Sunday, May 29, 2011

The troubles with solar - How to keep the solar industry alive

Getting your head around what’s happening in the solar industry takes more than a little time.

 
 At one end of the spectrum you’ve got solar companies screaming they are all about to be run out of their various states by governments scaling back generous feed-in tariffs for grid-connected systems, on top of the Federal Government winding back its support for the upfront costs.

At the other end, you’ve got government ministers such as South Australia’s Energy Minister Michael O'Brien claiming that adding $30 a year to the average household power Hp 2510p battery dell d620 battery bill would be an unjustifiable cost – even if that was what was needed to keep the solar industry alive and encourage the more sustainable take up of greener power.

Not to mention the furore unravelling in NSW this week after the newly minted Premier, Barry O’Farrell, moved to stamp his credentials as a tough economic manager by announcing plans for retrospective legislation to slash the feed-in tariff for people who have already installed their solar panels.

More related business news :

In the middle are the households. Some are bewildered by the news that a NSW Fair Trading audit of systems in Port Macquarie found potentially fatal flaws in some homes. Five per cent of installations had serious problems. Extrapolate that across NSW, and it adds up to 6000 potential homes with the same issues.

At the same time, the Australian Competition and Consumer Commission has issued a joint warning with state consumer protection agencies that solar power retailers must ensure their claims are true – or risk civil and in some cases criminal sanctions.

I asked the ACCC how many complaints it had received, and what the nature of the complaints were. But was told the ACCC is unable to comment on the number or nature of complaints, because it treats all complaints confidentially and has a policy of not confirming or denying any investigations.
I also put the same question to consumer protection agencies around the country.

In Victoria, Consumer Affairs has been forced to issue a warning about a company who consumers have alleged took deposits for systems and never installed them, having enticed people to buy through door-to-door direct marketing or at advertising stands in suburban shopping centres.

During 2010, Consumer Affairs Victoria received about 350 complaints about solar systems, including "delays, faulty systems, billing and HP pavilion dv2000 battery Dell gw240 battery grid connection issues and general customer service complaints due to the growing demand for solar".

In NSW, since November 22 last year, Fair Trading has received 417 complaints regarding solar. The majority of consumer-related complaints were linked to "unsatisfactory or non‑performance of service and supply delay".

In South Australia, the Office of Consumer and Business Affairs has received 124 complaints in relation to solar systems in the last 16 months. This includes 87 complaints about the installation of solar panels, 33 complaints about solar hot water systems, and 4 complaints about the supply of solar panels.
In Western Australia, Consumer Protection says it has received more than 50 complaints against the solar PV industry this year.

“Some consumers believe they were misled by cost-saving claims, but the majority are concerned about unreasonable delays in installations,” says David Hillyard, director of Industry & Consumer Services at Consumer Protection in Western Australia.

“The delays are caused by a rapid increase in demand with installers battling to keep up. Consumers are concerned that their systems won't be installed before the Federal Government rebate is reduced in July this year, which is fuelling further demand.

“At this stage there is no evidence to suggest that any operators in WA are systematically breaching legislation. Complaints are being examined on a case-by-case basis.”

Hillyard says consumers need to do their own independent research as to the benefits of the different systems and whether they meet their needs. “They must weigh up the initial cost of between $3000 and $30,000 and determine how long it will take before they break even through savings on their power bills,” he says.
For example, a 1.5 kilowatt system could produce up to 6.6 kilowatt hours (kWh) of electricity per day. Considering the average household consumes 18 kWh per day, this system is only going to supply one-third of electricity needs and will not eliminate Compaq tc4200 battery Gateway btp-68b3 battery power bills.

“The most common complaints are about delayed installation so it is important to get clear and agreed timeframes from the installers in writing,” Hillyard says. “Understand the consequences of missing an installation date, if it is going to affect a rebate qualification date and what the long-term effects might be.”
A former worker in the solar industry contacted me this week, concerned consumers were being given the runaround. He says the business he worked for dissuaded all sales contractors from mentioning the Clean Energy Council’s Solar PV Consumer Guide to prospective clients.



 
The guide is a must-read for anyone thinking of buying a system.

The former worker also alleged that consumers were signing up for one type of panel but getting another. “[They would] substitute another panel type without obtaining prior consent of the purchaser,” he says.
“Often customers are not knowledgeable enough to check the wattage and type of panel brought to install, and they cannot tell the difference until the installers have departed."

The former solar Compaq pavilion dv6 battery Compaq nc4400 battery worker, who asked not to be named, said consumers were being dazzled by the incentives on offer and not doing the due diligence they normally would for such a big purchase.

It is all a bit reminiscent of the insulation scandal, which, unfairly, sullied the reputation of what is a very good and useful product. The problem lay with the companies paid to put insulation in, not with the product itself.
The issues that have emerged in Port Macquarie, and the complaints to consumer protection agencies, appear to be focused more around the installers than the actual panels.

If you have installed solar panels and are worried that they may not have been put in correctly, you can pay a registered electrician to check them for you. Or contact the electrical authority in your state or territory. There is a list of authorities in the consumer guide from the Clean Energy Council.

If you are thinking of installing solar, you should contact accredited installers that use licensed electricians and supply products that meet Australian standards.  A full list can be found at the Clean Energy Council website.  The website also has useful information on connecting your home system to the grid used by your electricity supplier.

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