BG FAQ

05/12/11

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Buying Group Frequently Asked Questions (FAQ):

  1. We are just outside the Brisbane metropolitan area.  How much will it cost for us?
    We have negotiated our great price based on a concentration of households to optimize savings. If you are within 30-40km from the Brisbane CBD, we should be able to include your household. (In the Local Power Buying Group #1-#5, which had 500+ homes, we managed to cluster all but a handful of interested people in the Brisbane metro area.)
     

  2. We are way outside Brisbane.  Does that mean we can't participate?
    Unfortunately, as Local Power is a community group which handles the installation logistics, we can't easily service distant homes while keeping the prices low.
     

  3. We are building a new house (or renovating our old one) and are not ready yet, can we still participate?
    Part of the "trick" for a buying group is to buy the components in bulk and then install them as soon as possible in bulk (otherwise Local Power has to bear most of the component costs for an uncertain period of time until you are ready to install which is impossible for us to do). This is why we need to insist the participant is ready to go when we are. 
     

  4. We plan to raise our house, and perhaps replace the roof.  What will the impact be?
    If you will be replacing your roof after the PV system is installed, you will need to remove and replace all the frames and panels, which will cost quite a bit in labour.  Raising the house but not replacing the roof may impact the existing cabling from the panels to the inverter, as you may need to replace them with longer DC cables.  In some cases the inverter can be moved to compensate, but that would involve replacing the AC cables.
     

  5. When will installations start?
    If the components are in stock (depends on how many people sign up), the installations will start soon after we finish inspections.  We expect installations will start in early April 2011 and will finish by the late May 2011.
     

  6. Will you run more buying groups in the future?
    If this sixth buying group goes well, then we would certainly consider doing more.
     

  7. What is the difference between the panel manufacturers defect warranty of 5 years and the power performance warranty of 25 years?
    Local Power is simply passing on whatever the manufacturer offers.  Click here to read the actual warranty details from Sharp for yourself to see what it means and what the exclusions are.  If the product fails in the first 5 years under the manufacturers defect warranty (faults in materials and manufacture), Local Power will remove it from your roof and return it to the distributor and manufacturer and also replace it back onto your roof when the replacement arrives back.  Removal and replacement are at no cost to you in the first 12 months.
     

  8. You mention you use quality panels like Sharp, why is that important?
    Lots of panel manufacturers offer long warranties.  We think you need to consider whether the manufacturer will be around to honour the warranty and whether they will be able to afford to do so.  Sharp has been in business for almost 100 years and been making solar cells for decades.  Although we don't know for sure whether they will be around in 25 years, we are reasonably confident they will, and will want to protect their brand reputation if something goes wrong.
     

  9. Who else sells Sharp panels in Australia?
    Many companies sell Sharp panels in Australia.  Origin Energy is the most notable one, although recently we understand they haven't been able to get much stock of Sharp and have also started offering other brands.  If you get a PV quote from other companies, get the panel brand they will be supplying in writing.
     

  10. My roof is totally flat.  Is it possible to tilt the panels to operate better?
    In general it is possible to tilt the panels more than flush mounting against the roof, by using legs. For example a 2kW system has 20 feet on the framing and most likely 10 legs would require extension to get the required tilting. Overall the extra tilting components and labour would cost at least several hundred dollars more. However, depending on the size of the array, it may still only constitute a small percentage of the overall system cost. If you still wish to order knowing that there are likely additional costs, we will be able to confirm the detail of that after our and the installers inspection.  But you won't have to go ahead and install if you don't agree to the higher than standard install cost.
     

  11. My largest available roof is between NW and West.  What will the impact of that be?
    From what we have read, a west facing roof can lose about 13% of annual production (and northwest lose 4%) compared to a northern roof. see section 4 of this university research paper.  However people do install on east or west facing roofs
     

  12. I don't understand the difference between kW, kWh, DC, AC.  What size system do I need for my home?
    A 1.5kW PV solar array generates about 2161 kWh/year of electricity. You should be able to see from your last 4 quarterly electricity bills how many kWh you used in a last year and therefore calculate how many kW of PV solar capacity you might need to be totally "self sufficient". It might be quite a shock to see how big (& how expensive) a PV array you would need to meet your current electricity use.
    Another way to think about PV solar is to also use your array as an incentive to reduce the amount of energy you use by actively working towards the gap between your electricity use and the amount your solar array produces.  (This is similar to the way people who have water tanks tend to be more conscious of how much water they use.) Some people who have installed moderately sized PV solar systems have also found ways to reduce their electricity usage by up to 70% over time. Local Power prefers to support energy efficiency measures, rather than simply putting in a large array to meet your current requirements.
    For example you could ask the questions:
    1) Do I have adequate insulation so I need to use less heating in winter and run less aircon in summer?
    2) Do I have solar hotwater, or gas hotwater, or an efficient heat pump, each generate significantly less greenhouse gases than a regular electric hotwater system and would also reduce your electricity usage.
    3) If I have a pool, do I have an energy efficient pool filter and/or use a solar heater.
    4) Do I have efficient lightbulbs, turn off appliances at the wall etc.
    5) Do I have an energy efficient modern fridge and/or run too many fridges?
    6) If I have an air conditioner is it set to 24 degrees Celsius which is the most efficient setting for South East Queensland.
    There are a list of energy savings tips/ideas at http://localpower.net.au/saveenergy.htm
    If you wish, please email through your last 4 quarterly electricity usage, and we can help you calculate the size of PV system for your current use, and we are also interested in getting a feel for averages around Brisbane.
     

  13. Your website mentions Energex but I am with Origin or AGL.  Can I participate?
    Yes.  Energex is the network owner, while Origin, AGL and others are the retailers who sell power over that network. Everyone in Brisbane connects to the Energex network & most people in Brisbane use Origin and AGL as their retailer currently.  To connect a PV system to the grid you need an agreement with Energex (Local Power will prepare these application forms for you). To sell power back to the grid you sometimes need an agreement with an electricity retailer.
     

  14. A different brand of panel or inverter would suit my needs better.  Can I get them instead?
    People generally join a Buying Group to save money.  Usually Buying Groups want to also ensure members get good quality, good warranties, etc. in the Buying Group's selection of the product.  One element of savings for members of Buying Groups is through buying the same materials in volume.  In the case of our Buying Group to achieve volume, it means only a few options in terms of panel type and inverter type.  Local Power has chosen components which strike a good balance between quality and price.  However, you may find your component preferences or needs differ from the options available (you may want components that are cheaper, more expensive, have different features, or are just different for whatever reason).  Unfortunately we cannot cater for all these variations because Local Power would not be operating as a Buying Group, but more as a retailer.  People who join Buying Groups have to be able to tolerate this limitation in choice.
     

  15. I live off-grid and have a standalone power system.  Will Local Power sell just panels to me?
    Unfortunately the answer is no.  When we started we were quite open to supplying panels for off-grid.  As it has turned out, to get the best pricing, we ended up negotiating buying complete grid connect kits (panels, inverters, mounting frames). Also if you read the detailed panel specs, they are designed for grid connect applications, some of which having a lower nominal voltage instead of 24V, so may not work as well (or at all?) on battery based off-grid systems.
     

  16. I am unsure what size my roof is, can someone come out and assess it before I sign up?
    Many people don't feel confident in assessing their roof, which is why Local Power (& also the installer if required) will do an inspection upon ordering. If your install does not go ahead (due to home is unsuitable or if the REC (STC) price drops below $35), you will be refunded in full less the $88 inspection fee.  As a community not for profit buying group, we have no gross profit margin to spend on sales and marketing, so unfortunately can't do "free" inspections as part of the "sales" process that a commercial organisation would do.
     

  17. What are RECs and Solar Credits
    Origin, AGL and other electricity retailers and large electricity users operate under the RET (renewable energy target) scheme where they need to purchase a percentage of their electricity from renewable sources (actually there is a fixed industry wide target in GWh rather than a percentage).  Buying RECs is the way they do that, otherwise they need to pay a fine, equivalent to $65/REC but it's not tax deductible for them so the real value could theoretically be as high as $92, not counting the reputation cost of being fined. 
    Installing a PV solar system creates RECs, and Solar Credits multiplies the number of RECs by 5x (until June 30 2011) for the first 1.5kW of a system.  Our website talks about the various number of RECs created under Solar Credits for various sizes of systems, based on a 15 year period (15 year RECs need to be created within 12 months of installation - see the ORER website for all the details on how to calculate them etc.).  Most people are happy to assign/sell their Solar Credits (RECs/STCs) to lower their overall install price.  RECs is quite a specialized and technical area to understand.  You can find more information at the website of the Office of Renewable Energy Regulator (ORER) here.  Assigning the right to sell RECs (STCs) from PV systems is currently (4/3/2011) worth around $35 selling to the REC brokers.  You can see a graph of some recent REC prices here
     

  18. I don't want to sell my Solar Credits and want to keep my RECs.  Can I still participate?
    Yes.  But your "balance payment" will obviously cost more than if you are using Solar Credits (and RECs/STCs) as part payment.  It will be "system cost" less the "deposit payment".  Please contact us and we can confirm and calculate it for you.  If you later want to sell your Solar Credits, we understand this must be done within 12 months of system installation. 
     

  19. Why does the 3kW "total payment" cost more than twice the 1.5kW (& the 4kW more than twice the 2kW)?
    The reason is that the Solar Credits incentive (5x the regular number of RECs/STCs until 30 June 2011) only applies to the first 1.5kW of the system.  The 1.5kW system is therefore the cheapest out of pocket cost per Watt.  If however you look at the unsubsidised "system cost" you will see that larger systems are cheaper per Watt than smaller ones as you would expect.
     

  20. What's the difference between monocrystaline and polycrystaline cells?
    Both cell types are a mature silicon based solar panel technology.  When put into panels, monocrystaline cells are slightly more efficient (14.24%) per square meter of roof than polycrystaline cells (12.84%).  However to manufacture mono cells requires more energy than poly cells, so the embodied energy is lower and energy payback is quicker on poly. With Brisbane's solar resource, modern solar manufacturing techniques ensure the energy payback is within a few years for both cell types.  This research paper goes into a lot more detail.
     

  21. How much money will I save on my electricity bill?
    A 1.5kW system generate about 2161kWh/year on an unshaded, north facing, perfectly pitched roof.  Some of this electricity will be used in your house, while some of it will be exported to the grid.  The financial savings have two components, with the exported electricity having a higher dollar value.  If you didn't export any to the grid it is estimated you would save $461/year based on 21.351c/kWh (Queensland tariff 11).  The Solar Bonus Scheme (Feed in Tariff paying at least 44c/kWh) for any energy exported to the grid results in credits on your electricity bill and adds to the above savings.  e.g. if you export 50% of the energy from a 1.5kW system at 44c/kWh, the electricity savings will increase from $469 to $706/year.  Please see the electricity savings calculator by clicking here.  Both of these savings will help pay for your system over time, in many cases income tax free.


 

 

 

     

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This site was last updated 05/12/11