Aotearoa has long been a global leader in the renewable energy sector. With huge hydro dams like Lake Benmore and other renewable sources already producing 80% of our total electricity, it’s not surprising that we’ve set ourselves a lofty goal of 100% renewable energy generation by 2030. But if you take a look at our solar adoption rates, it’s concerning to see how low adoption rates are for the most accessible form of renewable production. Compared to 31% of Australia’s houses having solar, 1.3% of our overall power coming from solar seems dramatically less impressive. If we’re going to hit that looming target for 2030, it’s going to be incredibly difficult without government incentives. Let’s go over why we don’t have any yet, why we should, and what advantages free solar panels could bring. 

Why don’t we have any subsidies?

As they say, there’s no such thing as a free lunch, and free solar panels certainly aren’t free for the government. The previous Labour government did promise a rebate system in September of 2023, but with the change of government and their dedication to cutting costs, this potential rebate was quickly abandoned. National seem far more interested in stimulating the private sector when it comes to renewable energy, a message clearly shown by their dedication to cutting red tape to get private renewable power projects approved. While this makes financial sense on the surface, it’s uncertain if private energy companies will offer much to widely increase adoption rates like a subsidy scheme would.

Why we should subsidize solar

Without increased adoption rates, we’ll lose the other benefits a subsidy could provide, like reduced energy bills and the positive run-on effect that it would have on the economy. Increasing our overall energy production with renewable power generators on even a quarter of our roofs would do wonders to energy bills for Kiwis, allowing them to use that saved money in other markets to bring boosts to the economy. If people no longer must use as much of their income on bare necessities, like their power bills, that disposable income will be cycled back into the economy through new avenues. We’ll lose the jobs that the boom in the solar market would produce, those of solar installers, electricians, administrational staff and more. Environmental benefits don’t seem to be a key priority for the current government in this stage of their term, but it’s obvious that subsidized solar would have a huge hand in reducing greenhouse gas emissions, allowing us to look after the beautiful whenua of this nation.

Verdict

Solar subsidies aren’t just hand outs: they’d offer a long list of benefits for you and for the country. Even if it may seem like a major financial hurdle, it also seems shortsighted for the government to just ignore the idea based off those upfront costs. It’s time for the government to reconsider its stance on solar energy and seize the opportunity to promote a cleaner, greener, and more sustainable future for our nation.

Referenced Material

MBIE Energy in 2023

The Spinoff Solar Adoption

RNZ Labour Solar Subsidy

RNZ National Cutting Red Tape

Investopedia Disposable Income

Carbon Brief Solar Carbon Footprin

Nature Energy Research in Renewable Energy GHG