Solar heating milestone reached

I am pleased to be here to open Camp Adair’s new commercial solar water heating system, which is a significant milestone for the solar heating industry.

Most installations of solar water heaters to date in New Zealand have been in homes but an important goal has been to develop the commercial market as well.

Congratulations to SolarTech for designing and installing this solar water heating system, and to the YMCA for the vision you have shown in deciding to install solar water heating at the camp.

This is an excellent example of how institutions and companies can save money on energy costs and contribute to a sustainable energy future.

I’d also like to congratulate the YMCA on its 150-year anniversary. This is in itself a significant achievement for an organisation which has had a positive impact on the lives of thousands of New Zealanders, especially young people.

I am sure your decision to introduce solar water heating here will prove just as inspirational, and of course educational.

Solar water heating offers real benefits for individuals, the economy, and the environment. A solar water heating system on the average family home:

• Can save the owners between $350 and $450 per year on their electricity bill at current electricity prices
• Offsets the need to generate around 2400 kilowatt hours of electricity per year for that household
• Prevents the emission of about 1.5 tonnes of carbon dioxide per year

Through the Energy Efficiency and Conservation Authority (EECA), the government is working in partnership with the solar industry to grow the solar water heating market.

One way we are doing this is with a government-funded finance assistance programme - which is an interest free loans programme aimed at helping people buy a solar water heating system.

This is an ongoing government programme and it's proving to be popular and successful. Funding for 2005-06 will increase to $400,000, compared to $200,000 when the scheme started in 2003-04.

We have also made it easier for government departments and other publicly funded bodies to qualify for loan finance for solar water heating systems. The criteria for EECA’s Crown Energy Efficiency Loans Scheme for energy efficient investments have also been changed, to allow a longer payback period for investments.

The government, through EECA, is assisting development of the solar water heating market in other ways as well.

We are supporting the Solar Industries Association (SIA) by funding their administration, ensuring the quality of systems and their installation through development of standards, accreditation processes, industry codes of practice, and training programmes.

On top of that, the government is also promoting the benefits of solar water heating to the general public, local government authorities, architects, and the building industry through marketing and advertising, and the provision of technical information.

The partnership between EECA and the SIA plays an important role in growing the solar water heating industry.

The industry has achieved growth of more than 40 per cent over the last three years, and it's expected that approximately 3500 residential solar water heating systems will be installed in 2005. By 2008 the industry target is to see 10,000 residential systems installed a year.

One of the challenges facing the industry is to ensure that quality assurance measures, including adequate training for existing and new installers, keep pace with the very rapid rate of industry growth.

Another important goal for the industry is to develop the market for larger scale, commercial solar water heating systems. Compared to many other countries, very little larger scale solar water heating has occurred in New Zealand.

The Camp Adair system is a very tangible example of the potential for such systems, and I hope it will encourage other organisations or business to look into introducing solar heating.

Solar water heating has significant potential to reduce electricity demand in New Zealand and it is a key component of the government’s energy efficiency strategy.

Congratulations to all of you who have made this project happen. I am very happy to declare the solar heating system - open and operational.