Changes to the solar water heating initiative have backfired, causing the first decline in the number of new installations in years, National's climate change spokesman Nick Smith said yesterday.
Last November the Government announced a $15.5 million climate change initiative that included an increase from $300 to $500in financial assistance to homeowners for loans.
Government spokeswoman Greens co-leader Jeanette Fitzsimons said the goal was to double the number of systems being installed.
Figures from the New Zealand Solar Industries Association show that in the first six months of this year installations were down 5 per cent on the previous year.
At June 2006, 2017 installations had been done, in comparison by June 2007 only 1923 had been completed. This compares with an average annual growth of 37 per cent before the Government announcement in November.
Dr Smith said the policy had backfired because Ms Fitzsimons believed she could regulate down the price of the solar water heater systems, when it was best left to the competitive market.
"A further problem is that the Government's new Building Act is adding hundreds of dollars in costs to solar heating systems by requiring building consents, when it would be far less costly to regulate standards through accredited installers," Dr Smith said.
Ms Fitzsimons said she did not think the pricing arrangement for solar systems was unreasonable.
"It has to be sold at a price which means it will pay for itself over its 20-year life," she said on TV3. "I don't want consumers to be conned into buying solar water heating that isn't cost effective for them."
