08/03/10

After the success of the Local Power Buying Group #1, #2 & #3 projects (approx. 350 homes and 450kW+ of clean energy generation), Local Power is launching it's Buying Group #4 project.

Solar Credits scheme

PV Solar Pricing

The yellow column below is the fully installed cost*, for a standard install of a PV solar system of various sizes, and includes the cost of the panels, inverter, all other required components and installation by a Clean Energy Council accredited installer and Local Power fee. It is the "total payment" out of pocket, i.e. after the Solar Credits incentive has been received by Local Power as part payment for your system and is based on the REC price being $29. 

If the REC price is higher than $29 at the time of your installation, Local Power will refund you the difference at the end of the project.  If the REC price is below $29 at the time of your installation you are eligible to pullout of the Buying Group less an $88 inspection fee.

The following pricing applies for people who are eligible for the Solar Credits incentive.  For example if purchasing the 1.5kW system, the maximum cost* you pay for a standard install will be $4474 (yellow column) with the REC price at $29.

But depending on the REC price at the time of your installation ($36 at the time of writing), the final cost for a 1.5kW system may be $3389 if RECs were $36 (green column).  Local Power does not know what future REC prices will be.   Local Power will arrange for participants the sale of RECs at the REC price available at the time of your installation, and you will receive the REC payment refund as the final step in the buying group process set out below.  You can read more about the cost impact of REC prices on the calculator page.

We have also shown below what the "final cost" could be if the REC price was $33 or $36 (the current REC price is $36 but during 2009-2010 it has been as low as $23 and as high as $46.  You can see a graph of some recent REC prices here). 

 * the pricing above is inc-GST and assumes:

• at least 50 homes participate overall in the buying group
• at least 2 homes in each participating postcode (or in an adjacent postcode)
• each participating postcode is <50km from brisbane CBD
• you are eligible for Solar Credits (i.e. you have not accepted nor received pre-approval for a PVRP/SHCP rebate at your premises)
• you ask Local Power to create your Solar Credits on your behalf as part payment (Local Power does not know what future REC prices will be.)
• the "REC price" on this page is the published spot "REC assignment price" payable by REC brokers for the right to create RECs from your system
• standard roof size and orientation (unshaded, north facing tin roof. see below for extra costs for tile roof)
• standard roof pitch (10-28 degrees) with panels mounted flush against the roof
• the roof is ready to install the panels on and is not an unfinished renovation
• standard complexity of installation (as determined by the installer - including home made of regular building materials, single or double storey)
• no wiring or switchboard upgrade needed. adequate room in meter box and switchboard, normal cabling distance to meter box, etc.
• you are ready to have the PV system installed as soon as Local Power gets the components

The discount from regular commercial pricing has been obtained without sacrificing quality.  It comes from:

• bulk buying components including quality Sharp 167W and 188W panels from the world's leading manufacturer, with a 25 year performance warranty
• making installations more efficient by grouping them on a suburb by suburb basis
• reducing the need for sales and marketing expenses
• Local Power taking on administration, initial site inspections, component distribution etc. in bulk and at a lower hourly rate than would be charged by industry

The pricing includes the Local Power admin fee to handle the site inspection, all the administration required for the incentive paperwork (Solar Credits), network connection agreement with Energex, and costs to run the buying group (auspice fees, handling installation logistics, storage, insurance, website, phone etc.).  The Local Power admin fee is $770 for 1.5kW, $880 for 2kW, $1100 for 3kW, $1320 for 4kW and $1760 for 6kW (all inc-GST).  Local Power is carrying the Solar Credits costs until those funds arrive as part payment for your system after installation.
 

Here are some more technical details of each system, including additional costs for a tile roof:

^ energy production estimate assumes totally unshaded north facing roof with standard pitch.
** electricity savings are estimates only based on 18.8c/kWh (Queensland tariff 11) and not exporting any solar energy to the grid.  The Solar Bonus Scheme (Feed in Tariff paying at least 44c/kWh) for any energy exported to the grid results in credits on your electricity bill and adds to the above savings.  e.g. if you export 50% of the energy from a 1.5kW system at 44c/kWh, the electricity savings will increase from $414 to $690/year.  Both of these savings will help pay for your system over time, in many cases income tax free. 

Most systems can optionally have a larger (or second) inverter upgrade installed now which will make it easier and cheaper to add more panels later.  The Xantrex inverters also have an optional 10 year extended warranty. 

You can read more about the cost impact of the various options and REC prices on the calculator page.


How to participate in the Local Power buying group:
(click here for a print friendly version of the steps and checklist)

Step 1:  Work through the Local Power buying group checklist to determine if your house is suitable for PV Solar, you are eligible for Solar Credits, and you agree with the Energex connection and Local Power buying group terms and conditions.  Click here to read the checklist.

Step 2:  Order securely online (click here to order).

Step 3:  Please pay your "deposit payment" as soon as possible (direct Internet transfer preferred or send a cheque in step 4).  Orders are only considered valid if all steps (1 to 4) have been completed including the deposit being received.  Internet transfer details can be found on the remittance page.  Click here for Internet payment options.

Step 4:  Please print and send your signed agreement (within 3 days) of the Local Power buying group terms and conditions (click here for a print friendly version) and supporting documentation.  This includes copies of the following:
  - most recent rates notice showing owner details
  - front and back of most recent electricity bill confirming the NMI code
Include your cheque if you haven't paid your deposit by direct internet transfer.  Postal and cheque details can be found on the remittance page (Click here).

Step 5:  Local Power will conduct a site inspection and email you the confirmed pricing (including any additional costs identified as a result of the inspection).  This step reduces unnecessary site visits at installation time, reducing costs overall. 

If the pricing is higher than the yellow pricing above, as your home does not qualify as a standard installation and you aren't willing to pay any additional costs for a non-standard installation, Local Power will refund your deposit payment less an $88 inspection fee.  Once you confirm the pricing is acceptable the full deposit payment becomes non-refundable as Local Power needs to pay a deposit to the suppliers to secure the components at a good price.

Step 6:  Local Power will order the components for the buying group. 

Step 7:  Local Power will prepare on your behalf, based on the information you provide and in conjunction with the installer, the Energex Application to Network Connect an Inverter Energy System (including Solar PV) form.

Step 8:  You will receive in the mail from Energex a "network agreement".  Please carefully follow the instructions on the cover letter to avoid delays in your installation and having your new Energex meter installed.

Step 9:  Once the components arrive, Local Power will contact you to book the day for the installation.

Step 10:  Payment of the "balance payment" (the remainder of the total payment) is due in the week prior to the day of installation.  If the "balance payment" is not forthcoming, the entire deposit payment will be forfeited.  However if the REC price has dropped below $29 and you are not willing to pay an additional amount, Local Power will refund your deposit payment less an $88 inspection fee.

Step 11:  Your PV Solar system is installed.  Local Power will prepare on your behalf, based on the information you provide and in conjunction with the installer, the Solar Credits (REC assignment) paperwork for you to sign.  This will be emailed to you.  Please print, sign and post (or scan and email) back to Local Power within 3 days to ensure you will get your expected REC price, and your refund payment (step 14) can be processed promptly.

Step 12:  Energex will install a suitable meter to measure how much electricity you will be sending (exporting) to the grid (usually within 10 working days).  Meanwhile you start to enjoy renewable energy, with a reduced greenhouse gas footprint, for many years to come!

Step 13:  Local Power will receive the Solar Credits funds from the REC broker as part payment for your system.

Step 14:  If the REC price is above $29 at the time of your install, a REC payment refund for the difference is sent to participants.  e.g. if the REC price is $36, you will be refunded $36-$29 x the number of RECs your system created.