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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National Energy Guarantee Approval – Next Steps

National Energy Guarantee Approval – the NEG has been approved by the states and territories of Australia ‘in principle’ – allowing it to move to the next step. There’s still plenty of discussion to go before we see anything signed off, but it’s a step in the right direction for those who believe in the NEG and its ostensible goal of cheaper, more reliable power with less carbon emissions.

National Energy Guarantee Approval

National Energy Guarantee Approval - Malcolm Turnbull
National Energy Guarantee Approval – Malcolm Turnbull (source: yourlifechoices.com.au)

As with most political decisions in this country, there is a lot of posturing and point scoring going on – depending on who you ask, it’s either a ‘great step forward’ or the governments ‘withholding support’. Regardless of the case, the Federal Government has now released a draft of the energy bill which will be taken to next week’s party room meeting for approval. If you want to learn more about what happened with the NEG during the week, please click here

The states want to see detailed legislation and some of them have ‘red line’ conditions which must be met before they fit in to the National Energy Guarantee – there’s still a long way before any of this becomes law in Australia.

Victoria were especially strident in their remarks about the NEG. Victoria’s Energy Minister, Labor’s Lily D’Ambrosio, said agreeing to the plan today would be like signing “with a blindfold on”. advising that they won’t support it unless the following four demands are met:

  1. The emission reduction targets can only ever increase and must not decrease.
  2. Targets need to be set in regulation (this one’s going to be a bit of a problem as 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 emissions reduction target in the NEG is to bring down emissions in the electricity sector by 26 per cent by 2030.

COAG Energy Ministers will have another discussion after the Coalition Party Room meeting on Tuesday. Watch this space! We’ll keep you posted.

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Western Australia Solar Subsidies may be cut – Wyatt

Western Australia Solar Subsidies look like they’re in the firing line right now – with Energy Minister Ben Wyatt advising that he supports either completely scrapping or winding back rooftop solar panel subsidies.

Western Australia Solar Subsidies

Western Australia Solar Subsidies - Synergy
Western Australia Solar Subsidies – Synergy (source: synergy.net.au)

Earlier this year the Australian Competition and Consumer Commission called to axe rooftop solar subsidies Australia-wide by 2021. Ben Wyatt said he has asked the Public Utilities Office to have an in depth look about the buyback scheme which could probably do with a bit of an overhaul, or at least a step in the right direction, technology wise.

“While the cost of solar PV systems has reduced significantly since the introduction of the Renewable Energy Target and is now considered economically viable in the absence of government subsidy, the implications of such a change need to be fully thought through, including the impact on the local solar industry,” Mr Wyatt said.

In WA, Synergy currently pays a feed-in tariff of 7.1c/kW to 240,000 households with solar – and over 70,000 customers entitled to the premium solar feed-in tariff which is 40c/kW (there’s no indication that the gov’t is looking at winding back the premium FIT). This is known as the Renewable Energy Buyback Scheme (REBS). Mr Wyatt said that Synergy are paying ‘over the odds’ for this power during hte middle of the day, when demand is low and output high. If you’d like to learn more about WA’s unique energy situation please have a look at this article.

We’re all for furthering the cause of solar, but is it worth taking a look at maybe moving some of the subsidies and tariffs towards energy storage rather than energy generation?

Ray Challen, who was the top energy adviser as the head of the Public Utilities Office up until the end of last year, said he thinks it’s time to consider the best way to continue improving our renewable generation:

“The reason for subsidising any form of behaviour is to produce some sort of greater social good, and it would be difficult to say at the moment that there is a greater social good from subsidising small-scale solar because people could do it anyway,” Mr Challen said. “Not only that but if you wanted to subsidise anything in the power sector then you would be probably subsidising batteries.”

So will we have a solar battery subsidy? It’s hard to say at this point, but many people are talking about making a change to the way we currently reward solar generators. Would a carefully managed solar battery rebate help? Watch this space…

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Latrobe Valley solar: 30 public buildings to get PV.

Latrobe Valley solar energy is set to get a boost with 30 public buildings in the area to have rooftop installed at no cost, thanks to a bit of help from the state government in Victoria.

Latrobe Valley Solar Scheme

Energy and environment minister Lily D’Ambrosio was in Moe last week to discuss the scheme and show the Latrobe Valley residents a list of the public buildings in line for free solar upgrades, including in some cases solar hot water and lighting. One such building is the Toongabbie Mechanics Institute – a building where existing solar has already saved $500 on last quarter’s electricity bill. Toongabbie Mechanics Institute treasurer Roger Ries summed it up very succintly:

“It’s made amazing reductions. It’s cheaper for the recreation reserve users and it will make it cheaper for the hall here,” Mr Ries said.

Minister D’Ambrosio spoke about the impact these home solar energy upgrades will have on the lives of lives of 1000 vulnerable Gippslanders.

“The energy upgrades and solar installations will not only help bring down energy prices for the Latrobe Valley, they will create local jobs in the renewable energy sector,” she said.

According to the Latrobe Valley Express, over 1000 households/low incomes earners are also eligible for solar systems as part of the $5 million Latrobe Valley Home Energy Upgrade Program.  Local businesses Gippsland Solar (who are responsible for the fantastic Camberwell Grammar School Solar System), Sunny Afternoons and Rocky’s Electrical will be used for both programs which will create 10 full-time jobs.

Latrobe Valley Solar Scheme
Latrobe Valley Solar Scheme (source: EPA Victoria)

There’s been some great solar news for the Latrobe Valley / Gippsland area with regards to both end-user solutions and large-scale renewable energy production – with a 70MW solar farm on the outskirts of Morwell announced back in April, to be build by ARP Australian Solar who said the plant will be a hybrid solar and battery farm which create “well over 100 jobs [during construction]” for the area. 

“There would also be a number of ongoing jobs … involving security, electrical testing, monitoring and what have you.”, according to ARP Australian solar director George Hughes. 

Mr Hughes elaborated on a potential timeline for the Morwell solar farm: 

“With everything going according to plan, we’re looking to start construction in January or February next year, early 2019.”

We’ll keep you updated on both the Latrobe Valley Solar Scheme and the Morwell solar farm. Exciting times for Gippsland!

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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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Solar PV installations in Australia Triple From 2017

Solar PV installations in Australia have tripled in the first half of 2018 in comparison to solar uptake in 2017. How will this affect our renewable economy and can we expect this to continue for the rest of the year? Where are all the installs coming from? Let’s take a look. 

Solar PV installations in Australia

Solar PV installations in Australia Triple From 2017 (source: Canberra Times via Green Energy Markets)
Solar PV installations in Australia Triple From 2017 (source: Canberra Times via Green Energy Markets)

The Canberra Times is reporting that household systems are now, on average, around 5 kilowatts. As the technology improves we’ll see this figure rise and (potentially) prices fall. They’ll certainly fall in terms of per watt pricing but the system uptake has resulted in 44% lower feed-in tariffs in New South Wales already – we’ll have to wait and see how this affects the rest of the country. It certainly doesn’t seem to have curbed the ACT’s appetite for solar systems – with the state leading Australia by a huge margin with a 130.8% uptake in installs over Q1+2 in 2018 vs. the same period. 

Green Energy Markets are also predicting that by 2020 renewable energy will represent around 33% (1/3) of Australia’s energy mix – almost double the 17.3% measured in 2015. Ric Brazzale of Green Energy Markets told the Canberra Times they are expecting to see around 30% higher figures by the end of the year:

“If we continue on at the same rate of installations we will end the year at between 1450 MW to 1500 MW – this will be more than 30 per cent higher than the 1100 MW installed last year,” he said.

It’s important to note that the amazing growth commercial solar (i.e. systems which are more than 15kW) has also seen over the last 12 months is heavily reflected in these figures. Over a quarter of June’s solar system demand is due to companies wanting to insure themselves from rapidly rising electricity prices and take control of their bills back by installing a commercial solar system on their premises. 

If you’re interested in reading all the specifics of their report, please click here to download Green Markets’ Renewable Energy Index for May 2018.

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Community solar in Mayo | Solar Communities Program

The Turnbull Government’s $5 million Solar Communities Program will help community solar in Mayo – a rural electorate in South Australia. Four grants have been provided to local community groups to help install solar/energy storage systems and reduce their electricity bills. 

Community Solar in Mayo

Community Solar in Mayo
Community Solar in Mayo (source: Wikipedia)

According to energy minister Josh Frydenberg, there are four community groups in mayo which will receive grants through the Solar Communities Program, of which round 2 closed on June 7 and allows application for grants of up to $12,500 for rural solar projects: 

  1. Strathalbyn Woolshed received $8,897 to buy and install a 13.11kW solar pv system in order to help minimise their electricity bill.
  2. Nairne Oval Committee received $11,590 for an energy storage system to complement the existing 15kW solar system at the Nairne and District Sporting Complex.
  3. Macclesfield Recreation Grounds Committee received $9,790 to buy and install a 13.11kW solar system. This will supply ~75% of the ground’s energy requirements.
  4. Hill Radio received $10,249 to buy and install a 6.27kW solar system with battery storage to help minimise their electricity bill.

The Solar Communities Program is being delivered by the Department of Industry, Innovation and Science in conjunction with the Department of the Environment and Energy. The initial round of funding saw more than $2.8m delivered to 218 community groups. 150 groups are expected to be helped throughout round 2 of the Program.

The Solar Communities Program

According to a press release by Josh Frydenberg and reposted on the Renew Economy site, the program “provides funding for community groups in selected regions across Australia to install rooftop solar photovoltaic (PV), solar hot water and solar-connected battery systems to reduce their electricity costs.”

Here are some other examples of community solar in Australia:

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Tesla Powerpack Australia Cost, Installations

The Tesla Powerpack battery system allows for commercial-grade solar energy storage and is fast becoming the medium of choice for those that want a scalable, industrial solution to energy storage (e.g. the Tesla South Australia battery partnership currently being undertaken). 

About the Tesla Powerpack 2

Tesla has rolled out the Powerpack 2 worldwide, which is a scalable, adaptable commercial energy storage solution. They start at 50kW (AC) per Powerpack and can run up to 100MWh, depending on your requirements – it’s a fully modular system. Each Powerpack has 210kWh energy capacity, 100% depth of discharge, are fully IP67 compliant, and provide 380 to 480V 3 phase power.  They have 16 discrete battery pods, a thermal control system and myriad sensors to monitor and report on its performance/any problems that may occur. 

The Powerpack 2 comes with an inverter included and improves on its predecessor with more storage and higher efficiency. 

Over 300MWh of these batteries have already been deployed globally. SolarCity are using a 52MWh Powerpack (along with a 12MW solar farm) to bring 20 years of power to Kaua’i in Hawaii – they’re already installed in over 18 countries (and these figures are over a year old) and Elon Musk expects that “80% if not 90%” of all the stationary storage Tesla sell will be the Powerpack, not the Powerwall – so you can see what their plans are with regards to commercial solar vs residential solar. 

Just in case you’re thinking about ducking out to pick one up, please note that they weigh 1622kg each, and the inverter weighs 1200kg, so maybe have a protein shake first. 

Tesla Powerpack Datasheet is available on the Tesla website. 

Tesla Powerpack at the Logan Water Disinfection Plant

The ABC is reporting that installation of the Tesla Powerpack at the Logan City Council’s new water reservoir at Round Mountain has saved them $1.9 million in power connection costs. 

The Logan Water Infrastructure Alliance and local energy saving company CSR Bradford installed 323 PV Solar panels at the 20 Megalitre Round Mountain Reservoir, which provides drinking water for locals. To go alongside the solar panels a 95kWH Tesla Powerpack was installed and the council says this has resulted in a saving of $1.9million AUD and operational cost savings of around $50,000 per year. 

CSR Bradford Business Manager, Ashleigh O’Brien said the Logan City project was the first off-grid commercial solar and battery system in Australia powered by Tesla Powerpack. No doubt there will be many more!

Tesla Powerpack Australia Cost

Tesla Powerpack 2 Australia
Tesla Powerpack 2 Australia (source: tesla.com)

Tesla doesn’t have prices on their website (and this is quite a customised offering) but you can request a sales call from the official Powerpack page. Accredited Tesla suppliers will also be able to help you if you’re interested in business solar storage – this is not a cheap option but it can save a lot of money, as seen in the case above with Logan Council. 

If you’d like a hand please fill in the form to the right and we’d be happy to help – additionally, if you have any questions or would like to share your experience with the Powerpack please comment below! 

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