Remember when we were told that privatisation of power generation would lower prices?

  • absGeekNZ@lemmy.nz
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    3 months ago

    I understand.

    If the feed in rate was ok, then it would be a good idea. But then again, if the power price keeps increasing, the solar + storage option starts looking good.

    • Dave@lemmy.nzM
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      3 months ago

      Residential solar may also have another benefit over commercial. If the money wasn’t spent on solar, it would probably be reallocated to the mortgage. But by allowing you to borrow money for solar at 1% and put the rest of the cash into the main mortgage at 7%, you get 6/7ths of the altetnate plan.

      The 1% is only three years then it rolls onto a normal mortgage rate, but that’s a big difference compared to companies whose borrowing cost is likely higher than the residential mortgage rate.

      So residential solar is currently incentivised and commercial by comparison makes a lot less sense. So I guess this is where the govt could step in with subsidies or guarantees to reduce the cost to companies.