Solar Power Frequently Asked Questions
Solar Power FAQs
We have compiled this list of FAQ’s to answer specific questions, as well as to help you browse various topics to deepen your understanding of the technology involved, the solar industry in general and why it is so important to use a reputable solar installer such as Solaray.
Solaray has an extensive track record of supplying and installing quality Solar Systems, whilst providing the best customer service levels available in the industry today.
Our products are selected to provide the best combination of efficiency, performance and value for money. This, together with our customer service approach and rigorous installation standards, means you can be assured that a Solaray System represents the best available and cost effective solution on the market.
Solar system output in Sydney depends on a number of factors including your roof orientation, the angle of the panels, the weather, the seasons and the size of your system. Because of this we only use averages as well as guidelines from the clean energy council.
The Clean Energy Council advise that in Sydney a solar system should on average output 3.9 kWh of energy per day for every kW of solar installed, taking into account the seasons and the weather. On any given day this figure could be extremely different.
A 2kW system should output on average 7.8 kWh per day, and a 10kW system 39 kWh per day. Using this figure, a simple yet effective way to estimate the output of a solar system that is installed is to multiply the system size by 4. For example a 2kW system will generate approximately 8 kWh of power on an average day.
However, it is important to note that output varies considerably across the year as there is on average more sunlight during the summer months compared to the winter months. The sun is much lower in the sky in winter, and so the output your system produces at different times of the year is directly impacted by the angle of your system. More information on this here: Should I Get Tilt Frames For My Solar Panels? The numbers on this graph are the estimated output for a 5kW solar system across the year:
Solar Power Rebates in NSW- How it all works
There has never been a better time to buy a solar power system in NSW as system prices continue to fall and great incentives are still in place for eligible households. In NSW there are two main financial incentives for installing solar panels:
- Small Scale Technology Certificates– which can be used to reduce the purchase price of your system.
- Feed in tariff– an agreement with your energy retailer whereby you are paid for the excess solar power that you feed back into the grid.
Small-scale Technology Certificates (STCs)
Small-scale Technology Certificates (STC’s) – previously known as Renewable Energy Certificates or RECS – are created when a Renewable Energy System such as a Solar PV system is installed.
The number of STC’s depends on the size of the system and therefore the amount of energy generated. In essence, one STC is created for every megawatt hour of production capability of the system. In simplistic terms, a 2kW solar system would be expected to generate between 2.4MW and 2.9 MW per year depending on location.
This is further multiplied by the number of years the system is likely to generate energy (for home solar systems, this is usually 15 years, although the life of the solar panels themselves is considerably more than that).
* Based on an STC price of $35. Real savings may be even greater!
What does this mean for me?
Your solar power installer will normally reduce the purchase price of the system by the value of the STCs created by your system. There is no additional paperwork, and you receive the value of the STCs at the current market price.
The system for trading and pricing STCs for small systems is managed by the Small-scale Renewable Energy Scheme (SRES).
STCs are bought by Liable Parties (usually electricity retailers) and must be surrendered at the end of each quarter. <p”>As the number of STCs that are required to be surrendered is a fixed amount each year, but the number of STCs created is variable, the price paid for STCs also varies and is determined by supply and demand. <p”>The Federal Government legislated in 2010 a fixed price for STCs by implementing a Clearing House system where STCs can be bought and sold for $40. However, there is no requirement for Liable Parties to purchase from the Clearing House, so they are likely to only do so if there is a shortage of STCs or the market price exceeds $40.There is currently a surplus of STCs in the market which means the market price of STC’s below $40.
Feed in Tariff
In NSW all new grid connected solar systems have Net Metering, where the solar power that is generated is fed into the home to help reduce your reliance on the grid. Because electricity has to be used immediately, any power that is not used in the home is automatically fed out to the grid. This power is bought by your energy retailer and you are paid a feed in tariff, which is reflected on your power bill.
The Independent Pricing and Regulatory Tribunal has stipulated that t a fair and reasonable value for excess solar power exported to the grid is in the range of 7.7 to 12.9 cents per kilowatt hour. For example, if you have a 5kW system and you export all of the power to the grid on a typical Sydney day, you will receive a credit of approximately 20kW/h x 8c = $1.60.
What happened to the old 60 cent feed in tariff?
The 60 cent feed in tariff was a part of the State Government’s Solar Bonus Scheme that closed to new applicants in 2011. These systems have Gross Metering where all of the solar power is fed directly into the grid and households are paid a feed in tariff for all of the power generated. At the time, residential solar power systems were prohibitively expensive to install, and this state rebate was extremely successful in encouraging households to install solar systems and help grow the solar industry. As a result we have seen a dramatic reduction in the cost of installing a solar system.
Why should I consider solar now that the Solar Bonus Scheme has finished?
The benefit of a solar system is no longer in the feed in tariff, but rather in reducing the amount of power you buy from the grid. This is why it is vital to speak with a reputable solar installer to help you size up a system to reflect your daily energy patterns. Time of day metering is now being rolled out across the Ausgrid network, which means that during the peak period between 2pm and 8pm, you will be saving close to 52c for every kilowatt of solar power your system generates. System prices continue to fall, and coupled with the federal government’s STC incentive there has never been a better time to buy a solar system for your home.