Generate your own Electricity

If you install solar photovoltaic systems on your home and use them to cover your home electricity needs, you can eliminate the greenhouse gas emissions generated by your household. This saving is estimated to be approximately six tonnes of CO2 per annum.

In addition to the environmental benefits there are many other good reasons to install solar photovoltaic systems in your home including:

  • No electricity bills - For an average Australian household this represents a saving of over $1000 per year for the next 20-30 years (ABS 4102.0 'Household Expenditure Patterns by Life Cycle').
  • Renewable Energy Certificates (RECs) of up to $7595 (for a 1.5 KW system in Sydney) - The Australian Federal Government's Solar Credits Scheme will enable small scale renewable energy systems customers to be able to receive 5 times the number of RECs for the first 1.5 kW of system capacity. Learn more at the Australian Government's Green Living website.
  • Insulate yourself from future electricity price rises - It is expected that electricity prices will rise substantially in coming years. If you create your own electricity this won't affect you.
  • Improve the value of your home - The addition of solar photovoltaic systems in your home will increase the value of the property on resale, ensuring you reap the full value of your investment should you decide to leave.

These factors make a compelling case for exploring the addition of a solar photovoltaic system to your home. You may even one day know the joy of receiving a cheque from your local power company for the excess power you've just sold them.

How to do it now!

There are four elements involved in installing a grid-connected Solar Photovoltaic (PV) system in Australia. These are:

  1. Finding the right solar photovoltaic system installer.
  2. Selecting the right solar photovoltaic system for your household.
  3. Applying for (and receiving) Australian Government rebates.
  4. Establishing an electricity trading agreement with your electricity retailer.

Often all of these elements will be facilitated by the solar photovoltaic system installer.

The following questions and tips may be of use:

  1. Finding the right solar photovoltaic system installer.

    The Business Council for Sustainable Energy (BCSE) has a complete list of Accredited Solar Photovoltaic system installers on their website.

    Use the following list of questions to guide you when you are speaking to a prospective installer for your photovoltaic system:

    • Is the installer a BCSE (Business Council for Sustainable Energy) accredited installer? When did they get their accreditation? To be eligible for existing rebates, your system must be designed and installed by a BCSE-accredited installer.
    • Will the installer facilitate the complete process (PV system selection, install, rebates, RECs)? Their level of experience (and hence the advice that they can offer) can be the decisive factor in choosing a solar PV system installer.
    • What experience does the company have in installing solar PV systems similar to yours? Check the following system elements have been appropriately scoped out in the proposed system design:
      • the configuration and number of solar modules.
      • an appropriate inverter.
      • PV modules that will fit on the roof or structure.
      • constraints caused by shading and orientation.
    • Can they provide some referees for recent installations that they have completed?
    • What warranty on the installation of the system does the installer provide? Ensure the installer will guarantee the quality of their installation as well as the various product warranties.
    • Does the quoted price include safety features (fusing, warning signs etc)?
    • Will the installer be working with a registered electrical contractor or licensed electrician?
    • Will they provide a Certificate of Electrical Safety?
    • Will they be providing an instruction manual that includes a diagram of the system, emergency shutdown procedures and basic maintenance requirements?
    • Ensure competing bids are in the same format - By ensuring that all of the bids you receive are made on the same basis, you'll be able to compare the bids easily.
    • Request an itemised quote - This will allow you to evaluate the costs of labour, materials and so on. The standard PV system installation quote should provide specifications, quantity, size, capacity and output for the major components, including:
      • solar PV modules
      • mounting frames or structure
      • inverter
      • any additional metering or data-logging
      • travel and transport requirements
      • other equipment needed
      • any trench digging
      • a system-user manual
    • Have a signed contract before proceeding - In addition to the quote it is important to have a contract with your installer that includes: 
      • an estimate of the average daily electricity output - in kilowatt hours (kWh)
      • the estimated annual production.
      • the estimated production in the best and worst months
      • the responsibilities of each party.
      • warranties and guarantees, including installer workmanship.
      • a schedule of deposit and progress payments.
  2. Selecting the right solar PV system for your household.

  3. Applying for (and receiving) Federal Government rebates.

    The Federal Government offers help to fund the installation of Photovoltaic Systems in homes, schools and community buildings on the electricity grid.

    The Solar Credits Scheme - The Solar Credits Scheme replaced the Solar Homes and Communities Plan on July 9th 2009. The Solar Credits Scheme means that small scale renewable energy systems customers (homes, schools, businesses and community groups) will be able to receive 5 times the number of Renewable Energy Certificates (RECs) for the first 1.5 kW of system capacity.

    Renewable Energy Certificates (RECs) - The Federal Government facilitates the certification and trade of Renewable Energy Certificates (REC) as an incentive to homes that convert to accredited solar photovoltaic systems. The REC is based on the efficiency of the solar PV system; the greater amount of power generated the greater the incentive.

    For those not connected to the main electricity grid, there is the Renewable Remote Power Generation Program (RRPGP). Although recently closed this program is still open to Western Australia. Rebates cover up to 50% of the capital cost of renewable generation and essential enabling equipment (batteries, etc).

  4. Establishing an electricity trading agreement with your electricity retailer.

    Once you have priced the purchase and installation of your PV system, and know what the likely electricity generation will be, it's time to select and sign up with an energy retailer who will buy your electricity. Note that not all retailers provide this service, so check carefully!

    Things to check on and compare when agreeing to sell your clean electricity to an electricity retailer are:

  • The cost of the electricity you purchase from them (in cents per kWh).
  • The price they will pay you for your electricity (in cents per kWh).
  • Whether your metering registers the total production from your solar panels or just the excess (beyond what is consumed in your home).
  • Penalty clauses (termination costs).
  • Billing/payment periods.

Check with your installer which electricity retailer offers the best deals, mandatory feed-in tariffs that might apply in your state and advice on dealing with electricity retailers. For more information on Victoria's feed-in tariffs visit the Department of Primary Industries web page.

More information: The Business Council for Sustainable Energy (BCSE) has a comprehensive guide to solar system installation and maintenance on their site.

Feed-in Tariffs

Feed-in tariffs are payments/credits from power companies to households and businesses for the renewable electricity they generate (e.g. solar photovoltaic system or wind turbine). For more details on each state's feed-in tariff scheme visit the following websites:

Why this action is important?

In order for humans to establish a sustainable civilisation, we must harness renewable, local and abundant energy sources - such as sunlight. This action can ensure the electricity you are consuming at home comes from a clean, non-polluting source with a cost-effective investment in sound technology and a generation of long-term returns (financial, environmental and intergenerational).