Archive for August, 2008

Prices for Renewable Energy Certificates are falling again.

It was only 4 days ago that the Renewable Energy Certificate price dropped from $49 to $47. Today, we got notice that the going price is going to be $43.

What that means is that the cost for a standard roof mounted system is $186 more than it was last week.

Good or Bad?

Of course is is bad that the you have to pay more for a solar hot water system. However, compared to what the prices were like in the past, $43 is still a huge rebate ($1,333 for the standard system and $1,935 for the 400 Litre split system). And that is in addition to the $1,000 federal rebate you might be eligible for.

The other good thing is that the price drop shows that there are more REC’s being offered than companies wanting to purchase them. That means we are well on the way to increasing the renewable energy production.

The Decision

Naturally, you want to get the best price for your REC’s. So the question is whether to wait and hope that the price will increase again (with the risk that it might fall further).

Or to purchase now to get what you can before prices for REC’s fall even further.

Unfortunately, I do not know what the future will bring. So I cannot advice on the best course of action. But looking at the volatility of the REC prices in the past, I would not be surprised if they continue to fall. On the other hand, significant rises are unlikely.

And when you look at the lifetime benefit from a solar hot water heater, the significance of the REC payment pales in comparison.

Find Out Whether You Can Benefit From Solar Hot Water.

You can get an instant quote right now. There are 23 simple questions that lets our online calculator work out the best solution for your situation. That way you know exactly whether you can benefit from solar hot water.

Start with 1. Find System.

One of our clients doubted that he could get the solar hot water rebate for his investment property. He took the trouble to call the Department of the Environment, Water, Heritage and the Arts. The answer: “No, only the tenant can apply.”

When I heard that, I called the Department as well and sure enough got the same answer.

However, I had a FAQ document produced by the Department. Here is what it says:

Can I get the rebate for a system I install on my investment property?

Yes. The system for which a rebate is being claimed must be installed at a principal place of residence. There is no requirement that this is the applicant’s principal place of residence. An owner may apply for a rebate for more than one property.

The sharing of costs other than the rebate between the landlord and the tenant is a matter for you to
negotiate. Regardless of whether you are an owner or a tenant, all other eligibility requirements must be met.

Vita, the lady I talked to, had to ask her superiors. She called back after half an hour, confirming that in fact, yes, a landlord can apply for and receive the solar hot water rebate.

So if you have any problems, claiming the rebate, do not give up, tell the Department to check its policy more carefully.

I want to tell you about one of our customers: Dale.

We installed his system on Tuesday. Normally, the plumbers do their work first, then the electrician comes and connects the booster element. He often arrives, when the tank is filled with water, but before all connections are ready. That way, the system is fully functional as soon as the last bit of pipework is connected.

With Dale though, the electrician never arrived. So Dale and his family had to have a cold shower on the first day of having solar hot water.

The problem: the electrician had had an accident on another job.

First thing next morning, we sent another electrician to finish off the job.

When I called to find out whether everything was working well, Dale told me that there was a tiny, hardly perceptible leak in the tank.

He is not far away from us, so I said I’d come around to have look. On the way there I fully expected him to tell me about his disappointment in the whole process.

You know what happened instead? Dale told me that he was absolutely impressed with our service. That he appreciated how I called and kept him up to date. That he was surprised by the prompt and fast delivery and installation.

Thank you Dale for this wonderful feedback. It has inspired and touched me. And I will continue to bring solar solutions to Australia. Solutions that are convenient, hassle-free and that pay off financially.

It also made me realise that we are not about selling solar hot water. Instead, I want to help people find the best solutions for their particular situation. For large families, it is solar hot water. For couples  or singles, solar electricity might pay for itself more quickly.

The best place to find out what you will save on electricity is your electricity invoice.

On 1 July, I wrote about the all-time high in the Renewable Energy Certificate (REC) Payments. Back then I said that the prices can fall.

Today, we had that drop in price.

Payment is still high: $47 per REC. So for an on-roof system which has 31 REC’s, you still get a payment of $1,457 (which we take off the price). For a split system it can be up to $2,115.

Still excellent value (far better than when I bought my system. We only got $26 per REC.)

If you want to know exactly what REC’s are and how they work, see What are Renewable Energy Certificates (REC)?

You are eligible for Renewable Energy Certificates (RECs). When you go to the online calculator your answers will help us calculate the amount of RECs you will receive. The $1000 Federal Rebate is only available for households switching from electric hot water to solar hot water, but you will still save money if you switch from gas to solar.

Switching To Solar Saves Money

The average price for a 45 kilo LPG gas bottle ranges from $80 to $125 at the moment. If Queensland follows the trend in other states, LPG prices will keep rising as often as once a month. The most economical choice for you would be to switch to an electric-boosted solar hot water system.

You will also reduce your greenhouse gas emissions by switching to solar. In fact a gas-boosted solar hot water system produces even less greenhouse gas than an electric-boosted solar hot water system.

Switching To Solar Reduces Your Carbon Footprint

If you have access to a natural gas pipeline that goes to your house, we can offer you a quote for a natural gas-boosted solar hot water system. Solar hot water, boosted by natural gas, is the lowest greenhouse gas emitter of all hot water systems.