Solar leasing – a win – win opportunity for electricity consumers and producers
Some utilities have made the decision to go with the flow and embrace the new technology rather than relying on barriers to protect an investment that is fast becoming uneconomic. Pity that in Australia that it is only the consumers who can see this.
Culture shock: Network offers solar storage leases to customers REneweconomy By Giles Parkinson 14 June 2013Sadly, this is not a story you will likely read about an Australian electricity network provider – given the pushback from their mostly state-government owners on the proliferation of rooftop solar PV. But, hopefully, it won’t be too far away.
A New Zealand electricity network operator, Vector, is offering a trial run of leases to its customers to install rooftop solar and battery storage for around the same cost as relying entirely on the grid. Given that New Zealand’s retail electricity prices are around the same as Australia’s – 25c/kWh in the local currency – it is a striking offer.
The package comprises a 3kw PV panel array (Trina), inverter (Schneider) and a 10.7KWhr Li-ion (Kokam). The array should produce around 12kWh on an average day, which is about ½ of the consumption of an average all electric home in Auckland. The intent appears to be to reduce the evening peak given the size of the battery capacity
There are two remarkable aspects to this story – one is the fact that a network operator is looking so actively for alternative solutions to dealing with the demands of the grid, and the second is the pricing of the offer – given that “grid competitive” battery storage solutions were considered by most to be several years away.
First of all to the network strategy. Vector CEO Simon McKenzie says the home solar offering – as the company describes it – is part of plans to optimise its businesses for what McKenzie describes as the “new economic reality” – reduced demand from households and a growing push by customers to take advantage of more energy efficient and environmentally-friendly solutions.
“Solar panels, combined with highly-efficient batteries and smart control technology will allow our customers to manage demand and the cost of energy in the home,” McKenzie said earlier this year when announcing his company’s results, explaining why Vector has invested nearly half of its capital expenditure in new technologies such as solar.
“They represent the application of an exciting new technology for Vector,” he said. “Over the long term (the residential installations) will lead to greater use of renewable resources, but also help us optimise our network investment.”
In other words, says Vector, solar and storage is good for the network, and for its business. This view is reflected overseas, where other network operators can see the writing on the wall with the arrival of cheap, distributed generation. As Jim Rogers, the head of the largest US utility Duke Energy said earlier this year, people might not need the grid anymore, unless the grid finds some way to adapt.
Some utilities have made the decision to go with the flow and embrace the new technology rather than relying on barriers to protect an investment that is fast becoming uneconomic. Pity that in Australia that it is only the consumers who can see this. ……http://reneweconomy.com.au/2013/culture-shock-network-offers-solar-storage-leases-to-customers-91569
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