1.
The sun is our biggest energy source available. Only 0.01% of the energy in sunlight would need to be harnessed to cover mankind’s total energy needs.
2.
A solar power station covering 0.03% of Australia is enough to cover the countries electricity needs. In other words, with a solar power station the size of ACT we can turn off all coal fired power stations in Australia.
(Based on: 8m² = 1kWp solar system which produces 1,500kWh/a, covering 50% of the area with solar panels, Australia electricity consumption 220 billion kWh/a)
3.
Over the past three years the average annual increase in electricity prices across all states in Australia was 10%. As recently announced we need to expect a much higher increase in electricity prices of the next years.
Even if the increase in electricity prices is only 8% per annum the price per kWh will look like this:
- $0.31/kWh in 2015
- $0.45/kWh in 2020
- $0.98/kWh in 2030
- $2.11/kWh in 2040
- $4.56/kWh in 2050
This means that the average price over 40 years (which is the lifespan of our systems) is $1.62 per kWh.
The average price per kWh from a solar system installed by TCK Solar in Victoria is about $0.11 per kWh*. The available funding in Victoria turns the costs into a profit of at least $0.11 per kWh.
Please contact us to find out what it looks like in your state.
* system cost installed divided by the total kWh produced over 40 years, ignoring any type of funding and interest on invested capital
RENEWABLE ENERGY CREDITS (RECs)
The government introduced RECs to isolate the additional value of energy produced by renewable energy generators. These RECs (1 REC = 1000kWh produce per year) are sold like shares on the stock market which means they vary in price depending on availability and demand. The big fluctuation in price created problems for solar installers while quoting installations. To improve the situation the government recently set a price for the RECs generated from solar systems at $40 per REC.
To give buyers of solar systems a further incentive the government put two additional concepts into place:
- Solar credits: Five times as many RECs for the first 1.5kWp installed.
- The possibility to sell 15 years of RECs at the moment your system got installed.
These incentives are necessary to install solar systems in a cost effective manner. One of the most frequently asked question in relation to RECs is: Do you sell the green aspect of your solar system by selling your RECs to polluters like electricity suppliers? In the scenarios below we try to visualise the effect of owning a solar system and keeping or selling the RECs.
Scenario 1
No solar system installed
Scenario 2
Solar system installed and consumer keeps the RECs
Scenario 3
Solar system installed and consumer sells the RECs
Here a few more aspects regarding the RECs:
1.
The scenarios 2 & 3 to the right show that it does not make a difference for you in relation to the percentage of green energy you consume whether you keep or sell the RECs. But it does make a significant difference on the system price we can offer you when we sell the RECs for you. If you decide to keep the RECs the big polluters need to source the RECs somewhere else to meet their targets which might result in more renewable power generator being installed.
2.
RECs can only be generated for 15 years of
the 35-40years lifespan of the solar system.
That means that from year 16 on it looks like scenario 2.
3.
RECs are only valid for a year. Although we sell all your RECs for 15 years plus the additional solar credits to reduce our sales price they are only valid for a year after the installation of the system. Once they were consumed by the big polluters, they need to find new RECs on the market.
4.
The number of RECs your system can generate depends on your location. Australia is split into four zones (e.g. most of VIC is zone 4, most of NSW is zone 3, most of QLD is zone 2, most of NT is zone 1).
Please visit www.climatechange.gov.au for more information about RECs and how to calculate them or contact us.
FEED-IN TARIFF
The second support from the government for solar system is called feed-in tariff. The main idea is that every kilowatt-hour (kWh) fed back into the grid is credited with a higher amount than when you purchase it from an electricity supplier. This system had its origin in Germany and is still continuing to expand around the world as a very successful way of supporting new environmentally friendly power generating technologies. So far there is no national wide feed-in tariff in Australia which results in 8 different state regulations.
Please don’t hesitate to contact us for information about the current feed-in tariff in your state or if you want us to prepare a customised quote for you.