Solar Power

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Winter is here! Despite many Australians opting not to heat their homes to the point of complete comfort, many of us nevertheless will soon receive a nasty surprise when the energy bills arrive.
With Australia’s historically cheap energy, old housing stock in many areas, mild climate and frequent emphasis on low building costs, many homes are little more than “glorified tents” when it comes to thermal performance.
Besides wanting smaller bills, many residents also want to improve comfort, lessen their environmental impact and boost their home’s value.
So here is a list of 22 things you can do to improve your home’s energy performance – some cheap, some free, and some that can even make you some money up-front as well as cutting your bills. Of course, to reach the ultimate goal of a home heated and powered by 100 percent renewable electricity you may still wish to put some solar panels on your roof, but why not consider the following actions first?
1. Make sure you get the maximum discount on your energy bills. Although not available everywhere, in Victoria discounts of up to 38% are available on gas or electricity. Ring up your retailer and just ask, or threaten to switch, or better yet seek out a retailer that doesn’t treat their discounts like state secrets.
2. Monitor your power usage with the help of a “smart” electricity meter or in-home electricity display. This real-time (or near-real-time) information is more useful than the coarse monthly data commonly printed on energy bills. It can help identify appliances that have inadvertently been left on or those that draw excessive power when not in use.
3. Heat your water off-peak. If you have a resistive-electric hot water storage tank, make sure it heats up at night, when off-peak power rates apply. In some areas, “time of use” rates are available.
4. Get rid of your ‘garage fridge’. It can cost hundreds of dollars a year to run an inefficient 20-year-old fridge, especially if it’s in a garage that hits 50℃ in summer.
5. Ditch your super-hot plasma. If you have a 10-year-old television that gets so hot you can fry an egg on the screen, check out the newer models that can use one-tenth of the electricity.
6. Install a modern showerhead, such as those designed with double-impinging jet technology that use only 5 litres of water per minute. Old showerheads can pass up to 35 litres per minute. Why not grab a bucket and stopwatch and test yours?
7. Insulate any exposed hot water pipes, including the pressure-relief valve on your hot water tank. Make sure hot water pipes do not run uninsulated straight into the soil in your garden. Insulate electrically heated storage tanks where it is safe to do so.
8. Check your heaters and air conditioning. Gas heating systems should be checked at least every two years by a qualified person, not least to keep poisonous carbon monoxide gas at bay. All heating or cooling system filters should be cleaned regularly to improve energy efficiency and air quality.
9. Inspect your ducts. Poorly installed or degraded ductwork can lead to big energy losses, which can go unnoticed for decades. Ensure that small children or animals have not gone under your house and damaged your gas heating ducts. Check also that air returns are properly “boxed-in” and do not draw air in from the wall cavity instead of from the living space. However, cleaning the inside of your ducts is not critical for energy saving, and risks damaging them in the process.
10. Banish drafts, for instance by plastering over those ubiquitous wall vents – relics from the days when homes relied on unflued heaters or gas lights. Seal off unused chimneys and fill any other cracks, gaps or holes around doors, windows, skirting boards, floorboards and architraves. Remember to close air-conditioning ceiling vents in winter. Ventilation should be controlled by opening windows, not by having permanent holes in the walls.
11. Eliminate ceiling-mounted downlights wherever possible. A small number of modern wide-beam LEDs can adequately replace a larger quantity of narrow-beam halogen downlights. Aim to have as few holes cut into your ceiling as possible, because these holes let heat escape in winter and let it in during summer.
12. Install downlight covers over all downlights that protrude into accessible attic spaces. Not only does this reduce fire hazards and keep out insects, but it will also reduce air flow through the roof.
13. Replace all regularly used lights with LEDs. LEDs use a tenth of the energy of halogen or incandescent bulbs, so will pay for themselves in just a few months (even less in places where free replacement is on offer). Replace less regularly used bulbs with LEDs as and when they burn out, and vow never to buy a non-LED bulb again.
14. Insulate your attic…. If you don’t have roof insulation, buy some. If you do, check it meets the recommended “R value” for your climate. Ensure all vertical attic surfaces (walls, skylight tunnels) are also insulated, and include a layer of aluminium in your attic space. Thermal imagingcan be used to identify existing flaws, such as gaps or sections of insulation inadvertently moved by tradespeople working in the attic.
15. …and your floors and walls too. In cooler Australian climate zones, floor and wall insulation can help keep heat in, making your home warmer and cheaper to operate.
16. Cover your windows from the inside… with drapes, curtains or blinds. This will keep in heat at night and on cold winter days, and keep out the sun in summer. Cheaper or do-it-yourself thermal window treatments such as plastic films or even bubble wrap can be applied in some situations (just don’t expect to win any design awards).
17. …and the outside. Trees, plants, external awnings, blinds or shade sails can all keep out the summer sun and stop windows getting hot. Remember that significant heat will reflect onto windows from sizzling decks, paved areas and walls (but not lawns). It’s better to keep out the sun in the first place rather than try to cool your house down.
18. Double glazing for windows cuts out noise, improves security and saves energy too. For many Australian climate zones, I recommend that homeowners never buy a window in future that isn’t double-glazed. Retrofit options options such as “secondary glazing” are also available.
19. Fit a pool cover if you have a swimming pool. Not only will this stop the water cooling down overnight in summer, but a cover can also minimise cleaning, chemical use and the running time for your filter pump. Consider upgrading to a more efficient pump if yours is more than a decade old, and ensure it does not run for more hours each day than required. 
20. Use reverse-cycle to heat your home…. If your home has reverse-cycle air conditioning (also known as a heat pump), this may be the cheapest way to heat, especially as gas prices rise. On heat mode, reverse-cycle units harvest free renewable ambient heat from the air outside your home and pump it up to the toasty temperature you need inside. Having installed high-efficiency reverse-cycle units, I can heat my own home for one-third of the cost of ducted gas heating.
21. …and your water. If your hot water system is nearing its use-by date, consider replacing it with a heat pump. This is an especially good option for homes that already have solar panels and low feed-in tariffs.
22. If you can eliminate all gas use in your home (for space heating, water heating and cooking), you can eliminate your gas bill with its nearly A$1 per day fixed supply charges.
<h2>And then there is solar…</h2>
In Australia these days, you won’t be paid much money for selling your electricity back to the grid. However, it might still pay to install solar if you can consume most of the energy yourself, by running your pool pumps, appliances, space heating and cooling devices, hot water system and even an electric car with solar electricity harvested during the day.
In future, as electricity storage batteries get cheaper, there may be even more economic reasons to have solar panels on your roof.
This article doesn’t list every possible behavioural trick or home improvement. Sadly, some homes will never be fantastic energy performers without significant modification. But hopefully there are a few things on this list that will work for you – even if it’s only a case of finally covering that drafty doorstep, or giving your creaking “beer fridge” a dignified retirement.
Tim Forcey is energy advisor, Melbourne Energy Institute, University of Melbourne and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/tim-forcey-104740" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

 22 ways to cut your energy bills (before spending on solar panels)

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<img src="https://counter.theconversation.edu.au/content/79172/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">GUEST OBSERVER
While there are now more solar panels in Australia than people, the many Australians who live in apartments have largely been locked out of this solar revolution by a minefield of red tape and potentially uninformed strata committees.
In the face of these challenges, Stucco, a small co-operative housing block in Sydney, embarked on a mission to take back the power. Hopefully their experiences can serve as a guide to how other apartment-dwellers can more readily go solar.
From an energy perspective, Stucco was a typical apartment block: each of its eight units had its own connection to the grid and was free to choose its own retailer, but was severely impeded from choosing to supply itself with on-site renewable energy.
Things changed in late 2015 when the co-op was awarded an Innovation Grant from the City of Sydney with a view to becoming the first apartment block in Australia to be equipped with solar and batteries.
A central part of Stucco’s plan was to share the locally produced renewable energy by converting the building into an “embedded network”, whereby the building has a single grid connection and manages the metering and billing of units internally.
Such a conversion seemed like an ideal solution for solar on apartments, but turned into an ideological battle with the electricity regulator that took months and hundreds of hours of pro bono legal support to resolve.
In this way the Stucco project grew to embody the struggle at the heart of the Australian electricity market: a battle between choice and control, between current regulations that mandate consumers to choose between incumbent retailers, and the public’s aspirations for green self-sufficiency.
<a href="https://www.propertyobserver.com.au/images/2017/06/22/Screen%20Shot%202017-06-22%20at%2012.47.08%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/22/Screen%20Shot%202017-06-22%20at%2012.47.08%20PM.png" alt="">
A chicken and egg problem
Embedded networks have been around for decades. Yet if the Australian Energy Regulator had its way, they would be banned as soon as possible.
The reason for this is that they inhibit consumers’ choice of retailer: consumers are forced to buy their electricity from the building’s embedded network management company, which may exploit its monopoly power.
Yet it doesn’t have to be this way. At least one company in Germany allows apartment residents to buy power either from their preferred grid retailer or from the building’s solar-powered embedded network. This business model relies on Germany’s smart meter standards that ensure all market participants can access the data they require.
We currently find ourselves in a standoff. The regulator is waiting on companies to offer solar powered embedded networks that include retail competition, while companies are waiting on the regulator to create an accessible playing field that would make such services viable.
The recently released Finkel Report touches on this by recommending a “review of the regulation of individual power systems and microgrids”.
Stucco’s bespoke solution
In the absence of such a solution, Stucco made a unique agreement with the regulator: the co-op committed to cover fully the costs of installing a grid meter for any unit whose occupant wishes to exit the embedded network in the future.
Such a commitment was feasible because Stucco’s residents, as co-op members, have direct input into the management of the network including controlling prices (that are mandated to be cheaper than any grid offer). But it is difficult to image regular strata committees accepting such liabilities.
Embedded networks are therefore not the best general solution for retrofitting solar on apartments, at least not under current regulations. This is unfortunate because they represent the best utilisation of an apartment block’s solar resource (Stucco’s system provides more than 75% of the building’s electricity) and are therefore increasingly being adopted by developers.
Advice for apartments
<a href="https://www.propertyobserver.com.au/images/2017/06/22/Screen%20Shot%202017-06-22%20at%2012.46.14%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/22/Screen%20Shot%202017-06-22%20at%2012.46.14%20PM.png" alt="">
The good news for residents of existing apartments is that there are easier routes to installing solar. The even better news is that the cost of solar systems has plummeted (and continues to do so), while retail rates continue to skyrocket, so much so that body corporates are reporting rates of return of 15-20% on their solar investments.
The recommended options for apartments are epitomised by the old adage “keep it simple”. They fall into two categories: a single solar system to power the common area, or multiple smaller systems powering individual units. Which of these is best suited to a particular apartment depends primarily on the building’s size (as a proxy for its energy demand).
For buildings with 1 square metre of sunny roof space per 2m² of floor space (typically blocks up three stories high), it is worth installing a solar system for each unit, as these will typically be well matched to unit’s consumption.
Taller buildings (with less sunshine per apartment) are better off installing a single system for the common area, particularly if this contains power-hungry elements such as elevators or heating and cooling systems.
<a href="https://www.propertyobserver.com.au/images/2017/06/22/Screen%20Shot%202017-06-22%20at%2012.44.55%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/22/Screen%20Shot%202017-06-22%20at%2012.44.55%20PM.png" alt="">
But here’s the crux: no apartment can install solar without the political support of its strata committee. While this hurdle has historically tripped up many initiatives, increased public awareness has created a groundswell of support. Plus you may need fewer votes than you think.
While this article focuses on solar, it is important to remember that the first priority for any building should be to improve energy efficiency, by installing items such as LED lights, modern appliances, and insulation and draft proofing. For advice on these opportunities see the City of Sydney’s Smart Green Apartments website and the Smart Blocks website.
Lastly, adding batteries to an apartment solar system creates extra challenges, for instance fire-prevention planning. But it allows for far greater energy independence and resilience, and a chance to join the future of distributed energy currently being enjoyed by so many of Australia’s non-strata householders.
Bjorn Sturmberg is Associate Lecturer in Physics, Macquarie University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/bjorn-sturmberg-377650" target="_blank">here</a>.
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Get in on the ground floor: how apartments can join the solar boom

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Nearmap, the Aussie aerial imagery company, has paired its high-res imagery with the latest Clean Energy Regulator data, revealing the postcodes around the country with the highest rooftop solar uptake since 2001.  Queensland showed why its called the ‘Sunshine State’ taking out seven of the top ten postcodes.
Western Australia claimed the remaining three spots. 
Postcode 4670 in South East Queensland topped the list with 11,756 homes installed with solar units, closely followed by 6210 in Western Australia, just south of Perth, with 11,409 units installed since 2001.
“From the ground it can be difficult to see the progress our country is making to reduce energy costs and our carbon footprint,” said Nearmap executive, Shane Preston, “but when you look at it from the air, you can observe in incredible detail the renewable energy uptake occurring across our country. 
"We’ve been capturing aerial images of Australia for the last 10 years, and have recently seen a dramatic change in the rooftop landscape, with many more solar panels on Aussie homes.” “However, this is just the beginning. As the benefits of renewable energies like solar continue to surface, we can expect to see more demand for installations. For businesses, having access to <a href="https://www.nearmap.com.au" target="_blank">Nearmap’s</a> high-res aerial images will become increasingly important.
"Using this imagery, solar companies can remotely identify new business opportunities, accurately estimate the power output and quote customers, all without leaving the office. 
"The ability to do all this remotely means businesses can not only save time, but can further contribute to reducing the carbon footprint by taking hundreds, if not thousands of cars off the road every year.” 
Australia’s top 10 solar postcodes:
<table style="height: 166px; width: 816px;" dir="ltr" cellspacing="0" cellpadding="0">
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<tbody>
<tr>
<td>Rank</td>
<td>Postcode</td>
<td>Example suburb within postcode</td>
<td>Units installed</td>
<td> </td>
<td> </td>
</tr>
<tr>
<td>1</td>
<td>4670</td>
<td>Bundaberg North</td>
<td>11,756</td>
<td>QLD</td>
<td><a href="https://www.dropbox.com/sh/hs5k5cd6fdit2zv/AAAUtUxapZEMV2JZ1cqPDw8Ca?dl=0" target="_blank" rel="noopener noreferrer"> </a></td>
</tr>
<tr>
<td>2</td>
<td>6210</td>
<td>Erskine</td>
<td>11,409</td>
<td>WA</td>
<td><a href="https://www.dropbox.com/sh/ahs6rpj1bwjclyz/AAB3rqaCSyTOjb89Cq-1ai40a?dl=0" target="_blank" rel="noopener noreferrer"> </a></td>
</tr>
<tr>
<td>3</td>
<td>4655</td>
<td>Nikenbah</td>
<td>10,517</td>
<td>QLD</td>
<td><a href="https://www.dropbox.com/sh/45m3mo29ux38vef/AABTBEh1XgbJ3bvJUNTtgZjsa?dl=0" target="_blank" rel="noopener noreferrer"> </a></td>
</tr>
<tr>
<td>4</td>
<td>4551</td>
<td>Caloundra</td>
<td>9,308</td>
<td>QLD</td>
<td><a href="https://www.dropbox.com/sh/gweytwq20zcsgdl/AABr_8G2LA4qs30SJH5il3h7a?dl=0" target="_blank" rel="noopener noreferrer"> </a></td>
</tr>
<tr>
<td>5</td>
<td>4350</td>
<td>Toowoomba</td>
<td>8,580</td>
<td>QLD</td>
<td><a href="https://www.dropbox.com/sh/bmzbx56v58k0a93/AACFXIJvc7Rcmod6jZ72RzVca?dl=0" target="_blank" rel="noopener noreferrer"> </a></td>
</tr>
<tr>
<td>6</td>
<td>6065</td>
<td>Hocking</td>
<td>8,416</td>
<td>WA</td>
<td><a href="https://www.dropbox.com/sh/8zd0vj5h32zapwa/AAB6KzqVt_RXOAFDUp7mRdNla?dl=0" target="_blank" rel="noopener noreferrer"> </a></td>
</tr>
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<td>7</td>
<td>4211</td>
<td>Pacific Pines</td>
<td>7,724</td>
<td>QLD</td>
<td><a href="https://www.dropbox.com/sh/p3w207bzmscrohg/AAD7waHQyLZoULHDSUjDvnSxa?dl=0" target="_blank" rel="noopener noreferrer"> </a></td>
</tr>
<tr>
<td>8</td>
<td>4740</td>
<td>Mackay</td>
<td>7,263</td>
<td>QLD</td>
<td><a href="https://www.dropbox.com/sh/wdmafsqaqatl1i2/AADXM9Iblw1halyXPVymaN5Ya?dl=0" target="_blank" rel="noopener noreferrer"> </a></td>
</tr>
<tr>
<td>9</td>
<td>4305</td>
<td>Raceview</td>
<td>7,295</td>
<td>QLD</td>
<td><a href="https://www.dropbox.com/sh/3gtu2w34txu253t/AAByjJkKdUMcjpx8jydq3HmGa?dl=0" target="_blank" rel="noopener noreferrer"> </a></td>
</tr>
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<td>10</td>
<td>6155</td>
<td>Canning Vale</td>
<td>7,116</td>
<td>WA</td>
<td><a href="https://www.dropbox.com/sh/1oheyf6fpetej7r/AADCAGKPvrjcOapXzAa2MNkNa?dl=0" target="_blank" rel="noopener noreferrer"> </a></td>
</tr>
</tbody>
</table>
 
 
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j.ballantyne1990-6AQqhLzZaK

Queensland has Australia's top solar postcodes 

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<h2>
GUEST OBSERVER  
</h2>
Energy Minister Josh Frydenberg told Q&amp;A that Australia has the highest number of solar panels on people's roofs per capita anywhere in the world. Is that right? 
Solar photovoltaics (PV) technology produces electricity directly from solar energy. When you see a solar panel on a household roof, it’s most likely solar PV technology at work within those shiny blue or black, silver-framed plates. (If not, they’re likely to be solar hot water system panels.) 
Solar PV has made a valuable contribution towards reducing Australia’s very high per-capita greenhouse emissions from electricity generation. 
Energy Minister Josh Frydenberg’s told Q&amp;A viewers that Australia has more household solar panels, per head of population, than anywhere in the world.
Let’s check the claim against the available evidence.
Checking the source 
When asked for a source to support his assertion, a spokesman for the minister clarified he was talking about solar PV systems only (not solar hot water).
He referred The Conversation to a document produced by the Energy Supply Association of Australia (which has since been folded into the new Australian Energy Council). The document said that:
"Australia clearly leads the world in the installation of household scale distributed solar PV. Australia has double the residential solar PV penetration rates of the next country (Belgium), and more than three times the penetration of Germany and the UK … By 2015, more than one in seven Australian households had installed solar PV. This is a 15% penetration rate across all Australian households."
We can check this assertion independently using a combination of data from:
<ul>
<li>the Australian PV Institute’s database of PV systems less than 10 kilowatts registered with the Australian Clean Energy Regulator and;</li>
<li>a March 2015 data set from the Australian Bureau of Statistics (ABS) called Household and Family Projections, Australia.</li>
</ul>
Note that the kilowatt (kW) capacity here refers to the size of the PV system, and represents the maximum power (Watts) the system generates in the middle of a sunny day.
A typical PV panel is rated at around 250 Watts (0.25kW). A typical residential PV system in Australia is sized somewhere between 1.5-5kW, or 6 to 20 panels. As a basis for comparison, a typical air-conditioner typically consumes around 1-2kW when running. 
For our calculation, we assumed that all systems less than 10kW are installed on household premises (although, in fact, a few are installed on small businesses and community buildings such as surf clubs and schools). 
Here's what the data shows:
<div class="content" data-raw="">
So Frydenberg has actually likely slightly underestimated the proportion of Australian households with a PV system. It’s not 15 percent – it’s more like 16.5 percent, according to the latest data.
PV systems are not evenly distributed across Australia’s residential sector, as the Australian PV Institute’s live PV map shows:
</div>
<div class="content" data-raw="">
<a href="/images/2016/03/29/image-20160323-28111-8pnjzx.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/29/image-20160323-28111-8pnjzx.png" alt="">
</div>
<div class="content" data-raw=""> </div>
<div class="content" data-raw="">PV installation by post code. Note: The percentages on the map are higher than the 16.5% figure, as the percentage of dwellings with a PV system shown on the map is estimated by comparing the number of freestanding and semi-detatched dwellings from the 2011 census with the number of residential PV systems installed in each area (rather than using a figure including all dwellings scaled up in line with population growth projections). Australian PV Institute (APVI) Solar Map, funded by the Australian Renewable Energy Agency, accessed from pv-map.apvi.org.au on 23 March 2016.</div>
<div class="content" data-raw="">
<div class="enlarge_hint"> </div>
<div class="enlarge_hint"><a href="/images/2016/03/29/image-20160323-28072-19k2p6b.png" target="_blank">Click to enlarge</a></div>
<div class="enlarge_hint">  
</div>
<img src="/images/2016/03/29/image-20160323-28072-19k2p6b.png" alt="">
</div>
<div class="content" data-raw=""> </div>
<div class="content" data-raw="">Note: The percentages on the map are higher than the 16.5% figure, as the percentage of dwellings with a PV system shown on the map is estimated by comparing the number of freestanding and semi-detatched dwellings from the 2011 census with the number of residential PV systems installed in each area (rather than using a figure including all dwellings scaled up in line with population growth projections). Australian PV Institute (APVI) Solar Map, funded by the Australian Renewable Energy Agency, accessed from pv-map.apvi.org.au on 23 March 2016. </div>
<div class="content" data-raw=""> </div>
<div class="content" data-raw="">
Is Australia the world leader when it comes to solar PV per capita?
Yes. Australia does likely have the highest proportion of households with PV systems on their roof of any country in the world.
But to be clear, Australia does not have the most PV rooftop capacityinstalled per person. By that we mean there are a number of other countries that currently generate a higher proportion of their total electricity from PV than Australia.
Those countries may also have larger commercial and industrial PV systems (often tens to hundreds of kilowatts in size) or utility PV plants (which can be a megawatt – 1,000 kilowatts – to tens of megawatts in size).
Australia is unusual in that some 85 percent of its installed PV capacity is small systems less than 10kW.
Indeed, the latest International Energy Agency (IEA) Photovoltaic Power Systems Programme Task 1 trends report ranks Australia fourth or fifth for overall PV capacity, based on 2014 data:
Note, however, that not all countries with high PV penetrations are included in the IEA report. Greece, for example, gets around the same proportion of its electricity from solar PV as Germany.
There are also a number of small island developing states with a high percentage of households with stand-alone solar home systems. For example, around 17 percent of households in Kiribati have a solar home system (based on 2013 data).
However, this isn’t really comparable with Australia because these PV systems in Kiribati are so tiny they can only power lighting and small appliances. Also, Kiribati’s population is only just over 100,000 people and many people on remote islands have no access to an electricity grid.
In 2014, Germany had more than nine times the installed PV capacity of Australia, yet around the same number of household PV systems spread over more than three times the population.
Italy had more than four times the PV capacity of Australia, yet less than half the number of household PV systems. Japan had around 15% more residential PV systems, but more than five times the population of Australia. Belgium has a population around half that of Australia, but only around one fifth the number of PV systems. Greece has less than a tenth of Australia’s PV capacity of small (&lt;10kW) PV systems.
Therefore, all of these countries have a significantly lower proportion of households with PV systems than Australia. They do better than Australia when it comes to total energy produced from solar; they do worse than Australia when it comes to household rooftop solar only.
So Frydenberg was right to say Australia has the highest proportion of households with PV systems on their roof in the world (well, that is if we don’t consider tiny countries like Kiribati).
<h2>Why is household rooftop solar so popular in Australia?</h2>
Australia’s unique PV market focus on households has come about through a combination of factors:
<ol>
<li>
Policy support from federal and state governments has historically focused particularly on PV systems less than 10kW, including the Solar Credit Multiplier available over 2009-2012 through the former Labor government’s revised Renewable Energy Target. There were also the various state-based feed-in tariffs over the same time period, which were generally restricted to small PV systems.
</li>
<li>
A large proportion of Australian housing comprises stand-alone dwellings with relatively large roof spaces suitable for PV systems.
</li>
<li>
Most of Australia has an excellent climate for PV systems with plenty of sunshine.
</li>
<li>
Australian households have to pay very high residential electricity prices compared to many other countries. PV systems can be a very cost effective way to reduce household electricity bills.
</li>
<li>
Australia’s relatively high rates of owner-occupier home ownership allows the benefits of the PV system investment to be captured by the home owner, who also pays the electricity bills.
</li>
</ol>
<h2>What does the future hold?</h2>
One final note: Australia may be at risk of losing the top ranking when it comes to household solar PV systems.
A growing number of countries are setting ambitious PV targets.
In Australia, some key electricity industry stakeholders here in Australia – including the distribution network utilities that own and operate the wires that run to your house – are looking to restrict future household PV connections in some areas, or reduce the money that households can save by installing PV systems.
Household PV does raise a number of technical challenges for these businesses, and their revenue under current electricity tariffs.
<h2>Verdict</h2>
Josh Frydenberg was correct. Australia almost certainly has the highest proportion of households with PV systems on their roof of any country in the world (again, not including tiny nations like Kiribati). His assertion that nearly 15% of Australian households have solar panels on their roofs was, indeed, perhaps a slight underestimate.
However, there are a number of other countries that currently generate a higher proportion of their overall electricity from PV than Australia.
Unlike these other PV markets, the great majority of PV systems in Australia are small-scale installations on household rooftops. If Australian governments are keen to see Australia retain its world leading position, greater policy, retail market and regulatory efforts will be required. 
Anna Bruce is lecturer in the School of Photovoltaic and Renewable Energy Engineering, UNSW Australia and can be contacted <a href="https://theconversation.com/profiles/anna-bruce-243843" target="_blank">here</a>.
Iain MacGill is co-director, Centre for Energy and Environmental Markets, UNSW Australia and can be contacted <a href="https://theconversation.com/profiles/iain-macgill-576" target="_blank">here</a>.
Both are authors for The Conversation.
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po-LsXgBTHBmX

Is Australia the world leader in household solar power?

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GUEST OBSERVER
This year many Australian households will find themselves cut off from generous incentives paid for electricity they export into the grid from rooftop solar systems. 
Between September and December, state feed-in tariff (FiT) schemes in New South Wales, Victoria and South Australia will finish.
The FiTs applying to over 275,000 customers will drop from between 16 and 60 cents per kilowatt hour to between 5 and 7.2 cents per kWh.
In NSW, the replacement FiT won’t be mandatory, with retailers allowed to decide what they pay. Of course, many of those customers have already recouped their investment. 
Now that our rooftop solar industry has matured, we need to reconsider the purpose of FiTs and align them with our goals for the electricity system in the future.
<h2>Why pay solar households?</h2>
FiTs have been hugely important in getting the global solar industry to where it is now. Solar electricity costs have fallen to levels that were unimaginable just 10 years ago.
Governments have traditionally used FiTs to achieve a policy aim, such as increasing renewable energy production by bridging the gap between current costs of electricity and the cost of new sources. 
Australian states began to introduce mandated FiTs in 2008. There has never been a national FiT in Australia, and Queensland, NSW and the ACT no longer have mandated FiTs. However, many electricity retailers offer FiTs, even when not mandated by government. 
<a href="/images/2016/12/09/image-20161107-27908-bq13sc.png" target="_blank">Click to enlarge</a>
<h4><img src="/images/2016/12/09/image-20161107-27908-bq13sc.png" alt=""></h4>
<h4>Current state of feed-in tariffs in Australia for new customers. Authors</h4>
The costs of FiTs are recovered in different ways, depending on whether they are government-mandated or not, but ultimately they fall on all electricity consumers. As governments wind back mandated FiTs, it’s assumed that FiTs will be roughly cost-neutral. 
<h2>Have they worked?</h2>
Residential solar installations soared after the introduction of FiTs in 2008.
Installations quadrupled each year in Australia until 2012, leading to 11,600 jobs and the highest penetration of households with rooftop solar in the world.  
This boom stimulated a competitive solar market in which residential installation costs have plummeted (as you can see below).
Australia now enjoys some of the lowest installation costs for rooftop solar in the world.
The trick that state policymakers missed, however, was making FiT policies sustainable. 
Early FiTs were excessively high, especially in NSW and Queensland, causing policy fallout and sudden withdrawal.
This was partly because the rapid reduction in solar prices exceeded expectations.
For example, the NSW government was forced into a hasty reassessment of its 2010 policy in order to prevent a cost blowout after massively underestimating the level of uptake.
By October 2010, just 10 months after it began, the NSW gross FiT was slashed from 60 to 20 cents per kWh. The scheme was closed to new participants in April 2011. 
Across Australia most states cut or entirely removed FiTs within four years. Most current FiTs are now well below retail prices.
This means that customers are being encouraged to use as much as possible of their solar energy to power their own homes rather than exporting it to the grid.
This is one of the reasons why the system size for solar installations in Australia tends to be smaller than elsewhere.
The fallout from these unsustainable FiT policies has unfortunately polarised the national conversation about solar.
Hundreds of thousands of solar power system owners are facing bill shock as FiTs are withdrawn, while those who do not have solar have been told they are footing the bill for their neighbours’ systems.
Politicians have sought to capitalise on this discontent, by blaming solar tariffs for high electricity prices. In many states, the actual value of rooftop solar has been pushed out of the conversation.
<h2>The real value of solar</h2>
A recent Victorian report found that the value of solar energy depends on when electricity is fed into the grid.
Solar energy is more valuable when exported to the grid at times of peak demand. 
The report argued that the value of solar should account for the reduction in transmission losses (the losses associated with transporting electricity from large power plants over great distances) and environmental effects, primarily the reduction in greenhouse gases from displacing fossil fuel generation. 
Solar installations can potentially add value in other ways too. For example, installing battery storage along with solar systems may allow domestic solar systems to offer other network services such as frequency and voltage control. 
Encouragingly, since the report the Victorian government has bucked the national trend and announced a multi-rate FiT scheme. 
The scheme offers different rates for exporting during peak, shoulder and off-peak times.
It will also reward solar owners for the greenhouse gas offsets related to their system’s output.
The scheme is expected to raise FiTs from around 5c per kWh to an average of between 6.5c and 7c per kWh. 
<h2>What next?</h2>
Nationally, we need to refocus the conversation about the purpose and value of FiTs.
Having already established a world-leading solar industry, we need to ask what FiTs can do for us now and into the future. 
If we want our electricity system to take advantage of technological advances, such as battery storage, we need to repurpose our FiTs to reflect the benefits of these technologies.
The Victorian example is a great step forward, providing a mechanism where consumers can leverage Australia’s low installation costs to become players in a more competitive energy market. 
But there are even more benefits to distributed energy systems that could be realised with intelligently applied FiTs.
This means we need more consideration of what solar systems can do for us, and less simplistic conversations about electricity costs.
Joe Wyndham is research analyst, Institute for Sustainable Futures, University of Technology Sydney and can be contacted <a href="https://theconversation.com/profiles/joe-wyndham-296652" target="_blank">here.</a>
Jay Rutovitz is research director, Institute for Sustainable Futures, University of Technology Sydney and can be contacted <a href="https://theconversation.com/profiles/jay-rutovitz-301794" target="_blank">here</a>.
Both are authors for The Conversation.
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To pay solar households fairly, we need to understand the true value of solar

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Landlords and tenants are set to both benefit financially with Sunyield, Stoddart Group's new solar technology.
A new batch of homes in Queensland, <a href="https://www.choicehomes.com.au/sunyield/" target="_blank">built by the likes of Choice Homes</a> and Brighton Homes, will see the solar panels save as much as $275 a year on electricity.
Stoddart Group's general manager for energy systems Adam Taylor says solar energy usage was once a difficult conversation with landlord and tenant before the new technology.
“It was too difficult to manage," he said.
“With SunYield, if the tenant chooses to use the solar panels, all solar and grid power is measured automatically via a smart switchboard and the tenant receives a single monthly power bill for all electricity consumed from both the solar and the grid.
“Renters have long missed out on the benefits of solar power simply because it was too hard or complicated for landlords to justify the cost.
“SunYield changes this by ensuring that solar on a new rental property is a good deal for the landlord, as well as the tenant.  
The process is completely automated, with the landlord then receiving a payment for all solar generated, whether it was used by the tenant or sent to the grid.
“With this technology, the landlord owns the solar system and can either sell the power to their tenant at a discount to the market rate or export it to the grid if the tenant chooses not to buy it.” 
The SunYield package includes a 6.5 KW solar power system, combined with a Stoddart Smart Board that replaces the standard meter box on a new home.  
SunYield is also battery ready, allowing landlords to add batteries as they become cheaper and increase the proportion of solar-generated power sold to the tenant.
Choices Homes director Troy Knight said the innovative technology is good for his customers, their tenants and the environment.
“We're always looking for ways to offer our customers a better investment, which made the decision to put SunYield on every home a simple one," he said.
“For our customers, it means an increased rental return and a home that's easier to rent. 
"For our company, it means being one of the first to offer an innovative product that is good for our customers, their tenants and the environment.  
The Australian-first technology was designed locally and is being launched in Queensland with leading investment builders Choice Homes, Creation Homes, Brighton Homes and MetInvest, with each including SunYield as standard on their new homes. 
Stoddart Group will soon extend the solution to other builders and plans to install 15,000 SunYield systems over the next 3 years and Taylor believes the technology will quickly become standard on all new investment properties. 
“In the next 2 -3 years, we’ll see a complete shift - from rarely seeing a rental property with solar to it being difficult to find a new one without it," he said. 
Taylor said they did not have plans to release the product to the established homes market due to the way the technology works.
Stoddart Group partnered with leading energy provider, Powershop and technology company, Reposit to develop the solution and make it a seamless experience for the landlord, tenant and homebuilder.
Powershop boss Ed McManus said giving renters the ability to use solar power is positive for their power bills and the energy market.
“Powershop is always pursuing ideas that can help Australians get in control of their power bills. This program not only helps customers save money, but it also lowers their environmental footprint and puts more renewable energy into the grid. 
Reposit Power CEO Dean Spaccavento said the solar and battery industry is booming in Australia, but there have been technological barriers preventing investors and renters from benefiting.
"We can now do things with electricity that only a few years ago were ideas on paper," Mr Spaccavento said. 
"With smart technology like SunYield coupled with Reposit, we all now have a say in how our electricity is generated and what we pay for it.
"It's now possible for renters and landlords alike to benefit from rooftop solar. Landlords earn a profit and renters benefit from lower energy bills.
"SunYield is an investment now that will continue to improve and deliver results well into the future."
 
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jrobinson-rf4aSBido9

Tenants and landlords to benefit financially from new solar technology

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The rate of growth in residential rooftop solar photovoltaics (PV) in Australia since 2008 has been nothing short of breathtaking.
Our new research suggests that the households most likely to join in the solar spree are those that are affluent enough to afford the upfront investment, but not so wealthy that they don’t worry about their future power bills.
Australia now has the <a href="https://www.propertyobserver.com.au/http://pv-map.apvi.org.au/historical#4/-26.67/134.12" target="_blank">highest penetration</a> of residential rooftop PV of any country in the world, with the technology having been installed on one in five freestanding or semi-detached homes. In the market-leading states of Queensland and South Australia this ratio is about one in three, and Western Australia is not far behind, with one in four having PV.
<a href="https://images.theconversation.com/files/221436/original/file-20180603-142072-rsg9fx.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/221436/original/file-20180603-142072-rsg9fx.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
The explosion in rooftop PV uptake since 2008. Derived from Clean Energy Regulator data.
While PV panels give households more control over their electricity bills, and each new installation helps reduce greenhouse gas emissions, the market’s rapid expansion has posed <a href="https://theconversation.com/slash-australians-power-bills-by-beheading-a-duck-at-night-27234" target="_blank">significant challenges</a> for the management of the electricity system as a whole.
Unlike other industries where goods can be warehoused or stockpiled to manage fluctuations in supply and demand, electricity is not yet readily storable. Storage options such as batteries are now <a href="https://theconversation.com/the-tesla-battery-heralds-the-beginning-of-the-end-for-fossil-fuels-41197" target="_blank">commercially available</a>, but haven’t yet reached widespread use. This means that a system operator is required to keep the grid balanced in real time, ideally with just the right amount of capacity and backup to manage shocks in supply or demand.
Securing the right amount of generation capacity for the electricity grid relies on long-term planning, informed by accurate supply and demand forecasts. Too much investment means excessive prices or assets lying idle (or both). Too little means longer, deeper or more frequent blackouts.
But as solar panels spread rapidly through the suburbs, the job of forecasting supply and demand is getting much harder.
This is because the commercial history of residential rooftop PV has been too short, and the pace of change too fast, for a clear uptake trend to be established. Previous attempts to predict the market’s continuing growth have thus entailed a lot of guesswork.
<h2>Why do people buy solar panels?</h2>
One way to improve our understanding is to talk to consumers directly about their purchasing intentions and decisions. The trick is to find out what prompts householders to take that final step from considering investing in solar panels, to actually buying them.
This was the approach we took with our research, <a href="https://www.sciencedirect.com/science/article/pii/S1364032118303769" target="_blank">published today in the international journal, Renewable and Sustainable Energy Reviews</a>. We analysed data from a survey of more than 8,000 Queensland households in 2014 and 2015, part of a <a href="https://www.ergon.com.au/network/manage-your-energy/queensland-household-energy-survey" target="_blank">survey series</a> commissioned by an industry group now known as <a href="https://www.energyq.com.au/" target="_blank">Energy Queensland</a>.
<a href="https://images.theconversation.com/files/221437/original/file-20180603-142102-18m0kdj.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/221437/original/file-20180603-142102-18m0kdj.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Comparison of motivational factors between surveyed PV intenders and adopters. Bondio, Shahnazari &amp; McHugh (2018).
We found that the decision to go solar was driven largely by housholds’ concerns over rising electricity bills and the influence that economic life events have over perceptions of affordability.
But the households that tended to adopt PV were also those that were affluent enough not to be put off by the relatively large upfront cost.
This combination of having access to funds, while at the same time being concerned about future electricity prices, appears to be a broadly middle-class trait.
While the upfront cost of PV can deter lower-income households, this can be overcome by receiving an offer that is too good to refuse, or if concerns about ongoing electricity bills are acute – particularly in the case of retirees.
Electricity price uncertainty is a particular concern for retirees, who typically have a lower income. We found that retirees were more likely than non-retirees to invest in solar panels, all else being equal. Retirees, like many people who invest in solar power, seem to view buying solar panels as being like entering into a long-term contract for electricity supply, in that it provides price certainty over the life of the PV system.
We also found that while the idea of self-sufficiency was important for developing an intention to buy solar panels, this motivation later fell away among households that went ahead and bought them. This could be because householders who buy solar panels, but find themselves still relying significantly on the grid, may conclude that self-sufficiency isn’t achievable after all.
About one-third of those who said they intended to buy solar panels cited environmental concerns as a reason for their interest. Yet this factor did not significantly increase the odds of them going on to adopt the technology. This suggests that when it comes to the crunch, household finances are often the crucial determining factor.
We also found the chances of adopting solar panels were highest for homes with three or four bedrooms. Smaller homes may face practical limitations regarding roof space, whereas homes with five bedrooms or more are likely to be more valuable, suggesting that these householders may sit above a wealth threshold beyond which they are unconcerned about electricity bills.
But perhaps our most important finding is that analysis of household survey data can be useful to forecasters. Knowing who is adopting rooftop PV – and why – should enable better predictions to be made about the technology’s continuing expansion, including the crucial question of when the market might reach its saturation point.
The research paper can be downloaded <a href="https://authors.elsevier.com/c/1XCoS4s9HvtwmP" target="_blank">here</a> for free until August 1, 2018.
<a href="https://theconversation.com/profiles/adam-mchugh-15147" target="_blank">Adam McHugh</a>, Honorary Research Associate, <a href="http://theconversation.com/institutions/murdoch-university-746" target="_blank">Murdoch University</a>
This article was originally published on <a href="http://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/are-solar-panels-a-middle-class-purchase-this-survey-says-yes-97614" target="_blank">original article</a>.
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Are solar panels a middle-class purchase?

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Tenants moving into Queensland’s newest rental homes can expect to save around $275 a year on electricity, with Stoddart Group releasing Australia’s first landlord and tenant friendly solar solution, SunYield. 
The SunYield package includes a 6.5 KW solar power system, as well being battery ready.
The battery allows landlords to add batteries as they become cheaper, and increase the proportion of solar-generated power sold to the tenant.
It combines with a Stoddart Smart Board that replaces the standard meter box on a new home.
Tenants get a <a href="https://www.choicehomes.com.au/sunyield/" target="_blank">30 percent discounted rate</a> on power used generated by the panels, while landlords can generate an <a href="https://www.choicehomes.com.au/sunyield/" target="_blank">extra $25 a week of income.</a>
Stoddart Group’s general manager for energy systems Adam Taylor says tenanted properties have been ignored in the recent solar revolution.
“Renters have long missed out on the benefits of solar power simply because it was too hard or complicated for landlords to justify the cost,:" Taylor said.
“SunYield changes this by ensuring that solar on a new rental property is a good deal for the landlord, as well as the tenant.  
Taylor says the process is completely automated.
If the tenant chooses to use the solar panels, all solar and grid power is measured automatically via a smart switchboard and the tenant receives a single monthly power bill for all electricity consumed from both the solar and the grid.
The process is completely automated, with the landlord then receiving a payment for all solar generated, whether it was used by the tenant or sent to the grid.
“With this technology, the landlord owns the solar system and can either sell the power to their tenant at a discount to the market rate or export it to the grid if the tenant chooses not to buy it.” 
The Australian-first technology was designed locally and is being launched in Queensland with leading investment builders Choice Homes, Creation Homes, Brighton Homes and MetInvest, with each including SunYield as standard on their new homes.   
Choice Homes director Troy Knight says Choice are always looking for customer-focused benefits.
“We're always looking for ways to offer our customers a better investment, which made the decision to put SunYield on every home a simple one," Knight said.
“For our customers, it means an increased rental return and a home that's easier to rent. 
"For our company, it means being one of the first to offer an innovative product that is good for our customers, their tenants and the environment.
Stoddart Group will soon extend the solution to other builders and plans to install 15,000 SunYield systems over the next 3 years and Mr Taylor believes the technology will quickly become standard on all new investment properties. 
“In the next 2 -3 years, we’ll see a complete shift - from rarely seeing a rental property with solar to it being difficult to find a new one without it.” 
Mr. Taylor said they did not have plans to release the product to the established homes market due to the way the technology works.
Queensland recently showed why its the 'Sunshine State', taking out seven of the <a href="https://www.urban.com.au/news/83164-australia-s-top-solar-postcodes" target="_blank">top 10 postcodes for the highest rooftop solar uptake. </a>
 
 
 
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Queensland's newest rental homes to save money with solar solution

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GUEST OBSERVATION
Many of us are familiar with developments of big solar farms in rural and regional areas. These are often welcomed as a positive sign of our transition towards a low-carbon economy. But do large-scale solar installations have a place in our cities?
The City of Fremantle in Western Australia is considering a proposal to use a former landfill site for a large-scale solar farm. The reportedly 4.9 megawatt solar power station on an eight-hectare site would be, it’s said, Australia’s largest urban solar farm. The initiative is part of Fremantle’s ambition to be powered by 100% clean energy within a decade.
The proposal is facing some community opposition, however. Residents are reportedly alarmed by the potential public health consequences of building on a rubbish dump, which risks releasing toxic contaminants such as asbestos into the environment. Other concerns include glare from the solar panels, or excessive noise.
Similar complaints about solar panels in cities are being seen all over the world, with opponents generally of the view “they do not belong in residential areas”. So what are the planning issues associated with large-scale solar installations in cities? And should we be concerned about possible negative impacts?
What is large-scale solar?
According to the Australian Clean Energy Regulator, large-scale solar refers to “a device with a kilowatt (kW) rating of more than 100 kilowatts”. A kilowatt is a measure of power – the rate of energy delivery at a given moment – whereas a kilowatt-hour (kWh) is a measure of the total energy produced (so a 100kW device operating for one hour would produce 100kWh of electricity).
Device here refers to not only the photovoltaic (PV) panels – the actual panels used in solar energy – but also to the infrastructure “behind the electricity meter”. So interconnected panels may still constitute a single device.
By this definition, there may already be large-scale solar installations in Australian cities. In Sydney for example, the recently opened system on top of the Alexandra Canal Transport Depot is by all accounts a large-scale solar system. It combines around 1,600 solar panels with enough battery storage for 500kWh of electricity.
But this is not Sydney’s largest solar installation. That honour is presently held by the Sydney Markets in Flemington, among Australia’s largest rooftop solar installations, which generates around 3 megawatts (that’s 3,000kW). To date, there have been no publicly disclosed complaints received about these facilities.
Large-scale solar (sometimes called “big solar”) can also refer to solar arrays that use mirrors to concentrate sunlight onto solar PV panels. This is different to concentrated thermal solar, which uses mirrors to focus sunlight onto the top of a tower to heat salt, oil or other materials that can then be used to generate steam to power turbines for electricity generation.
What’s the problem with solar in cities?
Internationally, there is increasing recognition cities could be ideal locations for large-scale solar installations due to the amounts of unused land. This includes land alongside freeways and main roads, flood-prone land, and rooftops on factories, warehouses and residences. And locating big solar in cities can also reduce the energy losses that occur with transmitting electricity over long distances.
Australia’s combined rooftop solar installations already supply the equivalent of enough power for all the homes in Sydney. And even former landfill sites – which have few uses other than parkland and are often too contaminated to sustain other land uses such as residential development – can be a good use of space for solar farms. But such sites would need to be carefully managed so contaminants are not released during construction.
Large-scale solar installations can present some challenges for urban planning. For instance, mirrors can cause problems with glare, or even damage if they were misaligned (problems thus far have been in solar thermal plants). Maintenance vehicles may increase traffic in neighbourhoods. Installing solar panels could cause temporary problems with noise and lighting. And views could potentially be disrupted if adjoining residents overlook a large-scale solar installation.
But not all of these impacts would be long-term, and they can all potentially be managed through planning approval, permitting processes and development conditions. Installing screens or trees can improve views, for instance. Glare is a potential problem but again can be managed via screening (at the site or on overlooking buildings) or protective films on the panels.
The issue with the proposed solar farm in Fremantle is the fact it’s planned atop a former landfill site, known to contain harmful substances including asbestos, hydrocarbons and heavy metals. Unless carefully managed, construction of the solar farm could disturb these materials and potentially expose nearby residents to health impacts.
Most state environmental protection agencies recognise risks if the use of potentially contaminated land is to be changed, and have developed stringent guidelines for landfill management.
The City of Fremantle has approved the proposed development, subject to the preparation of a site management plan among other conditions. Depending on site management, and the characteristics of surrounding neighbourhoods, poorly managed big solar on landfill sites could become an environmental justice issue. From this perspective, residents’ concerns are understandable, and the City of Fremantle will need to ensure it carefully monitors construction.
Lessons for planning
It is reasonable to expect that cities will increasingly host large-scale solar installations. With careful site selection and management, the multiple benefits of clean energy can accrue to urban residents. Otherwise leftover or marginal land can derive an economic return.
<img src="https://counter.theconversation.com/content/99020/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">Of course care will need to be taken to minimise potential habitat loss or off site impacts such as visual intrusion, noise, and glare. But solar farms also have the potential to provide new habitats both via physical infrastructure (sites for nesting) and as part of site rehabilitation and management.
Jason Byrne, Professor of Human Geography and Planning, University of Tasmania
This article was originally published on <a href="http://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/whats-wrong-with-big-solar-in-cities-nothing-if-its-done-right-99020" target="_blank">original article</a>.
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If done right, our solar cities can succeed: Jason Byrne

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EXPERT OBSERVER
The keenly awaited <a href="https://www.accc.gov.au/publications/restoring-electricity-affordability-australias-competitive-advantage" target="_blank">report on retail electricity prices</a>, released last week by the Australian Competition and Consumer Commission (ACCC), has made some controversial recommendations – not least the call to wind up the scheme that offers incentives for household solar nearly ten years early.
The report recommends that the small-scale renewable energy scheme (SRES) should be abolished by 2021. It also calls on state governments to fund solar feed-in tariffs through their budgets, rather than through consumers’ energy bills.
The ACCC has concluded that offering subsidies for household solar was a well-intentioned but ultimately misguided policy. Solar schemes were too generous, unfairly disadvantaged lower-income households, and failed to adjust to the changing economics of household solar.
The lesson for policy-makers is that good policy must keep costs down as Australia navigates the transition to a low-emissions economy in the future. Failure to do this risks losing the support of consumers and voters.
Runaway rebates
Rooftop solar schemes were much <a href="https://grattan.edu.au/wp-content/uploads/2015/05/822-sundown-sunrise5.pdf" target="_blank">more popular than anticipated</a>. This might sound like the sign of a good policy. But in reality it was more like designing a car with an accelerator but no brakes.
Generous feed-in tariffs and falling small-scale solar installation costs encouraged more households to install solar than were initially expected. Premium feed-in tariffs were well above what generators were paid for their electricity production. Historically solar feed-in tariffs paid households were between 16c and 60c per kilowatt-hour, while wholesale prices were <a href="https://grattan.edu.au/report/mostly-working/" target="_blank">less than 5c per kWh</a>.
At the same time, <a href="https://www.accc.gov.au/publications/restoring-electricity-affordability-australias-competitive-advantage" target="_blank">installation costs for solar panels fell</a> from around A$18,000 for a 1.5kW system in 2007, to around A$5,000 for a 3kW system today. The SRES subsidy for solar installations was not linked to the actual installation cost or the cost above the break-even price. So the SRES became relatively more generous as installation costs fell.
As solar penetration increased, and network costs rose to cover this, it became <a href="http://energyconsumersaustralia.com.au/news/consumers-investing-in-solar-and-batteries-to-control-bills/" target="_blank">increasingly attractive</a> for households to install solar panels. In Queensland, the initial cost forecast for the solar bonus scheme was A$15 million. Actual payments were more than 20 times that in 2014-15, at A$319 million. And the environmental benefits weren’t big enough to <a href="https://grattan.edu.au/wp-content/uploads/2015/05/822-sundown-sunrise5.pdf" target="_blank">justify that cost</a>, as other policies have reduced emissions at a lower cost. The large-scale renewable energy target reduced emissions for A$32 per tonne, while household solar panels reduced emissions at a cost of more than A$175 per tonne.
In most states, premium feed-in tariffs and rooftop solar subsidies are funded through higher bills for all consumers. Everyone pays the costs, yet only those with panels receive the benefits. That means the costs fall disproportionately on lower-income households and those who rent rather than own their home.
The ACCC report recommends the SRES be wound up nearly 10 years ahead of schedule, because the subsidies are no longer financially justifiable. This would maintain the support for current solar installations but remove subsidies for new solar installations from 2021.
The report also recommends removing the direct costs of feed-in tariffs from electricity bills. Instead, state governments should directly cover the costs of premium feed-in tariffs. The Queensland government has already <a href="https://www.dnrme.qld.gov.au/energy/initiatives/powering-queensland" target="_blank">made this move</a>.
Of course, governments still have to find the money from elsewhere in their revenues, which means taxpayers are still footing the bill. But the new arrangement would at least remove the current unfair burden on households without solar.
Fixing the mistakes
How can governments avoid making similar policy mistakes in the future? The ACCC’s recommendations, together with the proposed <a href="https://theconversation.com/infographic-the-national-energy-guarantee-at-a-glance-85832" target="_blank">National Energy Guarantee (NEG)</a>, provide a solid foundation for Australia’s future energy policy.
First, the future is hard to predict, so good policy adapts to change. The NEG provides a flexible framework to direct energy policy towards a low-emission, high-reliability, low-cost future. Reviewing and adjusting the emissions target along the way will enable Australia’s energy policy to respond to new technologies and shifting cost structures, while maintaining consistency with economy-wide targets.
Second, it is hard to pick winners, so good policy creates clear market signals. The NEG provides the energy industry with clear expectations, but is technology-agnostic and minimises government intervention. This encourages the market to find the most cost-effective way to reduce emissions and ensure reliability.
The ACCC report also recommends simplifying retail electricity offers, which would make it easier for consumers to find a good deal, and in turn making the market more competitive.
<img src="https://counter.theconversation.com/content/99937/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">Politicians have an opportunity to draw a line in the sand on narrow, technology-specific policies such the SRES. An integrated energy and climate policy should focus on good design, and then step back and let the market pick the winners.
This article was originally published on The Conversation and was written by Lucy Percival, Associate at the Grattan Institute.
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