A provision for a mandatory ‘retailer payment’ under South Australia Solar Feed-in Tariff scheme has come into effect as of 29 January 2012. The state’s Solar Feed-in Tariff scheme is now composed of two separate parts: A ‘base rate’ of 16c/kWh (for those signed up before 30 September 2011), plus a retailer payment of 7.1c/kWh until 30 June 2012. The base rate will remain unchanged until 2016, while the retailer payment will rise annually to reflect the ‘real value’ of solar electricity to the electricity grid. The retailer payment will also be paid to those whose solar PV systems are signed up on the State’s former 44c/kWh rate.

South Australia offering one of the best solar PV incentives in Australia

With a cumulative rate of  23c/kWh (and rising), South Australia offers one of the most generous buyback rates for solar power in the country. For example, Adelaide households where the occupants are not home during the day can expect annual savings of approximately (5.6 Sun Hours x 5kW x 23c x 0.5 =) $1,200 in the form of credit on electricity bills assuming a 50% export rate of the solar power to the grid. These savings will grow as the retailer payment component of the Solar Feed-in Tariff rises over the coming years.

Further savings from self-consumption of solar power

On top of returns from electricity exports, system owners can also count on savings from avoided purchase of electricity from the grid: each kWh of power used at home while the solar panels are producing energy means 1kWh fewer that will appear on the next bill. With the price of electricity set to rise sharply across the country (by 36% in SA) over the next 2 years and beyond, it will make increasingly more financial sense for solar-installed households to opt to time their use to favour self-consumption over export to the grid.

Returns on any solar system will of course vary depending on factors such as system size, ratio of self-consumption vs export to grid, and the weather patterns for the year. But with solar PV system prices hitting all-time lows, payback periods are relatively short at 4-7 years for most systems in South Australia.

© 2011 Solar Choice Pty Ltd

Resources and links:

South Australian Government: Solar Feed-in Scheme page, Retailer Payment

More Solar Choice articles about the South Australia Solar Feed-in Tariff and other SA-related solar issues

What is special about Tindo’s solar panels?

Soon to be Australia’s only solar panel manufacturer

Australia is home to one of the world’s most widely recognised solar PV research centres: UNSW’s Photovoltaic Engineering faculty. This is where the seeds for the world’s largest manufacturer of solar panels–Suntech–were planted. It is also a hub for ongoing development of solar technologies. Despite this, nearly all solar panels available on the Australian market are manufactured overseas. Given Australia’s relatively small manufacturing base, this state of affairs may be inevitable, but it does not prevent shoppers from favouring a ‘Made in Australia’ label where one can be found. This is perhaps why news of Tindo’s emergence is causing such a buzz. Since Silex has stopped production of panels, Tindo will be the only company that can call its panels ‘Australian-made’.

Supporting its home-grown image, Tindo’s name comes from the Kaurna Aboriginal language–the language of traditional inhabitants of the Adelaide plains, where the company’s manufacturing plant is located–and means ‘sun’. The name of the company’s first panel line–the Karra 240–gets its etymology from the Kaurna word for ‘sky’ or ‘heaven’.

Hand-selected solar system installers

The company prides itself in its commitment to more than just turning a profit, and hopes to appeal to customers who share a similar mindset. Tindo has hand-selected the installers who will install their panels based on their credibility, ethics, and motivations, hoping to build a great reputation through association with quality installations and excellent customer service. As community engagement is one of the qualities that Tindo requires in its installers, almost all of those selected are small businesses who similarly rely on their reputations and word of mouth to promote their businesses and grow their customer bases.

Solar panels that produce grid-compatible AC electricity

Most solar panels produce Direct Current (DC) electricity, which needs to be converted to 240-volt Alternating Current (AC) via a solar inverter in order for it to be compatible with the electricity grid and to be used by home electrical appliances. Most solar systems have centralised inverters into which all solar panels in a system feed. In such conventional systems, if there are variations in electrical output among panels in an individual string, the output of the whole of the array can suffer.

Tindo panels, on the other hand, each come equipped with micro-inverters made by Enecsys. These inverters allow each panel to function individually, converting DC to AC on the module level. This means that entire strings or arrays will not suffer dramatic output losses in the event of the failure or shading of an individual panel; this increases the yield of a system over its lifetime. Although inverters for each panel may mean a higher upfront cost for the panels themselves, decreased installation labour costs, and the elimination of the need for a central inverter offset much of the upfront cost of a whole system. Additionally, improved yields over the life of the system thanks to the micro-inverter technology make micro-inverter equipped panels a wise investment decision.

Enecsys Micro-Inverters for Tindo Panels--One panel failure does not bring down the whole array. (Image via Enecsys)

In addition to the obvious benefit of circumventing the need for a central inverter (often the most expensive individual part of a solar PV system), Enecsys micro-inverters offer a number of other potential benefits, including improved safety (avoidance of ‘arcing’ across strings of panels, for example), enhanced monitoring capability (the performance of each module can be tracked on a smartphone or a PC individually), and simplified system design and installation (no need to worry about matching panel wattage on strings or what the acceptable central inverter input voltage is).

(SolarEdge, as discussed previously, is a  technology similar to that used in Tindo panels, except that DC electricity is harnessed from each individual panel before all being centrally converted to AC in an centralised inverter. While still advantageous in terms of mitigation of output loss due to partial shading, SolarEdge does not afford the same safety features as the Enecsys micro-inverters used by Tindo.)

High-quality components make a high-quality panel

Where can I get Tindo Solar Panels?

As noted above, only around 60 installers who have been hand-selected by Tindo will be using their panels in installations. At least two of these installers are members of the Solar Choice installer network, and Solar Choice hopes to incorporate more in the future in order to offer an even wider range of installer options to our customers throughout Australia. If you are interested in Tindo solar panels, contact Tindo directly or fill out the Solar Quote Comparison Request form to the right of this page to see if any Solar Choice Network installers in your area offer a Tindo option in their installations.

Resources and Links

Tindo Solar Karra-240 Brochure (pdf)

© 2011 Solar Choice Pty Ltd

Top image via Tindo Solar

Solar Systems, a branch of Australia’s Silex Systems, has begun construction on its Mildura, Victoria concentrating photovoltaics (CPV) demonstration plant. The first stage of construction will be completed by the end of 2012 with an installed capacity of 2 megawatts (MW). Subject to the favourable performance of this demonstration-scale version of the project, construction will expand to incorporate a full 100MW or greater by the end of 2016. With each unit generating 650W, the plant will be one of the most space-efficient solar power plants anywhere in the world, requiring only around 6 acres per MW.

100MW of concentrating solar PV in Mildura - Artist's Impression (Image via Solar Systems)

Mildura’s solar power: Solar PV plus CSP

Solar Systems parent company Silex Systems is well-known in Australia as a home-grown developer and manufacturer of solar energy technologies. Most notably, Silex Solar, another subsidiary of Silex Systems, until recently operated Australia’s only solar PV module manufacturing plant in Sydney’s Olympic Park. Such solar photovoltaic panels–rectangular modules that are mounted side-by-side on rooftops or on ground-mounted frames–are the form of solar power that most homeowners are acquainted with. Large-scale solar projects either utilise such panels or some form of concentrating solar power (CSP, also frequently referred to as ‘concentrating solar thermal’) technology, where sunlight is concentrated before its energy is harnessed. The Mildura plant will be the first of commercial, grid-connected project its kind to use Solar Systems’ technology.

Silex CS500-5 Concentrator (Image via Solar Systems)

Mirrors and solar concentrators

Silex Solar Systems’ technology could be described as a combination of these two types of technology, offering the best of both worlds: the scalability and modularity of solar PV with the CSP’s ability to magnify and concentrate the power of the sun using mirrors. The CS500-5 Dish System (pdf) units that will comprise the Mildura plant use mirrors to concentrate the sun’s rays to 500 times the rate that ordinarily falls on the ground. The concentrated sunlight is focused into a concentrator and converted into electricity, a small box that sits opposite the mirrors, where their rays converge. Each module comes equipped with a dual-axis solar tracker, enabling them to efficiently harness the sun’s energy from sunrise to sunset throughout the year.

The solar photovoltaic cells used in the concentrator were originally developed to power satellites, and operate at about 40% efficiency–twice the level seen in the most efficient panels commercially available, and the highest in the world. Convertor boxes are actively cooled in order to prevent power losses from high temperatures, as well as to extend the life of the units. Convertors are designed with future upgrades in mind and be quickly and easily replaced as more advanced and efficient cells as they become available.

Financial aid from the Federal and Victorian governments

Solar Systems’ Mildura project has been made possible in part thanks to $120 million in funding–a grant of $75 million under the Federal government’s Low Emissions Technology Demonstration Fund (LETDF), and the balance from the Victoria government. Dispersal of funding will be contingent on the performance of the first 2MW of installed capacity, and the attainment of certain milestones in the life of the project.

Resources and links

Solar Systems Projects: Mildura 2011

Solar Choice Commercial manages the tender process for a wide diversity of large-scale solar power projects throughout Australia, including for solar communities, mining companies, restaurant groups, shopping centres, and rural solar farms. For professional management and consultancy on your solar energy project, contact our Commercial Tenders Manager, Iain McGregor, on 1300 78 72 73 for more information.

Solar PV system prices have hit all-time lows in Australia, according to Solar Choice’s team of Solar Energy Brokers. These solar price declines are due to a perfect storm of factors, including the strong Australian dollar, increased competition amongst installers and manufacturers due to withdrawn subsidies, and a flood of cheap solar system components from China, resulting in a global glut of solar PV system component supply. The price of solar systems has most likely ‘bottomed out’, and is expected to begin rising again over the next 3-6 months, as Chinese panel manufacturers close factories and global supply catches up with demand.

Falling solar price trend over in latter half of 2011

Solar Choice, as Australia’s Solar Energy Brokerage service, manages a network of over 70 installers Australia-wide, representing a broad cross-section of the solar PV installer market. This puts the company in a unique position with a ‘bird’s eye view’ of the industry and and its trends, including which components are used regularly, which ones are in greatest demand, and the cost of completed installations after the Federal Solar Credits rebate. According to the Solar Choice team, prices for most systems have dropped significantly since around June of 2011. The price drop followed the announcement of a reduction of the Federal solar power incentive, as well as the total withdrawal of the NSW Solar Bonus scheme, the program which drove NSW to become the largest solar PV market in the country.

Solar subsidies knocked back across the country

A number of solar industry trends have made themselves evident over the past year or so. The most obvious set of changes has been the steady withdrawal of solar PV incentives, which have been slashed across the board, both on the Federal and State levels. Earlier in the year, New South Wales and Western Australia scrapped their subsidisation schemes for small-scale solar PV. Similarly, Victoria and South Australia have recently reduced their small-scale solar subsidies significantly. The ACT has switched to a one-for-one tariff from a set rate. This makes Queensland the only state that still offers its original solar feed-in tariff rate. In addition to State-level cuts, Federal incentives have taken two major knocks–a sharp drop in the REC/STC price from $40 to as low as $16 (currently around $30) and a reduction of the REC multiplier, which incentivised small-scale solar systems.

1.5kW systems used to be the norm…

1kW and 1.5kW systems were once the staple installation sizes for residential customers. ”At one point in time, the average market price for a 1.5kW system was $2 -$3 thousand ($1.33 – $2.00/watt), after RECs [STCs],” said Henry Walcott, a member of Solar Choice brokerage the team. Following the cuts in the Solar Credits scheme and the drop in STC prices the cost of smaller solar systems jumped temporarily, to an average of $3 – $5 thousand. Prices have since recovered, however, with systems coming in at as low as $1700 [$1.30/watt].

…but the market has seen a shift in preferences towards 3kW – 5kW systems

There has been a general shift in preference towards larger systems, which generate more electricity and therefore offer better returns on investment and shorter payback periods, especially in light of rising electricity prices. ”After the REC multiplier was reduced, we started to see the price for 3kW-5kW systems crash,” said Tom Chapman, another Solar Choice Broker who has been with the company since mid-2010. “You couldn’t find a 5kW for much less than $17 thousand dollars (about $3.40/watt) a year ago–$16,500 at the lowest. Now the standard is about $10 to $12 thousand ($2.00 – $2.40/watt) for a system with good components–a European inverter and decent Chinese panels.”

Even systems as large as 10kW have become significantly more affordable, according to Walcott. “The average price for a 10kW system was $40 thousand [$4.00/watt] a year ago–minimum $30 thousand [$3.00/watt]. The prices were fairly consistent. Now we’re seeing a lot more variation in pricing among installers; highs are what they were before, but at the bottom of the range you can find 10kW systems for for as little as $20 to $25k [$2.00 - $2.50/watt].”

Full system price declines in line with solar panel price declines

The phenomenon of price decline observable even in unsubsidised solar PV prices. Solar Choice’s data are corroborated by research undertaken by Solar Business Services director Nigel Morris, who has been tracking solar panel factory gate prices since September 2009. According to his figures, the average cost per watt of solar panels (not including balance of system (BOS) components such as inverters and wiring) has fallen from about $2.75 to less than $1.00 since he began keeping records (see graph below).

Solar PV system factory gate price index. (Via Solar Business Services)

Why are solar system prices so low?

Competition among solar installers

The brokers attribute the drop in prices at least partially to the withdrawal of the subsidies that had been driving the industry and the stiff competition that ensued. “It’s turned into a buyer’s market. The market had been saturated with the subsidies in place, but once the work dried up, installers had to go looking for new customers,” said Chapman.

This competition has also resulted in a major shift in the components used by solar installers; installers who would at one point in time only offer high-end products have now also taken onboard less costly, lower-end components for their installations in order to remain competitive.

Cheap solar panels from China

Thanks to substantial Chinese government subsidisation (which has recently been the flashpoint in a trade row between US and Chinese solar PV manufacturers), a flood of cheap Chinese-made panels has also made its way onto the Australian market, bringing down the average price of systems significantly. Recharge Magazine recently estimated that global capacity for solar panels is currently approximately 41GW per year, whereas demand is only 28GW–a massive difference of 13GW.

There are literally hundreds of solar PV panel manufacturers in China, most of which are expected to fold in the next 5 years, and 50% of whom have reportedly already ceased production, according to a recent report from Digitimes Research, which quotes the Chinese-language Guanzhou Daily.  (Competition from Chinese installers was one of the reasons cited when Australia’s only solar panel manufacturer Silex Solar announced that it would close its Sydney assembly plant.) Once the Chinese manufacturer market slims down–and as China’s domestic demand for solar increases–decreased competition and elimination of the lower quality panels from the Australian market could mean a rise in the average cost per watt.

A glut of solar panel stock in Australia

The supply of as-of-yet uninstalled solar panel stock globally was approximately 10 gigawatts (GW) at the beginning of the year, according to Morris of Solar Business Services. This glut, like the increased competition, has arisen at least partially due to the withdrawal support schemes abroad. A drop in global demand has resulted in manufacturers selling components at slim margins or at losses, and often to Australia, just to keep inventory and cash flowing. Calculations by Morris estimate that the excess stock now sits at around 6GW. This number is still significant enough to drive down prices. The situation is temporary, however, and Morris expects that Australian prices have either already levelled out, will level out, or will begin to rise again in 3-6 months.

The strong Australian dollar

Underpinning all of the above is the strong Australian dollar, which has enabled the country’s solar industry to import solar PV system components at affordable prices (and is also ironically accused of being a major factor in Silex’s woes). Historically the exchange rate has fluctuated significantly, and it is not expected to maintain its current high indefinitely. A weakened Australian dollar, once the current oversupply of solar component stock has been exhausted, will mean that new components will have to be purchased at higher cost, which will be passed on to end users.

According to Morris, who emphasised the important role that the exchange rate plays in the Australian solar industry, “It is entirely possible that the exchange rate could lead to price increases. If I was a betting man, I would say that the value of Australian dollar will fall again. Historically, it has always been 72c to the US dollar when averaged over a 10 year period. Right now it at an historic high.”

How long will solar PV system prices remain low?

It is difficult to say how long solar system prices will stay at their current levels, but the factors above indicate that the solar installation market is in a temporary ‘sweet spot’, from which it will inevitably dislodge itself–at least for the interim. Payback periods, which based on the current prices available are approximately 5-7 years in states with no or small feed-in tariff incentives, would grow longer with an increase in solar system purchase price, although this may be offset to some degree by the rising price of electricity in Australia. A solar power system is an investment whose value increases with the price of retail electricity, provided the power it produces is used directly by the home.

A note about cheap products

Although it is true that the cost of solar PV systems has been declining rapidly, and that the primary consideration for many who are considering going solar is the up-front cost, it is very important to to carefully consider which components are included in a system. Purchasing a solar system is a decision that a household will only make once, so the longevity and bankability of its components are factors that should should be cautiously weighed against costs by anyone in the market for a system.

Solar still has a bright future

Looking into the long-term future, solar PV will continue to grow and is expected to become an increasingly important part of the world’s energy framework. Even the International Energy Agency (IEA) has speculated that 60% of the world’s energy could be sourced from solar power (both solar PV and concentrating solar power) by the year 2060.

© 2011 Solar Choice Pty Ltd

Australia’s installed solar power capacity has grown 35 times what it was in 2008, according to a report (pdf) recently released by the Clean Energy Council of Australia. The report covers the growth of renewable energy generation across Australia (currently standing at 9.64% of all generation) in the 2010-2011 financial year. The approximately 1 million solar photovoltaics (PV) systems installed throughout the country produced 2.3% (at 680 gigawatt-hours (GWh)) of Australia’s renewable energy.

Australian renewables on track to reach 20% by 2020

Renewable Energy in Australia--Breakdown of components. (Source: Clean Energy Council)

According to the report, Australia is on track to reach but not greatly exceed its commitment under the Federal government’s Enhanced Renewable Energy Target (eRET) of 20% of all electricity production being sourced from renewables by the year 2020. At the moment, the majority of renewable energy is sourced from hydropower, followed by wind, then bioenergy. Solar PV, for all the media attention poured upon it, comprises only a small part of Australia’s renewables portfolio.

Small-scale solar PV cumulative installed capacity by year in Australia. (Source: Clean Energy Council)

Solar PV installations on the rise

Solar PV has nonetheless seen significant growth since the 2008, when the country had a mere 29 megawatts (MW) of solar PV capacity installed. Australia now has a total installed capacity of 1031MW (1.031GW–about 0.04kW per capita). This increase is in line with the global trend for solar power, which has seen enormous growth in the last 5 years. By comparison, the world leader in installed solar PV, Germany, has more than 17GW (17,000MW–about 0.2kW per capita) of installed capacity. Despite the speed of the Australian solar industry’s expansion, Australia still did not make the list of top 10 “solar countries” for 2010. (See infographic at bottom of page. N.B. Keep in mind that the PV industry is growing at breakneck speed, and figures of cumulative capacity quickly become out of date, with record-keeping inherently incapable of tracking installs in realtime.)

Uptake of small-scale PV in Australia was driven by generous state-level solar feed-in tariff incentives (many of which have since been withdrawn), as well as the federal incentives such as the Solar Credits rebate scheme. Increased demand in combination with the strong Australian dollar and a glut of supply of solar system components has seen the price of systems drop to an all-time low, with Solar Choice witnessing some system prices coming in as low as an unprecedented 66c per watt. (Request a free Solar Quote Comparison of solar installers in your area.)

Solar PV and financial benefits for individuals

PV systems cannot be installed on all buildings. However, according to the report, of those that are PV-suitable, approximately 8% have already had a system installed. This is an impressive level of PV saturation for such a short period of industry growth. What sets solar PV apart is that from other forms of renewable energy is that it is one of the only sources that can be deployed on a building level and provides a direct financial benefit to homes and businesses.

Solar PV systems, in states with a feed-in tariff, offer the double benefit of both electricity bill credits acquirable from the power that a system feeds into the grid, plus electricity bill ‘offsetting’–avoiding electricity bill costs by using power direct from the system (as opposed to purchasing it from the grid). Even in states with no feed-in tariff in place (such as NSW), with electricity prices on the rise, solar systems are becoming increasingly attractive investments. In the bigger picture, the decentralised nature of PV systems also means that grid-connected solar households have the ability to time and control electricity consumption, thereby potentially mitigating the need for electricity distributors to build additional conventional (i.e. coal-fired) power stations to meet peak demand.

© 2011 Solar Choice Pty Ltd

Top 10 Solar Countries for 2010. Figures may not accurately reflect 2011 installed capacity. (Click to enlarge. Source: 1bog.org)

The Australian Energy Market Commission (AEMC) has released a comprehensive review of the future of electricity prices across Australia. This report lends substance to speculation about the topic of energy prices the media. Factoring in the Federal government’s recently introduced Carbon Price (set to take effect from April 2012), the average price of retail electricity in Australia is expected to rise by 37.2% (22% in real terms) by 2014.

Despite media sensationalism, solar not a major cause of increases

Solar is often painted in the media as having a major impact on the price of retail electricity. Although solar feed-in tariff schemes (the cost of which is in many cases distributed over and paid for by an electricity retailer’s customer base) are expected to contribute to the price rises, their effect is expected to be relatively insiginificant: 2.8% nationally. Even South Australia, which will see the biggest increase due to a solar feed-in tariff anywhere in the country, only 6.6% of the rises will be attributable to the state’s feed-in tariff incentive scheme.

Percentage of price increases due to solar feed-in tariff schemes by state:

National: 2.8%

ACT: 3.9%

VIC: 0.7%

SA: 6.6%

WA: 0%

QLD: 0.2%

NSW: 6.1%

TAS: 0%

NT: 0%

Electricity price increases come mainly from rising wholesale energy and distribution costs

Rising electricity costs have been a cause for concern across the nation–most notably in NSW and Victoria, where disconnection complaints have reached record levels. Contrary to the perception that solar feed-in tariffs are a major factor in the growing cost of electricity, the bulk of the price rises are expected to come from two sources: the rising price of wholesale electricity (which includes the effects of the Carbon Price)–40% nationally, and the cost of distribution–33.6% nationally.

The other factors influencing electricity price are:

-Transmission (6% contribution nationally): “Driven by increasing investment to meet growing maximum demand, and higher commodity prices.”

-Retail (12.1%): Calculated as a “percentage of the total cost to supply residential customers”, expected to grow as the price of other components rise.

-Large-scale Renewable Energy Target (3.8%)

-Small-scale Renewable Energy Target (-0.8%): This is the mechanism through which Solar Rebates/Credits in the form of Small-scale Technology Certificates (STCs) are created. STCs provide an up-front rebate on the cost of a solar PV system.

-Energy efficiency and demand management schemes (2.5%).

-Other state-based schemes (only in Western Australia: -0.2%).

What implications does this have for the solar industry?

For those who install grid-connect solar–even in states with no feed-in tariff such as NSW–considerable savings await households that time electricity usage to coincide with PV system generation periods. The steady rise of the price of electricity means that small-scale solar PV systems will become an increasingly worthwhile investment–especially considering that their price is already at an all-time low in Australia.

Solar Choice, as an impartial brokering service with a bird’s eye view of the residential and solar PV markets, has seen prices drop as much as 50% (to as low as 66c per Watt) for all sizes of solar PV systems over the past year. The low prices are attributable to a glut of solar system components on the market and fierce competition between installers working hard to find customers after the collapse of generous state incentive schemes. As a result, the low cost of solar is not expected to last forever. In the meantime, however, going solar is a smart financial investment for those who want to protect themselves against rising electricity bills.

How much will electricity prices rise in each state, and why?

Electricity Price Increases in Australia to 2014 (AEMC)

The reasons for price rises in each state vary, but it is safe to say that network costs and wholesale prices comprise 70-80% of the electricity price rises in each state. Click the links below to see the details for each state, including the actual expected price of electricity in the years to come.

It is important to note, as the AEMC does, that the figures below are projections only, based on assumptions that may or may not be correct. As a result, the actual increases may vary as time goes on. It seems clear, however, that the general trend of rising retail costs due to rising wholesale and distribution costs are set to continue.

All Australia – ACT – VIC – SA – WA- QLD -NSW- TAS – NT

All Australia

Australian Capital Territory

Victoria

South Australia

Western Australia

Queensland

New South Wales

Tasmania

Northern Territory

© 2011 Solar Choice Pty Ltd

Resources and links:

Australian Energy Market Commission: Retail Electricity Price Estimates – Overview (pdf)

Dyesol is positioning itself to revolutionise the solar photovoltaics (PV) industry by making available an innovative but still largely uncommercialised PV technology: the Dye Solar Cell (DSC). DSC is a 3rd generation solar PV technology that uses a ‘sandwich’ of materials to mimic the photosynthetic process of plants in order to create electricity from sunlight. It has numerous applications, including Building-Integrated Photovoltaics (BIPV) and portable PV.

Non silicon-based solar power?

Silicon PV cell structure and the photovoltaic effect. (Image: Creative Commons via Wikipedia.)

Conventional solar PV

Although dominated by conventional silicon-based solar panels, there are also a number of non-silicon solar PV technologies (usually used in thin-film PV) available on the market, but most function in a way similar to silicon-based modules: light strikes a semiconductor substrate with contains a positive-negative (p-n) junction, and electrons are jostled into moving through it, then flowing into an electroconductive material (such as aluminium) to produce harnessable DC electricity.

DSC Solar Cell Technology Diagram (Image Via Dyesol)

Dyesol’s Dye-based solar PV

DSC technology, on the other hand, in the place of a dense film or substrate semiconductor, incorporates a triple layer of nano-particulate titania (Titanium Dioxide, used as a pigment in paints and, rather oddly, toothpaste), a long-life dye, and an electrolyte. The first layer is a nanotechnology material, while the latter two work to emulate the natural photosynthetic process that occurs in the leaves of plants. The end result is that sunlight is converted into electricity as opposed to being trapped in sugars, as happens in plants. The ‘bread’ of Dyesol’s material sandwich takes the form of two electroconductive materials–one transparent on the light-facing surface, and another acting as a substrate behind the cell. These lead the electricity out of the cell to whatever its end use may be.

Key Advantages of Dyesol solar PV technologies

-Simpler production processes mean lower cost than conventional silicon-based PV technologies, as well as lower embodied energy in manufacture

-Can be applied like a film to the surface of a number of different substrates, including conventional building materials

-Can replace conventional glass panels and windows in buildings instead of taking up roof space

-Can be produced in a variety of different colours, for flexibility in building design

-Produces electricity even in low-light, real world conditions including cloudy and hazy days, dappled lights, dawn and dusk

-Avoids the use of expensive raw materials and has no toxic emissions

-In 2008 saw peak conversion efficiencies of up to 11% (sunlight to electricity) in laboratory conditions (comparable or greater than peak efficiencies for many other thin-film solar PV materials)

To whom are Dyesol materials and technology available?

Dyesol’s DSC materials are available for purchase in the Dyesol online shop for academics and others learning about the technology. Concurrently, Dyesol is working with key multinational companies to bring DSC integrated products to the mass market in a variety of applications, including in steel roofing and glass windows. Projects are currently underway with Tata Steel, one of the world’s largest steel producers and with Pilkington North America, one of the world’s largest glass makers. Dyesol is a truly global company with headquarters, laboratory and engineering facilities in Queanbeyan, NSW (recently visited by Australian PM Julia Gillard) and operations in Italy, the UK, Japan, and South Korea, among other countries.

Dyesol’s bold vision: grid price parity in the UK

At least for the near-term future, it seems that conventional solar PV modules are likely to remain the most readily available and cost-effective option for roof-top retrofit residential solar installations. Meanwhile, however, Dysol is pushing the envelope in its efforts to commercialise DSC, and in a joint demonstration project with Tata Steel in the UK, has made an explicit goal of ensuring that the electricity produced by its modules is competitive with that produced by the electrical grid, thereby eliminating reliance on the UK’s feed-in tariff for economic viability.

This is an impressive goal, especially considering that most solar PV installation companies in the UK are trying to come to grips with the recent, premature slashing of these very government incentives–many forecasting a kind of solar Armageddon. Should Dyesol achieve its goal, there will likely be repercussions for the entire solar PV industry. As the whole point of subsidisation of renewables is to enable competitiveness with fossil fuel generation, solar electricity at grid prices could completely transform the way that solar PV is seen as a renewable energy source, and possibly even shape the future trajectory of subsidisation for solar PV–doubtless much to the ire of Dyesol’s competitors.

© 2011 Solar Choice Pty Ltd

The Australian Capital Territory government released the detailes of its feed-in tariff (FiT) for large-scale and commercial solar power systems. Feed-in Tariff rates will be determined by an innovative reverse-auction process. The program will complement a suite of policy measures designed to transform the Territory’s energy infrastructure and usage future.

Reverse auctions to determine FiT rates for large-scale solar

The ACT’s large-scale FiT is an Australian first–no other state or territory has yet introduced such incentives for commercial-scale projects. The Electricity Feed In (Large Scale Renewable Energy Generation) Bill 2011, which establishes the framework for the ‘reverse auction’ Feed-in Tariff, was tabled in Canberra’s Legislative Assembly on 17 November 2011, and is expected to become law by the end of 2011. In a reverse auction process, companies must provide detailed proposals to the ACT government about how they can generate the greatest amount of renewable energy at the least price. Proposals will be evaluated for feasibility and cost-effectiveness.

210MW, released in instalments–1st 2 projects, 40MW by the end of 2011

The scheme will ensure that a feed-in tariff is paid for up to 210 megawatts (MW) of solar capacity in the territory. The 210MW of capacity will be released in instalments, with the first 40MW being released before the end of 2011. This 40MW alone will provide enough energy to power 7000 homes, reducing greenhouse gas emissions by 850,000 tonnes over the lifespan of the project, and providing a minimum of 14% of Canberra’s electricity demand.

“The first auction process is expected to get underway before the end of the year, and a comprehensive information package will be provided to industry at that time,” Minister for the Environment & Sustainable Development Simon Corbell said in a press release. “The scheme will complement upcoming government programs that will support low income households adress energy price increases and takes the first serious steps towards achieving the ambitious greenhouse gas reductions the Territory set for itself last year.”

The ACT large-scale feed-in tariff scheme became law on 9 Dec 2011.

© 2011 Solar Choice Pty Ltd

Solar Choice Commercial manages the tender process for a wide diversity of large-scale solar power projects throughout Australia, including for solar communities, mining companies, restaurant groups, shopping centres, and rural solar farms. For professional management and consultancy on your solar energy project, contact our Commercial Tenders Manager, Iain McGregor, on 1300 78 72 73 for more information.

The number of complaints related to electricity and gas disconnections due to financial hardship has increased significantly in both NSW and Victoria, according to the states’ Ombudsman’s offices. The two states saw the number of ‘actual or imminent’ energy (electricity or gas) disconnection complaints increase 18% and 58% over the 2011 calendar year, respectively.  The increased number of complaints coincides with a rise in electricity prices in both states, following a broader national trend.

Electricity price increases in NSW causing difficulty for more financially stressed households

In both NSW and Victoria, the ‘affordability’ of energy supply is a growing issue. According to their 2010-2011 report, in the first half of 2011, there were 813 disconnection complaints due to financial hardship that were handled by the NSW Energy and Water Ombudsman’s office–an increase of 18% from the previous year–plus another 1502 from households in danger of having their electricity supply shut off–an increase of 8%. Cases involving energy bills (including high bills and disconnection issues) comprised about 55% of the total number of complaints. The report paints a picture of the poorest households being squeezed economically and becoming less capable of paying for basic utility services, putting increasing pressure on the state’s Energy Accounts Payment Assistance scheme, “both in terms of available assistance and ensuring vouchers are distributed to areas where they are most needed”.

Electricity price increases coincide with the increased complaints

The rise in complaints reflects the steady rise of electricity prices across the state, which can be expected to continue on their upward trend in the coming years. It is important to note that, because the Ombudsman’s report is based on the financial year, it covers only the first half of 2011; the documented increase in complaints therefore does not yet even include cases handled after the 17% July 2011 rise in retail electricity tariffs, or those to come as a result of further increases. Prices have been projected to continue increasing annually by about 10% over the next few 2 years to 2013, according to an Electricity Network and Prices Inquiry (pdf) carried out by the NSW Department of Industry & Investment. This report estimates that by 2013 prices will have undergone a staggering cumulative increase of up to 52% (depending on the electricity retailer) compared to 2010/2011 rates (see table below). (Note that these rates do not factor in the effects of the federal carbon tax, slated to come into effect from July 2012.)

Dealing with the price increases: Energy efficiency and solar power

In NSW, as many residents have already felt the impact of the recent rate rises with the arrival of their most recent electricity bills, which are significantly more more than the same quarterly billing periods in 2010. The decreasing affordability of electricity may spur changes in use patterns. The first step in reducing or mitigating the financial impact of the increases is energy efficiency–using less electricity altogether or timing electricity use to take advantage of off-peak tariff rates and to avoid peak rates (for those on time-of-use plans). Additionally, although most likely not an option for those who are struggling just to pay their quarterly electricity bills due to the associated upfront costs, installing a solar power system is another way for those who have high electricity usage to soften the blow of the increasing rates. Electricity generated from a solar power system is first used in household appliances, while the excess can be exported into the electricity grid and sold at whatever feed-in tariff rate is on offer. (As there is no state-mandated solar feed-in tariff rate at the moment, this rate varies by electricity retailer.)

Department of Industry & Investment: Indicative price increases and breakdown in NSW to 2013. Prices do not factor in increases due to the newly introduced national Carbon Tax. (Click for enlarge image.)

Victoria price increases also bring disconnection complaints

Victorian energy customers are facing a similar trouble with their bills. ‘Credit’ (customers’ capacity to pay their bills and stay on supply) was the main issue for 16% of all the customer complaints handled by the Energy and Water Ombudsman’s office Victoria (EWOV); 98% of these were from energy (electricity and gas) customers, according to EWOV, according to its 2011 annual report. EWOV saw 4,079 energy customers raising disconnection/restriction of supply for account arrears as a main issue, an increase of 58% from the previous year. “In 2010-11, we received 2636 cases of disconnection (actual and imminent) of electricity for account arrears, up 74% from 2009-2010, and up 429% from 2006-07,” says the report (pg 22).

Deregulated electricity market in Victoria: Customers need to ‘shop around’,…

Victoria is the only state that has a completely deregulated electricity market, meaning that there is no no statutory organisation that sets or makes recommendations about electricity prices to the government. Unlike, for example, NSW, where the government body IPART plays a big role in electricity tariff pricing, in Victoria the onus is on the electricity consumer to self-educate and select proactively from the retailers that service their respective areas. The first step in avoiding increasing electricity prices in the state is therefore to shop around and compare the retail tariff rates offered by each retailer. (Keep informed through the government’s YourChoice.gov.au portal, and compare retailer prices with SwitchWise.)

…use energy more wisely, and possibly go solar

The next step in Victoria, as in NSW, is to use energy more wisely–something that the Victorian government is incentivising financially with its tradeable Victorian Energy Efficiency Certificates (VEECs). A third way, which only makes financial sense once the right retailer has been selected and efforts are being made to reduce home energy consumption, is to install a solar power system. Victoria currently offers a 25c/kWh solar feed-in tariff on a transitional scheme after the closure of its Premium Feed-in Tariff (PFiT) scheme. The 25c/kWh rate is one of the most generous in the country.

Resources and links:

SMH, “Power cut-offs soar as families struggle with bills”

Energy and Water Ombudsman (Victoria), “2011 Annual Report”

Energy and Water Ombudsman (NSW), “2011 Annual Report”

Related Solar Choice articles: Articles about solar power in New South Wales – NSW solar power news articles : Articles about solar power in Victoria – Victoria solar power news articles