Dec 20, 2024
Electric Avenue: December 20

Charge your glasses for the last Electic Avenue of the year, with research from Australia showing areas with higher unemployment rates are more likely to seek out the cost savings and bill certainty of solar, residents of Thames protesting about high petrol prices are reminded that electricity is the cheapest fuel and rooftop solar is the cheapest electricity, the first Windrose electric truck has landed in New Zealand and the efficiency of electricity smashes the other options, why tradies will be the heroes of the energy transition (and have a big role to play in terms of recommendations) and a clever induction stove that doesn't require any wiring changes.

Electrify everyone 

While rooftop solar and electric vehicles are often seen as luxuries because of the higher upfront costs, research from Australia shows areas with higher rates of unemployment actually over-index in solar. How can that be? 

Associate Professor of Engineering at the University of Technology, Sydney, Kaveh Khalilpour, told the SwitchedOn podcast his theory that “as the cost of installing solar has come down, and the cost of living has increased, the incentive to install solar has increased for people with job uncertainty as they look for ways to reduce their long-term energy costs.”

“This is an amazing factor in terms of energy democracy and justice,” he said. “It implies that solar energy is not rich people’s stuff. Lower income [householders] are looking at solar as a way of securing their costs and improving their family economy.”

Low-income households and those with more people living in the home have more to gain from more efficient electric machines because a higher proportion of their income is spent on energy. 

Rooftop solar also offers more bill certainty. It is basically like buying your energy upfront and locking in the price, so costs are more stable. The issue is that many can’t afford those higher upfront costs and that’s why access to finance is so important, and why income contingent grants are also a good idea. 

Take it to the streets

In an issue closely related to the above research, Thames residents have been protesting in the streets over the high price of fuel. 

One third of residents are aged over 65 and, like those in poorer areas, often struggle to deal with an unexpected increase in costs because they may be on a set income. 

The price of petrol has increased at above the rate of inflation and we regularly see stories about steep petrol price increases due to a variety of reasons completely outside our control, like geopolitical strife. The advice is often to look around for a better deal from other petrol stations, but that is a very short-term solution. We believe you should instead be shopping around for a vehicle that doesn’t need petrol. 

As our research has shown, electricity is the cheapest fuel and rooftop solar is the cheapest electricity. If you charge at night with a cheap rate of $0.14 per kWh, this is almost as low as the cost of financed solar (though this price will rise and solar won’t).

That works out to be roughly 30 cents per litre when using a petrol price equivalent. And while this doesn’t include upfront costs, they are coming down rapidly and are close to reaching price parity. Plus, there are plenty of second-hand EVs available for a lot less that can handle most urban driving.  

Trucking along

We wrote about Windrose electric trucks a while back, and the first one has hit New Zealand shores after being brought in by Ross Linton at E-Trucks.  

When it’s loaded up with 49 tonnes, the E1400 has a range of 670km, although it’s likely to be less in New Zealand conditions and depending on trailer configurations. 

As the below graphic shows, electrification is the epitome of energy efficiency. An electric truck (top) requires two-third less energy to go the same distance as a diesel truck (bottom). And hydrogen (middle), which is often touted as a solution to decarbonising heavy transport, is only slightly better. 

Trade deal

Tradies will be the heroes of the energy transition. We’re going to need lots of them to install all the rooftop solar, EV chargers, hot water heat pumps and other electric kit. But they also play an important role in terms of what kind of technology homeowners decide to put in. 

We often hear from homeowners that went with a recommendation to use gas in the home and, as they’ve learned more about the economic and environmental argument, felt it was the wrong call. 

EECA has recently conducted some research with electricians and plumbers/gas fitters and it showed that  “homeowners are the end-customer in about half of these professionals' jobs. Electricians and plumbers note they tend to have more influence over a product’s brand and model rather than its type, and on upgrades and like-for-like replacements rather than new installations.”

Plumbers and Electricians tend to have more influence on the brand and model of appliance than its type.

Rewiring Aotearoa’s research has shown that New Zealand is one of the first countries to reach the electrification tipping point, where it’s cheaper to buy and run electric machines than fossil fuel machines over their lifetime, even with upfront costs and interest added in. 

Fortunately, because the tradies are motivated by providing a good experience to customers, “evidence of running costs and savings over time was key for more than half of electricians and plumbers (58%) to make recommendations confidently.” 

From what we’ve heard, electricians are fully onboard with the shift to more electric machines in the home and can see massive potential to do more business. Plumbers and gasfitters are understandably a little more reluctant because a lot of their business - and a lot of their knowledge - may still be linked to gas systems and this is why more training will be important. 

And if you’re a tradie looking for a solid marketing campaign to bump up your installations, Keith knows how to appeal to the masses

On the boil

As pointed out in this interview with Headwaters Eco Lodge, induction is awesome, even in commercial kitchens. It’s safe, it’s powerful, it’s easy to clean and it doesn’t give you asthma like gas. But it does require a lot of energy for a short amount of time and that might require some wiring changes.

If that’s not something you’re keen on, then Charlie, “the world's first energy storage equipped induction electric range,” could be for you.  

Devised by Copper, it “uses a built-in battery to give you that power when you need it. It charges intelligently during times when renewable energy is available, so you're always ready to cook. Charlie's also got your back when the power goes out, with enough on board power to cook 3-5 meals.” It's only available in the US pre-order, so let's hope it's not long until something similar is available here.

The good oil

It's tough being an oil CEO these days. But thankfully, Yellow Dot Studios has provided some helpful advice on how they can stay safe.

Read moreDownload the document here

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