Large-scale solar farms are popping up around the country with developers like Lodestone Energy behind major investments. Do the market economics of grid-scale solar stack up?
The song Four Seasons in One Day was not written, as many people assume, about Auckland. Songwriter Neil Finn has explained more than once that he was thinking of Melbourne, where he used to live.
But it could have been Auckland: the two cities have similar weather patterns. They alsohave some big differences and one of them is solar power.
Some 30% of homes in Melbourne have rooftop solar panels, according to the Victorian State Government and the Australian Federal Government. It’s closer to 40% in lower-income suburbs. In Auckland, the figure is only 2%.
On Friday, the Government announced new rules aimed at changing that.
Climate Change Minister Simon Watts announced owners of solar panels will now be able to send a wider voltage range of power they generate, but don’t use themselves, to the national grid.
This will give solar panels with a battery greater economic value for homeowners. It will also help with the security of the grid.
Building and Construction Minister Chris Penk added to this with two other measures. One clarifies that a building consent is not required to install rooftop solar panels on existing buildings.
The other instructs councils to process building consents for new homes with solar panels within 10 working days, down from what he said was the current norm of 20 working days.
Climate Change Minister Simon Watts (left) and Building and Construction Minister Chris Penk in the Taspac Energy's Hobsonville warehouse, which is full of solar panels. Photo / Simon Wilson
These measures are expected to reduce the cost of installing solar energy. They come after ASB Bank’s announcement of five-year interest-free loans to farmers for solar energy installations.
Watts and Penk made their announcement in the new Hobsonville warehouse of a company called Taspac Energy, which imports solar panels. It rained for a short while as the ministers talked, the rain clattering hard on the warehouse’s long-run roof. Then the sun shone brightly again. Melbourne/Auckland weather.
The Herald asked the ministers about Neil Finn’s song and its relevance to solar energy. To what extent did Melbourne’s success provide an aspirational goal for Auckland and for the Government?
“Modelling suggests this change could boost solar investment and overall generation by a whopping 507GWh through increased solar connections,” said Watts.
He said that amount of extra generation would power about 70,000 homes, which is more than the total number in Tauranga. Not a Melbourne quantity, but a “good step” towards it.
Taspac’s general manager Dwayne Cocker said rooftop solar was becoming increasingly attractive. He said the cost of solar panels has fallen 50% in the past two years and the cost of batteries is down 25% “and continuing to fall as we get more economies of scale”.
Standing in front of a display featuring a battery pack, car charger and other components, he said: “I’ve got this exact set-up in my home. There’s just a background load at the moment, the fridge and so on, but the solar panels are producing energy and the batteries are storing it. We’ll have all the power we need and on a day like today we should be able to sell some back to the grid.”
The warehouse contained high stacks of solar panels and was preparing to bring in more. “This was a paddock when we took the lease on this warehouse,” said Cocker.
Taspac general manager Dwayne Cocker (left) discussing a residential energy system with Climate Change Minister Simon Watts (centre) and Construction Minister Chris Penk. Photo / Simon Wilson
Rows of other new factories and warehouses lined both sides of the roads outside, and more farmland was being cleared for development. Nearby, whole suburbs of new houses have sprung up. Almost none of these new buildings have solar panels on their roofs.
Watts said: “Rooftop solar will play a crucial role in supporting energy security and reducing emissions. But our networks need to be able to better support the growing flow of electricity from consumers, while also dealing with growing demand for more electric vehicle charging.”
The Herald asked the ministers why rooftop solar is taking so long. Isn’t there general agreement that we need more solar generation? Or is there resistance from the energy sector or Government officials?
Watts said he wasn’t sure and talked about a “range of uncertainties” and hesitations.
Penk said: “It’s possible there’s been a fraction too much friction,” and grinned at the Herald reporter.
By now, the sun was out again.
Simon Wilson is a senior writer covering politics, the climate crisis, transport, housing, urban design and social issues, with a focus on Auckland. He joined the Herald in 2018.