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Solar power - what to ask before you buy

If you're thinking of installing solar power in your home, but you're not sure what to ask before you buy, here are some suggestions to help you choose the right installation for you.

Click on a question below for more information.

1. Why: Why install a home solar power system?
2. Savings: How much power will the solar power system save?
3. Recover cost: How long will it take to recover the cost of the solar power system?
4. Type of panels: What type of solar panels should I get?
5. Information: What else should I know about the solar power system?
6. Excess electricity: Will I get paid for excess electricity produced by my solar power systems?
7. Metering: What types of metering are used for solar power installations?
8. Gross or net metering: Which is better, gross or net metering?
9. Changing meters: Can I change from one kind of solar power metering to another?
10. Reliability: Is a solar power installation reliable?
11. Problems: What if I have problems with my solar installation?
12. Grid/Off Grid: Should I go for a grid connect or off grid solar power installation?
13. Grid equipment: What equipment do I get with a 'grid connect' solar power system?
14. Off grid equipment: What do I get with an 'off grid' system?
15. Blackouts: Is it possible to have a 'blackout' with solar power?
16. Cloud cover: Does solar power work on cloudy days?
17. Installer: Have I chosen a good solar power installer?
18. Help choosing: Where can I get help to choose a solar power system?

1. Why install a solar power system?

• Saving money: It should save you money over the long term. The capital cost should eventually be recovered either by savings on your electricity bill and/or by receipt of payment for electricity which you feed into the grid. As electricity prices increase, the savings/payments should also increase. Note: Feed-in tariffs (payments for electricity you feed back into the grid) may vary with the electricity provider and from state to state. Check your tariff rate before signing anything!
  
  
• Subsidies: You may be eligible for up front subsidies from the Commonwealth government’s Small Scale Renewable Energy Scheme for assistance with the purchase of a solar power installation.  
  
  
• Greenhouse gas reduction: It significantly reduces the amount of greenhouse gases compared to the same amount of electricity produced using brown coal power stations..
  
  
• Rural and remote savings: Off grid installations mean you’re not paying for expensive cabling from electricity providers from the source to your home. 

2. How much power will the solar power system save?

Get the provider to make this clear to you. Savings will vary with your usage and location.

The Clean Energy Council has suggested that a 2KW system in Sydney could save up to 40% in electricity costs for the average household.

3. How long will it take to recover the cost of the solar power installation?

Find this out early.  It will depend on the size of the solar power system, and how much electricity it produces. 

In a grid connect system, it will also depend on how much excess electricity you produce, how it is metered, and what feed-in tariff you are paid. Note that feed-in tariff rates may change from time to time, and from place to place. Make sure you know what rate you will receive before you sign anything.

4. What type of solar panels should I get?

Solar panels (also known as photovoltaic panels) come in three main types:

• Polycrystalline – These have a good reputation, with relatively small size and good efficiency.
• Mono crystalline – These are the smallest panels and they're very efficient, but they cost a lot.
• Amorphous – These are very thin but they are less efficient so you’ll require more area of these for the same output as the other types. This might not suit if you have a limited area for solar panels, or you plan to increase the size of your installation in the future.

5. What else should I know about the solar power system?

Work out your expected electricity usage, in watts, to have an idea of how many and what type of solar panels you want/need. 

Then you can decide if you want to go ‘all solar’ or just reduce some of your electricity costs.

What you should check:

• How many watts do the solar panels produce - daily and annually? Beware of inflated claims.
• Will they fit on my roof (or wherever you plan to place them)?  Different types of solar panels are made in different sizes for the same number of watts.
• Do the panel manufacturer and the installer have good reputations for quality? Ask around. Don’t just take the installer’s word for it.
• Is the installer accredited? Ask to see the installer's accreditation.
• What is the warranty period on the solar panels? On labour? On the other components of the solar power system?
• Do the solar panels and components comply with Australian Standards ?
• Do the solar panels and components qualify for any government subsidies? .
• When comparing offers, check the bottom line - that is, don't just assume that more expensive is better. Check the warranty for the solar panels, and for labour, and if these are good, then compare the outputs in kWh per year.
• Can you expand the solar power system in the future?
• What deposit do you have to pay? Be wary of companies requiring more than 10% deposit.
• Read the contract carefully before you sign anything. If there is something you don't understand, clarify it before signing.
• Check if the quoted price is subject to change (e.g. due to increase in the cost of equipment to the installer).

6. Will I get paid for the excess electricity produced by my solar power system?

Not necessarily. Some retailers may not pay for your excees power. Check this before signing anything. And of course f you are 'off grid' you won't be able to feed any power back to the mains.

7. What types of metering are used for solar power installations?

Find out what type of metering you'll get:

• Net meters are electronic, and they record both the amount of energy you use, and how much is sent to the grid. Some also include usage ‘time of day’ when different tariffs apply.
• Gross meters send all electricity generated by the solar power installation to the grid. Billing your usage is a separate process at market rate - not at the lower feed-in tariff rate.

8. Which is better, gross or net metering?

Check this. In most cases, net metering is better.

Net Metering

• if you produce less electricity than you need, you pay market rate for the amount of energy you use over and above what you produce.
  
  
• If you produce more electricity than you use, it goes back to the grid and you'll be paid for it, at the lower feed-in tariff rate.

Gross Metering

This is generally less beneficial to you. You are paid at the lower feed-in tariff rate for ALL the solar power you produce, then you have to buy all the electricity you need at the higher full market rate.

9. Can I change from one kind of solar power metering to another?

Find out from your electricity distributor if this will incur an extra charge. It may involve replacing or at least reprogramming your electricity meter.

10. Is a solar power installation reliable?

Check to see if the solar panels and the installer have a good reputation.

• As there are no moving parts, the solar panels require little maintenance.
• They are easy to install.
• They should have a life span of several decades, even considering that they will lose some of their ability to generate power over the long term. A good quality installation should have a warranty for decades rather than years. Your warranty may have to be for at least 10 years to be eligible for some government subsidies.

11. What if I have problems with my solar power installation?

Before buying your solar power installation, find out from the installer:

• Is there an agreed time in which the system will be fixed? 
• What is the warranty period and what does it cover - e.g. does it cover labour and parts?
• Is there any fine print in the contract?

12. Should I get a grid connect or off grid solar power installation?

Ask your solar power installer. If you are already connected to the mains supply, you'll probably go for grid connect. If you are in a rural and remote area, you can avoid the costly connection charges associated with joining the main grid by going 'off grid'.

• Grid connect means your solar power system is also connected to a mains supply (the 'mains grid') which provides your electricity at times when your solar power system doesn't produce enough for your electricity needs. This applies to most residents in urban areas. If you produce more electricity than you use, it will be fed back into the mains supply, and you will be paid a certain amount for the electricity you produce. 
  
  
• Off grid means you are totally reliant on your solar power, storing it in special batteries for when you need it - for example during a long period of wet weather. This mostly applies to remote areas such as farms, where a mains supply is not available. Obviously, you can't feed excess power back to the mains.

13. What equipment do I get with a 'grid connect' solar power system?

Find out what is included and if there are any 'extras' that will push up the final cost. The main parts usually include:

• Solar panels - These are also called 'photovoltaic' panels, and they convert sunlight into direct current (DC) electricity.
• Inverter - An inverter, in this context, turns the DC current produced by your solar power system into the usual alternating current (AC) 240V electricity that we are used to in our homes.
• Meter Box - This contains the switchboard, which is where the 240V power is goes from the inverter. The meter box also contains circuit protection devices, and the metering system to measure the amount of electricity used and what you send to the grid.

14. What equipment do I get with an 'off grid' system?

Find out what is included and if there are any 'extras' that will push up the final cost. The main parts usually include

• Solar panels - These are also called 'photovoltaic' panels, and they convert sunlight into direct current (DC) electricity.
  
  
• Inverter - An inverter, in this context, turns the DC current produced by your solar power system into the usual alternating current (AC) 240V electricity that we are used to in our homes.
  
  
• Batteries - These store the excess electricity produced by your solar power system so that you can use it when the sun isn't shining. They can be located within the home or in a sheltered area (e.g. a shed). If required, a wind turbine could be used to charge the batteries when the sun isn't shining.
  
  
• Regulator - This prevents the DC current from over charging the batteries used to store the solar power.
  
  
• Generator - This is a backup for use when the sun is not shining and the batteries aren't charged.

• Meter Box - This contains the control board which manages the AC and DC power (and makes sure batteries are not over-charged), as well as switching and circuit protection.

15. Is it possible to have a 'blackout' with solar power?

Yes. Your system may have a problem, or it may be with the main supply. If you're connected to the mains grid, and there is a problem there, your solar power system will be automatically turned off to protect workers who are trying to fix the mains problem.

• Note: Even when your solar installation is not sending power to the grid, it may still be producing dangerous voltages between the solar panels and the inverter.
  
  
• Never touch any of the components of your solar power system, particularly during a 'blackout' or wet weather or a flood. If your home has been flooded, do not turn on your solar power system or any other electrical switches, fittings or appliances before they have been checked for safety by a licensed electrician or your solar power system installer.

16. Does solar power work on cloudy days?

Solar panels will produce electricity even on cloudy days.

Of course, bright sun will result in the best output, while a cloudy day might reduce that output by about half. On really dark days, it may only produce a small percentage of its capacity.

Your solar panels will work better if you hose them down once a year to remove dust and dirt.

If you're connected to a grid, you'll be able to 'top up' your electricity from the mains. If you're off grid, you'll have batteries that have been charged and will provide backup power..

17. Have I chosen a good solar power installer?

• Do they have a good reputation?
• Are they local?
• Will they be around in future years if you need them?
• How many solar power systems have they installed?
• How many years have they been in business?
• Ask for references. Check the references to make sure they are genuine.

18. Where can I get help to choose a solar power system?

See the Consumer Guide to Buying Household Solar Panels on the Clean Energy Council web site.

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