Abundant Renewable Energy

•The most abundant energy source on earth

•Houses exposed to 20-30 times more energy than used

•Earth exposed to 11,000 times more energy than total global use

Here Comes the Sun

Average about 2000 hours of bright sunshine a year

– Invercargill 1615h – Christchurch 2000h– Blenheim 2450h

Germany 1600h avg

Spain 3000h avg

Yuma, Ariz. 4055h avg

More Benefits of Solar

Saves an average of 2400kWh/year/house electricity

Saves $350 - $400 per year at current electricity prices

Prevents CO2 emissions of almost 30 tonnes each house, life of system (0.6kg/kWh)

4 m2 flat plate collector with horizontal tank

How Do They Work?

Evacuated Tube System Flat Plate System

Solar Water Heaters

Evacuated Tube System Flat Plate System

Solar Water Heaters

Evacuated Tube SystemFlat Plate System

Case Study

Family of four in three bedroom house in Nelson:

– Total system cost = $5200 (incl GST) includes building consents and installation

– Marginal cost = $3300 (hot water cylinder = $1900)

– Save 3000kWh/year electricity– Save $360/year (marginal cost of

electricity = 12 c/kWh)– Simple payback = 9.2 years

Large-scale systems

Novotel Hotel, Homebush, Sydney

National and Environmental Benefits

Current = 22,000 Houses

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1000

GWh p.a. Saved

1/3 Households = 466,666 Houses

936 GWh p.a.

(3.3 PJ)

671,000 Tonnes of

CO2

Solar Water Heating on New Buildings

Building Act 2004 - Greater consideration of renewable energy and energy efficiency in new

buildings

Building Code - Must respond to the Act– Minimum home energy performance standards – Solar water heating may be one ‘acceptable solution’

to meeting requirements of Act.

The New Zealand Solar Water Heating Industry

12 accredited suppliers of systems

Approx. 150 approved installers nationwide

Industry association = Solar Industries Association (SIA)

Status of New Zealand Industry - Products

3 companies manufacture systems in New Zealand

Other systems imported from Australia, Israel, China.

90% flat plate collectors

10% evacuated tubes

Total Cost: $4000 - $7500 for a domestic system, including installation.

A Mature and Growing Industry

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1500

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2500

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3500

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4500

2000 2001 2002 2003 2004 2005

Year

Sal

es p

er y

ear

Sales35%

Status of New Zealand Industry - capacity

Installing ~ 2000 systems per year currently

About 35% annual growth rate

Target - 10,000 systems per year within 3 years! ($40 - $50 million sales revenue, 1000 jobs)

Need to break out of a narrow market niche

Need much greater growth rates

What is EECA doing?

Technical Standards

Installer Training

Accreditation

Code of Practice

Solar Industries

Association (SIA)

Incentives

EECA’s Finance Assistance Programme 2004/05

Interest Free Terms

– Industry wide finance scheme - single finance provider (FAI Finance Ltd)

– Up to 36 months interest free

– EECA provides up to $450 per unit to cover finance costs

– Funding approximately 450 systems ($200,000)

Launched 15 November 2004

Interest-Free Terms

Borrow up to a maximum of

For an interest free term of

Monthly repayments

$7,450 12 months $620.83

$4,500 18 months $250.00

$4,000 24 months $166.67

$3,000 36 months $83.33

Are You Eligible?

•Buy your solar water heater from an Accredited Supplier

(visit www.solarindustries.org.nz)•Purchase a system that costs at least $2,500

•Purchase a system with a collector area of 2m2 or greater

•Purchase a system before 30 June 2005. Act Quickly!

www.eeca.govt.nz