Guide to Installing Solar PV for Business & Industry
Contents
1. MES ARE IN PLACE OWER THE COST 7 ns in Australia depending size These are Renewable Certificates Small scale Technology Certificates rge scale Generation Feed in Tariffs FiTs Technology Investment Program CTIP Clean Technology Food and Foundries Investment Program CTFFIP e Clean Energy Finance Corporation CEFC e Other Please note that government programs are subject to change The information listed here is curren of 1 September 2013 Please refer to the websites referenced for latest program updates j Guide to installing solar PV for business and industry 11 RENEWABLE ENERGY CERTIFICATES H A Renewable Energy Certificate is a measurement of renewable energy that can be traded or sold for a monetary value Australia s Renewable Energy Target introduced in 2001 requires energy retailers to purchase a set amount of certificates each year so there is a constant demand for these certificates Depending on the size of your system you will be eligible to create certificates under either the Small scale Renewable Energy Scheme systems under 100 kW or the Large scale Renewable Energy Target systems above 100 kW SYSTEMS UNDER 100KW SMALL SCALE TECHNOLOGY CERTIFICATES STCS Certificates under the Small scale Renewable Energy Scheme SRES are called Small scale Technology Certificates STCs One STC is equivalent to one megawatt hour of electricity2. Have you received a detailed final contract including all relevant approvals Do you understand exactly what products services support and maintenance you are getting and from whom Have you been advised who or where to go to if you are unsatisfied Have you received training on system operation and a detailed operations manual During installation did you monitor the general performance behaviour and installation quality of the installers Is the system performing as expected Guide to installing solar PV for business and industry 25 Clean Energy Council CLEANENERGYCOUNCIL ORG AU
3. AC electricity which is used by the grid There are numerous products on the market and they all vary in their quality and characteristics so make sure you ask your designer installer if you are unsure When making your selection you should consider the following e Do the products meet Australian Standards e Do the other balance of system components that your designer installer suggests like the mounting hardware meet industry standards e What warranties and guarantees come with the products How do the warranties and guarantees compare to other products on the market Solar PV panels generally come with two distinct warranties performance and product e Performance warranties will include a warranted degradation factor over time Degradation factors and time periods will vary between manufacturers so it is important to compare the value of each performance warranty as warranted degradation is a reflection of expected energy over time e Which warranties are your responsibility and which are the manufacturer s responsibility e The financial strength of the company providing the warranty will be a reflection of their ability to honour the warranty in the event of panel under performance or failure QUOTATION AND AGREEMENT Following the design and specification you should request a detailed quotation for the installation of the system including contract with the terms and conditions of sale
4. generated by your solar PV system The price of STCs changes according to market conditions As an owner of a solar PV system you can register sell trade or surrender STCs for systems up to 100 kW There are two ways you can be paid for your STCs 1 Assign your STCs when you purchase your solar PV system to a registered agent in exchange for a financial benefit This may be in the form of a delayed cash payment or upfront discount on your solar PV system most consumers take this option and usually this will be outlined in your quote N Create the STCs yourself by finding a buyer and then selling and transferring them in the Renewable Energy Certificate REC registry For a list of registered agents contact the Clean Energy Regulator CER ret cleanenergyregulator gov au The REC Agents Association is another good source of information recagents asn au Installers or retailers typically manage the application as part of your installation agreement STCs may be created for solar PV systems in batches of either one five or 15 year deeming periods At the beginning of each successive one or five year deeming period the CER must be satisfied that your solar PV system is still installed and is likely to remain functional for the next deeming period In order to claim STCs for the full 15 year deeming period upfront which is the most common option your designer installer must be accredited by the Clean En
5. 70 622 STCs x 35 622 21 770 622 STCs x 35 SYSTEMS ABOVE 100 KW LARGE SCALE GENERATION CERTIFICATES LGCS If your system is above 100 kW then you can claim under the Large scale Renewable Energy Target LRET To participate in LRET you must formally register as a power station with the CER Once you are accredited you will have a REC Registry account through which you can create Large scale Generation Certificates LGCs One LGC is equivalent to one megawatt hour of generation above a specified baseline for the power station Unlike STCs LGCs can only be created once the generation has been proven and need to be validated by the CER Once this has occurred you may sell your certificates to purchasers of electricity such as your retailer who have liabilities under the RET As you cannot deem your certificates upfront participating in the LGC market can be more administrative work than STCs To create certificates e The CER will assess LGCs on a monthly quarterly or annual basis only e You must create LGCs for generation by the end of the calendar year following the year of actual generation e You are required to submit documentation on generation data to verify and calculate eligible electricity generated You must ensure you have adequate metering arrangements to collect this data usually required on a half hourly basis e You must also ensure your LGCs are correctly created in the REC re
6. ATION The Clean Energy Finance Corporation CEFC is looking to provide a range of finance solutions to businesses and industry to invest in solar PV Packages may include lease and loan finance Financial terms are tailored to individual projects and business cash flow and are generally limited to projects with value no smaller than 100 000 Further information is available on the CEFC website cleanenergyfinancecorp com au FEED IN TARIFFS Feed in tariffs Fils you for the electricity generated by your solar PV system on either a net or gross basis Tariffs vary between states and territories and are not mandated in all jurisdictions Tariffs are usually available for residential systems and do not necessarily extend to commercial customers however in most cases you should be able to negotiate a rate with your retailer Under a net feed in tariff you are paid for any excess electricity generated by your solar panels that goes back into the grid over and above what you have consumed So if you have surplus energy generated by your solar panels you get paid for it but if you use all of the energy you generate it will be offset against your normal electricity bill Net feed in tariffs are the most common arrangement Under a gross feed in tariff you get paid for every unit of electricity generated by your solar panels regardless of whether it goes into the grid or is used by your business You need to a
7. Clean Energy Council Milner Meats Alice Solar City lba SOLAR DES ae D WHAT IF 1 DON T OWN MY BUILDING ARE THERE OTHER OPTIONS RESOURCES AND INCENTIVES RENEWABLE ENERGY cen IFICATES 12 CLEAN ENERGY FINANCE CORPORATION 14 _ IOO EDN TARIFFS T CLEAN TECHNOLOGY INVESTMENT PROGRAM 15 OTHER GRANTS AND ASSISTANCE 16 OTHER FINANCING OPTIONS 16 soos tt DESIGN AND INSTALLATION en mee 1 FINDING A CEC ACCREDITED INSTALLER DESIGNER 19 2 DESIGN AND FEASIBILITY 19 3 PRODUCT SELECTION 20 4 CHON AND AGREEMENT 20 5 APPLY FOR ANY BUILDING APPROVALS 20 6 CONNECTING TO THE GRID 21 7 APPLYING FOR GOVERNMENT REBATES 22 8 NEGOTIATING A RETAIL AGREEMENT 22 WHAT IF SOMETHING GOES WRONG SOLAR PV CHECKLIST Guide to installing solar PV for business and industry 1 dp Hi 560616506 UNDERSTAND THE ELECTRICITY CONSUMPTION OF YOUR BUSINESS AND CHOOSE THE RIGHT SIZE SYSTEM FOR YOUR NEEDS Electricity prices have increased The use of solar photovoltaic PV panel systems has grown significantly in Australia over the last few years resulting this decade and is now an increasingly affordable option for Australian businesses in increased operational pokingtohedge against the rising cost of Your consumption profile will determine the viability for businesses electricity of solar PV for your bus
8. TIP The City of Melbourne also administers the Sustainable Melbourne Fund www sustainablemelbournefund com au ENVIRONMENTAL UPGRADE AGREEMENTS Environmental Upgrade Agreements EUAs facilitate finance to implement environmental improvements to existing commercial and industrial buildings Property owners councils and finance providers voluntarily enter into the EUA whereby the building owner can access the funds upfront and repayments are made via council levies Currently the City of Sydney and City of Melbourne facilitate EUAs and South Australia is looking to implement a similar program TAX BREAKS Under the tax reforms effective from 1 July 2012 small businesses with a turnover of less than 2 million per annum are eligible to write off depreciable assets to the value of 6500 This includes solar PV systems OTHER FINANCING OPTIONS SOLAR LEASING Many companies now offer structured finance solutions for businesses that wish to install solar PV but would prefer to retain their own cash and use finance to fund the purchase costs The most common arrangement is solar leasing which consists of an operational or finance lease for use of the system equipment System rentals may be tax deductible if they are considered to be an operating expense Solar leases can be facilitated by PV installers or manufacturers and may involve partnership with a credible financing partner Upon application the financial viability of your bu
9. The quotation should provide specifications quantity size capacity and output for the major components including solar PV modules mounting frames structure inverter any additional metering or cabling data logging travel and transport requirements other equipment needed any trench digging and a system user manual Additional to standard contract conditions you should ensure that the following are included e clear itemisation of the component costs and whether the total price includes RECs if system is under 100 kW new metering changes connection costs and safety features system performance estimates daily monthly and annual and system user manual e what REC or STC price you are being offered e the responsibility of each party for all aspects of the process e g building approvals metering changes grid connection retail agreements other paperwork e warranties and guarantees including installer workmanship schedule of deposit and progress payments e service agreement e provision of a Certificate of Electrical Standards 20 Guide to installing solar PV for business and industry APPLY FOR ANY BUILDING APPROVALS Early in the process you should contact your local planning authority to determine what planning and building permits you will need Your designer installer will then be able to take these into account in the design and feasibility stage CONNECTING TO THE GRID A Connecti
10. arge up front capital cost payback periods are typically around 5 to 10 years DO YOUR DUE DILIGENCE ON TECHNOLOGY PRODUCTS WARRANTIES AND GUARANTEES There is a diverse range of products on the market that vary in price and quality Make sure you do your homework on both the products you purchase and workmanship guarantees This guide details the key steps you will need to undertake to install solar PV at your business ENGAGE WITH YOUR ELECTRICITY DISTRIBUTOR EARLY TO UNDERSTAND GRID CONNECTION REQUIREMENTS Connection to the grid should be discussed with your electricity distributor very early in the process so that they are aware of the project and you or your accredited installer are aware of any technical requirements that have to be met from an early stage 2 Guide to installing solar PV for business and industry Guide to installing solar PV for business and industry 3 STAND ALONE SOLAR PV SYSTEMS es Depending on where your business is located you may wish to install a stand alone solar PV system Stand alone systems are not connected to the electricity grid and are typically installed in remote areas where there is limited connection to the grid or areas of low electricity demand Unlike grid connected systems stand alone systems must have batteries or back up generation to provide supply at night In many cases stand alone systems will also be backed up by a diesel or petrol generator to supplement en
11. ditation Code of Conduct or relevant Australian Standards Complaints can be registered online at solaraccreditation com au The Clean Energy Council does not handle issues of a commercial nature like warranties The following list outlines who you should contact for different types of issues e Commercial matter for e g warranty issues contact the Office of Fair Trading consumer affairs in your state or territory business gov au Business Topics Fairtrading Pages Fairtradinglawsinyourstateorterritory aspx e Safety and technical compliance of your solar PV system contact the electrical authority in your state or territory www erac gov au index php option com_ content amp view article amp id 7 1 memberoferac amp catid 77 amp Itemid 474 e Complaints about your electricity retailer or distributor contact the Energy Ombudsman in your state or territory ombudsman gov au pages making a complaint SOLAR PV CHECKLIST 1 Have you performed due diligence checks on your installer supplier Have you checked their track record backers and complaints forums Do they have CEC Accreditation and current electrical licences Are they members of the industry association OO O O Are they signatories to the Solar PV Retailer Code of Conduct Have you checked ASIC to ensure they are legitimate and currently registered 2 The quotation and contract Is it professional and sufficiently detailed Are the prices typ
12. ergy Council More information is available in the What you need to know about Small scale Technology Certificates guide published by the CER available at ret cleanenergyregulator gov au SMALL SCALE TECHNOLOGY CERTIFICATES LEVEL OF FINANCIAL SUPPORT UOU wU UY 12 Guide to installing solar PV for business and industry 1 382 30 kW 15 years 1 382 30 kW 15 years 8882 30 kW 15 years 1 536 30 kW 15 years 1 185 30 kW 15 years 1 185 30 kW 15 years 1 382 30 kW 15 years 1 382 30 kW 15 years The amount you will receive for your STCs will depend on a number of factors including the location also known as the zone of the solar PV system the size of the system and the price of STCs at the time the system was installed Australia is divided up into various zones based on how much renewable energy can be generated by a solar panel in given area So the same size system installed in Melbourne or Hobart zone 4 receives fewer STCs than those installed in Sydney zone 3 or Darwin Zone 2 because Melbourne and Hobart have less sunshine so less solar energy is produced The table below shows the average level of financial support available from STCs on solar PV systems in the major capital cities of Australia 622 21 770 622 STCs x 35 622 21 770 622 STCs x 35 622 21 770 662 STCs x 35 691 24 185 691 STCs x 35 533 18 655 533 STCs x 35 588 18 655 533 STCs x 35 622 21 7
13. ergy supply HOW MUCH POWER DO SYSTEMS GENERATE The output of a solar PV AVERAGE DAILY PRODUCTI GRID CONNECTED SOLAR PV SYSTEMS Solar PV systems that are connected to the grid operate by transforming the electricity generated by the solar system which is direct current DC into alternating current AC electricity using an inverter so that the power generated is compatible with the grid and ordinary business needs Businesses with solar PV systems use solar power first before sourcing electricity from the grid When the panels are not producing enough power to meet load requirements the balance is drawn from the grid This would be the case at night or on an overcast day According to Australian Safety Standards if the grid is down for example during a blackout the inverter will shut down and the solar system will not produce any energy For systems with a battery backup the inverter regulates the charge of batteries The electricity stored in the batteries can be used at night or during blackouts system depends on its efficiency size and location gt LAS 210 kWh 420 kWh 630 kWh Commercial systems can 42 kWh 10 250 kWh 500 kWh 750 kWh kilowatts kW up to a few megawatts MW This table 42 kWh 210 kWh 420 kWh 630 kWh shows the average daily 42 kWh 210 kWh 420 kWh 630 kWh production of some common grid connected
14. gistry e Asanaccredited RET power station you are also obligated to submit an Electricity Generation Return report annually to the CER See the CER website for further details ret cleanenergyregulator gov au Forms and Publications Forms Generation Return Power Stations Once you have created and registered your certificates you need to find a buyer which may be either a liable entity such as an electricity retailer or a registered LGC Trader Once you find a buyer you will need to e Negotiate the volume and price of the LGCs you wish to sell and the method of payment if you sell to your electricity retailer they may wish to credit your electricity bill rather than make direct payment e Enter into an agreement with the buyer understanding that the sale of LGCs is a contract for the sale of goods and so must be accompanied by the appropriate documents e Once payment has been received you will need to transfer your LGCs within the REC Registry to the buyer The negotiation of price and payment for your LGCs is your responsibility and the CER will not facilitate this process nor will they get involved in any disputes The price of LGCs is set by the market not the CER Updated information on the price can be found on the websites of LGC traders for example greenenergytrading com au certificates todays pricing Guide to installing solar PV for business and industry 13 CLEAN ENERGY FINANCE CORPOR
15. gning an agreement with your electricity retailer are discussed in further detail later in this document CLEAN TECHNOLOGY INVESTMENT PROGRAM The Clean Technology Investment Program CTIP is a Federal Government funding program run by AusIndustry that supports manufacturers to invest in energy efficient capital equipment and low emission technologies processes and products The installation of a solar PV system is considered to be an eligible emissions reduction measure under this program and can be undertaken in conjunction with other measures Grants are awarded on a competitive merit basis against the following criteria 1 extent of the reduction in greenhouse gas emissions or energy consumption associated with the project 2 commercial potential of the project 3 technical strength of the project including the technical capability and resources available to the applicant 4 management capability of the applicant Grants vary from 50 000 upwards and businesses must match funding 1 1 More information of the program is available from AusIndustry ausindustry gov au programs cleantechnology cleantechnologyinnovation Pages default aspx CLEAN TECHNOLOGY FOOD AND FOUNDRIES INVESTMENT PROGRAM The Clean Technology Food and Foundries Investment Program CTFFIP is similar to CTIP but is specifically targeted at food and foundry manufacturers More information of the program is available from AusIndustry ausindustry
16. gov au programs CleanTechnology CTFFIP Pages default aspx Ingenero McDonald s Kilsyth Guide to installing solar PV for business and industry 15 OTHER GRANTS AND ASSISTANCE ae State and local governments often offer grants and assistance to businesses wishing to implement energy efficient options A complete listing of available programs can be found on the GrantsLINK website grants myregion gov au Currently only Tasmania and Victoria have grants for commercial solar PV TASMANIA The Renewable Energy Loan Scheme RELS is a 30 million program to assist eligible Tasmanian businesses purchase and install renewable energy systems The scheme offers low interest loans of up to 70 per cent of the project cost with an additional grant contribution of 10 per cent capped at 100 000 Loans range from 50 000 to 1 million and generally will need to be repaid within 5 years Support is awarded on a competitive basis with applicants needing to demonstrate the long term commercial benefits to their business The program is open until 30 June 2014 Further information is available from the Department of Economic Development Tourism and the Arts development tas gov au economic funding loans Industry_ funding_programs renewable_energy_loan_scheme VICTORIA The Victorian Government does not provide capital grants for solar installations but provides businesses financial and advisory support in preparing funding applications to C
17. ical of industry benchmarks What is explicitly included and excluded If comparing quotations am I comparing like for like 819 Are all obligations responsibilities and liabilities clear 3 The financial calculations Have they provided a detailed analysis of load and generation Are the returns consistent with CEC guidelines If financed have you had independent tax depreciation advice What if any performance guarantees are provided yl el Have you considered alternative methods of finance 4 The products and services Have you been offered quality products that are well backed in case of warranty support Have you reviewed the warranty terms and conditions What written service obligations have been included Has system monitoring been included to allow ongoing performance checks and who is responsible Are the products listed by the CEC as approved for use in Australia G G OOG L Do you understand the limitations to support and service that are offered 5 The grid connection and approvals Has your DNSP been contacted approved connection Are there connection costs and limitations Has your retailer been contacted and agreed in writing any tariff impacts and or export tariffs Do you require building approvals and if so have they been sought and approved Have metering and connection costs been calculated and agreed 6 Information and support L L L
18. iness and help you decide Solar PV systems generate power by what size system is appropriate converting the energy in sunlight to clean On the other hand the cost of electricity This conversion takes place UNDERSTAND YOUR ELECTRICITY solar photovoltaic PV systems a ee TARIFFS AND HOW THEY MIGHT materials that make up the solar panels has declined making solar an In most cases solar PV panels are SARS J i The business case for investing in a solar PV system connected to the mains power supply increasi ng ly affo rdable option through a device called an inverter will depend on what electricity tariffs you pay and how these may change once your system is installed Make sure you get all the information you need from your electricity retailer for businesses By installing a PV With a wide range of products and suppliers on the market being an informed system you will be able to offset consumer has never been more important your electricity consumption and This guide intended for businesses and industry wanting to install a solar PV hedge against future price rises system provides an introduction to the technology and navigates the process for commercial scale solar system installation FIND THE RIGHT DESIGNER INSTALLER Always use a CEC accredited installer who has experience in commercial systems This will be critical to the design and installation of your system Although systems may require a l
19. ing the DNSP early You may wish to choose an installer who has worked with your local DNSP previously If you are planning to export electricity generated by your system to the grid then you will also need to negotiate an Export Agreement with your DNSP As your business will be supplying electricity but is a non market generator there are technical and commercial conditions that you will need to satisfy You will need to pay the cost of connection as part of your system cost The connection cost typically includes e network connection application fee which varies by DNSP e connection feasibility study e network stability study if required e cost of network extensions or augmentations specific to connection e metering charges which varies by DNSP You need to ensure you are aware of these costs and how they will be charged As a system purchaser it is quite reasonable to expect your installer and or designer to provide you with a compliant system that meets the DNSP s requirements As the owner it is your responsibility to ensure that the installer has done so and completed all necessary paperwork and approvals When your solar PV system is installed you may also need to have a new meter installed depending on whether you already have a smart or interval meter This must be installed by a relevant qualified professional who may be different to your system installer This may be organised by your accredited designer
20. installer your electricity retailer or your electricity distributor Find out who will organise this for you how it will be charged and how the new meter may affect your billing rates Guide to installing solar PV for business and industry 21 7 APPLY FOR GOVERNMENT REBATES Depending on the contract your installer designer may facilitate the application for government rebates including grants and RECs if system size is less than 100 kW If not then these will be your responsibility and you should contact the relevant entities for information on how to apply NEGOTIATING A RETAIL AGREEMENT DNSPs do not purchase or sell electricity so even if you have an approved Export Agreement if you plan on receiving payment for exporting electricity to the grid you will need to negotiate an agreement with your electricity retailer Not all electricity retailers offer solar friendly tariffs so it is best to check and compare the following items prior to entering into an electricity trading agreement Questions to ask your retailer include e What price will they pay you for your electricity in cents per kWh e What is the cost of the electricity you purchase from them in cents per kWh and will you lose your off peak rates e What will be the form of payment for electricity you produce e Will your metering register your net or gross output e Are there any penalty clauses termination costs or other administration fee
21. llation and total energy generated and then compare this to what you would spend with your current electricity provider during that same period In addition you should consider any taxation and depreciation advantages for businesses that invest in solar equipment when calculating financial return An experienced CEC accredited designer will be able to analyse your retail tariffs and current usage profile to propose a system that optimises your return on investment Your financial manager is most suited to calculate the IRR taxation and depreciation potential based on the designer s proposal and internal business treatment of that expenditure Avery simple example for illustrative purposes is given over the page This example should not replace the analysis performed by your designer A SMALL BUSINESS CONSUMING 50 000 KILOWATT HOURS PER ANNUM THAT INSTALLS 15 KW SYSTEM CAN DISPLACE AN AVERAGE OF 33 PER CENT OF ITS ELECTRICITY USAGE The exact savings in electricity costs will vary depending on the nature and location of the business and the electricity tariffs available CAN I SELL EXCESS ENERGY BACK TO THE GRID Yes but you need to consider the financial incentive to do so The rate received for any power exported will depend on your electricity retailer and location as commercial feed in tariffs vary between states and territories Feed in tariffs are discussed in more depth in the resources and incentives sec
22. ller know your local distribution network service provider DNSP e Will they conduct the work themselves or subcontract parts out If so what contractual agreements are in place to protect you e Do they provide workmanship guarantees We strongly recommend you do your due diligence and select a professional CEC accredited installer designer To find an accredited installer near you visit solaraccreditation com au consumers findaninstaller Your designer will tailor your PV system based on how much you want to spend or finance how much electricity you wish to offset and the physical properties of your premises They will help you e establish your electrical loads over an average day using a load analysis e determine the type of panels e determine the size of your solar PV system e decide the type of inverter e establish the location of solar panels in relation to angles available sunlight shading and temperature e determine what building surveys need to be performed As part of the design and feasibility your installer should give you an indication of what you can expect in terms of the performance of your system and the factors that may influence this PRODUCT SELECTION Your designer installer will help you choose the type of panels and inverter that best suit your needs An inverter is a device that transforms the electricity generated by your solar panels from direct current DC to alternating current
23. nt needed to connect e removal of trees or other shading e type of roofing for example tiled or tin or concrete e height and accessibility of roof e site preparation needs for example condition of roof or ground e structural engineering architectural and other professional services e existing infrastructure upgrades for example distribution board meter or cabling The table below provides an approximate guide on the price range for grid connected solar PV systems in Australia s major capital cities bearing in mind the factors above Government rebates such as Renewable Energy Certificates have already been factored into these figures and prices include GST ESTIMATED SYSTEM PRICE 15 990 20 941 51 274 61 990 76 900 99 900 149 760 199 900 Any quote you receive should itemise the cost of the components and services included in your system In particular you should clarify e whether government rebates have been included or not e whether an estimate of grid connection costs has been included Grid connection may add up to 20 per cent to the capital cost of the system depending on the size of your system and the requirements of your electricity distributor Guide to installing solar PV for business and industry 5 IS SOLAR PV RIGHT FOR MY BUSINESS The load profile typical electricity consumption over a day and electricity tariff are the main two factors that will determine the
24. ntegrity of your building e whether additional electrical or building work is required to accommodate the solar system At the very least your CEC accredited installer will need to complete a building survey to ensure the panels will not compromise building integrity WHAT IF DON T OWN MY BUILDING ARE THERE OTHER OPTIONS A common barrier to businesses installing solar PV systems is building ownership As solar PV systems are long term investments and involve making amendments to the building it can be difficult for tenants to secure landlord permission and long term finance arrangements You may wish to explore the option of establishing an agreement with your body corporate or landlord as part of your lease terms This agreement could determine the responsibilities of both you and your landlord in installing and maintaining a solar PV system The Federal Government has a range of resources available on Green Leases available online at ret gov au node 1306 If you are on a medium to longer term lease but cannot afford the up front cost you may be able to explore solar leasing arrangements which are discussed later in this guide If you are unable to install solar PV panels on your building but wish to source part of your business s electricity from renewable sources then you should explore GreenPower options greenpower gov au 10 Guide to installing solar PV for business and industry te WHAT GOVERNMENT
25. on Agreement with your distribution network service provider DNSP is mandatory to connect a solar system to the grid This agreement is a contract outlining the terms of your connection and must be understood and signed by the person responsible for the system post installation i e you the business owner Interconnection should be discussed with the distributor very early in the process so that they are aware of the project and you or your accredited installer are aware of any technical requirements that have to be met from an early stage Your installer should assist you with this process Depending on the size of your system the characteristics of the local grid you are connecting to and whether you are planning to export excess electricity the technical requirements of DNSPs may vary substantially The DNSPs have a responsibility to ensure the safety and reliability of the network for all their electricity customers and to ensure that any generation connected to the network does not affect this You should ensure that you consult your DNSP prior to making the decision to invest in solar PV as they have the right to refuse connection provided they have a sound technical basis for doing so In some cases the technical requirements can create high costs and it is important that you get a picture of these costs early in the process Your designer installer should be able to facilitate this process and be aware of the benefits of consult
26. or business and industry 17 Finding the right person or company to manage the design and installation of your solar PV system is important Although there is no physical difference between PV panels installed on residential and commercial properties installation and inverter requirements can be quite different so you need to ensure that your installer has the relevant experience for your system size Solar PV systems come with some responsibilities for the owner including learning the basic safe operation and proper maintenance of your system or ensuring you have an ongoing maintenance agreement in place Online and mail order solar PV system suppliers who never visit your business may have difficulty recommending the most appropriate equipment A comprehensive on site solar and load analysis and two way interview can help ensure a thoughtfully designed and well planned installation When researching designers and installers you should ask the following questions e Are they accredited by the Clean Energy Council e Do they hold all relevant licences and OH amp S certification e 5 the company reputable e What experience do they have in commercial installations How long have they been in the solar industry e many systems similar to yours has the designer installer completed e Are they up to date on the newest products the latest regulatory issues and connection requirements e How well does the designer insta
27. pply to your electricity retailer to receive a feed in tariff When signing an agreement with your electricity retailer it s important to be aware of all the terms and conditions In particular you should check with your electricity retailer about any tariff changes that will occur as a result of installing solar and carefully weigh up the advantages and disadvantages before making a decision This should be considered before you make any changes to your tariffs 14 Guide to installing solar PV for business and industry Important questions to ask about feed in tariffs include e What price will your retailer pay you for electricity exported in cents per kWh e What is the cost of the electricity you purchase from your retailer in cents per kWh e Will you lose your off peak rates by moving onto a higher time of use tariff e What will be the form of payment for electricity you produce It is likely you will receive the feed in tariffs you earn by default as a credit on your electricity bill rather than cash e What is the upper threshold on system size to be eligible for feed in tariffs e 5 there a threshold on the volume of electricity you can sell e Will your metering need to be upgraded so you can receive the feed in tariff and are there any costs involved e How will excess energy be calculated and summed e g instantaneously daily or quarterly Other important questions to ask when si
28. s e What are the billing payment periods e Do you need to organise all the necessary metering changes and what are the associated costs e How will excess energy be calculated e g instantaneously daily or quarterly Your installer should assist you in this process by providing modelling that you can use to negotiate with your retailer It is strongly recommended that you get written confirmation from your electricity retailer on what if any changes will occur to your tariffs under the proposed new arrangements 22 Guide to installing solar PV for business and industry Guide to installing solar PV for business industry 23 Trina Solar WHAT IF SOMETHING GOES WRONG If you have an issue with any solar PV product while it 15 under warranty you should first contact the supplier in order to have the product replaced or repaired 24 Guide to installing solar PV for business and industry If you are unable to contact the supplier you should contact the manufacturer Contact details should be provided on the warranty documentation The Australian Consumer Law also provides a range of protections for consumers in relation to warranties and faults To find out more about whether your solar installation is covered by the provisions of Australian Consumer Law visit consumerlaw gov du The Clean Energy Council deals with complaints involving a breach of the Accreditation Rules Accre
29. siness will be assessed as will the bankability of the solar PV installation When researching which retailer and or manufacturer best suits your needs ask them what finance options they offer Lease terms and inclusions will vary between providers Leases are generally five to 10 years with monthly payments but can be tailored to your business needs During the lease term the supplier is responsible for the monitoring and maintenance of your system At the end of the lease the ownership of the solar PV system may be transferred to your business however this will depend on your agreement There are a number of different finance options for commercial solar systems which suit different types of businesses and each with pros and cons We recommend you seek independent financial and taxation advice to determine the most suitable financial product 16 Guide to installing solar PV for business and industry DESIGN AND INSTALLATION q A WHAT IS INVOLVED HE DESIGN lt TINTO _ AND INSTALLATION OF MY SYSTEM The design and installation solar PV system be split up into eights P 1 finding a CEC accredi instal Ne 4 4 quotation 5 applying for any building approvals 6 connecting to the grid 7 applying for govert ge rebates if lt i 2 5 7 Hall PV System Guide to installing solar PV f
30. system sizes 43 kWh 215 kWh 430 kWh 645 kWh throughout Australia 44 kWh 220 kWh 440 kWh 660 kWh Be ee a eee ere 35 kWh 175 kWh 350 kWh 525 kWh design summary software takes these S 82 de ratings into account when predicting 36 kWh 180 kWh 360 kWh 540 kWh averages for any given system Panels generate more electricity in PERTH 44 kWh 220 kWh 440 kWh 660 kWh summer than in winter and the table reflects the average daily electricity DNE 39 kWh 195 kWh 390 kWh 585 kWh generated over a year 4 Guide to installing solar PV for business and industry HOW MUCH DO SOLAR PV SYSTEMS COST Solar PV systems vary in price and the CEC strongly recommends that you do your research on the technology installer and warranty to ensure you get the most out of your system based on your needs You may wish to consider monitoring and after sales maintenance agreements for larger investments The price of your solar PV system can be affected by a range of different factors including e government rebates and support schemes e location e number of panels e orientation of panels and whether tilt frames are required e type quality and efficiency of panels e type quality and efficiency of inverter e system design and configuration e shipping costs for equipment and parts e contractor installation costs e aftersales service agreements e monitoring equipment and agreements e costs of the grid connection process and equipme
31. tion of this guide TAX TREATMENT You will need to consider the tax implications of any income received to subsidise the up front capital cost of installing your system or revenue received via a feed in tariff If you treat your system as a depreciable asset then any associated income may be taxable Also the Australian Taxation Office ATO considers the supply of electricity from a solar owner to an electricity retailer as a separate supply to your purchase of electricity If your business is registered for GST then it is likely that you will be liable for GST on all exported energy If you choose a solar lease or finance arrangement the rental for your solar PV system may be tax deductible We recommend that you contact your accountant or the ATO for advice ato gov au Guide to installing solar PV for business and industry 7 uis a dll dney based company with a of around 50 000 kWh The business operates WEEK Monday to i and a single store variation showssa weekends there s still a baseload of around s After talking dith a CEC accredited designer Bust ess A decides to installa 15 kW system This has System cost 40 000 Average daily solar generation 58 5 kwh aay The average daily usage on weekdays is dpproximately 175 kWh per day This means that the solar generation will offset around 33 per cent of existing consumption generating a daily cost saving of 58 5k
32. value of solar PV for your business Understanding your energy consumption is the first step in determining if solar PV is a viable investment A detailed and professional analysis of your consumption patterns compared to the expected generation from your solar system should be provided by your CEC accredited designer during the design and specification stage as part of their load analysis This process is crucial because it forms the basis of the financial returns from your system Also some state and federal programs offer energy assessments for businesses either through government departments or business chambers Check with your state government for more information 6 Guide to installing solar PV for business and industry MATCHING SUPPLY AND DEMAND As the financial reward for exporting energy to the grid is currently quite low you are likely to receive the largest benefits from your solar system through self consumption which means you need to consume less electricity from the grid at a higher price So it is important that your installer matches your system size to your average consumption Your CEC accredited designer should present various sizing alternatives that suit your facility and load profile and discuss with you the projected economic return on investment of each alternative WHAT ARRANGEMENT DO CURRENTLY HAVE WITH MY ELECTRICITY RETAILER The business case for installing a solar PV system depends hea
33. vily on your current and future electricity tariff It is important to understand the following e What tariff are you on Flat time of use e What are your peak and off peak rates and at what times do they apply e Are you on fixed term contract e If so when does the contract expire e Does your energy contract have a minimum consumption clause and any associated penalties e How will your tariffs change once you install a system Your installer should assist you in this process by providing modelling that you can use to negotiate with your retailer It is strongly recommended that you get written confirmation from your electricity retailer on what if any changes will occur to your tariffs under the proposed new arrangements BUSINESS CASE FOR SOLAR PV In addition to your load profile the economics of installing a solar PV system will depend on a range of factors including system cost output and estimated savings and desired return on investment RETURN ON INVESTMENT Solar PV systems are becoming increasingly affordable and in many cases offer an attractive internal rate of return IRR Comparing the IRR to other potential investments e g leaving the money in the bank or investing elsewhere will help your business compare the solar investment to others and make an informed business decision To optimise the return on your solar installation you should determine the total lifetime cost of a solar insta
34. wn day X 26 18 lt kwhn 15 31 per day The solar PV on weekend lati 18 xwh aay X 26 cv 4 71 per day The total average annual savings 15 31x 260 4 71 x 105 4475 15 per annum This means that the system cost of 40 000 is recovered in approximately 9 years Note this is a very basic example that doesn t take into account factors such as depreciation rising costs of electricity rebates and financing If electricity prices are assumed to increase 3 per cent annually using a 7 per cent discount rate the IRR for the basic inputs above is around 11 per cent 8 Guide to installing solar PV for business and industry Guide to installing solar PV for business and industry 9 DO NEED TO OBTAIN ANY BUILDING OR COUNCIL PERMITS As every building is unique you may or may not be required to obtain building and planning approval through your local council We recommend that you seek advice from your local planning body as early as possible Factors to consider include e state building codes and regulations e whether your property is within a conservation or heritage overlay e the classification of your building under the Australian Building Code Class 2 9 buildings may be subject to different approval requirements e the size and position of your solar PV system e the total weight of your panels at any one point of attachment to the building e the design of your system e structural i
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