06/12/08

After the success of the Local Power Buying Group #1 project (approx. 140 homes and 200kW of clean energy generation), Local Power is launching it's Buying Group #2 project.  (Click here to see some photos of the Buying Group #1 project.)

The Local Power Buying Group #2 closed at midday Friday 5th December.    An order will only be considered valid if all the steps below (1 to 4) have been followed and all the supporting documentation arrives within 3 days.

The yellow column below is an all inclusive 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. It is the "cost less SHCP", i.e. after the Federal Department of Environment (DEWHA) Solar Homes and Communities Plan (SHCP) $8000 rebate has been received.  This rebate is means tested at the level of $100,000 household annual taxable income.

This pricing is significantly better than other commercially offered PV pricing we have seen.
(typically costing $3000+ for 1kW after SHCP and RECs)

The best way to help the Local Power buying group is to carry your own SHCP rebate costs until it comes through from DEWHA.  This also leads to a slightly lower cost overall.  If you are able to do this you will receive the DEWHA rebate payment directly from the government after installation, generally within 6 weeks, but it's been taking 8+ weeks more recently.

If you can't carry your own SHCP rebate costs, Local Power has sourced some funds to carry it for you, but will need to charge a SHCP financing fee.  In this case Local Power will receive the SHCP rebate payment from DEWHA on your behalf as partial payment.

The REC (Renewable Energy Certificate) is an additional government incentive for PV solar installations.  RECs have a market based price, so can change from week to week.  We have also shown below what the total cost could be if the REC price was $15 or $39 (the current REC price is $43 but during 2007 and 2008 it has been as low as $11 and as high as $49.  You can see a graph of some recent REC prices here). 

For example if purchasing the 1kW system, and you carry your own SHCP rebate costs, the maximum cost* you pay for a standard install will be $2250 (yellow column), but depending on the REC price ($43 at the time of writing), the final cost less SHCP and REC may be as low as $1392 if the REC was $39 (green column).  Local Power does not know what future REC prices will be.   Local Power will arrange for participants the best REC price available at the time, and you will receive the REC payment 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.

 * the pricing above is inc-GST and assumes:

• at least 50 homes participate overall in the buying group
• at least 4 homes in each participating postcode
• each participating postcode is <50km from brisbane CBD
• you are eligible for the DEWHA SHCP rebate (owner occupier, system installed on primary place of residence, less than $100,000 household annual taxable income)
• there are no delays in the buying group process to cause supplier pricing to increase
• you ask Local Power to sell your RECs on your behalf (Local Power does not know what future REC prices will be.)
• standard roof size and orientation (unshaded, north facing tin roof. see below for extra costs for tile roof)
• standard roof pitch (10-30 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, adequate room in meter box and switchboard, normal cabling distance to meter box, no wiring or switchboard upgrade needed etc.).
• you have room undercover for an indoor inverter located with adequate ventilation and out of direct sunlight
• you are ready to have the PV system installed as soon as Local Power gets the components and you obtain SHCP pre-approval.

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

• bulk buying components including quality Sharp 180W 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 (SHCP rebate and RECs), 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 $660 for 1kW, $770 for 1.5kW, $880 for 2kW and $990 for 3kW (all inc-GST).  When Local Power is being asked to carry the SHCP rebate costs, an additional SHCP financing fee of $198 (inc-GST) is included.
 

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

** electricity savings are estimates only based on 16.3c/kWh (Queensland tariff 11), and will help pay for your system over time, in many cases income tax free.

The 1.5kW and 2kW systems can optionally have a larger inverter upgrade installed which will make it easier and cheaper to add more panels later.  The inverters also have an optional 10 year extended warranty. 

You can read more about the cost impact of the various options 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 the SHCP rebate, 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 here. (sorry BG#2 has now closed)

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.

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 for SHCP rebate and electricity connection as soon as possible.  This includes copies of the following:
  - most recent rates notice showing owner details
  - front and back of drivers license (please include copy of back even if it is blank)
  - 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.

Step 5:  Local Power will conduct a site inspection and confirm pricing.  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 additional fees for a non-standard installation, Local Power will refund your deposit payment less an $88 inspection fee.

Step 6:  Local Power will prepare on your behalf, based on the information you provide and in conjunction with the installer, the DEWHA Solar Homes and Communities Plan (SHCP) Residential Application for Pre-approval and Energex Application to Network Connect PV Generator forms for you to sign. 

These forms will be emailed to you.  Please print, sign and post back to Local Power within 3 days.  The Pre-approval form will contain the confirmed pricing.  Once the SHCP pre-approval form has been signed, 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 7:  Local Power will order the components for the buying group. 

Step 8:  DEWHA will respond to the SHCP rebate application in 6-8+ weeks.  Let Local Power know the outcome immediately.  If you are ineligible for the SHCP rebate, Local Power will refund your deposit payment less an $88 inspection fee.

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 upfront 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.

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 following forms for you to sign including:
  - DEWHA Solar Homes and Communities Plan (SHCP) Residential installation Report which will include photos of the installation
  - REC paperwork

These forms will be emailed to you.  Please print, sign and post back to Local Power within 3 days.

Step 12:  Energex will install a suitable meter to measure how much electricity you will be sending (exporting) to the grid and after testing, will turn on the system to connect it to the grid.  We then start to enjoy renewable energy, with a reduced greenhouse gas footprint, for many years to come!

Step 13:  SHCP rebates are paid by DEWHA in 6-8+ weeks (directly to you if carrying your own rebate cost or to Local Power as partial payment if asked to carry the rebate).

Step 14:  REC payment is sent to participants.