Solar Power

[Kevnool (Kev)]

I hear on the radio a solar company advertising to put 1.5kw panels on the roof and also the inverter plus instalation for $0.

It falls in my postcode of 2880 so what i am led to believe is for 100 dollar deposit which you get back within 60 days of the install you get a fully functional outfit.

But looking into it i dont get the solar credits back the company collects the power credits when and if it goes back into the grid.

Or buy the whole shebang for 3 grand and keep the credits myself.

Anyone else doing this as would love to hear.

cheers Kev.

[beefking (Nathan)]

There are two different sets of rebates for rooftop solar panels - RECs and feed-in tariffs.

The "solar credits" are RECs (renewable energy certificates) - they are a one off bonus and represent the power generated over 15 years of operation.

They are separate to any feed-in tariff you might be able to get. The installer should help you be eligible, but should have no financial claim over that arrangement. In NSW you can get $0.60/kWh for the power you actually generate - this is metered separate to your usage and the money is paid to you by your electricity retailer.

NSW Feed-In Tariff Scheme

hope this helps - I've babbled on a bit below about RECs, where to get more info, and what keeping them for yourself might mean. Let's just say, keeping them for yourself might look good on paper, but selling them would be a major hassle. The feed-in tariff on the other hand is a bloody great deal, and well worth exploiting.

Attached to small rooftop PV systems is a five times multiplier in RECs - look this up on the office of the renewable energy regulator www.orer.gov.au

you can either keep the RECs and pay $3000, or sell the RECs to the installer for $3000 (offsetting the cost of installation). You would get about 170 RECs for 1.5kW at postcode 2880 - so the installer has valued the RECs at about $17 bucks each (that's not much).

If you keep the RECs for yourself, the only way to get value out of them is to sell them in the RECs market. To do that you will have to register them in the market and then find a broker to sell them for you. I believe the market price is about $35, so you could end up better off if you think it's worth the effort.

I think you would have trouble finding a buyer for only 170 RECs though. Most REC transactions are for around 5000 certificates.

[wavelandscott (Scott)]

Kev,

I don't have an opinion from the "Northland" but I am fascinated by the problem...

It is clearly an "economics" issue and you could calculate which is best for you based on your situation...and the assumption/contract associated with the offer.

The company providing this offer clearly believes that between any short term rebates and near term costs that the long term credits to them are worth more...

While it is hard to beat "free" installation today the long term value of the credit (most likely dependant upon legislated or market value) may be worth much more...

Keep us posted on what you decide.

[wavelandscott (Scott)]

Originally Posted by beefking

There are two different sets of rebates for rooftop solar panels - RECs and feed-in tariffs.

The "solar credits" are RECs (renewable energy certificates) - they are a one off bonus and represent the power generated over 15 years of operation.

They are separate to any feed-in tariff you might be able to get. The installer should help you be eligible, but should have no financial claim over that arrangement. In NSW you can get $0.60/kWh for the power you actually generate - this is metered separate to your usage and the money is paid to you by your electricity retailer.

NSW Feed-In Tariff Scheme

hope this helps - I've babbled on a bit below about RECs, where to get more info, and what keeping them for yourself might mean. Let's just say, keeping them for yourself might look good on paper, but selling them would be a major hassle. The feed-in tariff on the other hand is a bloody great deal, and well worth exploiting.

Attached to small rooftop PV systems is a five times multiplier in RECs - look this up on the office of the renewable energy regulator www.orer.gov.au

you can either keep the RECs and pay $3000, or sell the RECs to the installer for $3000 (offsetting the cost of installation). You would get about 170 RECs for 1.5kW at postcode 2880 - so the installer has valued the RECs at about $17 bucks each (that's not much).

If you keep the RECs for yourself, the only way to get value out of them is to sell them in the RECs market. To do that you will have to register them in the market and then find a broker to sell them for you. I believe the market price is about $35, so you could end up better off if you think it's worth the effort.

I think you would have trouble finding a buyer for only 170 RECs though. Most REC transactions are for around 5000 certificates.

Cool you already did an analysis...thanks for the links and program details...living now in the US I'd not seen any of that. My university training was in Resource Economics...I find the topic interesting...

[Jaybee (John)]

I have a solar installation, but in SA there is no Gross Feed in tariff so it is only the power I generate over and above what the household uses that gets fed back to the grid @ $0.60p/Kw. This equates to around $20 per month. The power that the household consumes from the panels rather than the grid has reduced my electricity bill by around $200 - $250 per quarter (including the $20.00 from the surplus fedin)
My understanding is that with a Gross feed in Tariff all the power that a PV installation generates is fed to the grid and you get a rebate annually paid for the full amount.
You continue to purchase electricity normally throughout the year, but the rebate you get back would offset this cost.
If it is just the RECS that the installers are keeping to give you a $0 system, I would go for it. It seems a lot of trouble to try and sell them yourself.
If its the RECS and the Feed in tarif that they are keeping, I would consider purchasing for $3K. You will eventually get the outlay back and then be in front.

[beefking (Nathan)]

heh, I work in the industry, it's a common set of facts to reel off.

The solar bonus scheme they brought in had some interesting side effects - RECs are supposed to prompt investment in large scale renewables as well as rooftop PV (let's face it, rooftop PV is a very expensive option compared to say, a major wind farm).

The effect of the solar credits was to drive such a huge uptake of rooftop PV (woohoo!) that the market for RECs crashed from ~$50 to ~$25 (d'oh!). It put a lot of big projects in limbo, especially large solar thermal projects (which we need desperately, imho)

there's a proposal to "fix" the market again, but by making it more complicated. It's a good example of
1. how markets are awesome at solving problems,and
2. how tiny changes can completely misdirect them.

[Kevnool (Kev)]

Thx all for the info will ring the company up on monday and put a few of these REC,S and feed in tariff questions to them.

Scott i,ll keep ya posted.

Cheers Kev