Wheels falling off Green’s looney solar power policy

Once again the Green party has been found wanting on critical thought processes and policy design, launching a policy that simply won’t work and requires massive subsidies.

Consumer and EECA both think that the solution won’t work and now industry is lining up to mock the Greens.

The head of New Zealand’s largest renewable energy company is dismissing the economics of home-based solar, saying he “can’t follow” the numbers put forward by proponents.

Last week, ahead of the Green Party announcing a major?loan scheme to subsidise solar installation?through low-cost loans, Meridian chief executive Mark Binns said he could not understand why people installed them.

“I can’t follow the economics that are put forward by proponents of household solar in terms of returns as an investment,” Binns told Parliament’s commerce select committee.

“On our numbers, in our analysis, it is still probably not viable if you went to an accountant.”?

Wonky numbers, illogical policy…disaster.

Greens energy spokesman Gareth Hughes, who is part of the committee, defended the economics, asking Meridian management “it’s still cheaper than buying from a retail provider, isn’t it, over the lifetime of the solar panel?”

Binns and Meridian chairman Chris Moller replied simultaneously “no”.

Double face palm for the child MP.

While Green Party co-leader Russel Norman said the major obstacle for people investing in solar was the up-front cost, Binns said the major challenge posed by solar was that after 25 years the panels were worthless.

“The thing people don’t realise is that [if] you invest in solar facilities, you get nothing back at the end of 20 or 25 years,” Binns said.

“It’s not like investing in a government bond or a bank bond, where at the end of the period you get your capital back. You don’t with solar. It’s written off.

“Our view is that the answer is no, it’s not currently viable if you are hard-nosed about it.”

Wrong premise, wrong solution, the Greens are just wrong.