Power of Choice Reforms
 
Energex is preparing for the Power of Choice (PoC) Reforms which start on 1 December 2017. The reforms will bring a number of changes for all participants in the market including Electrical Contractors.
Power of Choice (PoC) is a national reform to the electricity industry that is designed to increase competition in the electricity supply chain and provide customers with access to more detailed information about their energy usage through the introduction of digital interval metering.
Our data shows that you are an electrical contractor in South East Queensland who regularly submits EWRs via our Electrical Partners Portal. As such, we would like to invite you to join Energex’s PoC Electrical Partner Program, a group of electrical service providers or contractors that will receive a direct, monthly update via email of PoC-related information that can then be issued to staff and contractors to help them be ready for the PoC changes. We would ask you to share this information each month with all those within your business who currently, or are likely to undertake work with Energex network.
We are committed to helping you, and your contractors, be ready for PoC. We are confident that joining this group will provide the following benefits for you and your staff or contractors:

• A regular flow of current PoC-related information that you can disseminate;
• Reassurance that targeted information for Electrical Contractors is reaching your staff and contractors; and
• Timely insight into the PoC changes to allow better planning and preparedness for your staff.

Information on PoC will also be available in a number of useful ways, including:

• Available for download from the Energex website’s Contractors and Service Providers pages;
• Alerts through the Portal when new information is available; and
• Stories in industry publications such as our Electrical Contractor Updates and Solar Installer Alerts.

Please reply to this email address (EQLPowerofChoice@energex.com.au) if you would like to be part of Energex’s PoC Electrical Partner Program and receive information for dissemination. Please provide your best contact details so that we can send out the first ‘PoC EC Info Pack’ via email.
 
If you have any questions regarding this please do not hesitate in replying to this email address.
 
​EQL Power of Choice 

Energy Queensland

Level 8, 825 Ann St, Fortitude Valley QLD 4006

E EQLPowerofChoice@energex.com.au

​​On Friday 1 September 2017, the Queensland Government announced that, effective immediately, the maximum inverter capacity eligible for the regional Feed-in Tariff (FiT) under the Queensland Solar Bonus Scheme would increase from 5 kW to 30 kW. This creates an additional incentive for small- to medium-sized businesses, and residential customers, to install a solar PV system, or increase the capacity of their existing PV system.
​
Regional FiT rate
The regional FiT rate is 10.1 cents/kWh for 2017/18, and is reset each year by the Queensland Government based on a rate recommended by the Queensland Competition Authority.  As a regional tariff, it is only available to Ergon Energy Retail customers and relevant Origin Energy retail customers serviced by the Essential Energy network in the Goondiwindi area. The regional FiT is funded by the relevant electricity retailers, however they do not set the rate.

Our process
For existing PV systems with inverters rated up to 5 kW and already eligible for the regional FiT, there is no change to conditions or requirements. For existing PV systems to become eligible for the regional FiT, the system will need to:

• have a total inverter AC power rating greater than 5 kW but no greater than 30 kW, and
• be already set to fully or partially export to the grid.

We are working with Ergon Energy Retail to automatically move several thousand premises with qualifying PV systems onto the regional FiT. There is no need for those customers to lodge a connection application with us.
As these changes couldn’t be started until 31 August 2017, some eligible PV owners may not see any FiT credits on their electricity bill received in the weeks immediately after 31 August. These cases will be identified and rectified.
It’s important to note that the regional FiT eligibility is based on, among other things, the total inverter capacity, not the exporting capacity setting. Therefore, a 40 kW inverter capacity set to only export a maximum of 30 kW will not qualify for the regional FiT.

Minimal and partial export systems
If customers have existing inverters:

• rated greater than 5 kW but no greater than 30 kW, and
• set for minimal (zero) export, and

wish to access the regional FiT by removing or modifying the export limitation settings, a new connection application will need to be lodged. This application will need to note any changes that are going to be made to the inverter, and will undergo technical assessment if relevant.
If the minimal-export limitation was based on our assessment, it is unlikely that a higher export level will be allowed, unless the local network has been upgraded in the meantime. If the export limitation was voluntarily implemented, we may offer an increase to the export limit if the technical assessment shows that this won’t adversely affect the operation of the PV system or our network.
Changes to the export limitation can only be made once the offer is accepted. A Form A is only required if the inverter has been changed.

Do not change partial-export settings
If a partial-export system becomes eligible for the regional FiT, an installer must not increase the export limitation level above what has been detailed in our Connection Agreement. If there is a desire to increase the partial export level, a network connection application must be lodged with us. After a technical assessment if relevant, a new offer may be made by us and must be accepted by the applicant before settings can be changed.
If we discover, through a Quality of Supply investigation or other means, that export limitation settings have been changed without our written approval, we will work with the customer to identify the installer and may refer that installer to the Clean Energy Council (CEC) for consideration of demerit points under the CEC accreditation scheme.

 
 

 

Fronius Solar.web - unable to view archive data as of September 1

Dear Fronius customers, 

due to technical difficulties, Fronius Solar.web is not displaying the inverters' archive data as of 1st September 2017. This has affected both the Fronius Solar.web web browser and mobile app. 

As a result, you may have noticed that you are able to view your inverter’s instantaneous generation values but unable to view energy production values as of 1st September. Due to the time zone difference between Fronius International (Austria) and Australia we are currently unable to guarantee an exact time frame to resolve this issue.

This issue is being treated in the highest priority and we are working to resolve this as quickly as possible. 

We sincerely apologise for any inconvenience caused and appreciate your patience. 

Regards
Fronius Australia

/ Please do not reply to this email. 
Sent by email to Driftwind Electrical 04/09/2017

Current enforceable undertakings Suggested Reading

• ​​Privacy policy

27 July 2017
 
Corporate

​Current enforceable undertakings accepted by the Clean​​​ Energy Regulator include:
Company or individual detailsP & N NSW Pty Ltd (ABN: 145998929)
LegislationRenewable Energy (Electricity) Act 2000
Undertaking date21 July 2017
CircumstancesP & N NSW Pty Ltd improperly created, in contravention of section 24 of the REE Act, 1058 Small-scale Technology Certificates (STCs) from 10 installations of solar photovoltaic (PV) panels that were non-compliant.
P & N NSW Pty Ltd’s compliance procedures did not identify, at the time of STC creation, that the solar PV panels were non-compliant solar PV panels.

Undertaking P & N NSW Pty Ltd undertakes to:

1. Implement a Compliance Program and provide a copy to the Clean Energy Regulator within two months.
2. Rectify the installation of the existing non-compliant PV panels and improper creation of STCs within six months. P & N NSW Pty Ltd will surrender 1058 STCs created from 10 installations containing unapproved panels and replace all panels on these systems. P & N NSW will not recreate, or facilitate the creation of STCs for these replacement systems.
3. Establish a Serial Number Validation Program and:
   1. within 12 months validate identified solar PV module serial numbers for 78 installations. P & N NSW Pty Ltd will voluntarily surrender all STCs where unapproved panels are identified, facilitate the replacement by a CEC-accredited installer of all panels on these systems containing unapproved panels and will not create, or facilitate the creation of STCs for these replacement systems.
   2. within 18 months validate identified solar PV module serial numbers for 100 installations. P & N NSW Pty Ltd will facilitate the replacement by a CEC-accredited installer of all panels on these systems containing unapproved panels and will not create, or facilitate the creation of STCs for these replacement systems. Where homeowners do not consent to the replacement of panels, P & N NSW Pty Ltd will surrender STCs for these installations.
4. Report to the Clean Energy Regulator monthly.
5. Fund the Clean Energy Regulator’s testing of four solar PV panels held by P & N NSW Pty Ltd to determine whether the panels have the necessary attributes for accreditation or continuing accreditation.
6. Not take steps to deregister as a company without the approval of the Clean Energy Regulator.

Attachments Enforceable undertaking of P and N NSW Pty Ltd

By Giles Parkinson on 9 August 2017
One Step Off The Grid
Euro Solar – the biggest seller of solar panels in Australia – has been forced by the Clean Energy Regulator to surrender small-scale technology certificates (STCs) or replace modules after being found to have installed non-compliant solar panels.

P & N NSW Pty Ltd, which trades as Euro Solar, was found by the CER to have claimed STCs from non-compliant panels on 10 different rooftop solar installations. In total, this amounted to 1,058 STCs worth around $40,000.
In order to “address its conduct”, the CER says P & N has been asked to validate serial numbers on solar modules for a further 78 installations within 12 months, and for a further 100 installations within 18 months. All the installations have been identified by the CER.



If those installations are found to contain non-compliant panels, P & N will have to either replace those panels or surrender STCs if the homeowners don’t consent to the change. The STC bill could amount to $500,000 if none are compliant.
The CER says the move against P & N is part of a crackdown on rules in the SRES, which provides up-front rebates for rooftop solar installations. To qualify for STCs, solar panels need to have been approved and validated by the Clean Energy Council.
“We are rolling out an innovative compliance program that reaches out into the small-scale technology certificate (STC) creation chain to detect the installation of unapproved panels, which are not eligible for STCs,” the CER says.
Euro Solar has taken a leading position in the Australian solar market because of its deep discounts, the scale of which surprises many competitors.
“P & N NSW Pty Ltd’s compliance procedures did not identify, at the time of STC creation, that the solar PV panels were non-compliant solar PV panels,” the CER said in its statement.
As part of its enforceable undertaking, P & N has committed to validating the other installations and will report to the CER on a monthly basis.
It will also fund the Clean Energy Regulator’s testing of four solar PV panels – randomly selected by the CER – held by P & N NSW Pty Ltd to determine whether the panels have the necessary attributes for accreditation or continuing accreditation.
The CER says enforceable undertakings can be sought in cases to prevent or address serious non-compliance.
“Enforceable undertakings are written statements from a person or organisation that they will do, or refrain from doing, certain things in order to resolve detected contraventions or improve compliance with the legislation,” it says.
The intervention from the CER comes amid growing concerns within the industry about the standards and behaviours of some installers, the quality of some merchandise imported – such as solar panels and inverters – and the need for an awareness program for consumers.

This is something that we go into in detail in our first Solar Insiders podcast with solar industry veteran Nigel Morris, of monitoring software company Solar Analytics, where we discuss some of the quality control issues in the rooftop solar industry.
Morris says the Australian solar industry has been very successful, with more than 1.7 million installations, and nearly 6GW of rooftop solar panels, most of them perfectly fine and performing well.
But no other country has installed such a large percentage of “cheap” solar. Why is this? Possibly because of the Australian eye for a discount, possibly because Australians turn over housing stock more quickly than people in Europe or north America.
There is even a Facebook page called “Crap Solar” put together by installers appalled at instances of lousy workmanship. This has implications for consumers which are worth noting. The Solar Insiders podcast can be found here.
The solar industry has been calling for a crackdown on poor quality installations, and more surveillance of solar panels – almost all of which are imported from overseas – to ensure they are compliant.
“The Clean Energy Regulator takes fraud and deliberate non-compliance seriously and takes necessary action to ensure the integrity of the scheme,” the CER said in its statement.
“SRES participants who are involved in the installation of unapproved panels will be subject to enforcement action by the Clean Energy Regulator. (SRES is the small-scale renewable energy scheme which governs rooftop solar installations up to 100kW).
“We have a broad range of compliance and enforcement options, including suspension of registration and REC Registry accounts, enforceable undertakings and criminal or civil proceedings.”
The CER says it has partnered with the solar industry and peak bodies to allow consumers, along with installers and retailers, to use a new Solar Panel Validation Pilot to check the validity of solar panels.
Participating manufacturers will provide serial number data that will allow installers, retailers and consumers to validate panels.
The CER says STCs created using validated panel data will deliver a higher level of confidence to the Clean Energy Regulator. STCs created without validated data will be examined more closely under our compliance processes and if found to be unapproved subject to enforcement action.

This article was originally published on RenewEconomy’s sister site, One Step Off The Grid, which focuses on customer experience with distributed generation. To sign up to One Step’s free weekly newsletter, please click here.
   

 
Issue 33 - August 2017
 
Solar Industry Update
 
 Explaining the pending changes to the 44c FiT legislation 

 The Queensland Government has introduced an Amendment Bill to Queensland Parliament on 15 June 2017, designed to provide clearer rules to householders receiving the 44c Feed-in Tariff (FiT) on how to retain their tariff when integrating batteries or additional panels with their current 44c-eligilble systems. Whilst this Bill is yet to be passed, it is likely to be debated in Parliament in late August or early September 2017.The Government described these changes in their recent media release as an important step towards bringing the laws up to date with evolving technologies that are now available to homeowners, such as battery systems, which were not a consideration when the Solar Bonus Scheme was introduced.
The Amendment Bill and the associated Explanatory Notes can be found on the Queensland Government website.  The following information is designed to help you understand the implications of the planned legislation changes since 15 June 2017. The information provided assumes that you have read the Explanatory Notes.
Array upgrades
If an array upgrade on a 44c-eligible system occurs on or after 15 June 2017 and results in the total array capacity exceeding the total inverter capacity, the 44c FiT will be forfeited. The only exemption to this is if a sales contract between the customer and the PV retailer/installer was dated before 15 June 2017 and a copy of that sales contract can be provided to the distributor upon request.
Currently, if our Solar Team receives an application for an array upgrade on a 44c-eligible PV system that will take the total array capacity above the total inverter capacity, they will attempt to phone the customer or the PV retailer. If they are unable to make contact, they will send an email. They will advise the customer or applicant that the 44c FiT is likely to be forfeited if the installation proceeds. If the installation proceeds, or has already occurred, the 44c FiT is maintained and the case is flagged for review once the Bill is passed. The 44c FiT will then likely be removed after review. If the inverter capacity is no greater than 5 kVA, the system is likely to qualify for the regional FiT.
If one or more panels of an array require replacement and the proposed new array capacity is greater than the inverter capacity, then installers should ensure the total array capacity doesn’t exceed the original array capacity. This is irrespective of whether or not the replacement is under warranty.
Batteries and additional generators
One intent of the legislation changes is to clarify that customers on the 44c FiT can install a battery and retain eligibility for that FiT, if they wish. However, customers cannot use a battery or a second generating unit on the same electrical installation, i.e. same tariff, as the 44c-qualifying PV system to increase the volume of export beyond a level otherwise possible.
The battery or second generating unit must be programmed to only discharge into the premises at night or during a grid outage. The battery system must have a grid-isolation link. There must be no overlap of PV generation and battery discharge. More details will be provided once the legislation changes are finalised.
Monitoring compliance
Ergon, and Energex, apply complex algorithms to metering data to identify changes in both export and consumption levels that indicate unapproved changes to PV systems. We also access aerial imagery when necessary to calculate the approximate array capacity installed.
If we suspect an unapproved capacity increase, we will investigate, where relevant remove the 44c FiT and seek to identify the installer involved.

Don't install without a connection offer 

Despite our ongoing education and some financially painful consequences, a small number of installers still occasionally install PV systems before the applicant has received our connection offer, and entered into a connection contract. Even if the connection contract is ultimately entered into, installation without approval is still a breach of the legislation and the installer may be referred to the Clean Energy Council.
But in an increasing number of cases, we are unable to make an offer for the proposed system. In a worst-case scenario, in some of Ergon’s 33 isolated communities, we have had to instruct customers and their installers to disconnect the systems from the network, with no prospect of the customers being able to have their system connected to the network in the foreseeable future.
We urge all installers to protect themselves by requesting from the applicant or customer written evidence that a connection contract has been established, before they commence the installation.
 
Working safely with asbestos 

 We recently published advice in our Relay newsletter for electrical contractors dated 19 July 2017, that we’ve created a new asbestos page with information and documentation relating to working with asbestos on our electricity network. Everyone who works on our assets is requested to read the document titled Asbestos Related Work or Removal Management Guide – For Network.
This guide provides a set of minimum requirements and expectations for work that involves, or is likely to involve, the disturbance of asbestos. For PV installers, that’s relevant to working on meterboards containing asbestos.
Also, we recommend you subscribe to our Alert Service and select ‘Asbestos’ and we’ll email you when there are any new or updated documents.
We’re working hard to provide and maintain a safe and healthy work environment for our employees, contractors and members of the public.
If you have any queries about asbestos please email asbestos@ergon.com.au
 
Have you subscribed? 

 If you have been forwarded this alert, you can subscribe to our Alert Service to ensure you don’t miss any future issues.
 
Contact Details
 
420 Finders St,
Townsville, Qld 4810
1300 553 924 (7am - 6.30pm, Mon to Fri)
solarteam@ergon.com.au

About Solar Industry Update
 
This newsletter will keep you informed about what's happening in the solar industry and any changes to compliance, rulings and legislation.
 

www.ergon.com.au 

  

​Bloomberg released its Q1, 2016 report recently which showed the changes in brands who are recognized as Tier 1.
You can find the list further down below for the Panel Manufacturer's, who made the Tier 1 rating list.
However if you wish to find out more about what the Tier System is and how they are rated to meet Tier 1, keep reading below.

What is the Tier System, you ask?

Bloomberg New Energy Finance PV Module Maker Tiering System
Bloomberg New Energy Finance has developed a tiering system for PV module makers based on bankability, to create a transparent differentiation between the hundreds of manufacturers of solar modules on the market. Since this basic categorisation has been used as an advertisement by certain manufacturers, but should never replace a proper due diligence process in product selection, this document explains the tiering criteria and its limitations.

1. WHY DIVIDE THE PV MARKET INTO TIERS?
Bloomberg New Energy Finance is frequently requested by clients for a list of 'major' or 'bankable' suppliers - in common industry parlance, tier 1 suppliers - for use in manufacturing forecasts, preliminary competitor analysis, and other internal comparisons. It is very common for industry players to refer to 'tier 1' players, but these terms are seldom defined or described, which is unhelpful for firms outside the solar industry trying to get a basic overview. We strongly recommend that module purchasers and banks do not use this list as a measure of quality, but instead consult a technical due diligence firm such as OST Energy, Sgurr Energy, DNV GL, Black & Veatch, TUV, E3, STS Certified, Clean Energy Associates or Leidos Engineering. These would usually consider what factory the module comes from, as well as the brand, and give an informed opinion on whether the modules will perform as expected.
2. DEFINITIONS
​ 'Bankability' - whether projects using the solar products are likely to be offered non-recourse debt financing by banks - is the key criterion for tiering. Banks, and their technical due diligence providers, are extremely unwilling to disclose their whitelists of acceptable products. Bloomberg New Energy Finance therefore bases its criteria in what deals have been closed in the past, as tracked by our database -13,800 photovoltaic financings worldwide as of January 2016. We reserve the right to change these criteria at any time - particularly by requiring more information to consider a manufacturer tier 1. These tiers will be reviewed every quarter based on information added to Bloomberg New Energy Finance's database. Only project financings for over 1.5MW of capacity are included in the database. Portfolio financings count for tiering only for projects with defined locations, and where the debt is secured on all the assets together, ie, if one project in the portfolio underperforms the bank has a claim on the rest of the portfolio. We only tier manufacturers which actually own production facilities and sell under their own brands. Companies which outsource production under brand names are not tiered.
3. TIER 1
Tier 1 module manufacturers are those which have provided own-brand, own-manufacture products to five different projects, which have been financed non-recourse by five different (non development) banks, in the past two years.
These 1.5MW+ deals must be tracked by our database, ie the project location (sufficiently to identify the project uniquely), capacity, developer, bank and module maker must be in the public domain. One exception is manufacturers which have filed for bankruptcy or a form of insolvency protection, or experienced a major default on bond payments; these are removed from the tier 1 list until further notice. This classification is purely a measure of industry acceptance, and there are many documented examples of quality issues or bankruptcy of tier 1 manufacturers.
3.1. Tier 2
We do not publish a tier 2 list.
3.2. Tier 3
We do not publish a tier 3 list.

(This is sourced from http://about.bnef.com/content/uploads/sites/4/2012/12/bnef_2012-12-03_PVModuleTiering.pdf)

At Driftwind Electrical, we prefer our customers have as much information available to them to make an informed decision before purchasing a solar system. As you can see on our products page, http://www.driftwind.com.au/panels.html Driftwind Electrical recommend many of the Tier 1 panels that are listed in Bloomberg's List below and as advised earlier, this classification is purely a measure of industry acceptance, and there are many documented examples of quality issues or bankruptcy of tier 1 manufacturers. However we also highly recommend Lightway Panels, which do not have a Tier 1 rating but have proven to be a reputable PV Module Manufacturer and you can read further information on the Tiering system here http://www.solarchoice.net.au/blog/what-is-a-tier-1-solar-panel-tier-2-or-3/

Below is the list for the 2016 PV Module Manufacturer's who made the Tier 1 Rating. 

The Conversation
Yet again, electricity prices are set to be a key point of contention in an Australian federal election.
The Coalition responded quickly to Labor’s election commitment to an emissions trading scheme (ETS), with Prime Minister Malcolm Turnbull warning of “much higher electricity prices” and a “very big burden” on Australians.
Other ministers joined in. Treasurer Scott Morrison labelled the plan a “a big thumping electricity tax” and Environment Minister Greg Hunt branded it “Julia Gillard’s carbon tax on steroids”, warning of “even higher electricity prices for Australian families”.
The centrepiece of the Coalition’s climate policy, meanwhile, is the A$2.5 billion Emissions Reduction Fund. An important element of this scheme is the “safeguard mechanism”, which is due to kick in on July 1 this year. This has implications for the electricity sector and may also affect electricity prices.
National summary of retail electricity cost components – 2015 Residential Electricity Price Trends
These policies will affect the wholesale electricity market, in which electricity is bought from power generators and sold on to retailers and consumers.
As you can see from the figure to the right, the competitive component of the retail prices makes up about 50% of the typical household electricity bill, and the wholesale component typically makes up half of that. The other major cost is poles and wires.
So how exactly will the different climate policies affect electricity prices?

The safeguard mechanism (Coalition)
The safeguard mechanism will require Australia’s largest emitters to keep emissions below a baseline. This will prevent emissions reductions under the ERF being offset by increases elsewhere. Businesses that go over the baseline will have to pay.
The safeguard is based on the high point in annual emissions from the whole electricity sector between 2009-10 and 2013-14. Generators’ individual baselines and associated penalties o​nly come into play if the whole sector goes over the baseline.
As you can see in the figure below, emissions have fallen by almost 20 million tonnes per year since the first baseline year (2009-10), partially in response to years of declining demand.
Current projections for electricity growth suggest that the baseline won’t be breached for some years. As such, individual generators are unlikely to be penalised, and wholesale prices would not be expected to change dramatically.

Electricity sector emissions trading (Labor)
Labor’s electricity sector ETS is a “baseline and credit” scheme, based on a model proposed by the Australian Energy Market Commission (AEMC), which actually submitted the proposal to consultation on the safeguard mechanism.
This also places a baseline on the electricity sector, but it is calculated on the basis of emissions intensity (tonnes of emissions per unit of electricity generated) rather than overall emissions. Generators with emissions intensity below the baseline (for example, gas generators) would earn credit, so “cleaner” power plants would generate more credits.
Power plants that go over the baseline (for example, brown coal) would have to buy credits for the amount they go over. “Dirtier” plants would thus have to buy more credits.
This is substantially different to a carbon tax or the previous emissions trading scheme. Under these policies, all generators are penalised, some more than others, as you can see in the figure below.

Current projections for electricity growth suggest that the baseline won’t be breached for some years. As such, individual generators are unlikely to be penalised, and wholesale prices would not be expected to change dramatically.
​
Electricity sector emissions trading (Labor)
Labor’s electricity sector ETS is a “baseline and credit” scheme, based on a model proposed by the Australian Energy Market Commission (AEMC), which actually submitted the proposal to consultation on the safeguard mechanism.
This also places a baseline on the electricity sector, but it is calculated on the basis of emissions intensity (tonnes of emissions per unit of electricity generated) rather than overall emissions. Generators with emissions intensity below the baseline (for example, gas generators) would earn credit, so “cleaner” power plants would generate more credits.
Power plants that go over the baseline (for example, brown coal) would have to buy credits for the amount they go over. “Dirtier” plants would thus have to buy more credits.
This is substantially different to a carbon tax or the previous emissions trading scheme. Under these policies, all generators are penalised, some more than others, as you can see in the figure below.

This difference is important for electricity prices. Dirtier plants would be expected to increase their selling price to cover the financial penalty on their emissions. But cleaner plants, earning revenue from selling credits, could afford to sell their electricity more cheaply.
This is important, because cleaner plants (typically black coal or gas) set the price. Gas in particular would probably be significantly cheaper under this proposal. As such, the impact on wholesale prices would be small, or negative.
In fact, as the AEMC itself noted, the impact on the wholesale market could be an increase or decrease in prices (depending on where the baseline is set).

The brown coal exit (Labor)
Another component of Labor’s climate platform is a plan to finance the closure of brown coal power stations, an idea first proposed by ANU climate economists Frank Jotzo and Salim Mazouz.
In this proposal, brown coal plants would bid for the payment they would require to finance their own shutdown, with the cheapest bid being selected. The remaining plants would pay this cost, in line with their emissions.
Similar to the ETS, it would be expected that this cost would be reflected in increased offer prices to the market from the remaining generators. The direct costs would be temporary (a one-off payment) and small, relative to the overall wholesale price.
Indeed, Jotzo and Mazouz estimated it could cause a one-off rise of 1-2% in retail power bills. Analysis company Reputex found the impact could be between 0.2% and 1.3%.
However, Danny Price of Frontier Economics has suggested that the scheme could push up retail power prices by between 8% and 25%, as the result of a short-term price shock. But given the significant excess capacity in the market, and assuming that the market is indeed competitive, it is hard to see how such a increase would happen.
This point aside, the price argument misses the point of the scheme, which aims to deliver an “orderly transition” away from brown coal. The longer-term effects on supply and price of a brown coal exit will be similar, regardless of how the industry closes.
In fact, if it were left entirely to the market, the sudden retirement of an entire power plant might create even more of shock. This proposal is chiefly about ensuring an orderly, predictable transition.

50% renewable energy target (Labor)
The final element of Labor’s climate platform is a 50% renewable energy target by 2030. At this stage, not much detail has been unveiled other than shadow environment minister Mark Butler’s pledge that it will be “designed in a way that does not disturb investor sentiment around the delivery of the existing Renewable Energy Target” – something that a sector beset by uncertainty would welcome. As such, it is quite difficult to speculate on how electricity prices might react.

The current Renewable Energy Target is a certificate scheme that requires retailers to buy a certain amount of renewable energy. The cost of these certificates is passed on through electricity bills. However, as shown by the government’s own modelling, the interaction with the wholesale market results in a net saving to consumers.Interestingly, and as the AEMC points out, the electricity ETS is designed to be flexible and integrate with a renewable energy target. Indeed, such an ETS could drive investment in renewable energy, replacing current subsidies through the Renewable Energy Target. The 50% target could theoretically be achieved through the ETS alone, if the baseline was set at the right level.

A bipartisan approach?
As it stands, the government’s climate platform is unlikely to have any impact on electricity prices. However, it will also not have a major impact on the electricity sector’s emissions.
Labor’s policies will have an impact, but as the AEMC notes it may occur “without a significant effect on absolute price levels faced by consumers”.
The government’s current polices will require strengthening to further reduce emissions. To achieve this, the Grattan Institute and others including the Business Council of Australia have supported ideas that would turn the Liberal platform into something very similar to Labor’s.
Indeed, modelling commissioned by the government itself assumes that Direct Action will eventually morph into a similar baseline-and-credit ETS, in order to meet long-term climate commitments.
Political slogans aside, perhaps a bipartisan approach is possible, without a significant effect on power bills.
Dylan McConnel: Research Fellow, Melbourne Energy Institute, University of Melbourne. He received funding from the AEMC’s consumer advocacy panel.

This article is sourced from Renew Economy. You can read the original article here

Interest in energy storage is heating up across Australia, and thanks mainly to Tesla’s Elon Musk, the prospect of installing a battery at your home and having it provide power to your household equipment has become fashionable.Beyond the hype, there are a number of factors that are driving consumer-level interest in batteries, namely high retail electricity prices, the large gap between peak prices and off peak prices, the high penetration of solar coupled with the low feed-in tariffs offered by retailers, and an instinctive feeling that the big electricity utilities are not on your side.

Getting solar PV and a battery seems like the logical response to reduce electricity bills and loosen the grip of the grid, and the retailers that have been profiting from your escalating energy bills.

However, let’s remove the emotion for a minute and take a close look at the economics of the decision whether or not to get a solar PV and battery system. The key mistake that many people make is to treat this as an all or nothing decision. The nothing option is easy — resigned to the view that your electricity bills are all too boring and complex to do anything about, combined with the likelihood that you don’t know who to trust — you simply do nothing.
On the other hand the all option involves purchasing a large solar PV system and a battery to generate, store and use as much of your own electricity as possible. (For example, at today’s prices a 5kW solar PV system and a 12kWh battery might cost about $20,000 and a smaller 2.5kW solar PV system and 3kWh battery might cost about $10,000.)
You would think that an experienced installer or your electricity retailer would know what kind of savings these systems will generate but the reality is nobody can tell you with sufficient certainty. There are so many variables to take into account, including the crucial element of exactly how you as a consumer use electricity throughout the day and across the seasons.
Your retailer might have some insight into this if you have a digital interval meter, or smart meter, but they are not using this information to figure out what your savings could be. And considering that they make more money when you consume more from the grid they really have no incentive to help you cut your grid consumption.
The fact is that right now the typical payback period for energy storage can be as high as 30 years, and given that most decent battery systems come with a 10-year warranty, and power converters probably last about this long too, you’d be right to conclude that a payback period in excess of 10 years is a poor financial outcome.
The mistake though is to treat this as an all or nothing decision, instead of taking an incremental approach to the analysis.
There are some simple things that you can do today to cut your electricity bill, but beyond these simple, low investment options, you also need to decouple solar from storage because put simply, solar is relatively cheap and proven technology, whereas storage is expensive and nascent. There is no logical reason that you have to do the two together, and separating the two and running the numbers proves this.
Sellers of solar and storage equipment will typically look at your current bill and situation and compare this against the scenario where you install a solar PV system and possibly also a battery storage system that will store excess solar generation and supply this to your home during peak times.
To keep the economics simple we’ll just focus the simple payback period, that is, how many years it will take to pay back your investment. (Although this is not the most robust way to analyse investment decisions, it is the simplest metric to look at, and the one most commonly used to compare and express the economic benefits of these systems.)
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Absolute Approach

​The “absolute approach” compares the result of doing something to the current state, that is, “buy system X or do nothing”. The table above shows that it seems to make good sense to get solar, as an investment of $4,000 provides savings of $600 each year, and you’ll make your money back in just under 7 years. Getting solar and storage together is not as good though, since an investment of $10,000 saves you $850 each year, and you only make your money back in 12 years.
Personally I feel like a 12-year payback period is a little too long, but I’ll leave it to you to decide whether you’d just go for solar or get solar and storage at the same time.

The problem though is that this analysis is fundamentally flawed for 2 key reasons.
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The first issue is that adding a battery should be looked at incrementally. The battery adds $6,000 on top of the solar system and returns an additional $250 each year ($850 less $600), for a payback period of 25 years. Looked at in this way you would be right not to get the battery system. The mistake in the analysis above is that it looks at decisions in an all or nothing way, when in fact you need to look at each decision incrementally.
The second problem is that this analysis misses a key opportunity, and that is, you can easily, and generally for no upfront cost, save money by first switching to a better electricity tariff either from your current retailer or a new retailer * that offers a better tariff for your level of usage. For example, in New South Wales, the government website Energy Made Easy compares all available tariffs against one another and shows you how much you could save by switching. Switching generally costs nothing, and for our example household, can deliver large savings.

Incremental Approach

Adding in the option of switching tariffs and then taking an ‘incremental approach” to the analysis shows us that switching tariffs or retailer * can save $750 each year. After doing this, even getting solar looks like a borderline decision, and adding storage is definitely out of the question for now.
This appears to be bad news for solar and storage, but that is not the point. The point is what is good for consumers is to first take advantage of low cost and easy ways to save money on energy. The next step is to gather good data about how you use energy and work with someone you trust to give you the right advice, specific to your circumstances. The final step is to possibly invest in solar and storage technology to help you further reduce your bills and reliance on the grid.
For most people with average to high electricity bills, and good north or west facing roof space, solar will make sense today. However, storage is still too expensive for the mainstream consumer who wants to cut their energy bills. But all of this will change as battery costs continue to come down, the technology improves, additional revenue streams for the battery become apparent, and grid prices continue to rise.

Article by Darren Miller 
Darren Miller is Co-Founder & CFO at Mojo Power.

Article sourced from One Step Off the Grid

The benefits of Reactive Power Control (RPC)
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While reactive power has no value in powering electrical devices, it does perform valuable functions to help power move more efficiently. An RPC setting of 0.9 lagging or lower is mandatory on all exporting inverters rated above 2kVA and up to 30kVA and connected to Ergon Energy’s main network (not SWER or isolated networks).

A lagging fixed power factor ‘absorbs’ reactive power to reduce the amount of voltage rise attributed to the power generated by the PV system. Although it operates whenever the array is generating, it will only impact the generation amount (kW) when the PV system is generating at its maximum. For example, with a 0.9 lagging setting on a 5kVA inverter, the kW capacity is only reduced when it exceeds 4.5kW.

By throttling back the kW capacity at peak PV generation times, the voltage rise to the network attachment point is reduced, thereby reducing the likelihood of the inverter’s maximum voltage trip point being reached. This in turn means the inverter will not trip off as often as it may have, which will result in more kWh being generated over a typical day, as illustrated by the green line in Figure 1.

RPC also benefits the local network and neighbouring PV systems, in that the reduced upward pressure on the network voltage will allow other PV systems sharing the transformer to operate without tripping off (other than in necessary circumstances), or at least operate for longer before tripping off. As more of your customers have RPC enabled, more inverters will operate more effectively.

A key benefit of RPC enablement is that PV applications on premises on Ergon Energy’s main network which include RPC and undergo assessment are more likely to be approved. Also, the higher proportion of inverters with RPC on a local network, the more applications we’ll be able to approve on that network. Installers are encouraged to activate RPC on existing PV systems to help address voltage-trip issues.

In a small proportion of cases, where there is a robust local network and few or no other PV units connected, the total kWh generated by a PV system with RPC may be a few per cent less annually than it would be without RPC. We’re confident that RPC provides holistic benefits for PV customers, the network and the PV industry. To minimise any downsides, we have allowed for dynamic RPC settings under the new (draft) Connection Standard that is currently open for feedback. 
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Ergon and the Clean Energy Council (CEC) work together on best practice
We have an ongoing focus on driving higher standards of work practice and compliance with our requirements. The CEC’s support means we can refer repeated or serious non-compliances with distributor requirements by installers for consideration under the CEC’s demerit points system. Non-compliances will be rated as Minor, Medium or Major and demerit points allocated as relevant, entirely at the CEC’s discretion.

An example of a Minor non-compliance is replacing an inverter without lodging an application. Failing to set RPC or export limitation as per the contract would be a Medium non-compliance.  A Major non-compliance would be failing to set the maximum voltage trip point as required. Referrals to the CEC will be a last resort and will only occur after we have consulted with the installer, reiterated our requirements and given them every chance to comply.
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Managing older inverters that are no longer compliant
If an inverter needs replacement under warranty and is no longer compliant with the IEC 62109 standard required from 11 July 2015, it can be replaced with the same brand, series and model of inverter. However, the application for such an inverter replacement cannot be lodged online with Ergon Energy and must be lodged using the PDF application form (by email or fax).

If an inverter rated above 2kVA and connected to Ergon Energy’s main network doesn’t have RPC capability and needs to be replaced, its replacement must have RPC, even if under warranty.

If an inverter rated above 5kVA is connected to single-phase premises, or one phase of a multi-phase premises, and needs to be replaced, the new inverter capacity must be either limited to a maximum of 5kVA on a single phase or spread as evenly as possible over multiple phases.

Where phase imbalance between multiple inverters exceeds 5kVA, and one or more of the inverters need to be replaced, the new configuration should ideally result in the total inverter capacity being divided evenly between multiple phases, or the imbalance being reduced to no more than 5kVA.

A reminder that when it comes to the 44c Feed-in Tariff (FiT), the capacity of any replacement inverter/s must not exceed the original inverter kVA rating, otherwise 44c FiT eligibility will be lost.
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Battery applications are essential
Ergon considers a Battery Energy Storage System (BESS) to be any energy storage device that requires an AS 4777 accredited inverter to feed electricity to a grid-connected electrical circuit, even if the battery is not capable of exporting to the grid.

Under the electricity legislation, all customers must apply to connect a battery and gain our agreement before installation. Adding a battery to an existing PV unit without seeking agreement means the customer is in breach of the electricity legislation, and we may take action that includes disconnecting the battery from the network.

Installers that connect multiple batteries to a grid-connected electrical circuit without an application are likely to be referred to the Clean Energy Council. If you have failed to lodge application when previously installing batteries, please do so by 29 February 2016. Industry members lodging these retrospective applications will not be referred.

Only Uninterruptable Power Supplies or batteries connected to a non-grid-connected electrical circuit are exempt from our application requirements and you can find more details on our connecting batteries to the network webpage.
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Clarification of applicant responsibilities
If you are applying for network connection of a PV system or other micro EG unit on behalf of the owner of the premises, it is important that you remind the customer that they will be responsible for paying certain costs associated with the installation as well as an ongoing metering charge via their electricity retailer. Where we replace the meter, the customer will pay a fee.
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Merger of Ergon Energy and Energex
The Queensland Government has announced that the corporate services of Ergon Energy and Energex will be merged in 2016. The field services will remain as separate entities under their existing brands. Network differences will still exist in some cases so some differences will continue for installers, however these will be well communicated. More details can be found on the State Government website.
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Review of Connection Standard up to 30kVA​
The updated draft Standard has now been released for further industry consultation. Thank you to those who have so far made submissions to the Review.  You can view the updated draft and email your feedback to i.tech.enquiries@ergon.com.au until 25 March 2016.

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Helpful links
Ergon Energy ‘Solar PV’ web page

Ergon Energy ‘Battery storage’ web page

Ergon Energy ‘Electric vehicles’ web page

Joint Ergon Energy/Energex Connection Standard for Small Scale Parallel Inverter Energy Systems up to 30kVA

Standard for Connection of Embedded Generators [>30kVA] in the Ergon Energy Distribution Network
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Solar Support Team
Need advice? Please feel free to call our Solar Support Team on 1300 553 924 between 8:00am and 5:00pm Monday to Friday or email us at energysystems@ergon.com.au.

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