NSW Solar Bonus Update:
Last updated: 25 July 2011
Previous update: 09 May 2011
Summary of main changes
- Scheme changes announced 6 July 2011
- As at 1 March 2011, EnergyAustralia's brand and customer base are now owned by TRUenergy Pty Ltd.
- EnergyAustralia's network business has changed its name to Ausgrid.
Please see below for more information.
Topics
- Scheme changes (announced 6 July 2011)
- Scheme changes (announced 27 Oct 2010)
- Scheme capacity
- Metering
- Eligibility
- Scheme payments
Scheme changes
Announced 6 July 2011
Q1.1 Current Solar Bonus Scheme Status
The NSW Government has announced there will be no change to payments for customers already receiving or about to receive tariff payments under the Solar Bonus Scheme. This includes customers on the 60 cent or 20 cent tariff rate.
The Solar Bonus Scheme provides a feed-in tariff for eligible customers with small solar or wind generators that are connected to the grid. The Scheme commenced on 1 January 2010 and operates until 31 December 2016.
Customers wishing to connect a renewable energy generator to the grid without participating in the Solar Bonus Scheme are able to do so.
Customers are advised to regularly check the NSW Department of Trade & Investment, Regional Infrastructure and Services (DTRIS) website for up to date information.
Until further notice EnergyAustralia will provide a feed-in-tariff of 6 cents per kilowatt hour for customers who are not participating in the Solar Bonus Scheme and have a system with an Inverter rated at less than 10 kilowatts in size.
Announced 27 Oct 2010
Q1.2 What has changed to the NSW Solar Bonus Scheme?
The previous NSW Government announced significant changes to the Solar Bonus Scheme impacting eligible systems purchased or leased after 27 October 2010. Some of the key features of the NSW Solar Bonus Scheme are that:
- It will credit eligible customers with a 'GROSS’ or ‘NET’ feed-in tariff rate of 20 cents per kilowatt hour for electricity exported to the grid;
- Both Net and Gross tariffs are offered until the end of the scheme on 31 December 2016.
Systems already connected to the grid prior to 27 October 2010 which are currently eligible for the GROSS or NET tariff rate of 60 cents per kilowatt hour for electricity exported are not affected by the tariff changes however you can cease to be eligible for the 60 cents tariff if:
- The size of the complying generator increases after 27 October 2010;
- You cease to be the customer entitled to receive the payment (such as moving or closing the electricity account).
More information is available on the NSW Government's Solar Bonus Scheme and Solar Bonus Scheme Questions and Answers websites.
Scheme capacity
Q2. What is happening with the Solar Bonus Scheme in the future?
The Solar Bonus Scheme cap will be reached when the total connected capacity of both solar power systems and wind turbines reach 300MW. Once the Scheme is closed, customers whose system has not already been connected will not be eligible to receive bonus payments. More information is available on the NSW Government's Solar Bonus Scheme and Solar Bonus Scheme Questions and Answers websites.
Metering
Q3. What is the current availability of meters?
There is still a strong demand for electricity meters, largely as a result of the Solar Bonus Scheme and the announcement by the previous NSW Government that applications for connection of complying generators has reached 300 megawatts. Once 300 megawatts of solar capacity is connected to the grid, the Minister for Energy may close the scheme. On 29 April 2011 the new government also announced a Solar Summit to review various aspects of the Scheme, which could affect metering supply.
Solar meters can only be connected to the electricity network by Accredited Service Providers (ASPs), also known as Level 2 electrical contractors. In Ausgrid's network area there are 461 authorised ASPs to carry out the metering work. As at late April 2011 there were around 12,000 customers requiring solar systems to be connected to the Ausgrid network alone. Notwithstanding the hold on new applications from 29 April ASPs are still experiencing extremely large volumes of work and therefore delays may occur, so we kindly request your patience.
Ausgrid has worked with our meter suppliers to ensure we have ample gross meters in stock to meet demand from ASPs. Single phase single element Gross and three phase Whole Current meters are available now and are continually being supplied to Ausgrid to meet ongoing demand. Over the last few weeks, there has also been an increase in requests for Net meters. Ausgrid is currently increasing its supply of these; however there may be a delay in net meter availability for a short period.
Q4. What can a customer do to get an update on supply of their meter?
- Check that your electrician/installer has lodged an application for connection and received a job number from Ausgrid. Lodging this application for connection does not mean a meter has been ordered.
- Check that your electrician has taken their job number together with a meter request form to their nearest depot and lodged a request for a meter. The depot will call your electrician once a meter is available. Orders for meters at depots are fulfilled on a first in/first served basis so it is important your electrician lodges their request for a meter at a depot as soon as possible.
Q5. What if I want to remain on or install NET metering?
Both Net and Gross tariffs are offered until the end of the scheme on 31 December 2016.
It is up to individual customers to decide what metering arrangement will best suit their property, system and budget. Customers are encouraged to contact their accredited service provider to discuss their metering options before making a final decision. Net connected customers can still switch to a gross meter at any time during the course of the Scheme (and vice versa) although you may incur a cost to do so.
Q6. How much is it likely to cost to get my metering changed?
While the meters required will be supplied by Ausgrid at no additional cost, there will be a cost for installing them which is paid to your accredited service provider. For a standard household solar power installation (where the inverter is located close to the meter box), the installation work is estimated to be approximately $400 (incl. GST). These costs may be much higher for more complex situations, such as where the second meter does not fit into existing meter boxes or switchboards, or where the existing wiring from your inverter has to be re-routed within your premises to the new meter position.
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Q7. How do I go about organising my GROSS meter change?
There are two options to arrange a gross meter:
Option 1 – Using Ausgrid
Ausgrid is one of the many accredited service providers who are able to install gross meters. Call our Customer Contact Centre on 13 15 35 to arrange for one of our EnergyFix electricians to provide you with a competitive quote.
Option 2 – Using another Accredited Service Providers (ASP)
To find another ASP to arrange for a quote to do this work you can:
- Contact the ASP that installed your original meter for your solar power system or wind turbine (your solar power or wind turbine installer may have still have their details); or
- Download the full list of level 2 accredited service providers on the Industry and Investment NSW Website, and look for those listed with “Category 4” in the first column; or
- You can call NSW Fair Trading on 02 9895 0008 and ask them to help you find a “Level 2 Category 4” accredited service provider; or
- Find a local electrician in the Yellow Pages (and make sure you ask them to confirm they are a “Level 2 Category 4” accredited service provider).
Note: that there will be a cost for meter installation - see Metering question 6) above.
Q8. What is the difference between a NET metering and a GROSS metering configuration?
A GROSS metering configuration for solar power is set up so that all the electricity generated by the solar power system is directly fed back to the grid. NSW Solar Bonus Scheme credits are applied to the total amount of electricity your system generates (i.e. everything your system exports to the grid) and your electricity consumption (or imported electricity) is billed normally.
A NET metering configuration is also often referred to as “net metering” and is set up so that any electricity generated by the solar power system is always used on the premises first. Electricity generated by the solar power system is only fed back into (or exported to) the electricity grid when the amount generated is more than is being used on the premises. This type of metering configuration separately measures the amount of electricity imported from the grid and exported to the grid and it can be implemented in a number of ways.
In the Ausgrid network distribution area, a bi-directional time-of-use (TOU) meter is used for net-metering configurations. NSW Solar Bonus Scheme credits are applied to the net export amounts the meter measures (i.e. solar power system or wind turbine generated electricity less the amount consumed on the premises). Consumption (or import) electricity is also billed on the net amount the meter measures as being imported from the electricity grid (i.e. total consumption less any solar generated electricity first used on site).
Q9. What happens to the electricity generated by my solar (PV) system during blackouts or other electricity supply interruptions?
Due to safety reasons and in line with Australian Standards grid connected inverters are designed to monitor grid voltage and disconnect when the grid voltage exceeds certain limits (for example if the grid voltage goes above 263V ac or falls below 226V ac. Causes of such events include oversupply, undersupply and outages).
Inverters should turn back on and commence normal operation when the grid voltage is within the operating range for the inverter. As per the Australian Standard, the Inverter will wait for at least 1 minute after the grid voltage has stabilised before generating power into the Grid.
It is the customer’s responsibility to ensure their inverter switches back to normal operation after such an event.
Q10. Why is there a difference between my inverters reading and meter reading figures as on the solar generation statement?
The electricity meter supplied by Ausgrid that measures your solar power system or wind turbine generation is a calibrated instrument that is approved for Electricity Energy measurement by the Australian National Measurement Institute and provides a reading used to calculate your solar bonus. Your inverter is not approved by the Australian National Measurement Institute, and energy generation figures should only be used as a guide.
Information supplied by manufacturers suggest that the difference between the energy displayed on the Inverter and that shown by the Electricity meter can be in the range of +/- 10%, but can be worse when the inverter is operating at low output (e.g. on cloudy days or in morning or afternoon).
For more information please click on the following links.
Eligibility
Q11. How do I know whether my system meets the eligibility criteria for a complying generator?
If you are an existing solar power system or wind turbine customer, to become a complying generator, you will need to meet certain eligibility criteria*, including:
- Your annual electricity consumption must be less than 160,000 kilowatt hours (the average household uses approximately 7,000 kilowatt hours in a year); and
- Your inverter must be rated at no more than 10 kilowatts in size.
If you are about to install a new solar power system or upgrade your current system, you will also need to ensure:
- That your installer is accredited by the Clean Energy Council; and
- That your inverter equipment is also on the list of products approved by the Clean Energy Council.
You can check these details at the Clean Energy Council website links below:
* Full details on eligibility criteria can be found on the NSW Government Solar Bonus Scheme website. Please note that the website confirms that “Each customer has the responsibility for ensuring that their renewable energy generator installation meets all requirements of the Solar Bonus Scheme including complying with the metering and connection requirements of their distribution network”.
See: http://www.industry.nsw.gov.au/energy/sustainable/renewable/solar/solar-scheme
Q12. What is the eligibility process for Multi-site customers?
a. Obtain advice from your electricity Retailer as to whether your accounts have amalgamated a number of sites onto one retail supply contract.
b. If the answer to 1 is yes, you need to ask your retail supplier to advise you whether you are a small retail customers in respect of those sites. Your retailer will determine the aggregate consumption of all sites on the contract to determine whether the consumption for all the sites is less than 160MWh per annum. If it is less, then you should be classified by your retailer as a small retail customer and will need to elect which site is to receive the bonus. If it is more, you will not be eligible for the bonus as you will not be a small retail customer for those sites covered by the contract. However if there are any additional sites which are not covered by the same supply contract, and your retailer has determined that your are a small retail customer in respect of any of those other sites because you consume below 160 MWh p.a. at the site, then you will be eligible to elect one of those sites to receive the bonus.
c. If the answer to 1 is No, and all sites consume below 160 MWh p.a. then the customer is a small retail customer in respect of each of those premises and will need to elect which site is to receive the bonus.
Note: If each premise has a separate contract with a different customer as the contracting party responsible for the connection and electricity consumed at that connection, then this would not be regarded as a multi-site customer. The customer would be eligible for the solar bonus if less than 160MWh per annum is consumed at those premises.
Q13. If I am already part of the original Scheme, will my NSW Solar Bonus tariff be affected if I change from Net to Gross (or Gross to Net)?
No, providing you don’t increase your generator capacity or cease to be the customer entitled to receiving the payments. Increasing generation capacity refers to the increasing the solar array or the number of solar panels.
Scheme payments
Q14. What feed-in tariffs will I receive under the Scheme?
If your solar power system or wind turbine is eligible under the NSW Solar Bonus Scheme (including Net and Gross systems) and you are an EnergyAustralia retail customer you you will receive the following feed in tariff::
- Eligible systems purchased or leased (or subject to a binding agreement to purchase or lease an eligible system) prior 28 October 2010 will receive the solar bonus at a rate of 60 cents per kWh. EnergyAustralia will also pay its customers an additional 6 cents per kWh taking the total solar bonus rate from 60 to 66 cents per kWh.
- Eligible systems purchased or leased (or subject to a binding agreement to purchase or lease an eligible system) on or after 28 October 2010 will receive the solar bonus at a rate of 20 cents per kWh. EnergyAustralia will also pay its customers an additional 6 cents per kWh taking the total solar bonus rate from 20 to 26 cents per kWh.
The eligibility for the 60 cents rate assumes the capacity of the system has not increased after 27 October 2010 and that there has been no change to the person receiving the credit after 27 October 2010.
Q15. Is the solar rebate taxable income to the customer?
EnergyAustralia is not able to provide advice as to whether or not particular income or payments are taxable by the Commonwealth Government.
Customers should speak to their accountant or the Australian Tax Office for advice as to whether Solar Bonus Scheme payments are taxable in their particular circumstances.
Q16. How will I be paid my NSW Solar Bonus?
EnergyAustralia will pay the solar bonus for GROSS metered customers directly into your nominated bank account. If you do not nominate your bank account details we will send a cheque made out in the name of the electricity account holder.
EnergyAustralia will continue crediting its NET metered customers for the excess electricity generated by their solar system.
Q17. Will the solar rebate reduce my pension?
On 14 May 2010, a Media Release by the Commonwealth Minister for Families, Housing, Community Services and Indigenous Affairs, the Commonwealth Government clarified the way feed-in tariffs from household solar panels are assessed for the purposes of the pension income test. The Commonwealth Minister has stated that:
- Feed-in tariffs that are paid to pensioners as a credit on an electricity bill will not be assessed as income under the pension income test; and
- Power sold back to the grid in return for cash, cheque or a direct deposit is counted as income for social security purposes.
Customers should speak with Centrelink for further advice as to whether the Solar Bonus Scheme payments will affect your pension payments.
Q18. If I am a pensioner can I change my GROSS payments (Direct Credit or Cheque) to a credit on my electricity bill so that the solar bonus payments can be excluded from the pension income test?
Yes, pensioners can simply call our Customer Contact Centre on 13 15 35 and we will make the appropriate changes.