Generating your own electricity: Overview
Save on power costs by generating your own.
Generating your own electricity can reduce energy costs and ensure security of supply.
For rural properties, it may be the only practical and cost-effective option. For urban properties, 'micro-generation' may also be an attractive option under the right circumstances.
There are several options, ranging from solar, wind and hydro to traditional diesel generators.
Why generate your own electricity?
Cost-effectiveness
Electricity is expensive and the price is expected to keep rising. Generating your own power may be cheaper in the long run than continuing to use power from the local lines.
For properties in remote areas, connections to the local lines can cost tens of thousands of dollars. Generating your own power can work out cheaper. It can also be an option in urban areas. At the moment the set-up costs are relatively high, but they are coming down.
If you are connected to the grid and you generate your own electricity, you may be able to sell any excess back to your power company.
Guaranteed connection
After 2013, line companies may be able to close down lines which they think are uneconomic. This means if a line is damaged in a storm it might not be repaired or it might take weeks to repair. If you live in a rural area you might suddenly find your property disconnected.
If you can generate your own electricity, either individually or collectively with neighbours, you have security of supply even if your lines are closed down.
Environmental impact
About 70% of New Zealand's electricity is generated from renewable sources such as hydro, wind, bioenergy and geothermal. The rest comes from burning fossil fuels such as gas or coal, a process which produces greenhouse gas emissions and contributes to climate change.
As demand increases and additional electricity is generated, these emissions will only increase. By reducing demand for electricity from the local lines, and generating it yourself using renewable energy such as hydro, wind or photovoltaic cells, you'll be helping reduce New Zealand's greenhouse gas emissions.
How can you generate your own electricity?
Options for generating your own electricity include:
- photovoltaic (PV) systems
- wind turbines
- micro-hydro systems
- biomass and biogas engines
- diesel or bio-diesel generators.
Wind, PV, hydro, biogas and bio-diesel all use renewable energy sources, produce no net harmful emissions and - depending on your circumstances - can offer cost-effective electricity generation options.
If you are already connected to the grid, changing to these systems will usually be an expensive option. However, all are worth considering, particularly for properties in remote locations.
For more information on these options, see photovoltaic cells, wind power and hydro power.
Diesel generators
Diesel generators have been used for many decades for generating electricity in remote locations.
They are also used for emergency electricity generation in case of power cuts. Hospitals, computer sites and other essential buildings all have them.
With a renewable energy system (especially wind or solar) you may still want a generator as a back-up. It may start automatically if the battery charge gets too low, for example on a windless or cloudy day.
They are simple to use and can be maintained by any garage mechanic. But they have drawbacks: noise, fuel costs, inconvenient fuel refilling, exhaust fumes (including greenhouse gases and other hazardous air pollutants), wear and maintenance costs.
Biomass and biogas
Biomass is organic material that can be used to produce electricity, heat and fuels for transport. Examples of biomass are wood chips, dead trees, branches, paper products, crop residues, animal manure and sewage. If factories or farms produce a lot of biomass waste, it can be economic to use this waste to generate electricity.
Around the home, it is more efficient to burn dry biomass in a woodburner for heating and water heating or in the case of leaves and garden waste to compost it.
When organic waste decomposes in the absence of oxygen, it produces a mixture of methane and carbon dioxide. This biogas can be used instead of natural gas for heating, cooling, cooking and producing electricity. Methane and carbon dioxide are both greenhouse gases, but it is better to burn the methane than let it enter the atmosphere.
Biogas is useful for farmers who have to dispose of a lot of animal waste. However, a biogas plant needs a lot of attention so may only be suitable for larger farms.
Storing and using the electricity
If you're generating your own electricity - especially with wind, hydro or PV systems - you will need to:
- have batteries to store the energy as it is generated, or
- be connected to the grid so you have a backup supply, or
- have an additional generating option available to ensure an uninterrupted supply.
Batteries
If you are using batteries, you'll need enough to store electricity for when your generators are not working. This could be several days' supply if you rely on wind and sun.
Your batteries will also be able to store electricity to meet your peak demand when several appliances are switched on at the same time.
They will need to be deep-cycle batteries. Most batteries, for example those used in vehicles, are damaged if you use up too much of the charge. Deep-cycle ones can survive regular discharge below 50%.
There is a range of options, but lead acid batteries are the cheapest for large-scale storage. Renewable energy systems usually use what's known as wet batteries, rather than sealed or gel batteries.
Batteries emit corrosive and inflammable gases during the final stages of charging, so they should be installed in a well-ventilated structure separate from your house.
They will need to be properly installed and maintained to keep them safe and in good condition. Check with your supplier and follow the manufacturer's instructions. They may need replacing every 6-8 years.
A bank of batteries sufficient for one home may cost anywhere from about $1000 to about $4000 (2006 prices) depending on capacity.
Other equipment
If you have your own power generation system and store power in batteries, you will also need other equipment such as:
- an inverter to convert direct current (DC) stored by the battery to 230V alternating current (AC) used in standard appliances
- a rectifier to convert AC to DC before battery storage
- a controller to make sure the output is 230V and 50Hz, and that the battery doesn’t overcharge. It sends the excess power to a resistance element which can get very hot.
You'll also need cables, which should be thick enough to carry the highest current. The shorter they are, the less power you'll lose along the way. If they must be long, the voltage must be increased - which means you'll need more equipment to change the voltage levels.
Note that a registered electrician must do all work with 230V equipment.
Selling to the grid
Your power retailer will sell you power at one price and may buy power from you at another price. You'll need a contract with the retailer.
Depending on how your power is generated, the lines company may not accept very small quantities of fluctuating power. This may mean you have to use a battery as intermediate storage before sending the power back to the network.
Different suppliers allow different options, so check before you install a system. If you're connected to the grid, you'll have to pay monthly supply charges.
You will also need a control system that prevents power being sent to the grid when the grid is down to ensure the safety of anyone working on the lines.
Energy efficiency
Home electricity generation is expensive so you don't want to buy a bigger system than you need.
Before installing any type of home generating equipment, make sure you reduce your electricity use with insulation, energy efficient light bulbs, gas cooking, solar water heating etc.
More information
From Smarter Homes
From other sites
The Energy Efficiency and Conservation Authority's website has a page about renewable energy and a factsheet Factsheet 6: Standalone Power Systems (PDF, 330KB).
The Australian Greenhouse Office has a web page about remote power systems.
The Australian Research Institute on Sustainable Energy's website has a page on remote power systems.
The Electricity Commission's website has sample contracts for electricity customers, which include clauses relating to sale of electricity back to an electricity retailer.
