Solar Still A Decade Away From Competitive Pricing In NZ
May 6th, 2009
NZ’s Photo Voltaic (PV) market is small and there is little public policy focus, so costs tend to be 1.5 times higher than in markets where there is more focus on PV. The study for the Ministry of Economic Development assumes by 2030 PV system prices in NZ will be on par with the rest of the world. Wholesale PV module prices including distributors’ margin are current around $US4-$5.40/Wp in NZ, while retail prices are $US6-$10. This compares with international prices typically of $US3.70-$7.60.
With few components manufactured locally, system prices are highly dependent on swings in the NZ dollar against the greenback and the Aust dollar. The study found there is little specialty knowledge among electricians for designing and installing PV systems. While there is a standard referenced in the AS/NZS 3000 wiring rules, knowledge of the standards is limited and consumers are left hunting for reliable sources of information about the options. Consumers who do choose to install systems also have little certainty excess power can be sold back into the grid, as there is no obligation for energy retailers to purchase from owners of micro-scale generators, and no mechanisms for determining a fair price if agreement is reached.
Making matters worse, sales back to the grid are liable for income tax, though the Electricity Commission recently amended rules which allow gifting of electricity to a retailer. PV systems are also at risk of falling foul of building consent processes as the study found a poor understanding about the technology with local bodies and confusion rife between PV and solar hot water systems. Growth in the uptake of PV systems in overseas markets has been characterised by Govt initiatives and incentives, accompanied by training programmes for industry workers. The study concluded incentives are needed if there is to be any significant growth in the market.
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