Archive for December, 2008

Each Australian state is taking its own path on feed-in tariffs.

Feed In Tariff Queensland

Queensland implemented a Net Feed In Tariff in July 2008. Anyone producing electricity above what they are using get a credit of 44 cents per kWh produced. It is handled by the energy retailer (some pay more than 44c) and offset against the electricity bill. If there is a credit at the end of the year, you actually get paid by the energy companies.

Here is a sample calculation. It assumes an average quarterly power bill of $345. One third of that is off peak power (costing 9c/kWh), two thirds is for the continuous tariff (at 16c/kWh). With rising electricity prices in Queensland, the savings will be even better.

A 1kW solar system produces about 2,000 kWh of electricity in South East Queensland in 1 year. So at the very least, you will reduce your electricity costs by $340 (if you have a northern roof at the right angle, etc). That is if you do not feed anything back into the grid at all.

Note: These figures do not take losses into account. Please check the updated Solar Bonus Cost Savings post that shows the corrected figures and a real life example.

If you are able to reduce or eliminate your energy consumption during the day (while the solar panels produce electricity), you might feed 1,000 kWh (50%) back into the grid. For that you would get a credit of $440 per year. The other 1,000 kWh would reduce the electricity you need to purchase. So your total savings a year would be $610.

Or if you can push that even further (100% will not really be possible, because usually the fridge is running during the day), you do even better.

So even though the electricity produced from a 1 kW system is only about 20% of your needs, you can reduce your invoice by up to 50%. A 2 kW system might bring it down to zero.

How to Benefit the Most

It is pretty obvious: If you can minimise your electricity consumption during the day, you have the biggest savings.

Here are some tips of how to achieve that the easiest (or of who is most suited for it):

• Smaller households will lower electricity bills to start off with, will benefit much more dramatically.
• If you are away during the day (e.g. work, school) you are more likely to achieve big savings.
• See whether you can use natural breezes and fans instead of air-conditioning.
• If you have a pool, can you set the timer of the pool pump so that it does not run between 10am and 3pm?
• Can you do the washing early in the mornings or evenings after the sun is down?
• If you need to use light during the day, do you use energy efficient lighting?
• Are you used to turning appliances off at the wall to avoid using stand-by power?

Feed in Tariff in Other States

South Australia – Net feed in tariff, paying 44 cents per kWh (electricity costs 22 cents, so the savings are different to the Queensland example above).

Northern Territory – Only available for residents of Alice Springs through the Solar City Program. They offer an elevated buy back rate (which is in essence an gross feed in tariff) of 45.76c/kWh (which is CPI indexed), but capped at $1,825 per year.

ACT – gross feed in tariff, began March 2009. Systems connected between 1 March 2009 and 30 June 2010 will receive a 50.05 cents per kWh generated, for systems up to 10kW, and 40.04 cents per kWh for systems between 10kW and 30kW. From 1 July 2010 until 30 June 2011, the feed-in tariff is 45.7c per kWh for all systems up to 30kW.

Victoria – A net feed in tariff of 60 cents/kWh commenced on 1 November 2009, but it is credit only.

NSW – A gross feed in tariff of 60 cents/kWh commenced in January 2010 and will run for seven years. Available for systems up to 10kW.

Tasmania – 20c kWh commenced.

Western Australia – Announced a 40c/kWh net feed in tariff commencing 1 August 2010.

National Gross Feed in Tariff

Germany has run a successful model of gross feed in tariffs and is one of the countries with the most solar panels installed (even though they have a lot less sun than Australia). They have a gross feed in tariff so it is often cited as a reason for doing that.

I am not so certain. The benefits of a net feed in tariff are that consumers become more conscious of their electricity consumption habits. So it has additional environmental benefits.

Financially, the two systems can be used to achieve the same savings. It is just a matter of choosing the right level to pay.

If the federal government decided to implement a national gross feed in tariff, a lot of rewiring would have to be done. Every household that has a solar system now with a net feed in meter would need a new meter. And seeing that the electricity prices in the states vary anyway and that some states have taken action already, I think we should continue along those lines and support it.

What About Solar Hot Water?

We sometimes get questions about solar hot water and a feed in tariff. Solar hot water system do not produce any electricity. They use the sun’s heat directly to produce hot water.

They are able to use 80% of the sun’s energy where solar panels that produce electricity are only about 20% efficient. So if there was no off peak tariff, and we paid continuous tariff rates for electric hot water heating, solar hot water would have a much bigger impact on an electricity bill.

As it stands, large families (or people on continuous tariff) usually get a better financial return from solar hot water. Single and double households with small electricity bills benefit more from solar photovoltaic, especially in the states with generous feed in tariffs.

Queensland, the smart state? The new budget has axed the waterwise rebate scheme for Queensland.

Even though that has nothing to do with solar hot water, you might have wanted to use some of those rebates. Now there are 18 days left to act. You have until 16 February to get your application in but you need to purchase and pay in full before 31 December.

The main rebate of $1,500 is for a plumbed-in rainwater tank. It needs to serve your laundry or toilet. You only have to purchase and pay before the end of 2008. But it needs to be fully functional before you send the application in (by 16 February).

If you wan to take action, the best starting point is probably the Green Plumber website. They have a list of accredited plumbers who have received special training in rain water tanks. You can just call on 1300 368 519 and they’ll give you a number of the closest green plumber who can quote for you.

The Other Waterwise Rebates

Front loading washing machines (or another 4-star) get $200

Lowflow showerhead $30

Dual-flush toilet $150

Swimming Pool Cover $200

Greywater system $200-$500

Garden products (mulch, drought resistant plants, etc.) $50

For more details on eligibility, you need to check the Waterwise Website.

Implications for Solar Hot Water

There are no direct implications. However, it shows how fickle our government can be. The waterwise program was always planned to run until June 2009. Now it has just been axed with less than 3 weeks to take action.

Currently the various rebates pay for over 50% of a solar hot water system. Hopefully, the Australian government understands the value of these rebates more clearly and keeps them in place.

The only thing we know for sure is that there is no certainty at all. So if we cannot be waterwise any more, let’s be solarwise while we can.