Sail Ashore – Energy Savings Make Good Business Sense on Rakiura Stewart Island

The challenge

Running a small accommodation and guided tour business on Rakiura Stewart Island means operating with expensive, diesel-generated electricity and frequent power outages. For Sail Ashore owner-operators Iris and Peter Tait, finding a more reliable, cost-effective energy solution had to make sound business sense. As Peter puts it, “The project had to make sense in financial terms. And it has in spades.”

After gathering data with a solar logger, Peter worked with an Invercargill-based electrical installer to design a solar system capable of operating reliably in a remote location, where technical support is limited. “On an island a techie is not readily available,” he says, so dependable hardware was crucial.

Making the business case

For Peter, the environmental benefits were welcome, but they were not the main driver. Reduced non-renewable energy use and lower carbon emissions were “a very acceptable spinoff”, he says, “but not the driving imperative”. The primary challenge was the high cost of energy on Rakiura Stewart Island and finding a way to protect the business from future increases in fuel and electricity prices.

The transition was a process of trial and error. Peter soon realised the original solar capacity had been underestimated — it was adequate for summer, but nowhere near enough for winter. The business also had to adapt how and when energy was used to make the most of peak solar production.

Over time, that led to practical changes such as discretionary circuits, with water heating, bathroom heating and EV charging switching on only when batteries are above 98% full. Integrating backup generation and using the electric vehicle as a backup battery source also required some adjustment — but the effort has paid off.

The investment is now delivering a return of around 18–19% on capital costs, with benefits being seen all across the business. Home diesel consumption has dropped by just under 80%, LPG has been eliminated entirely, and vehicle diesel use has likely reduced by at least 80%.  The business also avoids purchasing around 3,000 litres of diesel-generated electricity from the local network each year. For a small tourism operator in a high-cost environment, those savings add up and make a real difference to the bottom line.

 The benefits extend beyond lower energy bills. The system has improved business resilience, staff operations and the visitor experience. Sail Ashore can continue operating through Rakiura Stewart Island’s regular power outages, bathrooms can be heated throughout the day to help manage dampness, and guests can dry gear easily and quickly at no additional cost. The electric vehicle used for tours provides “free” fuel, and because it is silent, Peter says it gives guests a far better tour experience.

While guests are interested when Peter explains the challenge of high island energy costs, he is realistic that it probably does not directly drive bookings. The value is more practical: lower operating costs, greater resilience, and a better-quality experience for guests.

The payoff

Sail Ashore’s experience shows that sustainability can start with a practical business decision. In this case, the starting point was reducing costs and improving their control over energy use. It also shows you do not need to get it perfect the first time — trial, error and ongoing improvement can still lead to strong results.

 Sail Ashore sees the current system as just the beginning, their next goal is to replace the diesel seven-seater van use for larger tour groups with an EV people mover, further reducing fuel costs and dependence on diesel. Want to make a change that cuts costs, builds resilience or improves your business? Akiaki’s Energy Efficiency for Tourism: Reducing Costs and Carbon While Enhancing the Guest Experience course can help you identify practical energy-saving opportunities, reduce operating costs and strengthen your business case for change.  Akiaki courses are free to all TIA members.  Follow this link to register.