Archive for July, 2009

An article in The Australian last week (23 July) reported the electricity industry is asking for up to $20 billion in extra government assistance. This is to avoid the impacts of the Federal Government’s proposed Emissions Trading Scheme (ETS). Somewhere the point has been lost that the ETS is meant to make the coal industry less viable.

We have been pondering what the solar sector could do with this vast amount of money if it were to manifest itself for our benefit.

For a start, $20 billion will buy around two million 1.5kW systems, not factoring in government subsidies, e.g. RECs or Solar Credits. Each system will pay for itself over 20 years (assuming there is a feed-in tariff in place). In other words the investment in each system is repaid at around $500 a year.

So, while the investment is being repaid it creates the ability of the solar industry to reinvest in even more solar systems.

If 400,000 dwellings a year were to have 1.5kW solar systems installed, at the end of 10 years they would cumulatively be generating 9,000 MWh. This is more than twice the energy generated by the large 1400 MW Tarong power station that powers much of Brisbane and emits 9.8 million tonnes of greenhouse gas a year in the process. As the average car produces 4.5 tonnes of greenhouse gas emissions a year, running Tarong is equivalent to running almost 2.2 million cars.

Unfortunately it is quite unrealistic for the solar industry to have the capacity to install 400,000 systems in the first year, however it could start smaller and ramp up. Think of the green jobs it would create.

What a great solar future it would be if these figures were not simply wishful thinking.

Further confusion is in the air about when to expect a decision on the new Federal Government subsidy for domestic solar power systems.

The Renewable Energy Target (RET), which specifies the shape of the new Solar Credits scheme, has been linked by the government to the emissions trading legislation. And yesterday (20 July) opposition emissions trading spokesman Andrew Robb called for the planned August vote on emissions trading in the Senate to be put off again.

The Coalition joint party room had earlier decided the legislation should be opposed in the Senate if the Government refused to defer it until next year.

It seems unlikely that the issue will be settled any time soon given the Government’s Senate numbers and the possibility that the emissions trading legislation may trigger a double dissolution of parliament and an early election.

Despite this, a number of solar power companies are advertising prices that factor in Solar Credits rebates. We don’t understand how these claims can be supported, given the political confusion. We encourage potential buyers of systems to do their homework and understand exactly what is being offered.

Our advice to anyone wanting a new domestic solar power system remains that they hold off if possible until the RET and Solar Credits are finalised. Unfortunately, that appears to be some time off.

The Federal Government’s Green Loans Program kicked off on 1 July.

Designed to make it easy for householders to reduce their environmental footprint, the program provides interest-free loans for home improvements such as solar power, heat pumps and solar hot water systems.

How to apply for a Green Loan:

1.   Check that you’re eligible for a Green Loan.
2.   Register for a home sustainability assessment, either on the Green Loans website or by calling 1800 895 076.
3.   An assessor will visit and write a report for you. This report is the basis of your application for a Green Loan.
4.   With the report in hand, decide on the improvements you want to make (reports are valid for 6 months).
5.   Choose the financial institution you want to deal with from the approved list, and apply for a Green Loan.

Green Loans have no application fees and are interest-free for up to four years.

After weeks of secretive promises that “you’ll be sent a pack”, the packs are finally starting to arrive for anyone who registered their interest in the Queensland Hot Water Program.

All it really includes is a link to the Queensland Hot Water Program Pack page. While the pack is hosted on the Cleanenergy website, there is no link to it from that site. I wonder why that is? Do they want to keep it secret?

All the solar hot water companies that I have spoken to about the program and who had tendered for it say they have received communication from the government that they were unsuccessful. So who is going to deliver this huge program? Is it the Queensland Government?

The pack looks great, good graphic design job. Then it mainly consists of questions to assess your property. You have to fill all that out and send it back to Brisbane. And then…

I called the hotline and asked about what happens next. The answer: “You’ll be advised whether you’ve been successful in your application. We do not have the criteria yet, don’t know whether it will be a ballot draw or on a first come – first served basis. You’ll just have to wait and see.”

My question about brands was answered that it depends on the area where you live.

So, it continues to be a program with more questions than answers. Sometimes it crosses my mind that if it were an individual who told me all these things, I’d think he had lost the plot. However, this is our state government. So there must be some substance behind it. So my best advice: get your application in as fast as possible and see what happens. You can always back out if it does not turn out to be to your liking.

Timing of the Queensland Hot Water Program

The hotline guy also reminded me that the program is going to be rolled out over 3 years, the insinuation being that this might not be a quick thing… And the paperwork keeps stressing that if you have a broken hot water system, you’d better go somewhere else – not the Queensland Hot Water Program. Here are the reasons why you should purchase a solar hot water system in Queensland.

The Queensland Government is from today (1 July) sending out application packs to people who registered their interest in a subsidised solar hot water system.

Premier Anna Bligh earlier promised to retrofit 200,000 homes with solar hot water systems or heat pumps at $500 each, and $100 for pensioners, under the Queensland Solar Hot Water Program. Details about how the Program will work have not been available until now.

Energy Minister Stephen Robertson today announced that, while all Queenslanders can register for the Queensland Solar Hot Water Program, the subsidised hot water systems hinge on the participant being eligible to receive the $1600 Federal Government Solar Hot Water Rebate.

The Queensland Government will pay the system installer $1600 on behalf of the participant. When the participant receives their $1600 rebate from the Federal Government, they are obliged to pay it to the Queensland Government. They also have to agree to assign their Renewable Energy Certificates (RECs) to the installer.

If the participant fails to receive the $1600 rebate from the Federal Government, they are still obliged to reimburse the Queensland Government for that amount.

Find out if you are eligible for the Federal Solar Hot Water Rebate.