Switching to solar
WORDS
Michael Green
As electricity prices increase, more people are turning to solar power to reduce their reliance on the electricity grid. For those who want to make the switch, Michael Green covers the basics of solar PV.
THERE’S A BASIC FACT THAT A
households it’s been the best of times and
surprisingly large number of people haven’t yet
the worst of times. Let’s start with the worst:
grasped about solar energy. “We still get queries
changes to government rebates.
from people who get solar photovoltaics mixed
up with solar water heating,” says Mick Harris,
is based on the trading value of ‘small-scale
managing director of eco-retailer EnviroGroup.
technology certificates’ (STCs, formerly known
“It’s really a matter of understanding what you
as RECs), which are created when renewable
want.”
energy systems are installed. Right now, eligible
It’s a simple point, but it underscores
householders receive a credit of three times the
the most important thing prospective panel
certificate price, which fluctuates according to
purchasers need to do – research well.
market demand. From 1 July 2012, the credit
Your deliberations will be detailed, from the
multiplier will be reduced to two, meaning the
technology and rebates to installation issues
rebate for householders will fall by one-third.
and variable electricity charges. But don’t be put
off – once the panels are in place, maintenance
governments have also been cut. These feed-in
is minimal. For at least 20 years, you’ll be able to
tariff schemes pay people according to how
sit back and enjoy the sunshine.
much energy a household supplies to the grid.
The Federal Government’s cash-back rebate
Most of the incentives offered by state
Queensland’s feed-in tariff is the last one intact TECHNOLOGY
[at the time of printing] – elsewhere they’ve been
There are three common types of solar PV
reduced, phased out or abolished overnight.
panels: monocrystalline, polycrystalline and
thin film. Most of the panels sold in Australia
Clean Energy Council, says that despite these
are of the mono and poly kind. Thin film is
cuts there is good news for household solar PV
much less efficient – it needs nearly double
that shouldn’t be overlooked. Overall the price
the roof space of other panels – but requires
hasn’t increased significantly, thanks to lower
far less silicon to make and has less embodied
production costs and the high Australian dollar.
energy. Lance Turner of the ATA adds that there
A 1.5 kilowatt grid-connect system can cost from
is also a hybrid panel made by Sanyo which
$1500 to $6000 installed (including the federal
is a combination of crystalline and thin film
rebate).
technologies. “These perform particularly well,”
he says, “but at a price premium.”
down dramatically over the last few years,” he
says. “Even five years ago, buying solar was a
If you’re technically minded or bent on getting even more from your PV system, consider installing your solar panels on an adjustable frame called a ‘solar tracker’. This enables them to be tilted to the optimum angle for maximum solar exposure across the year. Read more about solar trackers in ReNew magazine, issue 119. Image courtesy Geoff Thomas
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“The price of solar technology has come
will need an inverter, which converts the DC
major financial decision, like buying a car. But
(direct current) electricity produced by the
now that it’s in the ballpark of $2000, people put
panels to AC (alternating current) and feeds any
it on their credit card and get on with their lives.
excess electricity into the grid.
The market has changed dramatically.”
D
As well as the panels on the roof your system
Tim Sonnreich, policy manager at the
‘Building-integrated’ photovoltaic systems
such as tiles, facades or glazing are uncommon.
WHAT SIZE SYSTEM SHOULD I GET?
Susan Neill, from engineering consultancy
The answer to the all-important question of
Global Sustainable Energy Solutions, says those
size, says Mick Harris, will become clear when
systems are much more expensive: “It tends to
you ask three additional questions. “Firstly,
be driven by airports or iconic buildings that
how much room have you got? That’s going to
want to make a statement by putting it in.”
limit how much you can put on your house,” he explains. “Secondly, how much of your energy
REBATE MADNESS
bill do you want to get rid of? And thirdly, what
For the solar PV industry in Australia and for
is your budget?” a
PRODUCT PROFILE
D
SOLAR PV
D
Profiled in Sanctuary 18, Aaron Cuneo and Geoff Ross’ NSW hinterland home boasts an off-grid 4.2 kilowatt solar PV system. Before purchasing it, Aaron and Geoff did exhaustive research into energy efficient appliances and the house’s total energy load, to ensure the system would be adequate for their needs. Image by David Tooby
In the city, the comparatively much lower upfront cost of a grid-connect PV system is likely to be a better choice than a stand-alone system. Image courtesy Nick Stephenson
Estimated solar PV system costs and payback periods for a 2.0 kilowatt system This map estimates average solar PV system costs and payback periods by state for a quality 2 kilowatt system that has been installed to standards set by the Clean Energy Council, as modelled by the ATA in March 2012. This information should be used as a guide only as the cost and payback period of solar PV systems vary significantly based on a number of factors, including location, system size, solar exposure, export rates and government incentives, to name just a few. To work out the cost of a PV system for your house, seek quotes from accredited solar installers.
NT * $3,400 6c/kWh 19c/kWh 10 years
QLD $3,910 44c/kWh (net) 21c/kWh 5 years
WA $3,910 7c/kWh (net) 21c/kWh 11 years
SA $3,910 22c/kWh (net) 21c/kWh 8 years
NSW $3,910 8c/kWh (net) 19c/kWh 13 years
MAP LEGEND Retail system price Feed-in tariff (FiT) rate (net/gross) Electricity price (per kWh) Estimated payback (50% export)
ACT * $3,910 6c/kWh 16c/kWh 15 years
VIC
* No legislated feed-in tariffs are currently available in these states. Solar proponents may be able to negotiate a rate for feed-in direct with their electricity retailer, which could be reflective of that retailer’s wholesale cost of energy. Proxy feed-in rates have therefore been used for the purpose of this modelling exercise.
$4,390 25c/kWh (net) 27c & 11c/kWh 18 years
TAS * $4,390 6c/kWh 20c/kWh 15 years
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PRODUCT PROFILE
SOLAR PV
upfront for a good-quality system that will
ASK QUESTIONS
the mono and polycrystalline kind. Even a small
Shade is death for solar panels, especially
provide you plenty of savings on your electricity
Some local councils or community sustainability
amount of shading significantly reduces the
bill over time.”
groups still coordinate bulk purchases, though
efficiency of the whole system, so there’s no
Susan Neill suggests that before buying
they’re less common than they once were. If you
point buying one if you have a mighty big tree
you should request an indication of the panels’
haven’t the time or the head for research, these
blocking the sun. Ideally, for a small system,
performance. “Ask for a performance guarantee
schemes are a good source of information.
you’ll need at least 10 square metres of roof
that the system will produce a certain number
space facing north.
of kilowatt-hours per year, on average, for
Energy Council’s consumer guide to buying
your location,” she says. “Then you’ll have the
solar panels. It contains a comprehensive list of
knowledge to check it yourself.”
questions to ask, but the legwork is up to you.
Next, take a good look at your electricity
bill and make a note of how much you use. The average Australian household consumes
Even so, start your research with the Clean
“Shop around. Don’t make a snap decision,”
18 kilowatt-hours (kWh) a day, according to the
ENERGY RETAILERS AND DISTRIBUTORS
Sonnreich suggests. “Find a company that is
Clean Energy Council. The output of panels
You need to let your energy retailer know if
prepared to talk the issues through with you.”
varies throughout the country, but a 1.5 kilowatt
you’re going to install a solar PV system. Many
system will offset roughly a third of the average
retailers will offer you a premium for the
information about solar electricity, systems,
daily consumption.
electricity you export to the electricity grid, but
rebates and more: www.ata.org.au. The ATA has
don’t be bamboozled by that rate alone: make
a booklet on the subject, Solar Electricity: Plan
to think more broadly about where you use the
sure you find out what your new tariff and fee
your own solar electricity system, and ReNew
electricity you consume. If you have an electric
structure will be.
magazine regularly publishes solar PV buyers’
hot water service, it probably accounts for about
guides.]
a quarter of your bill, Sonnreich says. “Hot water
much is it really going to change your bill?”
is a major expense, so if you don’t have much
Sonnreich says. “You might get a better rate
sleuthing. “There’s a mixture of players out there
rooftop space, solar hot water might give you a
for the power you export, but you might pay
in the market – some of them are good and some
better return than PV.” [Ed note: See Sanctuary
more for the power you import. Do the sums on
are not so good,” he says.
15 for an overview of solar water heating,
everything.”
although note that government rebates may
the words ‘problems’ or ‘complaints’, you’ll
have changed since publication.]
companies, ask them about your new meter –
soon find out which is which. It’s also worth
who will supply it, how will it work and how
checking the popular forums on the Whirlpool
much will it cost?
and ATA websites. “You can protect yourself
At this point in the research process, it’s wise
INSTALLATION
“You have to ask the whole question – how
And while you’re speaking to the energy
Up to half the cost of your solar electricity
[Ed note: the ATA website also has
Mick Harris also recommends some
If you google a solar retailer, together with
from the worst of the companies by doing some
system will go towards its installation, and as
OFF-GRID SYSTEMS
with any job around the house, you’ll want to
Stand-alone renewable energy systems are much
make sure it’s done well.
more expensive upfront than grid-connected
LINKS
systems. As well as the panels, you’ll need
More information about solar PV
significantly according to their orientation,
batteries, a regulator to manage the way they
Clean Energy Council consumer guide:
access to full sun, and whether they’re angled
charge and possibly a backup generator.
solaraccreditation.com.au
appropriately for your latitude. With that
cleanenergycouncil.org.au
in mind, quiz your solar company about all
ATA commissioned research into the cost of off-
ATA Solar Electricity info and guide:
these requirements, and about their installers’
grid systems compared to grid infrastructure.
www.ata.org.au/sustainability
experience.
ATA forum
connect,” says Damien Moyse, “but if you have
www.ata.org.au/forums
tariffs, you must use an installer accredited by
an efficiently operating house, then you can set
Whirlpool forum
the Clean Energy Council. (You can find these
up one of these systems for $20,000 to $30,000
whirlpool.net.au
installers at www.solaraccreditation.com.au).
and it’s going to generate electricity for at least
The output of your panels will vary
To be eligible for the rebates and feed-in
After the Victorian bushfires in 2010, the
“The capital cost is high compared with grid
homework online,” Harris says.
20 years and longer.”
Suppliers and installers
order to be able to access the upfront discount
gses.com.au
provided by the Small Technology Certificates
Smart meters now allow retailers to set time-of-
envirogroup.com.au
(STCs) that are traded back through the
use tariffs that incorporate high rates for peak
CEC’s ‘Find an Installer’ page:
renewable energy market,” says Damien Moyse
time energy use. “If you are a household that
solaraccreditation.com.au
from the ATA. He adds that when choosing
cannot avoid consuming energy during these
a system and an installer, it’s best not to just
peak times, the long-term cost of installing
choose the cheapest one. “Solar, like any other
batteries and electricity backup may become
technology, depends on quality for performance,
an attractive option,” Moyse says. “However, in
and you want a system that will generate for
most circumstances this will not yet be the case
at least 20 to 30 years. Consider the warranties
and a grid-connect system will still offer plenty
closely and be prepared to pay a little more
of opportunity to avoid peak rates.”
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“You must use an accredited installer in
Is there any cause to go off-grid in the city?