Should the Regional Council help households to install sustainability improvements (e.g. solar panels, insulation, clean heating)?

effects

Supporting households to reduce their greenhouse gas emissions, such as by increasing the efficiency of their energy use and increasing renewable electricity generation, is part of the shift to a low carbon future.

In Rotorua, we have run a ‘Hot Swap’ programme, in partnership with Rotorua Lakes Council, where ratepayers are offered a loan to replace old wood burners for cleaner heating technology to improve the city’s air quality.

We have the option of establishing a similar scheme for a wider range of sustainability initiatives for households across the region.

The issue

Energy use accounts for an estimated 10% of the Bay of Plenty’s greenhouse gas emissions, mostly from national grid electricity that is derived from non-renewable sources. There is an opportunity for households to help reduce these emissions by increasing the efficiency of their energy use, and potentially generating at least part of their own electricity with solar panels.

Installation of sustainability initiatives, such as insulation, efficient heating and solar panels, could contribute to a reduction in household energy demand and associated greenhouse gas emissions. It may also contribute to lower power bills and improved health due to warmer, drier and healthier homes.

We want to know whether you support Regional Council providing loans as incentives for households to install sustainability initiatives. We’re also interested in your views on the best model for such a scheme out of the options presented below.

The options

Description Level of Service Effects Financial Effects
1* No additional funding allocated Unchanged No change
2. Provide low interest loans to households for installing sustainability initiatives IncreaseApproximately $20,000 per annum increase in expenditure, the equivalent to 0.07% increase in general rates, or on average, $0.11 (incl GST) per rating unit. This assumes interest charges cover the administration costs of the scheme.
3. Option two, but also include partial grants for low income households IncreasedApproximately $60,000 p.a. increase in expenditure, the equivalent to 0.21% increase in general rates, or on average, $0.34 (incl GST) per rating unit. This assumes interest charges cover the administration costs of the scheme for interest bearing loans. Grants create rates impact over and above marketing costs.
4. A combination of low interest loans+ no interest loans+ partial grants (for low income households) IncreasedApproximately $61,200 per annum increase in expenditure, the equivalent to 0.21% increase in general rates, or on average, $0.35 (incl GST) per rating unit. This assumes interest charges cover the administration costs of the scheme for interest bearing loans. Grants and interest-free loans create rates impact over and above marketing costs.


*Preferred option

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