These days, depending on your state, the size range for a residential solar system is ordinarily between 3kW and 5kW. With 5kW being one of the most popular system sizes in the country – 7kW is only a bit above average, and not much of a stretch economically for households with a flexible budget for a solar system.

How many solar panels in a 7kW solar system? How much area required?

A 7kW solar system using 275 watt (W) to 320W modules will consist of about 25-28 panels.

Each panel generally measures out to about 1.7m2, so the roof area required for a 7kW system will be about 40-48m2 – or possibly more depending on how your roof is laid out and whether you require tilt frames (which need to be spaced out more than panels mounted flush on the roof).

Pricing for 7kW solar systems

Solar Choice publishes a monthly Solar PV Price Index that tracks average pricing trends in every capital city in Australia.According to Solar Choice’s own data, the average 7kW solar system price in Australia as of November 2021 is about $0.95 per watt – or about $6,670.

The table below, from October 2019, provides a snapshot of price trends for 7kW solar systems in capital cities around the country.

Historic pricing for 7kW solar systems through to May 2021.

 

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Typical power output 7kW solar system

Depending a number of factors, the actual power output of a 7kW solar power system will vary. These factors include:

-Geographic location (e.g. Darwin generates much more energy than Hobart)

–Orientation and tilt angle of the solar panel array

–The degree to which the panels are shaded by nearby objects

-Operating temperature of the panels

The table below provides some rough guidelines as to how much energy you can reasonably expect a north-facing 7kW solar system (operating at a 75% efficiency ratio) to produce in Australia’s capital cities. Please note that the figures in the table are daily averages; in reality, a system will produce more energy in the longer days of summer and less in the shorter days of winter.

7kW solar systemCapital CityApprox daily solar energy production
(annual average)*Adelaide25-29kWhBrisbane27-29kWhCanberra25-29kWhDarwin31kWhHobart20-23kWhMelbourne22-25kWhPerth28-31kWhSydney24-26kWh*Via PVWatts & Bureau of Meteorology

 

Payback period & ROI for a 7kW solar system

Payback periods for any size solar system are contingent on a number of factors, but one of the most important ones for homes and businesses going solar these days is ‘self-consumption’. These days, with only low solar feed-in tariffs on offer in pretty much every state, the business case for going solar is based mainly on how much of  the solar power will directly used by the home or business.

Here’s why: If you own a solar system, the electricity it produces is worth much more to you if you consume it yourself than if you allow it to be ‘exported’ to the electricity grid. If you self-consume 1kWh of power, you avoid purchasing 1kWh of electricity from the grid, thereby saving anywhere from 18¢-¢40 on your power bill, depending on your location and what your electricity retailer/utility charges you for electricity. By contrast, if you allow the power to be exported to the grid, you will generally earn between 7-13c/kWh in solar feed-in credits.

So how can you make sure you use as much of your solar power yourself? Step 1 would be ensuring that you get a solar system that is appropriately-sized for your needs. Step 2 would be understanding your electricity usage profile and working to optimise your power usage. (Note that power from a system’s solar panels will automatically go straight into any appliances that are running, and the excess will automatically flow into the grid.)

That being said, the table below provides some indicative payback period figures for 7kW solar systems in a handful of capital cities in Australia.

Indicative returns for 7kW solar systems at average prices in select capital cities

(Assuming 30kWh electricity consumption/day)

 Sydney

(assumes 11c/kWh feed-in tariff, 25c/kWh retail rate)Brisbane

(assumes 11c/kWh feed-in rate, 21c/kWh retail rate) $6,760 $7,190 @ 20% self-consumption @ 40% self-consumption@ 20% self-consumption@ 40% self-consumption ~5 year payback ~3.9 year payback ~5.3 year payback ~4.4 year payback ~19% IRR~26% IRR ~19% IRR ~23% IRR ~$1,302 annual savings ~$1,664 annual savings ~$1,334 annual savings ~$1,601 annual savings Melbourne

(assumes 11.3c/kWh feed-in tariff, 21c/kWh retail rate)Perth

(assumes 7c/kWh feed-in rate, 27c/kWh retail rate)$8,010$5,660@ 20% self-consumption@ 40% self-consumption@ 20% self-consumption@ 40% self-consumption~6.7 year payback~5.5 year payback~4.6 year payback~3.3 year payback~14% IRR~18% IRR~22% IRR~31% IRR~$1,131 annual savings~$1,398 annual savings~$1,199 annual savings~$1,696 annual savings

You can experiment with the numbers yourself using Solar Choice’s Solar PV System Payback Calculator.

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Since 2008 our knowledge and sophisticated software has allowed over 160,000 Australian households and businesses to make a well-informed choice on their solar & battery installer.

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© 2019 Solar Choice Pty Ltd

The post 7kW solar systems: Prices, output & return on investment appeared first on Solar Choice.

In Australia, around 3 million households enjoy the benefits of rooftop solar. Solar is a big investment. Customers definitely wish to get it done by professional solar installers. An installer who provides great service does quality work and offers a fair price would be the first choice. 

Hiring a professional solar installer makes better sense than risking an accident. They will have specialized tools and equipment to get the job done.

Moreover, their extensive training and experience enable them to complete the installation more efficiently and this increases the property value. Some manufacturers will not cover the warranty if the installers are uncertified. Choosing quality installers from a marketplace flooded with companies claiming to be the best solar installers around is not an easy task. 

Professional & certified solar installer in Perth

To be eligible for government rebates, the designer and installer of your solar system must be accredited by the Clean Energy Council (CEC). The Clean Energy Council’s accreditation scheme ensures that accredited designers and installers of solar PV power systems have undergone the necessary professional training.

CEC will see to it that the installers follow industry best practices and adhere to Australian Standards. Likewise, they ensure that a routine updating of skills and product knowledge is also done. An accredited installer will provide you with a very good system design and specification that best suits your needs.

Is your installer trustworthy?

To maintain high standards and to protect consumers, the solar industry has many accreditations. Clean Energy Council (CEC) is the accreditation body for the designer, installer, and components. The first thing your chosen installer should have is an electrical license. The second is accreditation with the Clean Energy Council of Australia (or CEC).

The CEC lists more than 7000 accredited solar installers on its website. Anyone can look for the logo and check the list of CEC Approved Solar Retailers to verify if an installer is actually approved.

To know whether the installer is trustworthy, it would be ideal to check whether the company has a strong presence in Perth. Discuss with anyone in your community or relative who has installed solar systems previously. Check below points also

The installers are operating from a virtual office or physical office? How many years have they been working from the same office?Do installers have good customer reviews in productreview.com and google?

One can check whether their system design is by a CEC accredited system designer and ask for their CEC installer accreditation during installation.

A trustworthy installer never goes for exaggerated claims or aggressive sales techniques. Asking you to sign on the spot, use door-to-door sales are some of the untrustworthy sales tactics. 

Local solar installer Vs National companies

National companies are more expensive as their pricing is based on the company’s market share and financial goals. Local companies are cheaper as they are less under pressure and have less profit criteria than larger companies.

National installers hire subcontractors to do their installation work.  The accountability is a little different than with a local company. The only finance option with local solar installers is paying in cash or taking a loan from solar lenders. With national installers, one has the option for a lease, or a Power Purchasing Agreement (PPA).

A national solar company installs solar panels in various states and locations while local solar panel companies serve only a specific area or state. To conclude, it would be ideal to choose a local solar company over a national one.  As their local expertise and building code knowledge would be more suitable for local construction projects.

With their knowledge of prevailing local environmental conditions, local solar companies can provide you a custom solar panels that fit your needs. Also, they can customize the system to fit into the needs by upgrading materials that are more suitable to local climates.

Leasing solar system VS installing your own

If you can afford to pay an upfront installation cost, owning a system is a better investment than leasing or taking out a loan. Though it will take some time to have savings, owning a system helps to maximise ROI and equity in the home.  It also increases the market value of the building.

One can own a system by buying it or by taking a solar loan. Loans are generally available for 10 to 25-year terms. Interest rates range from 3% to 8%. Dealer fees are typically around 5-15%

Leasing a solar energy system is a better option for people who don’t have the cash to buy a system. Lease customers aren’t guaranteed to save money. The lease agreement can complicate home sales. A solar lease is the best option if one is looking to create a predictable, lower electric bill and start saving immediately.

They don’t have to worry about the responsibility of maintaining or repairing their solar panel system. It helps to reduce electricity costs by 30% – 50%

Solar leases and PPAs are typically for 20 to 25-year terms. With a PPA, one has the option to purchase the system after the 5-year mark, at which point you can buy the system outright.

Solar system installation agreement

A solar system installation agreement is a contract entered into between the customer and retailer for the purpose of installing a solar system. It complies with the contract requirements under the Clean Energy Council Approved Solar Retailer program.

A solar system installation agreement includes:

A customer quote and contract terms and conditions, including system pricing, delivery, and payment details.In solar installation Terms and Conditions following things should be explained. sale of the system, payments, and refunds, delivery and installation, accessing the premise, system performance, maintenance, and STC assignment. Apart from the above topics, system guarantees and warranties and obligations under the Privacy Act also should be included. Dealings for grid connection and other approvalsThe retailer’s commitments and customers’ obligations in relation to installation requirements.

Workmanship warranty

A workmanship warranty provides coverage against any defects that arise from workmanship in installing solar panels, inverters, or batteries on the premises.

A workmanship warranty covers only the work performed by the contractor including any installation errors. It usually covers about one year following the completion of the work.

Not all contractors follow it. One has to be cautious enough to carefully read the fine print to get the details of the workmanship warranty.

It is important to review the terms and conditions and talk directly to your contractor about any concerns you may have.

It is recommended to find a contractor that offers a workmanship warranty that covers a wide range of common issues, such as leaks.

To summarise, getting the installation done by a certified solar installer involves everything from designing to installation in a professional way. By doing so one can benefit from warranties and quality materials.

Getting the job done by professionals instills confidence that the system will run correctly and it increases the property value as well.

The post How to find Professional Solar Installers in Perth? appeared first on Regen Power.

Solenis is an American-owned specialty chemicals manufacturer, producing products for the creation of pulp, paper, oil/gas, mining, biorefining and other markets.

The plant in Melbourne is a large consumer of power and the business has utilized an onsite solar power installation to tackle growing electricity costs and reduce their carbon footprint.

Solar Choice was engaged to perform an initial business case independently assessing the optimal design and accurately estimating the expected cash flows. The installation contract was one by one of Solar Choice’s installer partners.

The installed system will feature 444 x 450W Eging Solar Panels and 2 x 110kW Sungrow Inverters. The project also required a complex subground AC cable run and trench system to connect one of the arrays.

The system is expected to produce an average of 330kWh of clean energy each day and cover up to 35% of Solenis’ electricity bills. 

The post Solenis Installs 200kW of Solar PV on Melbourne Site appeared first on Solar Choice.

The ‘solarcoaster’ cycles of the Australia solar power industry are an economists dream and a solar business owners worst nightmare.

The latest challenge for the industry to hurdle is the shortage and rapidly increasing price of solar panels. We have heard from the installers in our network that prices have gone up across the board for solar panels manufactured in China by 20-30%.

One major commercial solar installer in Australia has advised their supply agreement with their preferred panel brand had gone up 50% in the last 3 months.

It also seems that having an existing supply agreement at a fixed price is no protection as the Chinese manufacturers are walking away from those contracts and offer new higher prices, despite the risk of legal action.

 

What is causing the increased solar panel prices?

It seems the perfect storm has been brewing for solar panel manufacturers as there are many factors contributing to the recent price hikes.

Less solar panels are being produced

The Chinese energy crisis has lead to the coal price on the Zhengzhou commodity exchange more than doubling since mid-August and this has translated into higher power prices. As a result UBS Group AG has estimated that the subsequent power cuts in factories could lead to a 30% slowdown in energy-intensive sectors like solar panel manufacturing.

Image source: Bloomberg

This has led to a global shortage of solar panels. There are reports of shipments on the way to Australia being diverted to USA and Europe as larger buying power is winning the fight over remaining supply.

Price hikes on solar panel components

The Covid-19 lockdowns significantly decreased the production of some of the key components that go into a solar panel. Particularly polysilicon, solar glass and aluminium have been hit hard by price increases which are now being translated into wholesale solar panel costs.

Shipment costs from China

Last year a standard shipping container from China would cost US$3,500. These prices have been steadily increasing over the last 12 months now being reported at US12,000. One of our installers who ships panels over directly advised that they were quoted US$23,000 for a single container.

What about non-Chinese solar panels?

Manufacturers who have not based their solar panel production in China are protected from most of the above-mentioned causes. However approximately 90% of the world’s solar panels are produced in China.

It has been advised that companies like Q-Cells (South Korea) and Winaico (Taiwan) are completely sold out of remaining stock in Australia as solar installation companies are snapping up all remaining solar panels.

The post Solar Panel Prices Hike Over 30% in October 2021 appeared first on Solar Choice.

Australia’s main grid has made the switch to a single five minute trading settlement period, marking one of the biggest and most strongly contested changes in its history and a major step towards a smarter, cleaner, cheaper and more reliable grid.

The switch to 5MS (five minute settlement), first called for back in 2016, has been supported by the providers and owners of new fast response technology, particularly battery storage and demand response, and resisted by the owners of incumbent, legacy technologies, particularly baseload coal and gas generators.Now, after much regulator wrangling and lengthy delays the change is here, welcomed by the Australian Energy Market Operator as one of a number of major reforms required to keep pace with a rapidly changing grid.

“As one of the most significant reforms since the NEM’s inception in 1998, 5MS provides a better price signal for investment in fast response and flexible technologies, such as batteries and gas-peaking generation,” AEMO chief Daniel Westerman said.

“Over time, improved price signals should lead to more efficient decisions by generators lowering wholesale costs which make up around one third of a typical bill.”

Matt Baumgurtel, from energy consultancy Hamilton Locke, said the move to 5MS would help change the landscape of the NEM by promoting the use of renewable technologies and solutions over large incumbent coal generators.”In terms of market players, big batteries and ‘virtual power plants’ are likely to win out in this new system over old coal generators,” he said, pointing to their ability to stop and start supply more readily than the large incumbents and thus respond more rapidly to market signals.

Market players expect to see some volatility in the early days of the new 5MS rule as traders get used to different bidding strategies, but have suggested that wholesale prices could be more predictable over time.

The post Battery storage charges up for big switch to 5-minute settlements appeared first on Solar Choice.

A new report has warned that more than half of the 90GW of large-scale solar projects planned for development next year could be delayed or even cancelled, due to a combination of supply chain bottlenecks and price rises.

Rystad Energy estimates that a total of 50 gigawatts of big solar projects, or 56% of  the world’s 2022 pipeline are at risk as the cost of solar PV modules surged as high as $US0.28 per Watt peak (Wp) in the second half of 2021 – the highest levels since 2017.

“The utility solar industry is facing one of its toughest challenges just days ahead of COP26,” said David Dixon, an Australian-based senior renewables analyst at Rystad Energy.

“The current bottlenecks are not expected to be relieved within the next 12 months, meaning developers and off-takers will have to decide whether to reduce their margins, delay projects or increase off-take prices to get projects to financial close.”

In shipping alone, Rystad says there has been a near 500% increase in prices from $0.005 per Wp in September 2019 to $0.03 per Wp in October 2021, taking them from being up to a third of total project capex to the single-largest item of a project’s cost.

Combined, the price increases have seen the levelised cost of electricity (LCOE) for different plant sizes jump by between 10 and 15 per cent, Rystad said, leaving some project developers forced to absorb the added costs themselves.

The post Half of world’s planned solar projects in 2022 at risk due to rising costs appeared first on Solar Choice.

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