Credit: Wikimedia

- Advertisement -

A solar sensation is sweeping the suburbs.

The concept is simple - buy in bulk and install in bulk. Rally fifty or so households in a geographic area commit to installing a 1kW photovoltaic panel system.

Solar suburbs, or solar communities, have started popping up around Australia, with the first ones getting a head start a couple of years ago. Local councils and community groups have also got on board, as have commercial programs.

The panels are ordered in bulk to reduce shipping costs and installed in houses in close proximity to reduce labour costs. The homeowner takes advantage of the Federal Government's $8,000 rebate and a $12,000 system suddenly becomes far more affordable at less than $2,000.

There are now 1,000 accredited solar panel installers in Australia; and, while those operating community bulk purchasing programs are in the minority, it is certainly an emerging trend. With the rebate about to end on June 30, 2009, solar neighbourhoods are springing up in several states.

Melbourne-based solar company Rezeko is helping to establishing solar neighbourhoods in Victoria, NSW, Queensland, ACT and Tasmania. CEO Erik Zimmerman says there are now well over 100 solar communities in Victoria alone.

"The market itself has grown enormously and (bulk buying) has certainly grown in popularity, mostly in the last 12 months," he says.

According to the Federal Government, there has been a significant increase in small-scale solar installations from 365 rebate applications each week at the last Federal Budget to an average of 1,300 applications each week. In the past week alone, 4,000 applications were made.

The Department of Environment's Solar Homes and Communities Plan has received so many applications it is unable to process them in the six-week time frame. Additional staff has been hired to manage the increased demand.

Smarter purchasing

The neighbourhood concept came out of a desire to make solar purchasing smarter.

"It's far more efficient to buy in bulk and eliminate the middle man wherever possible," Zimmerman says. The community approach makes people feel more comfortable about tackling solar panel installation.

Brisbane-based Eco-Kinetics runs bulk purchase programs in Queensland, Northern Territory and Victoria. QLD general manager David Enright says bulk programs have two main benefits - a better price and better value.

"From what we are seeing they are increasing in popularity," he says.

Rob Campbell is coordinating a solar community on Melbourne's south-east fringe. He sees it as a way to tackle a global problem at a local level.

Campbell said the most difficult aspect was administration, organising venues for information sessions and meeting media deadlines. People were eager to jump onboard.

"I was literally shocked at how enthusiastic everyone was," he says. "I received about 500 calls."

Most heard about it through word of mouth - some keen residents even distributed leaflets at train stations.
"People feel that it's safe and transparent. It's viable. It's achievable."

Three solar neighbourhoods - Berwick, Pakenham and Cranbourne - have formed, with a combined total of 160 households.

There are a few catches. The one-kilowatt-system does not provide all of a household's electricity needs - Rezeko estimates that it provides a quarter to a third of what is required. Some schemes require upfront payment meaning residents are out of pocket until they receive the rebate. Customers also usually pay for a smart meter, connection to the grid and non-standard installation costs.

However, the critical issue is the Renewable Energy Certificates (RECs).

Solar panels generate electricity without emitting carbon dioxide, entitling the owner to RECs. To keep prices low, many bulk solar programs require the householder to hand over the RECs to the installer.

Chris Riedy, a research director at the University of Technology Sydney's Institute for Sustainable Futures, says: "If you give up the RECs, in reality you are giving away the rights to that renewable energy to someone else - you are no more green than anyone else."

Solar companies are able to sell RECs on to carbon producers that have obligations under the renewable energy legislation to source a percentage of power from green sources. So instead of implementing renewable energy technology, they simply buy RECs.

"It's one of the concerns of the Carbon Pollution Reduction Scheme - the activities that people are undertaking are not going to reduce emissions any more," Riedy says. "Households are taking the burden off coal-fired electricity generators."

However, Riedy says, any household carbon reduction is a good thing.

"As long as they (solar companies) are clear about what they are doing and who is holding onto the RECs, it (bulk buying) is a great thing for the community to do; it's a great way to bring the cost down."

Rezeko has an option where customers pay extra to retain their RECs - the current market price is $990. It's up to the customer to decide whether to take this option on principle to force power companies into producing more green energy.

"We don't insist (that people retain their RECs)," Zimmerman said. "For a lot of people that (the price) is the make or break - they'd rather have the solar system than not."