The 'Electric Election': energy policies, side by side
We’re in favour of anything that speeds up solar adoption (it’s the cheapest electricity households can get, it will help generate the extra electricity we need, and it can help replace fossil fuels in the energy system), so it was good to see another positive signal from the Government yesterday. As part of a proposed range of tax changes, income tax won’t be charged on any money gained from exporting solar from residential systems.
This certainly wasn’t something stopping people from investing in solar and, for most, it was balanced out on the electricity bill. As RNZ reported, “Inland Revenue thinks tax compliance among people with solar power systems is low, perhaps because they are not aware the income should be taxable.”
It’s good to see the Government removing all sorts of potential barriers and disincentives (including issues like this that didn’t seem to be much of a problem yet) and making changes to incentivise bigger systems (like changing voltage ranges to allow for higher export limits), but there are a few other things that need to be changed if we really want to get things cranking.
The real barriers to adoption are things like a lack of access to long-term, low-interest finance and the fact that install prices here in New Zealand are around twice what they are in Australia due to excessive red tape.
If the Government really wanted to supercharge the rollout of larger solar and battery systems, we would love for this exemption to be applied to farms and commercial buildings under a certain size because exports can be a significant revenue stream and that could have a major impact on the books - and have a pretty big impact on the country’s energy system.
'Twas the night before Chris-mas, and all through the house, all the voters were stirring, the pundits showing their nous … the election will soon be over, but the energy crisis won't, so we'll be there to pester whoever is in power about the need to run more of the economy on New Zealand-made energy; can Ethiopia's aggressive push for EVs work and how does New Zealand compare in terms of adoption rates?; a two-way charging trial from Genesis shows promise in Auckland, but there's still a way to go before it's mainstream; small electric vehicles are often overlooked when it comes to electrifying transport, but it's hard to miss this weird French one; a solar-powered cafe (and some electric coffee); and we endorse the political vandalism of Keith of All Trades.
Read moreDownloadPoliticians 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.
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