Tag: Feed-in Tariff

Are Solar Feed-in Tariffs in their Twilight Years?

There are many reasons you might be wanting to install a solar system. First, there’s the desire to make a little contribution of your own to a cleaner and greener future. Second, there’s been enticing installation incentives like government rebates on solar panels. Third, there’s the recognition a solar setup could help maintain access to electricity in the event of a grid blackout. Fourth, there’s no shortage of residents across the Great Southern Land who love the feeling of having a cutting-edge solar system!

But for all motivations that exist for getting solar, there’s no doubt gaining access to a feed-in tariff (FIT) is top of the list for many. This pathway allows a solar system owner to get some income from the excess energy their system generates. This has been very appealing to solar system owners currently paying off their system, and also those who’ve already done so. That’s why the suggestion that FITs are entering their final years is a very important issue. Let’s unpack it now.

Solar Popularity: The Necessity of Solar ‘Crowd Control’

Because solar installations are proving so popular in Australia there’s a new need to accommodate demand. For governments of all political persuasions across Australia, this is no easy task. The huge demand for solar installations that has seen successive record-breaking years of solar uptake is set to continue. It’d be a bold move for any leader to stand in front of the public and tell them ‘no more solar’ – and also it’d be foolish! The key problem certainly isn’t more people wanting solar – it’s how to effectively manage the power new installations generate.

It’s indeed necessary to make some significant adjustments to the sector. It would quickly become a big problem if everyone with a solar installation now and in future was able to feed excess energy into the grid all day long. Accordingly, for some in the energy industry, winding back the FIT altogether in the years ahead would be a way to slow the increase of solar installations. But in the meantime, the impact of solar’s popularity is already visible in policy decisions.

For example, Victoria’s minimum FIT rates are set to drop sharply in July. It’s necessary to note the minimum FIT isn’t mandatory. Energy providers are able to offer a higher rate if they choose to do so. Whichever way you look at it there’ll be a clear-cut reduction to the VIC minimum in the new financial year. There can also be the expectation similar moves will occur across other states.

More than Feed-In Tariffs: Increasing Options to Tackle the Problem

Taking action to address a problem is the right course – but that doesn’t mean there’s only one road to travel. There’s scope for multiple pathways to be pursued when it comes to managing solar’s ongoing popularity, and to encourage existing solar installation owners to look to other methods for utilising their excess energy. It’s clear the Australian Energy Market Commission [AEMC] has been thinking along these lines recently.

They put out a proposal in March that’d redefine the relationship between a typical rooftop installation and the grid, with ‘two-way pricing’ a key component of it. The AEMC argues the best path ahead would be to change the rules to incentivise solar owners to send power to the grid at night, instead of during the day. These new rules would incentivise solar owners to buy batteries, reward them for exporting energy when demand is high, and encourage them to utilise their own power when demand is low.

Increasing choice like this is surely a better approach than simply slicing and dicing FIT rates. Yes, managing solar’s surging popularity is a complex challenge. But any move to disincentivise solar uptake is a big misstep. That’s why if an eventual phase-out of FITs occurs, it must see new incentives replace it. Any alternative approach that opts for scaling back current incentives instead of creating new offerings can only be counter-productive in the long term.

But for now, what do you need to know about navigating this current chapter of solar’s growth?

Solar Policy: We’re in the Era of Constant Adjustments

The reality is the speed of expansion and change in the Aussie solar sector has been hard for authorities to keep up with. It demands regular adjustments. Just consider South Australia. In recent years it’s seen such an increase in solar power that the state’s been pursuing numerous virtual power plant (VPP) projects to help ensure excess energy residents generate with their solar systems doesn’t go to waste.

The experience of South Australia is illustrative of an important lesson here. Effective solar (energy) policy requires regular – and sometimes swift – adjustments. For our readers and customers, trying to keep up daily with every little change made in the sector would be impossible. But keeping an eye on the bigger trends can help anticipate a major change on the horizon – like the winding down of a FIT. So being proactive instead of reactive is key in order to maximise ROI on a solar system amidst an environment of ongoing change.

Taking Action Amidst Change

There’s no question solar will continue growing fast in Australia, and sometimes that growth will be faster than authorities can keep up with. Accordingly, really eye-catching headlines will occasionally circulate saying it’s time to ‘slam the brakes on’. As aforementioned, it’s true the rapid national increase of rooftop solar power must occur alongside careful management.

Ultimately, while solar enthusiasts must sometimes be ready to encounter a dramatic headline – and perhaps be patient as policymakers tweak some settings – at the end of the day, solar owners will benefit from diversification instead of diminishment of energy export offerings. So authorities should preference that path instead of constantly tinkering with FIT rates.

The key tasks for solar system owners are:

1. Understanding what current options are out there

2. Understanding what options could be made available in the future

3. Which option best aligns with your goals for your solar system going forward

We focus on providing our clients with the level of service they deserve. Contact E-Smart Solar for more information and advice or to discuss your solar needs.

7 Solar Installation Checks You Can Start Today

The day your solar installation is switched on for the first time can be very exciting – but it’s important day one isn’t the last time you’ve got your solar installation front of mind. This is because the failure to complete regular checks can not only lead to a drop in proper performance of the installation but even pose a safety risk. For anyone with a solar installation, there are 7 questions you should ask yourself today to help ensure its ongoing efficiency and safety.

1. Is My Inverter Working Properly?

Commonly, an inverter will display a green light and a screen with a reading of various values. But if your inverter is displaying a red light – or perhaps no lights at all – it could be a sign there’s a problem. It’s always best to refer to your inverter’s manual to confirm what lights correspond to what operating state, as different lights can mean different things on varying models. Yet as a general rule – like traffic lights – if the light isn’t green it’s necessary to stop and take notice. The same applies to the display screen, if no information is showing up it’s usually an indication the inverter isn’t working properly.

2. When Was the Last Time My Installation Was Inspected?

When a solar installation is done with quality parts by a quality installer, then statistically speaking solar panels are very safe. But it’s important to understand that it’s necessary to ensure they’re inspected regularly. The reality is the daily exposure to the outdoors that solar installations face can give rise to issues such as corrosion, water damage, animals interfering with wiring, and so on. Every installation and its surrounding environment is different – so it’s necessary to check in with a trusted electrician regarding how often precisely an inspection is recommended – but as a guide getting an inspection once every 6 months is common. 

3. When Was the Last Clean?

Just the same as an inspection, it’s also recommended a solar installation gets a regular clean. Environmental conditions and other factors will inform how often this should be – so check with a trusted cleaner – but getting one done every 6 months is a common timeline.

4. Has There Been a Change in the Environment Around the Solar Installation?

Solar installations work best when they have an uninterrupted view of the sky. When anything intrudes upon that view it can diminish the effectiveness of the installation. There are some obvious changes that you may recognise could have an impact. For example, if your neighbour recently decided to convert his single storey home into a 3 storey structure, and the upper levels are now shading your installation during the day. Other obstructions such as growing trees may be less immediately obvious but are still able to diminish the production of solar power if causing shading on the panels from one day to the next.

5. If There’s Been a Change Is It Wise to Relocate the Panels?

If there’s now an obstruction to the clear line of sight to the sky your solar installation had prior it will be necessary to address it in order to restore the installation to its maximum capacity. If it’s a simple obstruction – like cutting down a branch on the aforementioned tree – then there will not be a need to relocate the solar panels. But if the obstruction will be ongoing – such as the new storeys on your neighbour’s home – then relocating the affected panels to another part of your roof should be done. Although taking this step may feel a little frustrating if the cause of the obstruction is out of your hands, the good news is relocation jobs like this are usually pretty straightforward (provided relocating panels on another part of the roof is doable).

6. Am I Getting the Best Feed-in Tariff?

Not all energy providers are made equal. Across Australia, some offer better rates for a feed-in tariff than others. It’s important to check your local market – you may ultimately find there isn’t that much difference (if any at all) between the best value rate on the market and your current one – but certainly, it’s worth checking out. Not only once but regularly, in case of prices change.

7. Is Now a Good Time to Get a Battery Installed?

Every solar installation is different. So too is every solar owner’s circumstances. So ultimately the question of whether or not now is a good time to get a battery is a complex consideration that each solar owner must make a judgement call on themselves. This notwithstanding, battery technology continues to come along in leaps and bounds. If your solar installation was done years ago and you didn’t go ahead with a battery then? Now could be a good time to revisit the possibility of getting one. 

Regular Maintenance Will Provide Optimum Solar Performance

A rooftop solar system can help you cut down energy bills today, and insulate you against any rising cost of energy in the future. Rooftop solar installations are also fascinating and fantastic pieces of tech, and each one helps contribute to a cleaner and greener future. In order to be at their best, we have to be at our best when it comes to doing regular checks on them. Regularly reviewing these questions here will help you to get the most out of a well-maintained solar installation from one year to the next.

If you are interested in installing solar on your Blue Mountains or Hawkesbury home, contact E-Smart Solar for a quote.

Can I Have a Solar Battery and Get a Feed-in Tariff in The Blue Mountains or Penrith?

Many Australians with an interest in solar find the dynamics between batteries and feed-in tariffs confusing. This is completely normal. After all, it’s true starting a solar installation project can be a little intimidating. Yes, getting a solar installation done can be great – but it’s hard to know where to start. That’s why now is a great time to look at the relationship between batteries and feed-in tariffs in Australia.

The Basics of Batteries and Feed-in Tariffs in The Blue Mountains and Penrith

For anyone yet to be familiar with how solar batteries and feed-in tariffs work, a quick recap is worthwhile.

Batteries: Solar panels generate energy during the day. As they do, the excess can be stored in a battery for later use, for when electricity is in need but the panels are not drawing any.

Feed-in tariffs: Feed-in tariffs are a credit that solar panel owners receive for any excess energy they generate with their panels that is then fed back to the grid.

If Not Today, Perhaps Tomorrow

It’s not critical to have a battery in order to gain access to a feed-in tariff. In fact, it’s not necessary to have a battery at all. In such cases, any excess energy will automatically be fed out to the grid. This said, many Aussies installing a solar system do find there’s value in having a battery. Furthermore, many Aussies that right now do not have a solar battery are looking to get one in future, once battery technology advances further.

So although it’s not a hard and fast choice, it’s instead one best thought of as being a question of strategy. It’s held as of December 2020 more than 2.66 million rooftop solar systems had been installed across Australia. Just as many millions more are set to be installed, existing solar installations will get added to, and otherwise modified in years ahead. For example, as well as adding a battery, it’s expected many homes will eventually install a charging station for an electric vehicle (EV) that is charged – at least in-part – by the solar installation.

The Case for Going Double

Installing a solar system is not about the benefits you get on day 1 of its use, but day 100, day 1000, and so on. A solar system can drive down energy costs, and drive up the value of a property. In this regard, getting a battery will make the installation a bigger job, but it means the extra energy the panels generate can be stored, and then later utilised.

A Diminished Appetite for Feed-in Tariffs

It’s necessary to keep in mind that the solar industry is – notwithstanding its ongoing growth – subject to change when it comes to both batteries and feed-in tariffs. Put simply, batteries are getting better as time goes on. In turn, while many governments have sought to implement generous feed-in tariffs to incentivise installations in years prior, the sheer popularity of solar across Australia today means in future the rate of such feed-in tariffs will reduce, and eventually likely come to an end altogether.

But these are issues for the mid-term to long-term. Although there’s always scope for a surprise (especially in this pandemic era), unless your local state or territory government’s feed-in tariff scheme is changing soon, there’s no need to be frantically ringing about solar installers tomorrow looking to get a set of panels up ASAP. In fact, it’s a reality not all solar providers will actually provide a quality installation with quality materials – so taking some time to do some in-depth research and discern what you should avoid when seeking a solar installer is always best.

Where Can I Find Out More About Feed-in Tariffs in The Blue Mountains and Penrith?

The Australian government has a good starting point for anyone looking to come up to speed on specific rates for feed-in tariffs across Australia. The precise rates for a feed-in tariff can vary across Australian states and territories, and from one energy provider to the next. Many people make use of energy price comparison websites to find a feed-in tariff they like.

It’s also useful to keep in mind that – as aforementioned – these feed-in tariffs can be subject to change. If you find a tariff you like in The Blue Mountains or Penrith areas, it’s useful to confirm with E-Smart Solar how long the current rate will be in operation for.

What to do when the NSW 60 cent solar rebate ends

60c Feed-in Tariff ends December 2016

The NSW solar bonus scheme and 60c Feed-in Tariff will be ending on 31 December this year. E-Smart Solar was recently a guest on Blue Mountains Radio’s Business Show discussing the end of the Feed-in Tariff (FiT). Approximately146,000 of NSW households will be affected by the changes, if you are one of the many people affected we’ve listed some tips below to help you prepare for the changeover:

  1. Change your Gross Meter to a Net meter – some retailers are offering this for free, otherwise your local Level 2 electrician (yes, that would be E-Smart Solar!) can do this for you.
  2. Look at shifting your energy loads – it’s simple, but sometimes easy to forget. Shifting your energy consumption to when the sun is shining and solar is at its peak is best practice and will set you up with amazing energy habits (if you don’t already have them!). Things like scheduling your washing machine or dishwasher to work during the day will go a long way in saving you money on your energy bill.
  3. Reevaluate your energy retailer – are there better deals out there and can you renegotiate your rate? As always, it’s worth shopping around to see what offers best suit your needs.
  4. Get more solar panels – more solar panels can be a great solution for those not yet ready to commit to battery storage. Solar panel efficiency has increased significantly in recent years – during the 60-cent scheme, the typical output for a solar panel was around 250w. This has now increased to around 320w for the same size panel – a whopping 28% increase in energy output.
  5. Install solar batteries – solar batteries are currently on everybody’s lips courtesy of the Tesla Powerwall. Batteries are a fantastic way to make use of your daytime solar power and use it at night when sunshine’s not available and energy costs are at their peak. Technology such as Reposit  can also work with your retailer and reduce your battery payback period by 30%.

Questions? Shoot us an email or give us a call on 02 4703 5411 (02 ESMART). We’re here to help.