AGL Solar – Company quits rooftop solar business.

AGL solar – the company announced on Tuesday that they will record a $47m loss from their residential rooftop solar installation business. 

AGL solar installation business to shut down.

AGL Solar Installations
AGL Solar Installations (source: aglsolar.com.au)

AGL bought the Rezeko brand around seven years ago and used its systems to install “proprietary residential solar”. They’ve now put out a press release advising that they will write down the company’s residential solar arm. 

With the imminent (2022) closure of their Liddell coal generator, it makes sense that the company are trying to diversify with regards to methods of energy generation. It’s a shame that this hasn’t worked out, and we’ll be interested to see how it affects AGL’s vision of renewable energy moving forwards. 

“We decided to withdraw from the direct installation of residential solar hardware after completing a comprehensive review of the business,” AGL Chief Customer Officer Melissa Reynolds was quoted as saying in an email to Renew Economy

“The review determined that the interests of our customers would be better served by moving to a different business model. Under this model we forward enquiries for residential solar hardware installation to our third-party partners which are experts in the installation of PV solar.

“AGL will continue to provide advice to customers on solar energy and energy plans.”

AGL was one of the country’s top 10 residential solar installers, and in the top five of commercial solar installers. It remains to be seen what the ramifications of this writedown are, but we’ll keep you updated with how things are going. What we do know is that their commercial solar installation arm will remain unchanged as it’s presumably much more profitable than the ‘race to the bottom’ we’re seeing domestic solar installers engaged in.

The company says its plans for virtual power plants in Adelaide and elsewhere will not be affected. 

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National Energy Guarantee approved by Coalition party room

The NEG (National Energy Guarantee) has been passed by the Coalition party room after a strenuous morning of debate – let’s take a look at what happens next. 

Next Steps For National Energy Guarantee

NEG - National Energy Guarantee
NEG – National Energy Guarantee (source: ABC News: Matt Roberts)

We wrote earlier this week about the NEG approval and how Prime Minister Malcolm Turnbull has a very hard road ahead if he’s to push this policy through parliament:

“The Labor Party has to decide whether they want to support cheaper and more reliability electricity,” Mr Turnbull said.

“We have got to bring an end to the years of ideology and idiocy which have been a curse on energy policy for too long and that is why industry – whether you’re talking about big industrial consumers or small business, consumer groups  – are calling on government, governments, and oppositions to get behind this policy.”

The four issues which we discussed earlier this week are still in a state of flux:

  1. The emission reduction targets can only ever increase and must not decrease.
  2. Targets need to be set in regulation (Energy Minister Josh Frydenberg has already rejected it).
  3. Emission reduction targets must be set every three years, three years in advance.
  4. Creation of a registry which is transparent and accessible by regulators and governments.

The opposition (federal Labor) are also in favour of the NEG but they want the 2030 emissions reduction target increased from 26% to 45%:

“We are still very keen on trying to find a bipartisan way through the deep energy crisis that has emerged under this Prime Minister,” shadow energy and climate change minister Mark Butler said.

“We will continue to fight for a much more ambitious investment setting for this sector so you do see new renewable energy jobs and investment and you do see downward pressure on power prices.”

According to former PM Tony Abbot, the NEG still needs a lot of work as most of its support is currently ‘conditional’ and at least a dozen members of the Coalition had expressed concern about the NEG. Abbot said that the provided explanations of how the NEG “might theoretically get prices down” sounded “like merchant bankers’ gobbledegook”:

‘We’ve got to be loyal to our electorates and to party members too and not show the unity of lemmings.’,” Mr Abbott continued.

The Australian Financial Review has the numbers at 26 MPs supporting the policy and around 10 yet to be convinced. 

For the next steps, the state ministers will be asked to support a month long public consultation on laws which will affect their constituents. The state legislation should then be finalised by the end of October and we’ll see what sort of shape (if any) the NEG is at that point. Federal legislation tied to the NEG will be introduced within the next 10 days. 

 

 

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NEG – National Energy Guarantee and its Australian Future

NEG – The future of Australia’s National Energy Guarantee hangs in the making this week as state government cabinets meet to discuss their positions on it, ahead of Friday’s Council of Australian Governments meeting.

NEG – National Energy Guarantee

The Australian is reporting that Energy Minister Josh Frydenberg has accused Labor states of “politicking and posturing” ahead of the meeting.

NEG - National Energy Guarantee - Energy Minister Josh Frydenberg
NEG – National Energy Guarantee – Energy Minister Josh Frydenberg (source: JoshFrydenberg.com.au)

“This is politicking and posturing ahead of Friday’s meeting, because the states know all well and good that what will hopefully occur on Friday is that we agree to the design of the national energy guarantee subject to a phone hook-up after the policy has been through the federal Coalition party room,” Mr Frydenberg said on ABC radio.

Mr Frydenberg continued talking about what Australia can expect from the NEG: 

“It’s a 38 million tonne reduction, but importantly it’s a $550 annual saving to Australian households and a 20 per cent reduction in wholesale prices,” he said.

He noted that there’s no reason for the state governments to cause any issues for the NEG as they will still retain the right to have their own RETs:

“Nothing in this policy prevents the states from having their own renewable energy targets. “They complement what is being done at the federal level, but we do need the federal government to maintain whole responsibility for this, because it’s a national problem and it requires a national solution, and it’s the federal government that is the signatory to Paris, not the states.”

Ed McManus, chief executive of Meridian Energy Australia and retailer Powershop, said states should back the NEG despite the emissions target being less than many of us had hoped. Mr McManus said he thinks some of the potential benefits of the NEG are already taking root in the futures market:

“I do believe some of the benefits of the NEG are already built into the forward prices. You only need look at the impact of the recent coal outages on calendar 2019 wholesale [futures market] prices, where prices have rallied $7-8 per megawatt hour,” Mr McManus said.

Labor frontbencher Michelle Rowland discussed what she sees as NEG flaws:

“We have a situation where we have very low emissions targets under this government’s policy, but in particular, this would absolutely stifle investment in renewable energy, and if you want to talk about jobs, you need those large scale renewable energy investment decisions to be made in order to drive those jobs into the future in this sector,” Mr Rowland told Sky News.

“This government wants to say it’s focused on innovation and science and all the rest of it. “Again, this shows that there is absolutely nothing joined up when it comes to their policies in this area.”

As usual it’s impossible to expect the politicians to stand up and try and make decisions to benefit the nation, so who knows what to expect ahead of Friday’s meeting. Renew Economy have a great hit piece on how the coalition have come up with the $550 / year figure. We weren’t exactly overly charitable about it when Malcolm Turnbull announced the National Energy Guarantee last year, so it’ll be interesting to see what happens over the coming weeks. Watch this space! 

 

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Rooftop solar subsidies – ACCC calls for axe.

Rooftop solar subsidies should be completely removed and the solar feed-in tariffs should be managed at a state rather than a federal level, according to recommendations from the competition watchdog.

Rooftop solar subsidies in Australia

The Australian Competition & Consumer Commission’s electricity affordability report, which was released this week, highlights the cost of our National Energy Market, which include the large-scale renewable energy target, the small-scale renewable energy scheme and solar feed-in tariffs.

The ACCC said the cost of the LRET are expected to fall in the years after 2020, and were happy to leave the scheme to wind up on its 2030 end date. They said that the SRES, however, cost $130 million in 2016-17, and should be wound down and abolished by 2021, almost ten years ahead of schedule, to reduce costs for all consumers – not just those with solar installed.

The report, according to the Australian, found that households with solar panels installed earn $538 per year via feed-in tariffs, which doesn’t count the fact that they pay less for electricity as well:

“Meanwhile, non-solar households and businesses have faced the burden of the cost of premium solar feed-in tariff schemes and the SRES,” the ACCC said.

“While premium solar schemes are closed to new consumers, the costs of these schemes are ­enduring.”

With the New South Wales solar feed-in tariff to drop by 44% this financial year, the glory days of feed-in tariffs could be behind us. But at what point do we stop to count the social cost (i.e. the environmental displacement)? 

Rooftop solar subsidies in Australia - Opposition Leader Bill Shorten
Rooftop solar subsidies in Australia – Opposition Leader Bill Shorten (source: Wikipedia)

The 398 page report has ‘produced vital ammunition to reform energy’, has been ‘hijacked by zealots’ and doesn’t justify the building of new coal-fired power stations, depending on who you ask. About an hour ago Bill Shorten admitted he hasn’t read the ACCC report yet so it’ll be interesting to see what his thoughts are. Certainly just early days for this conversation, but it’s good to see Australia talking about our energy future and trying to come up with a plan. Watch this space! 

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Enova’s Community Solar Garden Signups

We wrote last year about the Byron Bay based community solar company Enova who became a generator and a reseller of renewable energy. They’re now launching a community solar garden which is an amazing idea for people who aren’t able to reduce their electricity bill by installing solar power. Let’s learn more about the Enova and their plan to revolutionise solar for people in apartments, renters, and many more…

Enova and the Community Solar Garden

Enova Solar Garden
Enova Solar Garden (source: Enova.com.au)

The official Enova website is currently accepting applications from both ‘hosts’ and ‘members’ – that is to say that if you have plenty of free space on your rooftop you could sign up as a host, or if you’re a renter or live in an apartment or can’t get solar for any other reason becoming a member is a great idea. According to the website, “Enova is set to build a 99kW solar system and “sell” the panels to customers who can’t have solar at home”

For the most part it won’t be a ‘solar garden’ per se – most of the power looks like it’ll be generated from rooftop solar. 

According to Echo Net Daily, a Byron Bay based newspaper, a visit from Shadow Minister for Climate Change and Energy Mark Butler met with a great response for the Enova team. Mr Butler visited Enova HQ last Tuesday (June 12) and had some positive things to say about the plan:

Mr Butler said he was ‘excited to support innovative projects like Enova’s Solar gardens’.

The gardens will  ‘make an important contribution towards reducing carbon emissions and transition to a clean energy future, in addition to allowing access to the benefits of solar for renters.’ Mr Butler added. 

With regards to the concept of a ‘solar garden’, the more literal of us are in luck. A feasibility study in Eastern Australia is currently doing research into solar gardens for renters and how viable the concept is. According to EnergyMatters, the Australian Renewable Energy Agency (ARENA) has given $240,000 to the $555,00 project – which will be undertaken by the Institute of Sustainable Futures at the University of Technology Sydney.

We’ll be sure to keep you posted on how Enova’s community solar garden goes and also keep an eye on the feasibility study into the ‘real’ solar gardens. Some more great news for community solar!

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DC Power Co attracts 15,000 Investors.

Australian based ‘solar retailer’ DC Power Co has attracted 15,000 investors, reached and exceeded its minimum crowdfunding target of $1.75m so it’s now able to start trading and offering solar-power generated electricity to customers. The company is built “for solar system owners, by solar owners” and promises to offer an eco-friendly alternative to traditional retailers. 

About the DC Power Co. 

DC Power Co
DC Power Co ‘Why you should invest’ (source: dcpowerco.com.au)

Having received initial funding from the Australian Renewable Energy Agency (ARENA) as part of ARENA’s Advancing Renewables Program, they’re now looking to raise another round of money to get the company going. Co-founder Nic Frances Gilley discussed with ARENA the way DC Power Co’s business model is designed around solar transparency:

“Until now, solar users have had to make do with whatever their energy company has offered them, with very little transparency about how much they are saving or could be saving, because their business model relies on customers consuming more energy,” Mr Frances Gilley says.

“Because we don’t have to sell them energy to make money, we can help them reduce their energy costs and use their system better,” he says. “We are about people making the most from their solar panels.”

Back in February in an interview Mr Frances Gilley said DC Power Co. were hoping to raise $4.75m. It doesn’t look like they’re going to make that much but the campaign has reached $2.15m so far.  There is still enough money to get the company going and there are still two days left in their crowdfunding campaign at OnMarket. 

Shouldn’t be too long until we see the next steps from these guys – where they’ll be offering a free solar performance check to ensure your rooftop solar panels are working correctly. DC Power Co. research shows that 57% of solar users (“tens of thousands of households”) don’t know what their solar system is even doing (or if it’s even on at all!). 

If you want to invest in their crowdfunding (you have until midnight on Sunday the 15th of April) or learn more about the business model please click here to visit the DC Power Co. website. Otherwise we have embedded a video below which will explain more about the company and what their goals are. It’ll be interesting to see how how this solar IPO goes. 

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