Archive for the ‘Solutions’ Category

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.

I have heard some salespeople vigorously defend the heat pump as a solar hot water system. It does use the heat (or warmth) of the air to heat water. The source of that heat is the sun. Therefore it can be seen as a solar hot water system.

But there are no collectors involved and it does need electricity to function. Far less than any electric hot water system though. That is the reason that it receives a Federal Government rebate and renewable energy certificates (RECs).

Heat pump advantages

The biggest advantage: no direct sunlight is necessary. We also recommend a heat pump where a solar hot water system is not feasible (e.g. for properties with an asbestos roof, when the north facing roof space is too far from where the water is to be used and of course where there is a lack of sunshine).

Heat pump disadvantages

The disadvantage: while producing hot water, it makes a noise (similar to an air conditioning unit). It is therefore best to put it away from any living areas. Electricity is necessary to power the fan that draws in air. This is minimal compared to an electric hot water system.

Is a solar hot water quote the answer to global warming? Not for everyone, but for many.

“Once you knew what did you do?”

I cannot remember who that quote is from, but it stuck in my mind ever since I heard it.

Man-made global warming is a reality very few people deny today. We all know it is happening, we all know something needs to be done about it. But most people are stuck as to what can be done on a personal level.

Sure, I can go and plant trees as a volunteer. I can turn off lights. I can walk sometimes instead of driving. But reality is that we value convenience and an immediate personal benefit above most other things. I am certainly being driven by these two motivations.

Convenience

Life is very full. So every change in behaviour needs to be convenient in two ways:

1. Making the change
2. Living with the change

Immediate Personal Benefit

With a choice of doing something for the greater good or getting an immediate personal benefit, most people would go for the latter. It is normal and human and ensures our survival as individuals.

So we need solutions that combine:

1. Immediate personal benefit
2. Positive impact on the planet

Solutions to Climate Change

Most proposed solutions do not meet any of these requirements. Many are actually contrary to them.

My goal was to come up with a solution that covered all four areas and I found it in Solar Hot Water

Living with the change is very easy. You do not really notice it (apart from the guilt-free hot showers).

Making the change requires a bit of effort. Finding the right system, finding the right installer, finding the money, understanding the rebates takes a bit of time. Hence the Solarpay service that does all that for you.

Reduced energy bills (savings of $300 to $700 each year) are an immediate personal benefit. And that will continue for the life of the system (20 years or more) and rising with increased electricity prices.

The positive impact on the planet is reduced greenhouse gas emissions (25% of each household or 3,000kg per year).

Once You Knew What Did You Do?

The problem: climate change and global warming

The best solution I could find: solar hot water

The question: What will you do?

1. Take action and get a solar hot water quote now.
   
2. If there are unsurmountable obstacles for you, leave a comment so we can find ways to overcome them.
3. If you have a better solution, please share it so we can all benefit from it (directly and indirectly).