Photo: 123RF
A government subsidy scheme for homeowners to replace gas and inefficient heaters with heat pumps would save the country $1.5 billion a year, the Green Building Council (NZGBC) says.
It comes amid a major decline in gas availability across New Zealand, with the council proposing gas in residential homes be phased out to free it up for major industries.
A 50-page report dubbed Protecting industry, jobs and household budgets as the gas runs out released by the council on Tuesday outlines eight recommendations to combat the "energy crisis".
NZGBC chief executive Andrew Eagles told Morning Report there was a solution to allay a major decline in gas availability.
"That's leading to a hollowing out of communities as employers go under, and major losses across the motu," he said.
The country's manufacturing sector had endured a difficult period over the past year that saw the closures of Penrose's OFS Mill, Winstone Pulp International's Tangiwai Sawmill and Karioi Pulpmill, and Tokoroa's Kinleith Mill.
According to the NZGBC report, households were making progress in the adoption of heat pumps and decreasing purchases of gas hot water systems, but commercial and residential natural gas/LPG consumption was still climbing.
It said only minor decreases in commercial and residential use of natural gas over the next decade would occur under existing policies.
Feedback from Morning Report listeners challenged the council on the idea, with one person claiming heat pumps were getting more expensive.
Another person said they were paying similar winter power costs for solar panels as they were previously paying for gas.
Eagles said a wide-spread switch to electric would not only be good for employers, bur would slash the living costs for New Zealanders.
Accelerating heat pump adoption would save households alone up to $1.5b a year in reduced electricity and gas bills, the report said.
"Heat pumps really help switch over from inefficient resistance heaters so you get a drop-off in electricity use as well," Eagles said.
"The electricity grid is under pressure."
Most OECD countries were providing some form of energy subsidy or tax incentives, including Australia, UK, France, United States and Canada.
Homeowners and businesses were facing volatile energy prices and would save more long-term by electrifying, Eagles said.
"If people are connected up to gas they have a standing charge every day that they're paying. That's a real cost that they have to pay, no matter how much gas they use."
Eagles said some new home builds were still being connected to gas suppliers.
"It's really shocking to us, at a time when we are literally having to decide between whether we have enough gas for our homes, or whether we have enough gas for our industry,"
"It's heartbreaking. Ruapehu, the largest employer has gone under, 200 jobs are lost because they can't access gas.
"And at the same time we have thousands of homes connecting up to a gas network which they probably wont be able to access in 10 years time."
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