Generating your own renewable energy

More and more people are considering using renewable energy to generate their own electricity, prompted both by concerns about climate change and rising energy prices.

Sources of renewable energy include the wind, sun, and hydro (rivers and streams).  Aside from the cost of building and maintaining the equipment involved, they are free to use, and they create no greenhouse gas emissions.

Some methods of using renewable energy are simple and cheap - for example, using the sun to dry washing instead of a dryer.

Others may require a significant investment, such as solar photovoltaic panels or a mini wind turbine.  Over time, this sort of investment can be recouped through the savings it generates - as long as the system is designed or chosen carefully.

Why should I consider generating my own electricity?

Generating your own electricity can save money - in some cases, it can even be an income stream. It can feed into the local electricity grid and be used locally.  Home generation can reduce greenhouse gases and make you aware of how much energy you consume.

However the costs of installing small renewables (or "micro-generation") are high at present, meaning that such an investment should be considered carefully from a financial point of view. 

The economic viability depends on the availability of renewable resources in your area.

It also depends on the cost of connecting to your local electricity network.  If you live on a rural property that's not connected it may be more economical to invest in small-scale generating technology than pay for the connection. With a connection cost of as much as $25,000 a kilometre to the electricity network, the further away you are, the more cost effective it becomes.

A grid-connected property that generates its own electricity can sell any excess to a retailer, if the retailer agrees.

Efficiency first

Before thinking about generating your own electricity, you should make sure your energy use is as efficient as possible.

It's almost always cheaper to reduce the amount of electricity you need than it is to generate extra.

More information

Use the following links to find out more about:

• How to be energy efficient
• Stand alone power systems (SAPS) are off-grid electricity generation systems that may include photovoltaics, micro wind turbines or micro hydro, batteries and a back-up generator
• Grid-connected systems are electricity generation systems that may include solar PV, micro wind turbines or micro hydro.  They are connected to the local electricity network, and can export excess electricity, or use mains electricity as a backup
• Choosing energy options explains what you should consider when deciding on the best generating options for your location
• Solar PV refers to solar photovoltaic panels.  They convert the sun's rays to electricity
• Micro hydro for households is typically less than 5 kW
• Micro wind energy refers to the use of micro wind turbines typically less than 10 kW
• Micro-generation is one form of distributed generation, which refers to local electricity generation connected to lines networks, rather than the national grid
• New Zealand's use of renewable energy.