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The ‘electric election’ is already well underway, but Rewiring Aotearoa CEO Mike Casey says today’s announcement from the Greens is “the most ambitious and comprehensive energy policy we’ve seen so far ... National, Labour, Greens and Opportunity are all in agreement: the future is electric and finance is needed to help get us there. Not only have the Greens included the Ratepayer Assistance Scheme as a core part of its policy, but it proposes the Government subsidise the interest rates down to zero.”
Casey says subsidies don’t change the underlying economics of going electric, but they can help send signals and speed things up.
“This is especially important at a time when New Zealanders are screaming out for relief from rising bills. But, even without subsidies, this is a really well-thought-through energy policy and it’s also not fringe environmental thinking; it’s economic orthodoxy in a growing number of places around the world, and it's backed up by our own independent research.”
While the standard criticism of Greens’ policy is to suggest it is too expensive, this is an upfront investment that will pay off, Casey says.
“In the context of paying ‘north of a billion’ for an LNG import terminal, the false economy of spending around $500m a year in winter energy payments that can’t keep up with rising electricity prices, ongoing fuel cost increases, or New Zealand First’s $1 billion gamble on surveying for more oil and gas, spending around $3 billion over four years is an enduring structural investment that would permanently address affordability issues.
“I know which seems more prudent to me. Rather than continue with band-aid solutions that keep us on the same expensive path, this would fix things at the top of the cliff.”
The Greens have also proposed extending the successful Warmer Kiwi Homes scheme, which offered discounts on insulation and heat pumps, to enable lower income homes to permanently get off gas.
“This is a win for those households as it will bring down their bills, and also a win for our gas users as it will free up dwindling domestic supplies for those businesses that need it. While each home is a small gas user, as I like to say: a lot of a little is a lot.”
Beyond opening access to finance for solar and enabling homeowners to get off gas, the Greens have also committed to rapidly installing solar on social and Māori housing, ensuring a large number of renters are able to access the savings.
“Solar also stabilises costs for those on low or fixed incomes who are less able to handle the volatility.”
Casey says the Greens install rates are ambitious. For example, it hopes to install solar on half of all public housing within four years.
“But ambition is what has been missing from our energy sector. Some may critique this goal, but beyond the cost of living opportunity there is an enormous job creation opportunity here, too. We do need more sparkies and we need to build a pipeline domestically in the medium to long term, but in the short-term there are plenty of keen electricians overseas to meet the demand! I have full faith in the entrepreneurs and tradies to do what is needed to enable this level of New Zealand Made Energy!”
There is also clear political consensus on plug-in solar but the Greens have attempted to lock it in with a Renters’ Right to Solar, something we have seen in Germany and the UK.
“Rewiring Aotearoa has been advocating strongly for plug-in solar. It looks like it’s on its way here, but we’re glad to see the Greens push for changes to tenancy law so that landlords or body corporates can’t get in the way. Once the RAS is in place, renters should also have the right to require their landlords to replace gas water and space heating with electric alternatives that are cheaper for them to run.”
The commitment to regulate to ensure exports are rewarded fairly and that when using power created locally you only pay for the share of the poles and wires you actually use are important shifts that will help to reshape our electricity system in favour of consumers and locally made power.
"Peer to Peer trading and energy trading, which already have a broad base of support, are also promised.”
Casey says it’s good to see an expansion of the highly successful Community Renewable Energy Fund to increase local resilience and enable local power bills to be driven down further and additional investment into EECA to help make it all easy for households is wise.
The Greens have also proposed KiwiPower, “a publicly owned company to deliver the affordable, secure, renewable power the market has failed to build”.
“This almost $1 billion scheme sounds like it could do some very good things. If it’s designed well that’s dry year sorted, without the need for LNG. The Sapere report we commissioned also showed there are ways for the Government to incentivise New Zealand-made energy to deal with the dry year, but the devil will be in the detail.”
Casey says it’s been exciting to see so much agreement on the role of solar and household electrification (and frustrating to see New Zealand First backing the wrong horse). So could EV policy be the thing that separates the parties in November?
“Alongside solar, the biggest thing a household can do to bring down and stabilise their cost of living is swap to EVs. But there is also a big upfront cost barrier for many. We look forward to seeing what parties have to say about getting more New Zealanders into EVs. We've shared some ideas already, and they don't need to include costly subsidies!”
ENDS
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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