visit cleanenergycouncil.org.au GUIDE TO INSTALLING SOLAR PV FOR BUSINESS AND I

visit cleanenergycouncil.org.au GUIDE TO INSTALLING SOLAR PV FOR BUSINESS AND INDUSTRY Milner Meats - Alice Solar City Guide to installing solar PV for business and industry 1 CONTENTS INTRODUCTION 2 WHY INVEST IN SOLAR PV? 2 STAND-ALONE SOLAR PV SYSTEMS 4 GRID-CONNECTED SOLAR PV SYSTEMS 4 HOW MUCH DO SOLAR PV SYSTEMS COST? 5 IS SOLAR PV RIGHT FOR MY BUSINESS? 6 SMALL BUSINESS EXAMPLE 8 DO I NEED TO OBTAIN ANY BUILDING OR COUNCIL PERMITS? 10 WHAT IF I DON’T OWN MY BUILDING? 10 ARE THERE OTHER OPTIONS? RESOURCES AND INCENTIVES 11 RENEWABLE ENERGY CERTIFICATES 12 CLEAN ENERGY FINANCE CORPORATION 14 FEED-IN TARIFFS 14 CLEAN TECHNOLOGY INVESTMENT PROGRAM 15 OTHER GRANTS AND ASSISTANCE 16 OTHER FINANCING OPTIONS 16 DESIGN AND INSTALLATION 17 1. FINDING A CEC-ACCREDITED INSTALLER/DESIGNER 19 2. DESIGN AND FEASIBILITY 19 3. PRODUCT SELECTION 20 4. QUOTATION 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? 24 SOLAR PV CHECKLIST 25 2 Guide to installing solar PV for business and industry Guide to installing solar PV for business and industry 3 Electricity prices have increased over the last few years, resulting in increased operational expenses for businesses. On the other hand, the cost of solar photovoltaic (PV) systems has declined, making solar an increasingly affordable option for businesses. By installing a PV system, you will be able to offset your electricity consumption and hedge against future price rises. Although systems may require a large up-front capital cost, payback periods are typically around 5 to 10 years. This guide details the key steps you will need to undertake to install solar PV at your business. UNDERSTAND THE ELECTRICITY CONSUMPTION OF YOUR BUSINESS AND CHOOSE THE RIGHT SIZE SYSTEM FOR YOUR NEEDS Your consumption profi le will determine the viability of solar PV for your business and help you decide what size system is appropriate. UNDERSTAND YOUR ELECTRICITY TARIFFS AND HOW THEY MIGHT CHANGE The business case for investing in a solar PV system 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. 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. 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. 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. The use of solar photovoltaic (PV) panel systems has grown signifi cantly in Australia this decade, and is now an increasingly affordable option for Australian businesses looking to hedge against the rising cost of electricity. Solar PV systems generate power by converting the energy in sunlight to clean electricity. This conversion takes place within modules of specially fabricated materials that make up the solar panels. In most cases solar PV panels are connected to the mains power supply through a device called an inverter. With a wide range of products and suppliers on the market, being an informed consumer has never been more important. This guide, intended for businesses and industry wanting to install a solar PV system, provides an introduction to the technology and navigates the process for commercial-scale solar system installation. TOP FIVE TIPS FOR PURCHASING SOLAR PV 1 2 3 4 5 WHY INVEST IN SOLAR PV? Ingenero - Moss Vale Guide to installing solar PV for business and industry 5 AVERAGE DAILY PRODUCTION CITY 10 KW 50 KW 100 KW 150 KW ADELAIDE 42 kWh 210 kWh 420 kWh 630 kWh ALICE SPRINGS 50 kWh 250 kWh 500 kWh 750 kWh BRISBANE 42 kWh 210 kWh 420 kWh 630 kWh CAIRNS 42 kWh 210 kWh 420 kWh 630 kWh CANBERRA 43 kWh 215 kWh 430 kWh 645 kWh DARWIN 44 kWh 220 kWh 440 kWh 660 kWh HOBART 35 kWh 175 kWh 350 kWh 525 kWh MELBOURNE 36 kWh 180 kWh 360 kWh 540 kWh PERTH 44 kWh 220 kWh 440 kWh 660 kWh SYDNEY 39 kWh 195 kWh 390 kWh 585 kWh Source: Clean Energy Council database The output of a solar PV system depends on its effi ciency, size and location. Commercial systems can range anywhere from 5 to10 kilowatts (kW) up to a few megawatts (MW). This table shows the average daily production of some common grid-connected system sizes throughout Australia. The rated output is that achieved in perfect laboratory conditions. The CEC design summary software takes these de-ratings into account when predicting averages for any given system. Panels generate more electricity in summer than in winter and the table refl ects the average daily electricity generated over a year. HOW MUCH POWER DO SYSTEMS GENERATE? 4 Guide to installing solar PV for business and industry 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 fi rst 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. GRID-CONNECTED SOLAR PV SYSTEMS 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 energy supply. STAND-ALONE SOLAR PV SYSTEMS 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: • government rebates and support schemes • location • number of panels • orientation of panels and whether tilt frames are required • type, quality and effi ciency of panels • type, quality and effi ciency of inverter • system design and confi guration • shipping costs for equipment and parts • contractor installation costs • after sales service agreements • monitoring equipment and agreements • costs of the grid-connection process and equipment needed to connect • removal of trees or other shading • type of roofi ng (for example, tiled or tin or concrete) • height and accessibility of roof • site preparation needs (for example, condition of roof or ground) • structural engineering, architectural and other professional services • 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 Certifi cates have already been factored into these fi gures and prices include GST. ESTIMATED SYSTEM PRICE SYSTEM SIZE PRICE RANGE 10 kW $15,990 - $20,941 30 kW $51,274 - $61,990 50 kW $76,900 - $99,900 100 kW $149,760 - $199,900 Source: Solar Choice Commercial Tender Management Platform, Accessed 6 September 2013 Prices include rebate from renewable energy certifi cates and are GST inclusive Market costs change quickly and so these numbers are an illustrative guide only. Any quote you receive should itemise the cost of the components and services included in your system. In particular you should clarify: • whether government rebates have been included or not • 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 uploads/Industriel/ solar-guide 1 .pdf

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