Year: 2021

Commercial Solar – A Business Case Study

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The planet’s hottest and sunniest continent is an obvious choice for an investment in solar energy. Despite the politicisation of the solar debate in recent years, there is no stopping the advance of solar power. The gains to be had by exploiting this bounty here in Australia are simply too sensible to be avoided for long.

This trend has recently been recognised by governments, who have moved towards providing incentives for homeowners and corporate entities who install solar systems. The most common incentives are STC’s (Small Technology Certificates) managed by the Clean Energy Council. These incentives, along with the reduction in power bills, means homeowners and small businesses can make a considerable savings by installing commercial solar systems.

For most fitting this category in Australia, the most attractive range are the two kilowatt to five kilowatt solar systems. This wattage range is most likely to consistently provide ample electricity for daytime usage, given the vagaries involved in defining ‘daily usage’. Obviously, different households use differing amounts of energy.

The size of the solar system you choose is, of course, not entirely dictated by your electricity usage. The amount of unfettered access to strong sunlight is vital. Those homeowners with large amounts of south-facing roofs will not get as much direct sun as those facing north. Any vegetation surrounding the roofline will subtract from the total energy available. And the prevailing weather in your area will impact upon total yield: areas with more cloud cover or pollution will require more coverage for a similar power gain, meaning they would lean closer to a 5KW solar system over the 2KW solar system.

Your experts at Solar Bright can not only recommend the ideal package for you, to see you get the most out of the power of the sun. They can install it and forever change your inherent trepidation when you see a power bill arrive. Talk to us to join the solar savers, and we’ll determine your ideal setup.

Solar Panel Prices – Why Install A Solar Power System?

Posted on by solarbright

Is it worthwhile installing solar? With the reduction in government rebates and incentives for solar some consumers remain sceptical whether it is worthwhile to install a solar power system. This blog looks at the changes in the incentives and solar power costs since 2008 and current solar panel prices to answer this question.

The solar industry in Australia has gone through an extraordinary journey during the past 11 years and has always been driven by factors such as rebates, environmental considerations, affordability, available technology and the cost of electricity.

Back in 2008, the industry was mainly driven by generous federal and state rebates. These rebates were gradually withdrawn because the take-up of rooftop solar had exceeded all expectations as Australians embraced the new technology.

 

Above: Families in Western Sydney lead the charge to solar

Government rebates and incentives played an important role in introducing the technology to the market and encouraged households to install rooftop solar panels despite the high costs involved in the early days.

After the rebates and incentives were wound back by the state and federal government, the actual cost of solar panel systems kept falling instead of increasing as expected. In fact, today the prices of solar panel systems are at their lowest record while the incentives are also at a record low compared to the early days.

Historically there have been two types of incentives for solar in NSW:

  1. Feed-in tariffs (FIT) for power exported back to the grid from the solar system. This started with the huge 60 cents per kWh tariff back in 2009 then reduced to 20 cents. The state government realised it was too generous and unaffordable, so the FIT was abolished and replaced by net metering. This enables the energy retailers to provide credit for the energy exported to the grid – normally around 9c per kWh.
  2. Small Scale Technology Certificates (STCs) managed by the federal Clean Energy Regulator. Households and businesses can trade-in their STCs when purchasing solar systems up to 100KW and receive a point of sales discount from their solar retailer. The STCs’ incentives are reduced every year by 7% until they run out in 2030.

Below is an example comparing a typical price of 5kw solar system from 2010 to 2019 and it also shows the incentives for purchasing solar power systems (NSW):

SolarBright Historical Price 2010 2019
Price of 5KW solar system

Premium range

(out of pocket expense)

 $19,558

(Silex panels)

 $6,400

(LG Panels)
Price of 5KW solar system

Budget range

(out of pocket expense)

 $16,148

Entry level

 $4,000

Entry level
State incentives Generous Feed-in-tariff NIL
Federal incentives $9,320

RECs (233 X $40)

 $3,034

STCs (82 X $37)

 

 

The graph below show the prices of solar power systems are drastically lower today compared to 2010 despite the reduction in the incentives. This graph is based on the SolarBright historical price:

 

The other interesting fact is that today there are more Australian families and businesses installing panels on their roofs than ever. There are more than 2 million households with solar panels and this number increases every day.

Below is a graph showing the KWs of solar installed per calendar year since January 2010 in Australia:

So, how could the cost of installing solar panels have gone so low despite the removal of most of the subsidies?

  • The reduction in cost of components mainly out of China; for example, cost of panels has fallen by over 60%.
  • The massive increase in competition; it is healthy to have good competition in the market although this is a two-edged sword, having attracted opportunistic and dodgy operators.

The low cost of installing solar panels has helped more households to go solar in recent years. If the rebates in the early days were the main driver for installing solar power systems, the motive has shifted, and the main driver now is the high cost of electricity. Customers are using solar panels as a tool to reduce the cost of energy in their homes and businesses.

The graph below shows electricity prices are at record highs:

 

 

Installing solar panels and solar batteries have proven to be the most effective way to keep the cost of electricity under control. It is important to remember that the main purpose of installing solar and solar batteries is not to wipe out electricity bills all together but rather to reduce them.

Electricity prices are at record highs while solar power systems prices are at record lows, so why not install solar panels on your roof and take back control of your power bill?

How To Choose The Best Solar Panels

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Investing in a Solar Power System a long term decision, so, of course, it’s a decision you want to be certain to choose the right Solar Panels for you, in order to achieve maximum payback as soon as possible. Selecting the best solar panels for your system, is of paramount importance, because the solar energy generated by the Panels, over the life of the system will determine how quickly you see that return on investment.

 

With over 500 different brands in the Australian marketplace who are all claiming to be the best,  it becomes difficult to make an objective decision.

The first thing you need to understand is that when a Brand claims how well their Panels ‘perform’ and provide performance statistics and figures, these are all achieved and rated in perfect ‘blue sky, peak angle’ conditions. Any poor quality panels will experience a dramatic drop off in said ‘performance’ under ‘marginal-grey sky or poor angle’ conditions. So be sure to ask for performance statistics under these conditions too. If these cannot be produced or the salesmen seem reluctant to provide them, stay away.

“No name brand” panels may also seem like a good idea, price wise – especially when accompanied by a “Unbeatable warranty”, but could use poor quality sealants that will do the job for the first couple of years, but then after that degrade to a point moisture enters the panel – and there is no easy fix for that situation. So be sure to ask whether their Solar Panel warranty covers this situation and if not, proceed with caution. In fact, find out exactly what their “Unbeatable Warranty” does cover so you can be sure you’re covered in the most obvious situations.

 

Like any manufactured product, not all solar panels are created equal. Some use the absolute best materials and equipment to manufacture them and others do not. Some Brands conduct extensive research and development into long-term performance of their Panels and have deep understanding of how the materials will behave, and other Brands do not, their only concern is getting the panels out as cheap as possible, without concern over the longevity of the panels they sell.

However, it’s not easy to tell the differences simply by looking at a solar panel. The real quality of a solar panel is in its long-term & multi-condition performance.

Solar panels spend their entire life in the blazing sun, freezing rain and many other incredibly harsh environments for any material, let alone a composition of different ones bonded together. Solar Panels are made up of chemically treated glass, chemically treated silicon cells, various plastics, aluminium, sealants and interconnecting wiring. Under such conditions, materials can – and do – chemically change over time reacting with each other and creating new chemicals and compounds as the age. Their elasticity also changes over their life affecting the stresses and tensions they place on each other.

 

Typically, manufacturers and Brands who understand these issues well will have accreditation to ISO standards. They will have a well-funded Research & Development aspect to their business and they won’t shy away from the tough questions. As a start why not check out our Solar Panels, all have been accredited to ISO standards and we are proud to be selling only the Brands we know will stand the test of time.

Don’t Vent If You Haven’t Got Proper Ventilation

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The Australian climate is very unpredictable and at times unforgiving. With long, hot, dry summers and cool winters, you never know what the weather is going to be like. As a result of these conditions our homes can become extremely hot in the summer and unbearably cold during the winter.

As a homeowner, if you are fed up with the uncomfortable temperatures in your household, the most cost-effective way to solve this issue is to install a Solar Bright roof ventilation system . As the leading experts in roof ventilation, the team at Solar Bright know that people want to be comfortable in their own home.

Without proper ventilation your home experiences a number of problems including:

Moisture Damage

Cooking, taking a shower and doing the laundry use up a lot of water. As a result, moisture is created and makes its way into roof space. As the moisture builds up it seeps through cracks in walls or ceiling, damaging the paint and plasterboards.

Heat Damage

The hot Australian climate is as harsh as it gets. During the summer months, heat enters into our homes from the rooftop. With poor ventilation the heat radiates throughout the living space causing the temperature to rise, making conditions very uncomfortable.

External Damage

The combination of heat and moisture is very unpleasant. Both internal and external areas are affected and the consequent damage can be a pain to your hip pocket. Most commonly affected areas are the roof deck, trusses, shingles, rafters and painted surfaces.

Internal Damage

Most notable during the winter months when moisture levels build up in confined spaces. This is most prominent in areas such as the attic, as air travels upwards into the roof. The build up of moisture can lead to mildew, mould and rotting wood, leaving you out of pocket in repairs.

By installing a Solar Bright roof ventilation system, you have one less thing to worry about. Our roof ventilation system operate in a few different methods:

– Solar powered roof fan

– Electric powered roof fan

– Whirlybirds

– Passive roof ventilation

Proper and effective roof ventilation not only keeps the temperature of your home at a comfortable level, you will save money by using less gas and electricity. An effective roof ventilation system cools your home in the summer as hot air is removed from confined spaces. As a result, your air conditioner usage is reduced and you aren’t so reliant on it to cool your home. With lower running costs, your energy bills decrease as the ventilation prevents heat from entering you home.

A Solar Bright roof ventilation system is a simple and cost-effective way to keep your home comfortable at all times. With a range of designs, you are sure to find the ideal ventilation system for your home.

Are Solar Home Batteries The Future?

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Instead Of Buying A Solar System Alone, Why Not Invest In A Battery And Solar Combination Instead?

The benefits of a solar and battery combination benefits are obvious.

From increased electricity bill savings to blackout prevention, why are not all customers in Sydney and regional NSW choosing a battery and solar bundle?

Why are some customers still commit to solar only and leave the battery purchase for another day?

More recently the feed-in tariff FIT), meaning the money solar system owners get paid to export solar to the grid has been reduced again.

From a high of 60cents for each kWh exported in 2009, we are now seeing offers as low as 6c per kWh from energy retailers.

In the case of charging for electricity in NSW during peak as high as 45 cents per kWh nowadays, and then buying the electricity from solar owners for 6c, no wonder that solar system owners feel a storage battery can be the solution to maximise solar savings and avoid the energy retailer making maximum profits on the back of solar system owners.

A battery with solar certainly will increase your independence from the big energy retailers, a desirable outcome for many consumers.

Today at SolarBright we are getting many calls for solar and battery bundles, as consumers realising the feed-in tariffs are lower.

Another driver for battery enquiries is a sudden local interest in electric cars.

EVs in the future will most likely require a home battery to be able to charge vehicles at night and to get the best outcome from a solar system, meaning using one’s solar system to charge the electric car, and literally avoid the fuel costs.

Battery storage costs, while they have not dropped as fast a solar system costs, have overall seen gradual reductions as more battery manufacturers have entered the market since 2019.

The increased competition has put a lid on solar battery price and in some instances when new battery models have been released, these models were offered at a slightly lower cost, or with new features compared to the earlier models.

What Battery Technology Is Best For My Home?

Overall, there are two key product ranges and technologies on offer for the home battery market. One is the Tesla home battery style technology – also known as AC technology.

AC stands for Alternate Current – and is the electricity which we all use in our home.

The AC battery is connected to the meter on the grid side, meaning one could put an AC battery on a house and not even have solar.

The batteries benefit would be to be charged when electricity fees are low, such as in an off-peak period, and release the power when prices are high. This type of AC battery, just like Tesla will also provide backup power in case of a blackout.

The 2nd technology is the DC battery.
DC stands for Direct Current. It is the type of electricity which is is produced via solar panels.

DC batteries required a hybrid inverter to charge the battery. The battery is managed via a BMS (Battery Management System). So, for a DC battery system, one needs solar panels, a hybrid inverter and a battery.

Most hybrid DC battery systems also supply backup power, when the grid is down. Some of the bigger DC battery manufacturers are LG Energy Solution (formerly LG Chem), BYD, and Sungrow to name a few. Our SolarBright energy specialist can give you free advice as to which battery would suit your needs best.

How Solar Reduced In Costs And Is Battery Following This Path?

I remember in 2007 a solar panel system of 1.5kw cost over $12,000 and the Federal Government supplied an $8,000 rebate to many, letting customers pay $4000 for a 1.5kW system. At this price per kW, a 10 KW system should now cost $80,000.

Luckily since then, solar system costs have dropped rapidly and for the same initial $12,000 cost, one could have a 10-12kW size solar system or even larger.

We have seen costs reduce by around 70% over 14 years, an annual reduction of around 5%.

The reason that costs were reduced so dramatically is that manufacturing volumes for solar cells, solar panels, and inverters increased dramatically, leading to cost savings, which have been passed on.

Panel wattage also increased from around 165W before 2008, to close to 400W for a residential panel in 2021.

While the panels have also increased in size to get to this wattage, they did not double in size, so increases in solar technology, especially efficiency gains also contributed to the price reductions.

It is now becoming more apparent that home storage batteries have started to see similar production-related reductions.

These efficiencies have not been fully passed on so far by all battery manufacturers.

One counter force to the increased price reductions for batteries is the growing demand for home and electric vehicle batteries worldwide, causing raw material price pressures.

Right now, as even more battery manufacturers like Tesla, LG Energy Solutions, AlphaESS, Sonnen, BYD, and Sungrow enter the Australian market, this increased competition is finally leading to battery price drops.

SolarBright passing this development on to the end customers and we have many offers and solutions available, so it is worthwhile exploring the solar and battery combo market right now.

 

 

Good Reasons For Buying A Home Storage Battery Now.

1) A Combined Installation Can Save Costs

There is no doubt that buying and installing a PV system today and a battery in let’s say 2 years, makes little financial sense.

By getting the solar and battery together now one can save at least $500 to $800 in administration and installation costs, compared to have these two products installed a few years apart.

By having the installation crew coming only once travel and labour efficiencies can be achieved.

Also, SolarBright, having a higher overall turnover will reduce margins and create customer savings.

Many owners of renewable energy-only systems finding out the hard way, when they are finally ready for a battery, that the inverter they purchased for their system is not compatible with many of the battery solutions on the market.

To work well with a DC battery, the inverter requires to be a hybrid inverter, not just a standard inverter.

So, if batteries reduce let’s say in practice by 15% in 2 years, but one needs to pay more for labour, travel, administration and also requires a new inverter, the solar battery storage cost reductions have been offset by all the other increased costs, and waiting has not created any significant savings.

2) The Feed-In Tariff Reductions Drive Battery Interest

Your PV system produces electricity any time of the day, from sunset to sunset. As the consumption in your property varies, depending on your activities and if you are home, the electricity after it has been produced, if it is not consumed in your home, then it still has to go somewhere.

In cases of unused renewable electricity from your home PV system, this electricity is put back into the grid, also known as export electricity.

You will get paid for this electricity, but in past years, as the unit produces most electricity between 11 am and 2 pm, the more solar is on Australian roofs, the more electricity is suddenly available in the middle of the day when there are not so many takers.

This is one of the reasons that the money offered as a feed-in tariff has reduced substantially from 60 cents a decade ago to 15c a few years ago per kWh to 11c and now as low as 6c.

This means the difference between the price you have to pay for electricity at night from the grid (can be as high as 42cents) and the money you get paid in the middle of the day can now be a staggering 36cents per kWh.

That is an excellent profit margin of 600% for the energy retailers.

Think of solar power as a water hose that produces continual water during the day and stops at night. During the day you get 6c per litre for your water, but at night, for the same water, you now pay 42 cents per litre.

Imagine the home battery is your bucket, to keep the water – not sell it at 6cents but store it and consume it when its value has increased to 42 cents – at night.

If you get a 13.6kWh Tesla battery and each day you get let’s say gain a benefit of 11kWh of night consumption at the 36cent per kWh benefit this means each day you could save 11 x 36cents = $3,96. In this scenario, this is over $1,400 per year in savings from the battery alone.

3) The Upcoming “Solar Tax” Threat And How Batteries Can Help

Many homeowners and small businesses were originally encouraged by the Australian Government to source energy from the sun through solar power.

But they will now be potentially hit with a recent charge for producing clean energy and exporting it. A home battery can help avoid this charge.

The Australian government has recently proposed a plan to charge rooftop solar users for outsourcing excess electricity to the grid, and consumers have been calling it a “sun-tax”.

The Australian Energy Market Commission (AEMC) who sets the rules around the energy market, has proposed that electricity networks will be allowed to charge solar panel owners for sending excess energy back to the network, to address growing network problems.

The proposed rule is also based on the argument that charging households solar would ensure network companies had the funds needed to invest in the power network to accommodate a two-way energy flow while not penalising non-solar residences and encouraging the development of more rooftop solar on the grid.

So, in the middle of the “largest threat to mankind “as Climate Change has been described by some politicians and high-profile personalities such as Prince Charles the Australian Energy Market Commission (AEMC) is now proposing to “tax “renewable energy system homeowners.

“Owners of PV systems are currently able to earn additional income for exported solar energy via the feed-in tariff, a fee paid by energy retailers for renewable electricity exported to the grid and sold to other households and businesses” explained Paul Yako, the director of SolarBright, in Prestons, NSW.

“These homeowners and businesses, who try to make their contribution for a more sustainable planet by creating more renewable energy, have run head-on into the complex policies of the Federal Government’s Energy direction”, he added.

The fear is that in the future such solar owners might see themself taxed for any solar exports as foreshadowed by the AEMC. So, we tell customers that a home battery will limit these exports, and therefore the threat of this potential “sun tax” is reduced, he concluded.

Markus Lambert, a solar industry veteran of 15 years said: “It makes absolutely no sense to stop the creation of solar energy in the middle of the day. “With the uptake of EV charging by electric cars in the not-too-distant future, we will need more localised energy generation, if we do not want to see a massive need to invest in grid infrastructure.”

“I believe the whole solar tax debate is a big Government plan to reduce the record solar system demand, invented by persons with an anti-solar political agenda” Lambert added.

“I want to see the politician who will tell the close to 9 million Australians that live in a home with solar on the roof, that they will now be taxed for trying to save money and save the planet.

The proposal simply defies any common sense. It will only add to the uptake of home solar batteries, as customers would not like to see themselves taxed for doing the right thing.”

When a rising number of solar PV owners leave the grid and go full battery and solar, a ‘death spiral’ occurs, leading to higher network charges for the remaining customers.

The price increase then has more consumers leave the electricity network, also going solar and battery, causing the spiral to keep going.

What About The Payback Period For A Solar And Battery Bundle?

Now is the best time to purchase a solar battery if you are having solar panels installed. Our mid-sized battery and solar package (includes installation) can pay for itself in around 5-6 years. While this is a little longer than solar-only systems, the benefits clearly outway, the slightly longer wait to get the initial investment back.

Solar panels became more and more popular around 2010/11 when the payback reached 7 years, so 5–6-year payback is a key milestone to ensure home batteries are the future. At SolarBright we say: ”Make more of your solar investment by using a battery”.

It is more economical to keep as much solar power as you can in your home than to export it at a low price. What if you don’t have a financial motive for going solar and battery? Perhaps you are interested in doing your part for the environment or becoming more energy independent.

If you want to be more energy independent, you will need to maximize your energy storage to reduce the amount of energy you have to purchase back from the grid. You can only use so much electricity when the sun is shining, but you can’t live without electricity at night.

This is where a battery comes into play. You can use solar power all day and night with a battery. Your excess solar power can be stored in batteries and used at any hour of the day or night. You can even use solar power during blackouts.

Blackout protection is a feature that many solar batteries and inverter combos have. This means that in the event of a power cut, you would be able to use your solar electricity to power your home or part thereof, potentially for weeks, as the solar will charge the battery during the night.

Your house could be the only one in the street with lights and the fridge running. You can also stay connected to the radio and the internet in an emergency, such as the bushfires last summer. This is not possible with solar panels by themselves.

SolarBright’s solar and home battery packages are designed for households that want to add solar panels and a battery at the same time. It combines world-leading, Tier 1 solar panels with a SolarBright locally designed, cost-effective battery solution.

The bottom line is that batteries can offer a variety of benefits that can save you money and help to create a more sustainable environment. Although battery storage can seem costly upfront, an energy consultant can help you find the right system for your needs and budget, including finance options.

If you would like any further information on battery storage for your home, please call SolarBright today.

How Will Rain, Wind And Other Weather Conditions Affect My Solar Panels?

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Australia is blessed with a fairly temperate climate all year round. That’s what makes it such a great place to take advantage of residential solar panel installations. However, there are still conditions such as wind, rain and extreme heat that can have an impact on solar panel performance. Here’s what you need to know.

What Are The Best Conditions For Solar Panels?

Unsurprisingly, most people get the most benefit from their solar panels during summer. When the skies are clear of clouds and the sun is shining, most solar systems will work to their peak capacity. The best time of day is generally between 10am – 4am, however during summer the days are longer. As a result, you might get an hour or two more of peak solar production during the day.

Some panels have better low light performance and are to start producing earlier in the day and into the late afternoon. This adds up to increased yield across the life of the system, so it is important to install a panel that has great low light performance.

Temperature

There is a common misconception that the hotter it is, the more solar energy you’ll produce. While you certainly need that bright sunlight for best results, too much heat can actually hinder your system’s performance. Most solar panels in Australia work best at around 25 degrees Celsius, provided the skies are clear.

You can check your solar panels for the temperature coefficient, which is essentially the percentage of performance you will lose with every degree over 25. The rate is generally 0.20 – 0.50, so you won’t notice an alarming difference in production.

For example, if it’s 30 degrees outside, you could expect to lose between 1% – 2.5% of productivity.

Cloudy Conditions

Cloud cover certainly affects your solar system’s performance. This is because it obstructs the sunlight from reaching your panels, and therefore limits the amount of solar energy you can produce. On days where the cloud cover is thick, you can expect to lose up to 25% efficiency, especially if the clouds aren’t moving.

Windy conditions work in your favour when there are clouds around though, as the wind blows and moves the clouds. This at least gives you occasional bursts of sunlight between the clouds, so you may only lose around 10% efficiency. Ultimately, it depends on how much unaffected sunlight reaches your panels.

On cloudy days panels that have excellent low light performance can add to the system yield compared to standard panels.

Rain

Surprisingly, rain won’t affect your solar panels’ performance directly. In fact, regular rain helps to wash away grime, dust and other debris that may build up on your panels and diminish performance. So, in that sense, you don’t need to worry about rain reducing your output.

The issue with rainy conditions, though, is that you don’t get rain without clouds. Usually, when it’s raining, there’s a significant cloud cover which does affect performance. When it comes to rain, the best circumstance is a sun shower, where plenty of sunlight still reaches your panels.

Wind

Fortunately, the wind doesn’t really affect the performance of your solar panels either. As long as there’s direct sunlight hitting those panels, your production will still be high. However, much like rain, windy conditions need to be considered more broadly.

The wind won’t directly decrease performance, however, wind can affect your solar panels in the long term. Wind often blows dust and other debris onto your solar panels, meaning you might need to clean them more frequently.

In windy climates, you also need to ensure you’ve had the panels installed by a qualified professional. Not all solar panels lay flat against your roof – mounting is sometimes required to achieve the optimal angle. As such, severe winds can damage mounting frames and solar panels, especially if they’re not well installed.

Find The Solar System That’s Right For Your Climate

If you need help choosing the right type of solar panels and solar inverter, we’d love to help you out. A free consultation with SolarBright is the easiest way to find out exactly what you need. Not only will we analyse your existing energy consumption to recommend the right size of the solar power system, but we’ll also suggest the best products for the local climate.

SolarBright is your local NSW solar installer, and we’ve got the local knowledge and best products to ensure you maximise the benefit of your panels. Book a free consultation today, and find out why so many satisfied customers love SolarBright.

Read Also:
Are Solar Home Batteries The Future?
Solar Batteries and The Future Of Sustainable Energy?