Australia has seen a big increase in solar panel installations due to generous subsidies given by individual states in Australia, like New South Wales and others. Unlike other parts of the world where solar installations have started with large solar farms; residential rooftop installations have powered Solar Energy in Australia. The major Solar Panel Suppliers in Australia are foreign manufacturers as Australia does not have a local content policy to promote manufacturing of solar cells or solar panels. Only a few handful of companies have manufacturing operations in the country. Almost all of the solar panels sold in Australia are imported.
Australian Solar Panel Companies
Silex Solar – This is the largest Australian solar panel supplier. Like Western companies it is too under huge pressure and may have difficulty in surviving. It recently fired some workers and has decided to buy solar cells from outside than making them.
Dyesol – The company is a startup making esoteric new generation organic solar cells and panels. The technology still has a long way to mature and is not a mainstream commercial company yet.
After Solar Panels, Solar Inverters are the second most crucial component of the overall solar system accounting for around 10% of the overall costs. Solar inverters connect the solar panels to the grid, converting the DC to AC which is used by the grid.
Solar Rebates are a very important decision making factor when buying solar panels for your home or office or factory. Australia too has a large number of sunny hours which makes it ideal to install solar panels. State Governments in Australia have been at the forefront of giving rebates and subsidies to promote solar energy in the country. This has resulted in a large boom of solar installations among residents in the country who are taking advantage of the generous subsidies. Though recently a number of provinces like New South Vales and Victoria have stopped the solar rebates, the falling cost of solar panels in Australia has still made it attractive enough for people to put up solar panels.
Here is a list of the solar rebates and subsidies available in Australia:
Basic Concepts
‘Net’ feed in tariff – is where the consumer is only paid/credited for the ‘net’ generated electricity they export to the national electricity grid from their renewable energy generator (not for the proportion of generated electricity they use themselves). In order to receive a ‘net’ feed-in tariff the consumer needs to have ‘net’ metering that can measure the net amount of generated electricity exported to the national electricity grid. A ‘net’ meter measures the net amount of generated electricity exported to the national electricity grid. This means a customer uses the electricity they produce first, before sending the remainder to the grid. A net meter allows customers with solar panels to reduce their electricity bills.
Gross feed in tariff – measures the ‘gross’ or total amount of electricity generated by a renewable energy generator that is exported to the grid. ‘Gross’ feed-in tariff is where the consumer is paid/credited for all the electricity generated by their renewable energy generator (e.g. solar photovoltaic system or wind turbine). In order to receive a gross feed-in tariff the consumer needs to have gross metering that can measure the ‘gross’ or total amount of electricity generated by their renewable energy generator that is exported to the grid.
It is clear that Gross Feed in Tariffs are much better than Net feed in tariffs because the feed in tariff is generally much greater than the electricity rate.
Australian Federal Government Subsidies and Rebates for Solar Energy Installations
The Small-scale Renewable Energy Scheme (SRES)
The SRES provides a financial benefit for owners wishing to purchase eligible solar water heaters, air source heat pumps and small-scale solar photovoltaic panels, wind and hydro systems. Installation of these units permit the creation of Small-scale Technology Certificates (STCs), which can be exchanged for financial benefit for owners.
Owners have two options for gaining a financial benefit for their certificates:
Small-scale technology certificates (STCs) are created by eligible installations of solar water heaters, air source heat pump water heaters and small generation units (small-scale solar photovoltaic panels, wind and hydro electricity systems). A STC is generally equivalent to:
A small generation unit (SGU) is classified as a small-scale solar photovoltaic (PV) panel, wind or hydro unit. Small generation units generate electricity and have the following requirements:
System type |
System capacity and annual electricity output |
Installation periods |
---|---|---|
Solar (photovoltaic) systems | No more than 100 kW and a total annual electricity output less than 250 MWh | On or after 14 November 2005 |
If an SGU was installed on or after 9 June 2009 it may be eligible for additional STCs under Solar Credits. This increases the number of STCs to which your system is entitled by a set factor, depending on when the system was installed, thereby increasing the financial benefit provided back to you, to support investment in small-scale renewable energy generation. The table below shows the current Solar Credits multiplier:
Installation Period |
Multiplier |
---|---|
9 June 2009 – 30 June 2010 | 5 x [number of eligible STCs] |
1 July 2010 – 30 June 2011 | 5 x [number of eligible STCs] |
1 July 2011 – 30 June 2012 | 3 x [number of eligible STCs] * |
1 July 2012 – 30 June 2013 | 2 x [number of eligible STCs] |
1 July 2013 – onwards | 1 x [number of eligible STCs] (ie no multiplier) |
What are Solar Multipliers
As the costs of small solar systems are higher, the Government gives a solar multiplier to solar REC being generated by small system providers. This multiplier is reduced with each passing year as the solar panels costs go down. The Solar Credits multiplier applies to the first 1.5 kilowatts (kW) of capacity of the system installed for systems connected to a main electricity grid and up to the first 20 kW of capacity for off-grid systems.
How are Solar Credits Obtained and Sold – Use of System Provider
While system owners can create and sell the certificates themselves, in practice, providers of solar PV systems usually offer a discount on the price of a solar PV system, or a cash payment, in return for the right to create and sell the Solar Credits.
How much Money do you get from Solar Credits
Solar Credits are provided in the form of STCs, for people who have installed a new and eligible solar PV system (or other small generation unit). The level of support provided by Solar Credits depends on the location and size of the system and the price of STCs. The STCs are able to be traded at $40 through a voluntary clearing house established by the ORER under the new Small-scale Renewable Energy Scheme. Alternatively they can be sold on the STC market, usually for a lower price.Why do Solar Credits vary across cities like Sydney, Perth and HobartEach place receives a different amount of sunlight so places with more sunshine receives less STCs while places with lower amount of solar radiation get more.
How to apply for Solar Credits – Using a Solar Contractor
Generally when installing solar PV systems, owners transfer the right to create STCs to their solar panel supplier in return for a discount on the price of the system being installed. Owners can do this directly or through an agent by applying to the Office of the Renewable Energy Regulator (ORER) any time within 12 months following the date of installation. Conditions for Getting Solar Credits
Money received by typical 1.5kW solar panel system installed across Australia up until 30 June 2012:
City | Approximate maximum level of support | ||
---|---|---|---|
5x Solar Credits multiplier (systems installed up to 30 June 2011) | 4x Solar Credits multiplier available under transitional arrangements for pre 5 May 2011 contracts (systems installed from 1 July 2011 to 30 June 2012) | 3x Solar Credits multiplier (systems installed from 1 July 2011 to 30 June 2012) | |
Adelaide | $6,200 (155 STCs) | $4,960 (124 STCs) | $3,720 (93 STCs) |
Brisbane | $6,200 (155 STCs) | $4,960 (124 STCs) | $3,720 (93 STCs) |
Canberra | $6,200 (155 STCs) | $4,960 (124 STCs) | $3,720 (93 STCs) |
Darwin | $6,880 (172 STCs) | $5,520 (138 STCs) | $4,120 (103 STCs) |
Hobart | $5,320 (133 STCs) | $4,240 (106 STCs) | $3,160 (79 STCs) |
Melbourne | $5,320 (133 STCs) | $4,240 (106 STCs) | $3,160 (79 STCs) |
Perth | $6,200 (155 STCs) | $4,960 (124 STCs) | $3,720 (93 STCs) |
Sydney | $6,200 (155 STCs) | $4,960 (124 STCs) | $3,720 (93 STCs) |
Summary
Solar Power in Australia has grown massively in 2010 and 2011 driven by state feed in tariffs also known as the solar bonus scheme or solar credits. This resulted in the capacity limits being reached and most of the state solar subsidy schemes have been withdrawn. However the Australian federal Government is offering the Renewable Energy Credit Scheme under which solar power generated is eligible to get solar credits which can be sold in the open market for cash. Australia which gets a lot of sunshine is ideal for solar energy which promotes climate change mitigation as well besides reducing pollution. Australia has the highest average solar radiation than any continent in the world, which means solar industry has the greatest potential there.