.

“This shows there is still scope to help those who need these savings the most, while subsidies can play an important role if Governments want to speed things up. For the other parties, it’s clear voters want action on their energy bills, so we’re looking forward to seeing even bolder policies in the lead up to the election.”  

When discussing the crucial role of finance when it comes to lowering energy bills, Casey says that he is often met with “why can’t the banks just do it? Don’t they already have green loans?”

“It's good that these green loans exist, and it’s nice if you can get them, but our estimates suggest just 20% of the population are eligible and less than 3% of the country’s mortgage holders are likely to have taken these loans up."

It is estimated the Ratepayer Assistance Scheme will be available to around 90% of homeowners. It will require 20% equity in the property.

Casey also welcomed changes to planning rules that will help New Zealanders generate and store energy.

“This is particularly welcome news for farmers. They will benefit from lower energy costs and emissions, but they will also play a crucial role in our energy system. Put simply, the more solar we have, the smaller the dry year risk because it can keep water in our hydro lakes, and the more batteries, the less need we have for expensive upgrades to poles and wires.”

National’s RMA Reform spokesperson Chris Bishop says in a release: “Getting permission for small-scale renewables on your own property is too hard. The rules are fragmented, confusing, and vary by council. In one case, a council demanded a water discharge consent for ground-mounted solar because rain might run off the panels. That’s the kind of nonsense we’ll end.”

Under the new Resource Management system, National will make small-scale renewables largely permitted as of right, so Kiwis can:

·         Install rooftop solar without a consent

·         Put ground-mounted solar on farms as a permitted activity, with sensible safeguards.

·         Add small-scale battery storage as of right.

·         Run small micro-hydro for on-site use, subject to standard environmental conditions.

ENDS

Read our Case for Energy Loans explainer here.

For more information or to arrange an interview with Rewiring Aotearoa CEO Mike Casey, contact Ben Fahy at ben@rewiring.nz or 021 245 4894.

Rewiring Aotearoa is an independent charity working on energy, climate and electrification research, advocacy and education. The New Zealand-based team consists of energy, policy, communications and community outreach experts and it is funded by New Zealand-based philanthropists including Sir Stephen Tindall and Urs Hölzle. While we are selling the achievable dream of a more secure, resilient, productive, affordable and renewable energy system, we do not financially benefit from sales of solar, EVs or any of the electric technologies we advocate for.

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