Monday, March 31, 2008

A good idea

National has anounced it wants to double solar water heating grants to $1,000 and simplify the applications process. It's a good idea. Solar water heating is one of the most cost-effective means we have of reducing demand for electricity, and hence greenhouse gas emissions, so its something we want to promote. Boosting the grant to $1,000 should encourage more people to apply and so get more heaters installed.

That said, it's not just a matter of money. The reason the current policy has failed seems to be more about split incentives between installers and customers than the amount of money involved. But if National's process tweaks involve fixing this, then we might finally see an effective policy.