Solar energy for your home ...

The Manning Branch held a Solar Information Night on 5 May 2010 in Taree.

Here is a summary of facts on grid-connect domestic solar electricity and solar hot water, which is being kept up to date.

Why generate Solar Power? About RECs
Getting Solar for My Home Gross Meters & Feed-in Tariffs
Solar Hot Water Being a solar energy junkie
 
Why generate Solar Power?

NSW electricity prices have risen by more than 20% in the past year and are expected to rise by a total of 42% during the next three or four years - mostly due to the major upgrades of transmission lines.

Now is the time to invest in your own power generation and add dispersed green energy to the grid!

If you needed some extra incentive:

  • The NSW government is paying 20c/kWh for all electricity generated by new small-scale renewable energy systems until 2017 as a gross feed-in tariff. This offsets the price of any power used. (Older solar systems, purchased by 27 October 2010 receive the much more generous 60c/kWh, which is nearly 3 times the domestic price for electricity charged by Country Energy).

  • The price of solar panels has gone down considerably during the past year and are unlikely to get much cheaper in the immediate future.

  • The Federal Government currently gives additional credits for grid-connected solar systems through increased Renewable Energy Certificates (RECs).
Together, these make solar electricity much more affordable and a worthwhile investment although not as attractive when the higher gross feed-in tariff was payable.

 
About RECs

RECs (Renewable Energy Certificates) are certificates handed out by the Federal Government to people who produce their own renewable electricity or who save electricity by having a solar hot water system.

The Howard Government mandated a Mandatory Renewable Energy Target and RECs were introduced as the unit that measured electricity retailers’ achievement of that target. They also are used to measure the meeting of commitments of Greenpower (but individual RECs can only be used for either the MRET or Greenpower, not both). The target was increased by the Rudd Government.

RECs are sold on the market and therefore the value varies depending on demand. In March 2010, each REC was worth about $28; in late April they rose to $40 and are presently rising in value.

Your installer will tell you how many RECs you will get. The number of RECs you get depends on the size and brand of your system and its date of installation:
  • For solar hot water you will get approximately 17 - 46 RECs depending on your set up.

  • Under the Solar Credits scheme, new solar electricity systems will be eligible to have multiple RECs created for the first 1.5 kilowatts (kW) of capacity until June 2012.

  • For a 1.5kW system, you would receive about 155-160 RECs with the current 5-fold multiplier. For a 2kW system, you would receive about 165-170 RECS.
When you get your renewable electricity or solar hot water, you can hold on to the RECs to sell when you think the price is right through an agent (for a list of agents, see the Office of Renewable Energy Regulator website ), or let the installer take them to reduce your upfront cost of installing solar panels or solar hot water. Your installer will tell you what they would offer for RECs at the time of installation.

 
Getting Solar for My Home

Check that you have enough northerly facing roof with no shade from trees or other buildings. Shade on part of a panel will stop that panel producing electricity and may affect the efficiency of the entire bank of panels.

A tiled roof costs a little more than a metal roof for installations (between $200 and $300 more).

Installation involves putting panels on your roof, installing an inverter, changing your meter and cabling. An inverter converts the DC electricity your panels make to AC electricity that matches the grid’s supply.

It is advisable to get good quality panels and a good inverter. One guide to quality is to check the years of warranty. Buyers’ guides have been produced by: It is advisable to get a larger inverter than necessary for the system you are buying so that you can add to the number of panels over time without the expense of a new inverter. For example, if you intend to buy a 1.5kW system, it is advisable to get a 2 kW inverter.

To get 20c/kWh rebate in NSW you will need a gross meter . That means your panels and electricity meter should be on the same building. Some rural properties with panels on a shed and the electricity meter down the paddock or on the house have experienced extra costs because of the additional (underground) cabling required.

Even if you opt for net metering, extra costs could be incurred if your electricity meter is a very old one. Ask the installers when they give you a quote for panels.

When getting quotes:
  • Ask about the quality of the panels and inverter. As you get more quotes you will get an idea of the quality if more installers recommend certain panels and inverters. A true indicator is the number of years that the warranty lasts.

  • Ensure the installer does a site inspection and that the proposed site is optimal in terms of hours of uninterrupted sunshine (in winter and summer) and proximity to the meter box.

  • Ask the installer about gross metering .

  • Use price, and the quality of panels and inverter to compare quotes.

  • Once you choose your system and installer, he / she will help you with the paperwork to claim your rebates and RECs.

  • Once the panels have been installed, the installer will contact Country Energy to do their inspection and the system will be turned on.
The size of your system will depend on how much you can afford upfront. This will partly depend on the value of RECs. A 1.5kW system would attract 155-160. Assuming $40 per REC, you should be able to get a bit more than $6000 off the initial cost of installing the system.

Small-scale generators of other forms of renewable energy are also eligible for RECs (though not for the Solar Credit multiplier):
  • Domestic Wind Power: Wind power might be an option for those in areas with reliable wind. Electricity produced by small domestic wind generators also attracts the gross feed-in tariff of 60c/kWh. As well as mini-windmills (with blades of about 2 metres), there is now a Western Australian company selling their Wind Pods - apparently they are almost silent and suitable for use in urban areas. For more information see
    www.windpods.com

  • Mini Hydro: If you have a very reliable, quick running stream it is also worth considering mini hydro. These are also eligible for RECs and the gross feed-in tariff.

 
Gross Meters & Feed-in Tariffs

There is net and gross production of electricity.

Here’s an example to explain the difference: Say you produce 5000 kilowatt hours (kWh) a year from your panels but only use 3000kWh yourself at home. You have a net of 2000kWh that has gone into the grid to help power other houses. The gross is the 5000kWh your panels made. In existing systems signed up before 18 November 2010, NSW will pay 60c/kWh for all 5000kWh you generated. The ACT has a similar gross scheme paying about 40c/kWh whereas at the moment other states are paying for the net, i.e. just for the 2000kWh you didn’t use.

If you want to get 60c for every kilowatt hour you produce, you will have to have a gross meter installed by an electrician (Level 2 or above).

It might not be economical to install the gross meter if your panels are some distance from your electricity meter.

There has been a wide variation of quotes by installing electricians so it is best to get a number of quotes. Generally, for systems on the same roof as the electricity meter, gross meter installation has ranged from $100 to more than $300.

The gross metering scheme began in January 2010. It is officially known as the Solar Bonus Scheme. Because of the demand, there is a waiting period (although supply has recently increased and the waiting period is getting shorter).

The Solar Bonus Scheme (and its 60c/kWh rebate) is only guaranteed until 2017. The NSW Government suddenly reduced the rebate to 20c/kWh at midnight on 27 October 2010.

The new feed-in tariff is less than most rural Country Energy customers pay for their power. It is thus now recommended to stick to net metering and avoid the cost of a new meter.

For more information see the NSW Govt website .

A note to pensioners

Money earned via the gross feed-in tariff is regarded as "income" and so may affect your pension. However, solar feed-in tariffs that appear as credits on an electricity bill will be exempted from a pensioner's income test. It is only if you take these as payments (by cash or a cheque) that you will need to report them to Centrelink but they will be averaged over a year.

We recommend you seek financial advice at your local Centrelink for further information about these rules.

A note to landlords

A landlord who does not occupy the premises is unlikely to be eligible for the Scheme where the tenant is responsible for the consumption of electricity at those premises.

 
Solar Hot Water
An electrical hot water system is responsible for about a third of a typical household's electricity usage (and hence greenhouse gas emissions from stationary energy). Is it any wonder then that electrical hot water systems are being phased out?

New stand-alone homes are no longer permitted to have electrical hot water systems and a new replacement for your existing system will not be available after July 2012.

Here are some tips to help you make the transition:
  • There are various types of solar hot water systems. It is best to check what is most suitable for your home and your pocket, so ask your installer for best advice. For example, solar hot water can be gas or electrically boosted.

  • When deciding on the size of the hot water tank, it is wise to consider the capacity of the house (not just how many people live there now). You don’t want the water to run out when extra people are visiting or when the next owner’s family moves in.

  • As for solar electricity panels, a north-facing roof with no shade is best for flat paneled solar hot water systems. This is not as important for the models that use evacuated tubes (but some exposure to northern sun is still important in these).
  • Cleaning the panels once a year will improve performance (not so necessary for evacuated tubes).

  • If the hot water tank is to be installed on the roof, some reinforcements to roof structure might be necessary. Ensure installers check inside the roof at the time they give you a quote.

  • When you have your system installed, a booster switch will be installed, either in your kitchen or meter box. When it is cloudy and the water doesn’t heat, you put the booster on to heat the water (best done at night if you are connected to off-peak electricity).

  • Only use the booster switch when necessary. It probably won’t be needed more than once or twice a year depending on usage. Do not leave the booster switch on all the time!

Solar hot water does not produce electricity but instead uses the sun’s heat to produce hot water, in the same way as a black container of water will get very hot in the sun. Even though solar hot water systems are an energy efficiency device (rather than a generator of renewable electricity), they attract Renewable Energy Certificates . You will get approximately 17-28 RECs for installing solar hot water.

Other financial assistance is available in the form of rebates:
 
Being a solar energy junkie
Most people who install solar panels become very aware of their own electricity usage and try to cut it back as much as possible. That way they make even more money from panels! One Manning resident with a 2kW system received a $165 credit in his April account.

How do you do it? A general rule is that any electrical appliance that generates heat uses more electricity: the more heat, the more electricity. That’s why incandescent light bulbs are so inefficient as a form of light. Power tools also use a lot of electricity.

If you want ideas on saving electricity, find more on this website, your local council and electricity provider.

The Alternative Technology Association surveyed the owners of Solar Systems (see the report at the ATA’s website ).