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.

I Want To Install Solar But I Need Help Finding A Good Solar Installer In My Area

Once you know that you want to install solar, you still need to find a good solar installer in your area. And that can be difficult. Here’s what you need to know before making a decision.

Once you know that you want to install solar, you still need to find a good solar installer in your area. And that can be difficult. There are a lot of solar companies out there, and it is important to consider the quality of their work and how that will translate to an installation for your home.

How Can You Find a Solar Installer?

You can start by asking friends and family. If there’s someone you know who just got their solar installed, ask for their recommendations. Customers know whether they got good service, and word-of-mouth is an excellent way to begin your search. But what if you don’t know anyone who has invested in a solar installation?

If that’s the case, you need to start with Google. Through Google, you can find installers in your area, but that doesn’t necessarily mean that they’re good. You want to check their reviews. Check online to see whether there are complaints against them, and look at their social media accounts and blog to see whether they seem to be knowledgeable and reliable.

A complaint or two isn’t necessarily the end of the world. Every business has one or two upset customers. But if the business didn’t respond to complaints in a professional manner, that’s a red flag.

Talking to Solar Installers

Once you have an idea of what’s available in your area, it’s time to talk to installers and get some quotes. When talking to installers, keep in mind that not all solar services are going to be made equal. Some of them are going to have more services than others, such as free maintenance for a certain period of time, or a longer warranty.

Ask your installer questions about where they source their products and what type of products they have. You may want more than just solar panels: you may also want batteries, inverters, and other types of products. Your solar panel installer should be able to walk you through what’s available and discuss how this could impact your installation.

Check the websites for these companies and whether they have a significant presence. Ask about their certifications and make sure their certifications are up-to-date.

Comparing Quotes for Installers

A solar installation can be expensive. Depending on what you want, it could be a few thousand dollars, or over ten thousand dollars. With that in mind, it’s a good idea to get multiple quotes from competing companies. While you don’t necessarily want the cheapest quote, you do want a quote that is reasonable.

When it comes to solar installation, a cheap quote is usually taking money from something important, such as safety standards, or installation. If there’s a quote for solar installation that’s wildly cheaper than any other quote, it’s probably not a good deal — it’s probably faulty equipment.

More expensive quotes are usually expensive for a reason, such as the longer warranties mentioned before. Ask each installer what goes into their quotes, and they may be able to find ways to reduce your costs.

Making a Final Decision

Before you decide on a solar installer, ask if they have any references. Often, they should have a reference or two from a great installation that they did, or they should be able to point you towards their testimonials online.

There are many startups in the solar power industry. These aren’t necessarily bad, they’re just untested. You can have a great solar startup, but you need to have some evidence that they do good work, and that they do safe work. That’s where testimonials come in. If a company doesn’t have a lot of reviews online, you need to ask for references.

At the end of the day, finding a good solar installer is a lot like finding any type of good contractor. You need to make sure they have a good reputation, that they aren’t billing you too much money, and that they’re going to be reliable. The best way you can do that is to look up research on your own, and to ask them for more information about their company and their process.

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I Want to Install Solar But I Don’t Know How Much to Spend

It’s hard to know how much to spend for a solar installation. There’s a huge spectrum between the cheapest systems and the most expensive systems. We’re here to help you make your decision.

It’s hard to know how much to spend for a solar installation. There’s a huge spectrum between the cheapest systems and the most expensive systems. How do you know that you’re not paying too much? When should you be scared of paying too little?

Quality Solar Components vs. Cheap Solar

First: there are always going to be deals that look like fantastic options. There’s a lot of cheap solar out there. But most cheap solar systems are cutting a lot of corners. They aren’t necessarily safe, and the installation isn’t always handled properly. With a cheap solar system, you might not have the maintenance or support that you need.

While you can save money on the initial system and installation, this will likely cost you money long-term. You may need to replace the technology and equipment more frequently, or you could even experience something dangerous and dramatic… like a house fire.

Thus, when comparing solar, you shouldn’t necessarily go with the lowest bid. But how can you know what’s too low?

What Does the Solar Industry Recommend Spending?

Here’s the easiest way to find out what the “going rate” for a solar system in your area is: get a few quotes. Call some solar system companies up and compare different amounts. You’ll likely have some very low bids, but also a lot of bids that are clustered fairly close together. That “cluster” is probably going to be the general, reasonable rates in your area.

When it comes to solar, you get what you pay for. The more you spend, the more care is likely to go into installation and maintenance. A cheaper system may not have any included maintenance: you might need to pay quite a lot every time you need troubleshooting or repairs. The costs of a solar system is only partly the solar panels themselves; it’s also the labor and the services provided.

So, the cost of your system is going to vary, depending on what the company can offer. The company may have higher quality parts and expert technicians who are on call 24/7 to answer your questions. That’s going to be on the more expensive side. On the other hand, a company may have high quality parts, but you may need to pay for all your service calls. That could be more moderately priced.

Average solar power costs for a 3kw system in Australia ranges between $3,000 to $8,000, so you can see that there’s a significant range. And you may add to those costs by doing things like adding batteries, which can store unused power and make your solar system more effective and functional overall. But you can talk with your solar company about your budget and figure out a way to create a system that works best for you.

And don’t forget that there are a lot of tax credits available for both commercial and residential solar power installations. It’s possible that your final cost could be impacted by these tax benefits.

How Can You Pay for Solar?

So, what if the solar system costs in your area are high? You know that solar installations will save you money over time, but you still need to pay the cost of the system to begin with. With housing prices increasing in Australia, that’s not trivial.

But there are ways. Many solar panel companies offer financing, and there are also home equity loans that are open for renovations. It’s often fairly easy to get financing for solar systems, so you don’t need to pay the entire cost upfront.

Don’t assume that you can’t afford a solar panel system. It may be less expensive than you think, and it is going to save you money over time. Instead, get some quotes, compare, and figure out whether your budget will allow for it. You may be able to get an easy payment plan.

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Going Solar: Are Solar Panel Roof Fires Something I Should be Worried About?

Solar panel fires often hit the news, not only because they’re frightening, but also because they’re rare. Here’s what you need to know about what causes solar panel roof fires and how they can be avoided.

Are you worried about solar panel roof fires? Solar panel fires often hit the news, not only because they’re frightening, but also because they’re rare. While solar panel fires have occurred, they’re generally isolated incidents that can be protected against. Solar panel fires generally occur because the installation itself is faulty, or because corners have been cut when purchasing the right materials.

Here’s what you need to know about what causes solar panel roof fires and how they can be avoided.

What Causes a Solar Panel Roof Fire?

Everyone knows that solar panels are energy-efficient and cost-effective. Not only do they save the environment by using a sustainable, renewable resource for energy, but they also save households money through reduced energy costs.

But like any other type of advanced technology, solar panels can be installed incorrectly, mishandled, or manufactured improperly.

There are two major things that can cause a solar panel roof fire:

  • Poor installation practices. Solar panels need to be installed properly, as they are electronic devices that are creating energy. Most solar panel roof fires are the consequence of installing the solar panels incorrectly. Either the installation isn’t properly reviewed by an electrician, or the cables are mismanaged and lead to a short.
  • Badly manufactured solar panels. Some companies concentrate on profit first, and consequently may not use the best quality solar panels. It’s important to look into the types of solar panels you’re having installed, as well as the company you’re working with. A reputable company is going to use the best quality solar panels available.

In short, if a high quality solar panel is installed correctly, a solar panel roof fire isn’t something that you should worry about. A solar panel installation that has been properly inspected and installed is going to be completely safe.

Protecting Yourself from a Solar Panel Roof Fire

Using trusted solar installers is the most important factor when you’re installing solar panels. Only untrustworthy solar panel installers will use badly made solar panels, or install them incorrectly. A reputable solar panel installer will install well-manufactured, safe panels, and will do so in compliance with the installation best practices.

In 2018, South Australian citizens were warned that at least one company was performing non-compliant solar panel installations, which could be dangerous and potentially catch fire. It was unknown how many citizens could ultimately be impacted, but it was expected to number in the hundreds.

The danger related to these solar panels had nothing to do with the solar panels themselves, but instead due to the non-compliant work the solar panel company was doing. Particularly, the work was not being checked and inspected by a licensed electrician as it should have been.

Many of the solar panels in businesses and residences across Australia were found to have potential issues with wiring or had not been properly inspected after installation. This is something that a trustworthy installer can protect against.

Those with incorrect solar system installations frequently notice that the installation is dispersing far more heat than it should — so there are also indicating factors that homeowners and business owners may notice before a fire ever takes place.

Even so, solar house fires are rare, and substandard solar systems are rarely discovered. Solar systems are occasionally inspected by regulators to determine how many have been installed incorrectly, with about 3.4% of systems potentially being installed in a non-compliant fashion.

Solar Panels Are Perfectly Safe, As Long As They’re Installed Properly

Ultimately, anything that conducts electricity has to be installed properly and inspected by a licensed electrician. If a solar panel installer does not have a licensed electrician available, they are likely cutting corners on the installation and the installation will be non-compliant. A homeowner can also always opt to have their solar panel installation inspected separately to verify that it is safe and correct.

Are you interested in solar panels? Fire incidents are few and far between, and as mentioned, they can be safely avoided by using a trustworthy solar partner. Speaking with a solar company, getting a quote, and finding out more about the installation process can help put you at ease.

Contact E-Smart Solar for qualified solar power installations.