Power shares

[Zaphod]

I installed panels and battery. Cost 20,000. It's on a new built house so can't say exactly what it saves me, but last years power cost 1300, which is dirt cheap (In Dunedin). Certainly neighbours I have quizzed are around 3 or 4 thousand at least for similar, 2 person, households and only electric heating. I'm happy with that. It's the equivalent of over 15% taxable return, and that's impossible to get out of a risk-free investment. With marginal tax rising to 39% it becomes an easier choice for those on the top marginal rate. I'll play with the figures as I learn more about the performance with a view to adding more panels or more battery.

Sounds like you've done well with that system, and it pretty much suits your requires.

When we calculated it, the break even period was (depending upon which equipment was purchased) between 10-14 years. The two big issues were the life of the solar cells and the battery. The much more expensive LG cells had a 25 year warranty on them and guaranteed at least approximately 85% of their normal generative capacity at 25 years, while the cheaper cells either didn't specify a generative capacity or in one case it was exceptionally low. The same goes for the battery, with the lower quality units providing very little in the way of guarantees aside form that they will still work. We also didn't have anyone home during the day, so battery capacity needed to be much higher.

Some others I know based their purchasing decision on the low user electricity plan, and their ability to sell back to the grid, thereby significantly reducing the break even period. Unfortunately neither of those options appear to be working in their favour now.

We are however looking at installing a system on one of our commercial buildings, sans battery. The site is a co-lo office so given tenants are charged a flat monthly all-inclusive fee, it makes good sense for us to reduce the power costs as much as possible.

In terms of low-user plan, I guess we'll need to wait and see how much the power companies reduce the KW/h rate by. I suspect it won't be enough to offset the increased daily charge, but they will, like most businesses claim that it has help to offset other increased costs.

[kiora]

"Roughly four decades ago, neo-liberal economic principles were introduced to the electricity sector. The industry gradually changed from one dedicated to serving the public and encouraging economic development to one focusing instead on maximizing profits. Along the way, the political and regulatory systems seem to have become unusually obliging with respect to corporate interests as big money in US politics exerts its corrupting influence"
https://finance.yahoo.com/news/elect...190000857.html

[kiora]

"Everyone knew that the energy transition would not be cheap. The ongoing energy crisis shows that no one can put the cart before the horse in the transition - backups and flexibility are vital for any successful energy system."
https://finance.yahoo.com/news/gover...220000817.html

[kiora]

"As a crucial element in achieving 2050 net-zero targets, hydrogen production, storage, and transport represents a multi-trillion-dollar opportunity, not only for energy incumbents but also for investors. While hydrogen is currently more expensive (per unit of energy delivered) than competing options such as fossil fuels, the scaling up of electrolyzer production is driving down costs. Within the next decade, we can expect H2 to reach break-even points with fossil fuels across different applications, after which hydrogen uptake will bring cost savings."
https://www.marketwatch.com/story/ex...?siteid=yhoof2

[Nor]

Roughly four decades ago my two monthly electricity bill became monthly with the amount payable each time remaining the same. Price has been going up ever since.

[ratkin]

Roughly four decades ago my two monthly electricity bill became monthly with the amount payable each time remaining the same. Price has been going up ever since.

But the price of virtually everything has been going up. Have they been going up higher than inflation?

[stoploss]

But the price of virtually everything has been going up. Have they been going up higher than inflation?

I think you will find a lot of things have been going down in price . How much was a colour TV as a % of your wages in the 80’s or a plasma in the 00’s .Airline flights ,appliances etc all a fraction of a % of income .
On the other side of this ,is rent as a proportion of income has got to unsustainable levels for many families .

[peat]

Apparently Lake Onslow investigations have begun with the appointment of a consortium of engineers looking into feasibility, design, geo-tech and environmental aspects.

'The NZ Battery Project' is scheduled to release its initial conclusions in the first quarter of 2022.

[Davexl]

Forsyth Barr says rising interest rates continue to put downward pressure on electricity stocks.

In addition, the release of the Electricity Authority's wholesale electricity market review did little to allay fears of regulatory risk, with the authority canvassing opinion on possible structural reform.
"These two issues are the main reasons for our continuing cautious outlook for the sector," the broker said in a research note.

Are electricity stocks immune to interest rate moves?
"In our view, no. The electricity sector has been a yield play for several years and that should not change just because interest rates are rising.
"Whilst there has been some softness in electricity share prices over the past month, they have not moved materially despite the jump in interest rates.

"Although the spread between the 10-year interest rate swap and electricity gross dividend yields has been trending down for several years, the step change downwards in the spread over the past two months has taken it well below the trend line.
"This highlights the potential downside pressure on electricity stocks, as we believe it is unlikely the spread will remain at record lows."

Forsyth Barr said Genesis was the least exposed to a re-rating driven by interest rates, given its high dividend yield.

[peat]

needless to say a report commissioned by Meridian Energy and Contact Energy has poured Cold water on the suggested pumped hydro megaproject

report finds that every option is cheaper, quicker and more efficient than the government’s Onslow.

'from BD'