The Conventional Model
As per the conventional model, electricity in New Zealand is generated by using traditional energy sources - by harnessing water, wind, sun, geothermal energy, coal and gas, which flows into transmission and to electricity distribution networks. Electricity is then sold to customers by power companies in New Zealand, who are the retailers.
Power companies pay for electricity from the electrical generators and pay for distribution or transmission services from the lines companies, at wholesale prices.
These retailers then charge consumers, meaning you, based on electricity usage. This cost includes electricity that is consumed by a household, charges for metering, GST and a levy to the Electricity Authority in New Zealand. All charges, with the breakdown are mentioned in your power bill that you receive from your power supplier.
New Ways of Generating and Distributing Electricity to Your NZ Home
New ways of getting electricity to your home in New Zealand are emerging. The electricity supply market in NZ is becoming more complex, and the Electricity Authority aims to create a more level playing field, which means more players can enter the market to offer their products and services to consumers. This means more competition in the market, more options and competitive pricing for consumers to choose from. Consumers can decide how they use electricity and how they interact with the market.
New players are already entering the market and coming up with innovations in their way of supplying electricity, and the services that they offer to consumers.
Solar Power in New Zealand
A growing and popular trend in New Zealand is solar powered photovoltaic panels, which are known to be the cleanest, most renewable forms of energy available. Solar panels provide your home or business with the power that it needs, by generated electricity using sun rays.
Solar panels, or “modules”, contain photovoltaic cells made from silicon, that transform sunlight into electricity instead of heat. To get solar panels to work efficiently, installers begin the process with an on-site evaluation to determine how the solar panels should be installed. They then customise a plan that will work best for your property, so you get the maximum benefit from your solar panels. The panels are usually placed on the roof of a house, where there is little to no shade. The more sunlight it gets, the more electricity is generated.
Solar panels enable consumers to generate their own electricity for their home or office. In New Zealand, consumers can also sell excess electricity that they haven’t used back to their electrical retailer or the wholesale market. If they are unable to generate sufficient electricity from the solar panels installed, they can always buy extra from a retailer as well.
Solar panels are a great long-term investment for saving energy and ongoing electrical costs. They are a great step towards sustainable living by reducing your impact on the environment and are known to last for a long time.
At Skilled Electrical in Christchurch, we offer solar installations and off the grid systems throughout Canterbury. We have employed a solar energy specialist in Christchurch to grow and run this division for us. Find out more about our solar and renewable energy services.