Solar Power Sector Plays Down Subsidy

Aug 22 - Dominion Post

A political flare-up over subsidies for solar water heating installation has diverted attention from more important issues, according to Solar Industries Association chief executive Brian Cox.

He told a New Zealand Energy Summit in Wellington that only about 15 per cent of the 4000 annual installations last year involved Government subsidies.

People were attracted to solar water heating mainly because of a desire to reduce power bills and because of growing concerns over energy sustainability, he said.

National energy spokesman Nick Smith recently highlighted a "zero uptake" of the Government's initiative to increase the subsidies, from $300 to $500, for homeowners wanting to install solar water systems.

Association figures show installations in the first six months of this year were down 5 per cent on the same period last year. The Government announced the subsidies in November.

Mr Cox said the association was currently involved in talks with the Energy Efficiency and Conservation Authority.

The talks involved several issues but he was unwilling to discuss details.

Mr Cox suggested a Government initiative involving a mandatory energy efficiency rating for each house would greatly increase the use of solar water heating as well as improve overall energy efficiency in homes.

The authority is already developing a voluntary Home Energy Rating Scheme expected to be launched in December.

However, Mr Cox doubted a voluntary scheme would encourage large numbers of people to invest in double- glazing, insulation or solar systems.

A mandatory scheme would add the incentive of putting homeowners' energy-saving investments on to the value of their houses, as well as improving domestic energy sustainability.

Mr Cox said the association and the EECA had together identified several barriers to increasing the rate of solar heating installations.

One barrier was the new Building Act, which required consent for solar water heating. Gaining that consent had boosted the cost of installation considerably, he said.

Both groups were developing a best practice "acceptable solution" designed to facilitate councils' granting of consents.