The first was to Fairbank Dairy Farm near Drummond.
Their solar-and-battery powered farm came to my attention during last October’s ferocious wind storm which knocked out power across Southland and Otago.
Fairbank kept milking and kept the milk cold thanks to their solar, battery, inverter and chiller system.
Their return on investment makes me think other southern farms could benefit from solar.
Fairbank is an 800-cow farm with a 64-bale rotary shed.
They’ve reduced their energy demand from the grid by 85%-90%.
They installed their entire setup for about $180,000 — including 200 MW of batteries (~$140,000), solar panels (~$30,000), plus inverter and installation costs.
Their 136 panels can generate 76 kW/hour.
They got an immediate 20% deduction on all that kit thanks to the National Party’s Investment Boost tax incentive.
Their tax advice is that the batteries will depreciate by 40% each year, so essentially pay for themselves in two.
The panels have the immediate 20% Investment Boost tax deduction, plus 16% diminishing value depreciation, so on their $30,000 cost more than a third is depreciated in the first year.
Their inverter allows them to have a first-of-its-kind chiller, keeping milk at 2˚C-3˚C, which opens potential for new product markets such as high-grade pharmaceuticals.
With the significant energy cost savings, investment boost and tax depreciation considerations, plus ability for farms to apply for low interest "green loans", solar presents a compelling opportunity to build profitability and resilience.
Solar fits with our milking cycle, as months when cows are dried off coincide with the time of year we experiences less sun.
I also took a trip to the top of one of the wind turbines at White Hill Wind Farm near Dipton and had a yarn with Dave Beer who lives locally and established NZ Wind Services — now employing around 20 people working nine wind farms across New Zealand, including in the Chatham Islands.
They’ve been generating electricity in Southland now for about 20 years and likely have at least another 10 years to run.
South Otago has huge potential for wind generation, and it is good to see proposals for local wind farms progressing, such as Kaihiku Wind Farm between Balclutha and Clinton, which could generate enough energy to power 135,000 households.
A final mention this week on the National Party’s announcement that if elected it will double QEII Trust funding.
This is about recognising that, for nearly 50 years, New Zealand farmers have been quietly protecting the best of our natural habitat on their own land, at their own cost.
We’re backing them to keep going.
More funding will support landowners with costs like fencing, surveying and legal work — costs that can often stop good projects going ahead.
Farmers and catchment groups in South Otago have been doing great proactive work to support water ways and wetlands.
This funding will strengthen that work in our community.
