Solar Saver

What if we could lower our power bills, improve our security of energy supply, AND help keep New Zealand’s environment clean for the future?

Solar Saver is a new not-for-profit initiative, working with local councils to make solar hot water systems available to homes across New Zealand. 

In December 2009 Nelson City Council launched New Zealand’s first Solar Saver scheme with the aim of installing over 1700 systems across the city over the next 10 years. During its first phase through to June 2010 the Nelson Solar Saver scheme has been highly successful and will continue for at least 3 more years.

The Solar Saver scheme supports communities across the nation to harness solar more effectively and so become more sustainable, save money and become more resilient in the face of rising fuel and electricity prices and climatic changes.

Developments in technology have now made it possible for every individual household and small business to generate its own electricity and heat through the use of micro-generation technologies such as solar.

There is huge scope for the uptake of solar in our country. In Australia all new homes are required to use SHW by the end of 2010 with the aim of having the technology on 90% of homes by 2018. In New Zealand just over 3% of homes have SHW

By negotiating bulk supply contracts of solar hot water (SHW) systems and offering fixed interest repayment plans over 10 years as targeted rates, councils can offer systems which are affordable for any household.
 
Run by the not-for-profit organisations 350 Aotearoa and the Nelson Environment Centre, each council will receive independent advice to guide you through the process of introducing Solar Saver in your area.

How Does Solar Saver Work?

Though Solar Saver is a nationwide initiative, it is implemented separately by each council, so each local council has full control over which suppliers it chooses to work with, and the nuts and bolts of the scheme. 

But basically:

1. Each council puts both the supply and installation of the SHW systems out to tender and selects suppliers who best fit the selection criteria.
2. Councils negotiate a discounted price for bulk purchase of SHW systems with each supplier.
3. Each council negotiates a favourable high-volume loan interest rate with a loan provider.
4. Councils are now ready to advertise the programme to the public. We’ll provide key messages and nationwide branding to help you get the message out.
5. Households sign up with the council and then obtain a quote from selected suppliers based on their household size and their hot water needs.  Households submit their preferred quote to the council.
6. Councils assist households to apply for the $500-$1000 rebate offered by EECA, if available.
7. Councils may choose to supply free building consents to install a SHW system.
8. Councils then pay the remainder of the upfront cost to the supplier and it’s full steam ahead on installation!
9. Households immediately enjoy savings on their power bill which they can use to repay the council through a fixed-interest targeted rate over a 10 year period. 
10. Households can choose to pay off an extra portion or all of the balance at any time. They can also decide to pay the whole cost (minus the EECA subsidy, if available) upfront and still take advantage of the negotiated bulk rate on systems and installation.  

Why Solar Saver?

Benefits to councils:

• Increases regional energy security by using a free resource (the sun), diversifying supply and providing more homes with both a self-sufficient source of power and guaranteed fixed energy costs independent of future electricity and gas price rises.
• Decreases use of fossil fuels, reducing our greenhouse gas emissions to help limit climate change. There may be future potential for emissions reductions to be converted to carbon credits.
• Helps keep New Zealand safe for the future by mitigating climate change, while helping preserve our irreplaceable landscapes by avoiding further coal and gas exploration.
• Contributes to New Zealand’s renewable energy future by reducing the need for new commercial power generation and diversifying the affordable renewable energy options available.

Benefits to local economy and businesses:

• Builds up skills and provides long-term jobs in the local economy both on the installation/servicing and manufacture/assembly of some smaller components.
• Brings in investment, giving rise to clean technology businesses and employment.
• Reduces payments to power companies releasing money to spend on local goods and services and strengthening the local economy. In Nelson it is estimated that installing SHW on 10,000 homes will save the community more than $8m a year, every year.
• The loan scheme means that SHW is accessible to those that would not previously have been able to afford the up-front cost.
• Less energy demand reduces the region’s dependence on electricity, so easing capacity on the transmission network and delaying the need for capacity upgrades as well as additional new capacity.

Benefits to households:

• Householders have a low hassle, one stop shop for SHW systems.
• Householders can get impartial advice on high-performance SHW systems.
• Cuts  between 1,800 and 2,700 kWh (kilowatt hours)  from annual electricity use.
• Saves between $350 and $500 a year (depending on the cost of your electricity or gas supply).
• Saves approx 20% on systems’ capital cost when purchased through the Solar Saver Scheme, due to reductions made by councils dealing in bulk.
• The $500-$1,000 EECA subsidy further reduces cost, if available.
• Reduces bills, providing households of any income level with savings to repay the council.
• Lifetime of a SHW system 20-25 years with low maintenance costs, and a repayment period of on average 6-10 years.
• Interest rates are fixed over the 10 year repayment period.
• Loan repayments are tied to rates associated with the property.
• Householders can monitor the performance of their SHW systems.
• Adds value to the property.
• Reduces the average household carbon footprint by 1.5 tonnes of carbon emissions per year.

How is SHW already working for New Zealanders?

Costing $4000-$10,000, depending on the size and type of system, SWH offers New Zealanders a renewable energy option that is not only affordable, but that actually saves money on power bills – on average $18,194 over a 20 year lifespan!
(According to a study for Nelson City Council, based on the historical trend of a 6% rise in electricity prices each year.)
We might not all be in a city with as many sunshine hours as Nelson, but a report from BRANZ found through monitoring 35 SHW systems in Auckland, Wellington, Christchurch and Dunedin, that good design and installation was the dominant factor in performance rather than geographic location. EECA estimates that the average SHW system supplies 50-75% of a household’s hot water needs!
 
Solar Saver is part of 100%RenewableNZ, a new joint-initiative of 350 Aotearoa and the Nelson Environment Centre, working for 100% renewable energy in New Zealand by 2025.

Sign your council up with Solar Saver

To find out how your council can get on board with Solar Saver contact:

Carolyn Hughes
(03) 545 9176 ext 6
carolynhughes@nec.org.nz.