He yesterday said there were under-utilised grants available to help with the purchase of solar systems and that the government had committed NZ$200,000 in the 2003-04 Budget to EnergyWise Solar Water Heating Grants.

Hodgson estimated that by June the grants would have helped put over 400 solar water heaters on kiwi homes - 20% more than otherwise would have been installed. There was significant potential for households to save power and money as water heating was responsible for between 30-45% of the average household energy bill.

"Solar is a renewable form of energy, producing no greenhouse gas emissions and reducing the need for electricity generated with fossil fuels such as coal and gas.

Every year around 70,000 new water heating systems were installed in New Zealand's 1.3 million homes but only 2000 of those were solar, compared with the solar industry's medium-term target of 10,000 solar water heating installations a year.

Increasing sales fivefold would make a valuable contribution towards achieving New Zealand's national renewable energy target, urged Hodgson.

A NZ$450 grant is available to people who take out a loan to purchase a solar water heater from participating Solar Industries Association suppliers.