Commercial
Overview
A new era for solar power is approaching. As technologies improve and the cost of traditional energy sources rise, within three to seven years, unsubsidised solar power could cost no more to end customers than electricity generated by fossil fuels.5
Major businesses, including Microsoft, Google, BHP and many ASX listed companies along with the Australian Government at all levels are leading the charge and investing in solar. Solar City projects have been established across Australia; in Adelaide, Alice Springs, Blacktown, Central Victoria, Moreland, Perth and Townsville to demonstrate the environmental and economic effects of combining cost effective pricing with the widespread use of solar technology, energy efficiency and smart meters.
The benefits of solar power to Australian businesses are compelling:
- Hedge against the rising cost of electricity – Australia’s retail and commercial electricity prices are expected to rapidly increase over the coming years as a result of increased material costs, the introduction of emissions trading and the need to invest in energy infrastructure.
- Generate clean power – electricity from solar electric systems produces no pollution and will continue to work for many decades to come.
- Obtain rebates and tax reductions - the new Solar Credits Program will assist commercial enterprises to invest in solar electric systems. Purchasing a solar electric system as a company asset will enable the company to offset the costs of the plant over its expected life.
- Sell power back to the grid - in many states, you can sell your excess power back into the electricity grid.
- Become power independent – grow your solar electric system to rely completely on your own generating capacity throughout the year.
- Demonstrate your environmental responsibility - show your customers and key stakeholders that you are focused on environmentally responsible business practices.
SMA Solar Technology AG
5 McKinsey Quarterly, The Economics of Solar Power. JUNE 2008, Peter Lorenz, Dickon Pinner, and Thomas Seitz
How we can help your business?
Solgen Energy is a comprehensive end-to-end solar partner, offering the complete solution for your business. We’re strongly committed to customer service and have longstanding relationships with corporate and Government clients. Working with you before, during and after installation, we’re able to identify and meet your needs on an ongoing basis.
- Solgen Energy will design the optimal solution for your business and install with minimal disruption.
- Solgen Energy have in-house expertise to support your system with a robust business case.
- We’ll closely monitor your system’s performance to ensure you see results, including the strongest return on your investment.
- Solgen Energy is the right choice, we offer end-to-end control over costs, quality and available supply, which have contributed to successful commercial and Government partnerships.
Our insightful financial modelling and integrative energy efficiency planning can allow commercial clients to meet their corporate environmental goals with a commercially sensible business-case. We guarantee quality and we guarantee simplicity. We make these guarantees on the basis of world-leading quality inputs utilised in our systems, experienced project management and our intricate knowledge of solar electric systems.
Our 5 Steps Process
Step
Assess your energy needs
Step
Assess your facility, based on available roof, ground or parking space,
electric bills and rates, and access to solar incentives.
Step
Conduct an on-site audit. If you are a good candidate for solar, we
will design a system to maximise your solar energy production as well
as your savings.
Step
We manage all aspects of installation, approvals, and maintenance.
We’ll also ensure you receive the maximum Government incentives
available.
Step
Monitor performance. We’ll monitor your consumption and power output
performance and provide a reliable, cost effective energy management solution to help assist your organisation reduce electricity costs.
For further information please contact us.
It's no secret that the most efficient, reliable products deliver the greatest return on your investment. That's why we deliver the most powerful solar systems available.
Government Rebates and Incentives
Renewable Energy Target (RET) Scheme
The Government's RET scheme is designed to ensure that 20 per cent of Australia's electricity comes from renewable sources by 2020. The RET increases the previous Mandatory Renewable Energy Target by over four times, from 9,500 gigawatt-hours to 45,000 gigawatt-hours in 2020. In ten years time the amount of electricity coming from sources like solar, wind and geothermal will be about equal to all of Australia's current household electricity use.
The new RET laws include new incentives to support businesses installing small-scale solar systems. ‘Solar Credits' are now available to businesses that install eligible small generation units by providing multiple RECs for each megawatt-hour of energy produced.
Small scale renewable energy systems under the RET scheme
The RET scheme's rules allow owners of small-scale solar photovoltaic (PV) systems to create at the time of installation RECs equivalent to the output of up to 15 years operation depending on the system type. This provides an upfront capital subsidy to community groups who may sell their RECs on the market. While system owners can create and trade RECs themselves, in practice owners generally transfer this right to their system provider in return for a discount on the system price or a cash payment.
Solar Credits
The expanded RET scheme includes the newly established ‘Solar Credits' mechanism to boost the support to businesses that install small-scale solar PV systems by multiplying the number of tradeable RECs able to be created for eligible installations.
Solar Credits are available for eligible systems installed on or after 9 June 2009. Solar credits apply to the first 1.5 kilowatts (kW) of capacity installed. Generation from capacity above 1.5kW will still be eligible for the standard 1:1 rate of RECs creation. Solar Credits apply from 9 June 2009 and will be phased out by 2015-16.
How much can you save?
|
A 1.5 kWp Solar Electricity system located in Sydney, Perth, Adelaide, Brisbane or Canberra will |
Receive $7,750+ |
| A 5.1 kWp Solar Electricity system located in Sydney, Perth, Adelaide, Brisbane or Canberra will generate 230 RECs |
Receive $11,500+ point-of-purchase discount |
| + Figures based on RECs price of $50. REC price subject to change. |
|
Eligibility Criteria
The eligibility rules are prescribed in the RET scheme regulations, administered by the Office of the Renewable Energy Regulator (ORER) are summarised below. Further details of the rules are available on the ORER website.
- The system must be an eligible ‘small generation unit'; being a solar PV system of up to 100 kilowatts (kW) capacity;
- The system must be installed at an eligible premises. Examples include houses, townhouses, residential apartments and shops.
- The system must be a new and complete unit.
- There is to be no ‘double-dipping' in relation to the Solar Homes and Communities Plan, the Renewable Remote Power Generation Program (RRPGP), or the National Solar Schools Program (NSSP). That is, a premises receiving a grant or rebate under any of these programs is not entitled to Solar Credits.
- No more than one system at an eligible premises (address) is entitled to Solar Credits.
- Solar Credits may only be created once for a particular installation, irrespective of whether the certificates are created for a 1-year, 5-year or 15-year deeming period.
- The system must have been installed no more than 12 months prior to the date of application for Solar Credits.
For further information on RET Scheme and Solar Credits go to: Fact Sheet or FAQs
Feed-in Tariffs
In addition to the RET scheme, State Governments across Australia are introducing feed-in tariffs which have the potential to reduce your energy costs even further. The power generated by your solar electric system is metered, any unused power is fed back to the electricity grid earning you feed-in credits, paid to you by your electricity retailer, further reducing your cost of electricity.
The table below summarises the current feed-in tariff programs implemented across Australia.
| State | Start Date | Tariff & Max System Size | Net / Gross | Program Duration |
| NSW | January 2010 |
60c / kWh up to 10kWp |
Gross | 7 years |
| QLD |
Commenced in July 2008 | 44c / kWh up to 10kWp |
Net | 20 years |
| VIC | March 2009 | 60c / kWh up to 3.2kWp |
Net | 15 years |
| ACT | March 2009. Further amendments expected July 2009. |
50.05c/kWh up to 10kWp and 40.04c/kWh up to 30kWp |
Gross | 20 years |
| SA | July 2009 | 44c / kWh up to 10kWp |
Net | 20 years |
| TAS | 2009 | 20c / kWh |
Net | tbc |
| NT | Incentive is available for 225 rooftop PV systems in Alice Springs. |
45.76 c/kWh. Capped at $5 per day, then reverts to 23.11c / kWh |
Net | tbc |
| WA | Under review |
For more information on feed-in tariffs;
WA feed-in tariff
Queensland feed-in tarif
South Australian feed-in tariff
NSW feed-in tariff
Victoria feed-in tariff
ACT feed-in tariff
NSW Solar Bonus Scheme
The NSW Government has announced a gross feed-in tariff scheme for small scale, grid-connected, solar photovoltaic panels.
Businesses are eligible to participate in the Solar Bonus Scheme as long as they meet the eligibility criteria.
A gross feed-in tariff provides payments for all the electricity produced by an eligible renewable energy system and are deigned to;
- encourage and support people who want to act on climate change by generating renewable energy locally
- build the State's green collar jobs sector, by helping solar technology compete with non-renewable energy sources
- expand the visibility of renewable energy technologies to help motivate the whole community respond to climate change
Greater Return on Your Investment
The NSW Solar Bonus Scheme will now deliver the most generous payments across Australia to businesses in NSW who install solar systems.
Under the Scheme, commencing 1 January 2010, a business that installs a 1.5kWp system will be paid up to $1,496 per year for the next 7 years, installing a 10kWp system will generate payments of up to $10,000 per year for the next 7 years, bringing the payback period on an investment in solar down to less than 5 years.
However, the
Scheme will be reviewed in 2012, or when the installed capacity of
renewable energy generators participating in the Scheme reaches 50
megawatts, whichever occurs first, meaning a review of the Scheme may
lead to those who aren't participating in the Scheme missing out.
Contact
us now and we'll design the right solar system for your home and
provide you with a no obligation proposal and quotation. Complete an enquiry form or call us on 1300 660 704 to arrange an inspection.
Features of the Scheme
The key features of NSW Solar Bonus Scheme include:
- It will credit eligible customers with a 'gross' feed-in tariff rate of 60 cents per kilowatt hour for all the electricity that their eligible solar photovoltaic (PV) system generates subject to the transitional arrangements.
- Small electricity customers (those with an annual electricity consumption of up to 160 megawatt hours) are eligible to participate in the Scheme.
- Solar PV systems up to 10 kilowatts in size will be eligible for the Scheme.
- The tariff rate of 60 cents per kilowatt hour will be fixed for the life of the Scheme, meaning it will not vary with the time of the day or during the life of the Scheme.
- The Scheme will commence on 1 January 2010 (please see Question and Answer on transitional arrangements) and will operate for 7 years.
- The Scheme will be reviewed in 2012, or when the installed capacity of renewable energy generators participating in the Scheme reaches 50 megawatts, whichever occurs first.
More information is available in the Solar Bonus Scheme Questions and Answers.
Transitional Arrangements
The NSW Government has recently announced new details for the design of the Solar Bonus Scheme set to commence on 1 January 2010.
The legislation provides for transitional arrangements to implement the Solar Bonus Scheme so that electricity network businesses, notably Energy Australia and Country Energy (and Integral Energy for a small number of customers), can transition from "net" to "gross" metering. This means that over the first six months of the Scheme, certain customers may receive different benefits under the Scheme.
Participation in the Scheme
To receive the Scheme's gross tariff, consumers need to have metering that can measure the gross or total amount of electricity generated by their renewable energy generator, referred to as 'gross metering'.
Currently consumers in NSW's three electricity network areas - Country Energy, Energy Australia and Integral Energy - have different arrangements for electricity metering. The Solar Bonus Scheme's transitional arrangements have been developed to allow for certain customers who have net metering connected to their solar photovoltaic (PV) system to receive the Scheme's tariff as a 'net' tariff until the transitional day which is currently set at 1 July 2010.
This means that from 1 January 2010 to 30 June 2010 certain customers with net metering will receive the Scheme's credit on the net electricity they export to the national electricity grid. To continue to receive the credit from 1 July 2010, these customers will need to transition to gross metering.
For details of your electricity network area arrangements please see below;
- Integral Energy - Generally consumers with small-scale renewable energy generators in Integral Energy's area already have gross metering in place and should be able to participate in the scheme. For further details please visit Integral Energy.
- Energy Australia - From 1 January to 30 June 2010, existing Energy Australia solar customers will receive a credit of 60 cents per kWh only for the electricity they export to the grid, because they are already connected to the electricity grid with a NET metering configuration. From 1 July 2010, customers who have a complying generator and have changed to a GROSS metering configuration will receive 60 cents per kWh on their GROSS or total electricity generation. In order to participate in the Solar Bonus Scheme an additional meter will be required for the GROSS metering configuration. Energy Australia will supply this meter at no additional cost, however there will be an installation cost for the meter conversion work. Energy Australia has advised they hope to make GROSS meters available by March 2010 and will advise customers early in 2010 about the steps they will need to take to arrange for their metering connection to be changed to a GROSS configuration before 1 July 2010. For further details please visit Energy Australia.
- Country Energy - from 1 January 2010 to 30 June 2010, Country Energy net metered customers within its electricity network will receive 60 cents per kilowatt hour only for excess renewable energy that is fed into the electricity grid after household or small business needs are met. Country Energy will provide eligible existing net metered customers - with an installed capacity of less than 10 kilowatts - with a new gross meter at no additional charge. Installation of the gross meter can be arranged through any appropriately qualified Accredited Service Provider - charges for the installation of the gross meter are the customer's responsibility. Country Energy will write to existing net metering customers, those with an approved application and customers who have lodged, but yet to be approved for connection from 24 December 2009 to advise them of the introduction of the Scheme and of transitional arrangements. For further details please visit Country Energy.
Payment of the Solar Bonus Credit
All electricity retailers are required to provide eligible customers with either a Solar Bonus Scheme credit on their electricity bill or a cash payment representing this amount. How a customer receives their Solar Bonus Scheme benefit is at the discretion of the retailer. From 1 July 2010 onwards a bill issued to an eligible small retail customer is required to include the amount of electricity supplied to the network during the billing period and the amount to be credited for that electricity.
GROSS Metering vs NET Metering
In simple terms, a GROSS metering configuration for solar power is set up in such a way that it measures all the electricity consumed in the household (i.e. imported from the electricity grid) and all the electricity generated by the solar power system and fed back in (or exported) to the electricity grid. Buy-back credits are applied to the export amounts the meter measures (i.e. everything generated by your system) and consumption (or imported) electricity is billed normally.
A NET import/export metering configuration is also often referred to as "net metering" and is setup in such a way that any electricity generated by the solar power system is always used on the premises first. Electricity generated by the solar power system is only fed back into (or exported to) the electricity grid when the amount generated is more than is being used on the premises. This type of metering configuration separately measures the amount of electricity imported from the grid and exported to the grid and it can be implemented in a number of ways.
More information
The recent introduction of the Solar Credits Scheme now gives everyone an incentive to install solar at their business. Solgen Energy provides solar energy solutions of outstanding quality and value. We design and install the right solar solution for businesses.
To learn more about our services please complete our enquiry form or
call 1300 660 704.
For further information on the Solar Credit Scheme and how you can save go to: Fact Sheet
