by Kennedy Graham
The US$2 billion fiscal stimulus package to kick-start the solar energy industry announced by US President Obama yesterday is good news for the world, and a direct challenge for New Zealand.
The Obama initiative will support two projects covering about 1000 hectares and using parabolic trough technology to generate electric power that will feed into the US or state grid.
This is of course great news for the global economy. Following Bush Jr, the Obama Administration is developing a fresh new approach to switching to a low-carbon economy. Only last year China eclipsed the US in clean energy investment, mainly in wind and solar, so the US is still in catch-up mode.
The scale of activity undertaken by China and the US is enormous, and New Zealand is of course in a different league. And the amount of solar radiation is variable in our country and so subsidized solar thermal energy plants of the large-scale kind being developed elsewhere (China, US, Spain) may not be installed here. Of course, if the technology improves, nothing is impossible.
But where more progress can, and should, be made is in small-scale water and space-heating. Private homes and office buildings can easily be decked out with photovoltaic roof panels for water-heating. At present less than 2% of Kiwi homes have solar water-heating systems but this is growing fast. I have had one for water installed in our home in recent months (along with passive solar floors and stairs). I hope to add to this with more panels for grid-contribution before long. If every home had a 3 kW panel array, this would generate enough power for a quarter of our residential electricity needs.
The Green Party Policy favours incentives for micro-solar power:
- Government tendering to install 500, 000 sq. m. of solar water heating panels (sufficient to supply about 125,000 homes). The programme will be:
- Requiring that solar water heating, or other technologies giving equivalent performance such as heat pumps or wood-fired wetbacks, be installed in all new houses, hotels, motels, and residential institutions;
- District plans providing for solar access to roofs and north walls to facilitate solar energy;
- Increasing the amount that can be borrowed for solar water heater or solar design features;
- Providing education, training and promotion for the sustainability requirements that encourage passive solar design in the new Building Act, including retraining for architects and builders and information targeted at people buying new homes.
I recall the Solar Industries Association submitting a few years ago to a parliamentary committee, advocating tax credits for solar installation. We support this approach, as well.
But, as I said on Morning Report today, the over-riding need is to introduce a carbon price across-the-board for the economy as a whole – at a higher level than the pallid NZ$12.50 struck by Key’s Government in its moderated ETS. Something around $30-50 per tonne, phased in rapidly, with compensatory redistributive benefits to the economically vulnerable, is the only way that the switch to a low-carbon NZ economy can be made in time.
Once that is done, the switch to renewables – hydro, wind, solar, tidal – will naturally arrange itself.
Hasten the day.
Published in Environment & Resource Management by Kennedy Graham on Mon, July 5th, 2010
Tags: Barack Obama, solar, stimulus package
More posts by Kennedy Graham | more about Kennedy Graham
on the trolls and those who are unable to keep on topic
Informative post.
is the only way that the switch to a low-carbon NZ economy can be made in time.
In time for what?
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Luckily i know a few solar x-perts in the us.
A small incentive will bring’em out
Was there a problem?
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Solar is probably less useful here than wind. The fact is that at 42 south we are at roughly the same amount “south” as Albany is North… which is to say, not the best place to be gathering solar energy in the winter. Which is when you usually want more power here, due to the failure to design and build actual houses. The gall of actually demanding that we pay for these optimistically named stacks of firewood is impressive though.
Wind blows when the sun is down as well as when it is up. Combining the two is likely advisable, but the resource consent for a small wind turbine is probably a much bigger ask. The smaller ones are more noisy than the big’uns.
respectfully
BJ
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Do you think the large electricity producers will actually have any significant variation on power prices even if carbon was $50 tonne, even the ones with mainly hydro generation have upped their prices in seemly disproportionate amounts. Sorry cannot see this working (ETS), too much profit revenue for a cash squeezed govt. If this govt was really trying to lower carbon pollution then Solid Energy would be shut down and prevented exporting coal to China where they don’t care about killing their workers with pollution from coal powered industry.
Cheers
Mike
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I am all for turning the Consumer into a producer of power by having affordable solar panels and wind turbines attached to every home.
But it is just not happening is it?
Yet big business is investing heavily in wind turbine technology (which I am not against)but why do we have to pay thousands for a German made wind turbine when there could be an industry here to make them, even to export them.
Is it all that difficult to make a light weight wind turbine that is silent and affordable? To be fitted to your home?
I think not!!!!
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Never fear Drakula, soon you’ll be able to pay thousands for an NZ turbine:
http://www.stormrider.co.nz/product.htm
http://www.ecopowerltd.co.nz/residential-wind-turbine.html
All you had to do was google ‘micro wind power’ (NZ).
From the last link:
The 1200w system is available in the States but is not yet ready to launch in NZ due to the different power requirements.
…whatever that means.
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That could be because the household power in the US is different to what we have here (they use 110V, while we use 240V). Same reason why you cannot use American appliances in New Zealand.
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Oh, of course. I was seeing it a different way (‘why would a turbine have power requirements?’). Wouldn’t have thought it’d be that hard to adapt…but I guess it is!
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It isn’t that hard to adapt StephenR, it’s just that on top of the technical changes, you also need a marketing department, a budget, advertising, the costs of expanding into different markets are high for new entrants.
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Now the local people have caught up without outside assistance and the demand for old motors that can be converted is growing. They are carving their own wooden blades and getting more power than they can use – all without aid dependency. Heck, if these people can do it so can Kiwis – just keep those local authorities under control!
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A good start would be to require all new homes (and commercial buildings) to have passive solar heating design, insulation, solar water heating and natural cooling from well designed openings. This need not add much if anything to the price of a house and where it does the p[ay back in energy savings and comfort more than makes up for the extra costs.
The insulation subsidy for existing homes should be extended and subsidised more for those who cannot afford it now. A subsidy for solar water heating can be used also.
Micro generation, solar or wind is not yet at a stage that it is practically feasible, but investment in more efficient generators can and will solve the problems. Solar panels efficiency is increasing every year while the cost is decreasing.
You do not need a permit for solar panels on your roof. However a big noisy wind generator may cause some objection from those living nearby. Passive energy saving such as insulation and alignment of windows for sunlight are doable now.
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Micro wind turbines won’t work for most of us. They perform very poorly in non rural environments.
http://www.lowtechmagazine.com/2009/04/small-windmills-test-results.html
There’s unlikely to be fewer power plants because most of us will stay connected to the grid. Microgen will be unlikely to handle the load of lighting, heating, and cooking coming on at one time, so most will use the grid as back up. When will that load come on? About this time of year at 6pm when there is no sunlight and often no wind. Grid planners will plan for maximum demand, even if it only happens occasionally.
So what you are asking for is big subsidies to replicate a system that is already available and largely renewable driven. This will not only burden taxpayers but will likely increase the cost of the power network and so mean consumers get charged more. Brilliant!
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If you actually read my post you would see that I said micro generation is not yet feasible and I said we should subsidise ways of making more efficient use of existing energy. They are not subsidies in the end as the effect on imported energy use is a benefit to our balance of trade.
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It is very unlike me to launch an ad hominem attack, but you do realise that you are certifiably insane, dont you, and thus on this occasion addressing the messenger is appropriate.
Solar energy can and should have significant benefits here in New Zealand, but bankrupting a low wage economy is not the way to achieve it.
Just one sensible suggestion would be to mandate all energy retailers to provide interest free loans to their customers to fit solar water panels, with the customer pay back the loan on the energy bill, so the overall cost to the consumer doesn’t change, but the carbon emissions do, which is where the utility gets its payback.
A scheme like that could in a decade rid the country of domestic hot water electricity consumption over summer and a goodly chunk of winter.
Edited to add that at 50 bucks a ton everyone in NZ will be in the economically vulnerable category.
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I am trying to finance a solar hot water system on my home in Wellington and am frustrated at the lack of support available. There is a subsidy from EECA when I’m finished installing so that is a little – but only really offsets the consent process, so is not really helping directly at all.
Then there is a hard to understand financing option somehwere through EECA as well, but I may as well just get a loan from anyone as it is no different and probably more poorly run than a regular bank, credit firm.
What I would appreciate as an incentive to installing solar is access to interest free financing for the project. If I could borrow the amount needed to buy and install the collectors (and I need a new cylinder) and not pay interest on the loan as I pay it off with the power savings, it would be better than any up front cash subsidy.
It is appalling that I can currently go to an appliance store and get 50 months of free credit, but can’t get something similar for such an important addition to my home.
Could someone (EECA accredited solar suppliers and installers, energy companies) PLEASE offer interest free loan access similar to these hire purchace finance schemes. There should be a minimum interest free loan access for these sort of projects.
An added benefit of credit access like this is a lessened distortion of the solar market than direct subsidies – where customers still face a full investment cost, and demand continued competition in the market.
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Great Post Axle;- and are we not paying a ‘carbon tax?’
Not sure of the answer me.
But sounds like there’s room for a few entrepreneurs in this area
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Axle. A good idea. Another way of helping reduce energy use. You are right about market distortion. Some of the subsidised suppliers of insulation and heat pumps have simply raised their prices by an amount equal to the subsidy. This has meant many people may have been subsidised who can afford it anyway. However this was also bought on by the lack of competition as only a few suppliers were approved.
There is no incentive at the moment for energy suppliers and users to switch to renewables as the ETS is so low it is simply passed on to final consumers. Too large an ETS charge simply transfers money to global financial markets/rorts. An ETS is just something else for the money market traders to play with. A carbon tax, with all the money directed towards energy use reduction and research into a low greenhouse gas emitting and polluting economy, keeps the money within our economy. This could be a great opportunity for NZ to lead in selling low energy use technology.
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The durability of a solar HW system in a climate where mold grows on cars, streets and sometimes people, is not the same as it is in South Australia or the California Desert. The solar intensity is nothing to sneeze at here, but its duration in winter is significantly less.
The standards here have to be HIGHER than in those places, which are coincidentally where most of the companies making the units design and sell most of those units… and I have serious doubts about NZ standards of construction if we look for a NZ firm (which I would).
All I can say about rooftop systems is that you really, REALLY want to make sure you keep them clean. Photovoltaic was also part of the discussion, and it also has maintenance issues. Different but still present.
Micro-anything is often not as good as the larger options. This has a lot to do with economies of scale and maintenance costs per KWH collected. Also a larger wind turbine is quieter.
If I had everything else on the house done, the insulation, the double glazing etc.. I would think about adding solar.
I still have to see a price where I can buy the damned house.
respectfully
BJ
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Axle
Why not go to the bloody bank and get a loan? Why have this expectation that you have a right to a subsidy? If you, as the major beneficiary, are not willing to pay for it doesn’t that give the tiniest hint that it might actually not be such a great idea?
Where is this big money tree that all these subsidies are going to fall from?
Carbon taxes simple are and easy to implement but doling out the cash will likey become a pork barelling operation. They will also have to be really really high to have an effect eg $1 a litre
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http://www.waitakere.govt.nz/abtcit/ec/bldsus/energy.asp
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KT wrote — An ETS is just something else for the money market traders to play with.. Can you run that by me again.. like how come.. links would be nice..
Seems to me BJChip has the real point of solar’s relevance to latitude (or should that be longitude.?)..
Given the overal issue of greenhouse gassing reduction to stay and perhaps thereafter control climate change via AGW solar is but one substitute to fossil fuel causation. I would see it as ‘declined’ at NZ latititudes cf Arizona, Nth Africa and high natural solar input locations like them.
Instance the much greater relevance in Arizona when solar arrays can empower a community’s 70, 000 homes. Leaving more for the existing state and/or national grid to serve without any untoward increases at all.
Solar has a place. Should the energy market or directed well-resourced policy determine this..? For New Zealand.
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http://www.vertisfinance.com/index.php?page=203&l=1
http://nzenergy-environment.co.nz/home/free-articles/emissions-trading-researchers-say-ets-approach-faces-eventual-replacement.html
http://technorati.com/business/article/did-eu-ets-cap-and-trade1/
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KT,
tks for links.. could you please point to which of them is specifically on topic.. re solar.. thanks again for so doing..
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Insider: Where is this big money tree that all these subsidies are going to fall from?
What I was trying to point out is that it is sorry state of affairs when there IS currently a big tree of money (hire purchace credit schemes) effectively doling out interest free subsidies if you want to buy a 104inch plasma TV energy waster imported from China, but not any equivalent financial facilities (public or private) for investing in solar and local jobs.
I’m not asking for a free ride – I’m asking for a fair go when it comes to how I WILL PAY for my solar investment.
Mark, KT – thanks for your support.
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>> I’m not asking for a free ride – I’m asking for a fair go when it comes to how I WILL PAY for my solar investment.
Go to the bank and take out a loan, or plonk it on your mortgage, solar hot water will pay for itself in 6 -7 years, faster at the rate of electricity increases.
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Don Miller, Im interested in your project in the Islands – the $50 gadget. How can I find out more about this? I work in the Altiplano in Bolivia and Im interested in knowing more about your design, and any other low cost designs that other people might have for generating energy for homes – anybody?
If you want to contact me my website is http://www.organicandes.com, thanks
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BJ’s comment that “If I had everything else on the house done, the insulation, the double glazing etc.. I would think about adding solar.” highlights an important point.
It makes much more sense to do the relatively cheap, easy things before installing solar power systems. To start with, do the free things such as turning off appliances when not in use. Then you can implement a whole raft of energy efficiency and energy saving improvements, even if you are poor. For example, wear appropriate clothing instead of turning up the heater, put lids on the cooking pots, take shorter showers and so on. Each of these things makes only a small difference, but the combination of them all together can make a really big difference. I estimate I saved about 25-30% on electricity just from free or very cheap measures such as these.
Once the free/cheap things are done, there are things such as insulation, double glazing and so on that are better value and energy saving for your money than installing solar panels.
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This site has a whole heap of links to 3rd world wind power.
http://practicalaction.org/docs/technical_information_service/wind_electricity_generation.pd
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Kia-ora
Form those who are interested all the components for cheap or free wind generation including circuitry components, Generators from old electric motors, bearings etc can be sourced from things that have been thrown out in Developed countries. Blades can be made by any competent metal or composite fabricator. We made an upright savonius rotor for my daughters science fair project from a car fan motor and 2 ltr sauce bottles. http://www.angelfire.com/ak5/energy21/microsavonius.htm
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Meridian are building a 1MW solar array in Tonga. This is a much more sensible place to build solar as the lower latitude means the array is flatter to the ground and the seasonal variation is less. The electricity prices are higher than in New Zealand as the main generation is from oil-fuelled generators.
Given our significant wind, wave, geothermal and hydro resources, solar power isn’t likely to compete with grid power on the mainland. However it could be useful on Stewart Island and the Chathams and similar places.
Trevor.
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Cheap generation to charge batteries isn’t too hard. The problem is the cost of those batteries and their short life span. There is also the cost of invertor technology to power AC appliances from a DC supply. Unfortunately over the long term, the economies of scale favour utility-scaled systems, which can also take advantage of technology not available on a smaller scale, such as vanadium redox flow batteries or superconducting magnetic storage rings.
Wind turbines in particular are scaling up as the power increase from scaling up is higher than the cost increase. One reason is simply that the larger machines reach higher, to higher speed winds, and the power output increases with the cube of wind speed for a given turbine area.
Trevor.
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To clarify a couple of points:
Solar hot water is normally much more cost effective than solar electricty (PV photovoltaics) on the house scale – Kennedy confused them. But it does need building consent (despite some installers telling you otherwise). Some councils are much more progressive than others in their pricing and process solar HW consents at a much lower rate than other building consents since they’re generally straightforward. Check with your council.
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One small step from the government:
http://nz.news.yahoo.com/a/-/top-stories/7668394/wave-energy-project-gets-government-backing/
Trevor.
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