Powerline image : paulbr75
New solar subsidies and energy efficiency rebates for some, power price hikes for others. Here’s what early 2018 has in store for electricity prices and home solar power in Australia.
Australian Solar Subsidy Changes
From today, what’s known as the “deeming period”1 for solar power systems decreases by another year, to 13 years. What this means is the amount of solar subsidy available will be reduced.
While every dollar counts, it’s not a huge amount of difference, working out to less than ~$270 on a 5kW solar system for most Australians based on recent Small-scale Technology Certificate (STC) value 2.
This still leaves a subsidy of around $3,400 available for a 5kW system in Zone 3 (which includes Brisbane, Sydney, Canberra, Adelaide, and Perth) – so it’s still very generous.
The cost of solar has continued to drop and the value of STCs has made a good recovery since experiencing quite a dip in mid-2017 that caught many off-guard. The Clean Energy Regulator expects strong demand for STCs in 2018 and that could continue to support high values. It should be kept in mind this is not guaranteed and it could be wise to install solar while the sun shines, so to speak.
For those who have received solar quotes recently and are yet to have systems installed, the January subsidy reduction should have already been factored in.
Electricity Price Rise In Victoria
Electricity costs have increased in Victoria, starting today. While those on standing offers or expired market offers are shielded and will actually receive a rebate, the vast majority of Victorians face electricity price hikes of up 14.9%.
For solar owners, Victoria’s feed-in tariff remains unchanged at 11.3c until July when new rates are expected to kick in. Victoria’s Essential Services Commission published its draft decision on new feed-in tariff rates and structure in December.
NT Energy Efficiency/Solar Subsidy
NT households can take advantage of co-contribution grants of up to $1,000 for energy efficiency upgrades, including the installation of solar panels and battery systems.While households have been able to start gathering quotes since last month for the scheme, from tomorrow applications can be lodged online for the Smart Energy Grant.
The subsidy scheme is well timed – there are rumblings an electricity price rise may be on the cards for the Northern Territory during this year. According to a recent ABC report, Territory Generation:
“..is broke and will push for an increase in power prices once a freeze expires in six months”.
However, the board of Territory Generation was recently replaced by an interim board. Treasurer Nicole Manison said:
“..it is vital Territory Generation are able to respond effectively to the challenges of a dynamic energy landscape as the Territory moves towards the election commitment of 50 per cent renewables by 2030.”
NT’s Roadmap To Renewables report recommended solar power be the technology of choice for achieving the goal.
Queensland Appliance Rebate
As we reported last week, Queenslanders (including solar owners) may be eligible for an appliance rebate of up to $300 on new energy-efficient appliances purchased from today. Also not far off is an initiative offering no interest loans and rebates for the purchase of rooftop solar panels and energy storage systems.
Electricity Prices – Looking Ahead
As for the outlook for power costs across Australia during the second half of 2018, the Australian Energy Market Commission’s recently published outlook for residential electricity prices says they will begin to fall in all states from the middle of this year, except for the ACT, WA and NT. However, six months is a long time when it comes to the Australian electricity sector – so its best to expect the unexpected. Pick up some energy efficiency tips.
Footnotes
- For further information on the deeming period and the “solar rebate” phaseout, see this post ↩
- Green Energy Markets‘ spot price per STC was $38.20 on December 20 ↩
About Michael Bloch
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With the report including
”
From today, what’s known as the “deeming period”1 for solar power systems decreases by another year, to 13 years. What this means is the amount of solar subsidy available will be reduced.
While every dollar counts, it’s not a huge amount of difference, working out to less than ~$270 on a 5kW solar system for most Australians based on recent Small-scale Technology Certificate (STC) value 2.
This still leaves a subsidy of around $3,400 available for a 5kW system in Zone 3 (which includes Brisbane, Sydney, Canberra, Adelaide, and Perth) – so it’s still very generous.
”
could clarification (verification or refutation or otherwise) please be given, regarding the statement
”
we cannot claim govt rebate if you where (sic) to decommission an existing system and go for a new one as you have already claimed the rebate once
”
where, if existing systems, for which government rebates have been claimed, fail, and require replacement, due to being non-functional or significantly faulty and not feasible to repair?
If a *system* is being replaced, then it may be eligible – this page may be of help.
http://www.cleanenergyregulator.gov.au/RET/Scheme-participants-and-industry/Agents-and-installers/Small-scale-systems-eligible-for-certificates#Eligible-small-generation-units
Hello Michael.
Thank you for your response.
Unfortunately, with that being a government department web site, and, with Australian government departments apparently having a policy of publishing malfunctional web sites, only the first screen of the web page, displays on my screen, and the web page, like other Australian government department web sites, prohibits scrolling down the web page to view its content.
I note that your response apparently contradicts the advice posted in the Comments at
https://www.solarquotes.com.au/blog/australia-solar-electricity-statistics-mb0396/#comment-115754
As Ronald mentioned on that thread, replacement *panels* may not receive STCs but replacement *systems* should.
Regarding your issues with not being able to view that page, you may need to look at your web browser settings as I’m able to view it without any issues on Firefox, Chrome, Internet Explorer and Safari.
In looking at replacing our dead and dying systems, with a new system, from advice that I have been given MPPT is a fairytale and is nothing more than smoke and mirrors.
According to an installer, with one roof face facing WSW and another facing ENE, directly opposite each other, on opposite sides of a roof ridge, the installers advised that “A dual tracking inverter” … “would be no good” … “as the (WSW) facing panels would unbalance the inverter”.
At
https://en.wikipedia.org/wiki/Maximum_power_point_tracking
is
“Data suggests having one inverter with one MPPT for a project that has east and west-facing modules presents no disadvantages when compared to having two inverters or one inverter with more than one MPPT.”
Now, with what the installer has told me, is all of this MPPT, especially, with dual MPPT, which is specified (for some inverters), as each MPPT thing, being able to deal with two separate strings, thus, and inverter specified as being able to deal with 4 strings, via two MPPT trackers, really just smoke and mirrors, and, a fairy tale, as the installer has led me to believe, with the whole thing becoming unbalanced (and, falling off the wall?), by having two opposite facing arrays of panels on the same inverter?
Hi Brett
Installers must follow inverter manufacturer guidelines for installation and it is possible for an inverter to have restrictions on arrays attached to it, so that may be why there is a problem. It is generally possible to download inverter installation manuals to see if they have any restrictions.
The full text of the paragraph of the message from the installer, is
”
We would not be legally allowed to install a 6.5kw System for you, your panels on the SW are out of the CEC guidelines and if we got audited we would loose our accreditation for installing panels that do not represent the full environmental benefit required to claim STC rebate. There have also been issues with inverters failing and panels degrading far quicker when being subject to southerly aspects. Also we assume responsibility for your solar system the moment we touch it, replacing the inverter on the southerly aspect would not be conducive to operating our business within good standard practice. A dual tracking inverter for the all the panels would be no good either as the southern panels would unbalance the inverter.
”
The systems that I seek to have replaced with a single new system, are one system of 2kW of panels and a 1.5kW inverter, facing about WSW, and a system of 3kW of panels and a 3kW inverter, facing about ENE, described in the following. The “panels on the SW” relate to a system
”
installed on the roof facing approximately WSW.
It was done with the permission and knowledge of the CEC. The CEC
authorised it to be installed with its orientation.
That system was installed in February 2014, and has since produced
(until 16 December 2017) 9431kWh as shown by the inverter.
I note and I emphasise that, in the time that the system facing WSW
produced 9431kWh, the system facing ENE produced 15328kWh, according to
the inverters.
15328 / 9431 = approximately 1.625
3kW / 2kW = 1.5 (the respective total capacities of the panels of the two existing systems)
And, the WSW facing system, suffers some shade in the evenings, from an inappropriate (harmful, including making the street dangerous) verge tree
The efficiency of each of our two systems – that one facing approximately WSW and a 3kW one facing approximately ENE, came out (in terms of output per kW of panel capacity) at about 80%, from memory, at the peak times for each
side.
So, the WSW facing system, whilst it is not as efficient as if it would be facing completely north, it is shown to have been worthwhile, in its placement, apart from the now failed inverter, and, I have found that the inverter brand (Rewatt) does not have a good name for stability.
”
So, the question is, given the contention by the installer, that MPPT inverters with two MPPT trackers, such as the Fronius Primo 5.0-1 range
(”
Number of MPP trackers 2
Number of DC connections 2 + 2
“)
simply can not handle opposite facing strings or arrays of panels, when one orientation is below the E-W line, is this MPPT thing, simply smoke and mirrors, or, does it really work, and, allow inverters to manage input from multiple (in the case of the Fronius inverters cited, up to 4) strings or arrays, of differing orientations?
The installer apparently already has made a BS and unqualified representation, with the “your panels on the SW are out of the CEC guidelines and if we got audited we would loose our accreditation for installing panels that do not represent the full environmental benefit required to claim STC rebate”, given that the CEC authorised the orientation of those panels, so I am wondering about the validity of the assertion that all MPPT inverters are no good in dealing with MPPT, and that the MPPT is just a scam.