Petrol Tax Increase and Solar Power Feed-in Tariffs

It’s election year next year and the National Government has announced petrol tax increases to start in July this year. Now I don’t have a problem in principle with user pays, although after the report by the Ministry of Transport earlier this year, it doesn’t look like things are going to improve, in fact we are likely to see mid day traffic congestion (don’t we already have that?) in Auckland, as well as the morning and evening commutes.

There doesn’t seem to be a lot of encouragement for people to work from home although that would ease the pressure on congestion. Auckland Council seems dead set on high rise housing in the Auckland Unitary Plan, but at the same time they are building new homes in areas like Long Bay as quickly as they can, with no sign of increased road capacity for the 2500+ homes to be built. Don’t get me wrong, I’m not against high rise as long as it is done smartly, without taking sun away from existing properties and it is part of an environment which includes amenities that encourage people to work, live and play in a safe healthy environment.

Wouldn’t it be great if those homes all had solar panels on their roofs and were able to sell excess power back to the power companies. Even better if they could get interest free loans to cover the cost. This last long hot summer would have been able to generate massive amounts of power for water heating etc. It’s funny that when I built a minor dwelling next to my last home, I had to install an ugly water tank to capture rainwater and allow it to trickle into the stormwater system from the roof, which I could of course also use for the garden, but there were no options with regard to using renewable energy.

I was listening to the Peggy Smedley Show podcasts as I do each week and she recently interviewed Nick Bitterswyk CEO of Urban Green Energy, who mentioned that great things were happening in areas like solar power in Australia and New Zealand. He was right about Australia, which is going gangbusters with finance and feed-in tariffs, but clean and green New Zealand is not. We do not walk the talk when it comes to renewable energy as you can see on the web site at EECA.

At a recent home show I visited every exhibit where they were selling domestic solar power solutions and asked about the ability to sell surplus power back to power companies. They said that it was not happening, that the utility companies were not supportive or interested. They said that they and the Government have their own agendas when it comes to power generation.

Now we have a large reliance on hydro and geothermal power. Much of our power in the North Island comes from geothermal power sources in the Taupo region, such as Wairakei. I wonder what would happen if we had a major eruption and this source of power dried up. What would our back up plan be? What if we had another drought similar to the one we had this summer and the lakes were too low to provide sufficient energy. You can’t suddenly roll out a solar energy plan at the last minute.

I urge Kiwis to consider solar power and feed-in tariffs when thinking of who to vote for next year in our national elections. This is not a new topic, I have blogged about it several times. If a disaster happens, will the Government say they could not have foreseen this situation? I don’t think so, it is a choice. I’m hoping that at least the Green Party will think about this as part of their election manifesto. Actually where are the Greens? They do appear to have a policy on feed-in tariffs, but its pretty hard to find.

So if you were able to get an interest free loan to put solar panels on your home and the ability to use that power when you needed to and were able to sell power back to the grid for a rebate at fair market pricing, would you take advantage of it? I welcome your comments.

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Creating jobs with FIT for renewable energy

So how about this picture. If the Government gives us interest free loans to install solar panels on roofs, we could reduce the need for expanding coal and oil based electricity, whilst maintaining our geothermal and hydro production.

The Government would set up Feed In Tariffs enabling power companies to purchase spare power units to feed in to the grid to supplement its own resources and those of the community as and when required.

The technology would include smart meters where appliances and power consumption may be monitored by the consumer This is already available in NZ from companies such as SmartNow. This is very important because it educates consumers of all ages  as to the impact of each household appliance.

Smart Meter

You would be able to monitor this on your SmartPhone as well as the touch screen in your home, perhaps even control appliances remotely. Now you will know if you turn your 3 TV’s off instead of having them on stand by, exactly how much energy and cost you are saving.

Many of our household devices are developing sufficient intelligence to be turned on and off remotely. This can apply to anything from your stove or microwave, to your TV Set Top Box, washing machine, heating etc.

Kiwis are very clever. With a little encouragement and support, we could have people coming up with new technologies for smoothing power, sharing and reticulating, designing solar panels that look good and work more efficiently in our environment.

Whole new industries and thousands of jobs would come out of this. Educators, estimators, designers, manufacturers, installers, inspectors, service people, finance companies, new boutique electrical companies, to name a few.

New Zealand is an island and we can be potentially isolated from gas and fossil fuels, especially if the worst happened and a serious war broke out somewhere on the planet.

Do you think that in the Middle East, Europe or USA, they would be saying, oh don’t forget New Zealand, we must set aside x number of tonnes of crude for our antipodean mates down under? But I digress. We are smart people and I think we could create not only some serious domestic growth, but our inventions spawned from this adventure could also contribute to some huge potential export revenue through the innovations that we would produce.

We also made a commitment to being clean and green. Digging up coal and gas doesn’t exactly honor that commitment, although I agree we need the money. Maybe we can’t do it with solar and wind alone, but if we could produce even half of our requirements from our roofs whilst at the same time reducing power consumption through smarter use and education, wouldn’t that be cool?

We could also lead in international design and R & D, with companies like Fisher & Paykel in the development of new technologies that burn much less power, including heating, consumer electronics and more. We need revival of new companies like Gallagher, Rakon and Taits, which have shown that we can be world leaders in technology. Those number 8 fencing wire companies we are so proud of.

The problem is that all of this needs to start with the politicians and all I seem to hear from them is that the coal, oil and gas is worth a lot of money and we should sell them. OK, if we need to do that because New Zealand is insolvent, then do it, but put the money earned into renewables, try to make ourselves self sufficient and then develop export revenues by exporting the technologies we built and developed locally, exploiting our IP. Kiwis are smart people.

Come on National, Labour and Green Parties, lets take a long term view beyond the next election. Change only happens when you do something different. Make it happen and you can have the credit if that is what drives your ambitions, but lets show our leadership.

I didn’t mention tourism, but I don’t think people really buy into clean green anymore. Lets show them we can be clean and green and beautiful and then generate export revenue out of our new skills and industries.

As a footnote, a quote by Farrell J. January 2011 on the Ontario FIT which started in 2009 from New Rules Project:

Ontario’s clean energy program encourages local ownership and distributed generation, in part to broaden support for renewable energy and in part to capture the increased economic impact generated from local ownership.

The domestic content requirement has already resulted in the promise of 43,000 jobs and dozens of new manufacturing plants to support the 5,000 MW of new clean energy.

As a footnote, imagine if the panel didn’t have to be on your roof, but could be on every one of your windows and you could see through it? That’s what MIT is hoping for.