Chairman’s Note
At long last, the solar panels on the Neighbourhood Centre are generating electricity. On Friday 4 May we had a launch of this project as reported below. Community Energy is regularly in the news and Jarra Hicks from Community Power Agency talked about this at our launch.
The feature article in this newsletter provides an update on Solar for Renters.
Energise Gloucester Committee is continuing to develop a number of possible projects. A major constraint with many of these is money to undertake feasibility studies so if you have any suggestions for possible grant applications please talk to a committee member.
Helen Shearer has resigned as Secretary due to other work pressures and we welcome Vicki Coombes as our new Secretary.
The Alternative Technology Association (ATA) has launched a new, remodelled version of 'Sunulator' its free economic analysis tool for grid-connected solar PV systems. The simulation software has been upgraded to include an on-grid battery storage component and extended coverage across Australia. You can access this on http://www.ata.org.au/ata-research/sunulator/
If you are thinking about purchasing a solar system check out https://www.solarquotes.com.au
Yours with energy,
David Marston
Chair
BWNG Solar Launch
Over 50 people gathered at the Neighbourhood Centre on the evening of Friday, 5 May to celebrate the operational phase of this project. Finally, all the approvals and meters are in place and electricity is flowing.
David Marston, Chair of EG, talked about the project's design, construction and funding. He thanked the community members who have lent $22,000 to EG to make the project financially viable. Equally important is the donation of $10,000 from the electricity retailer PowerShop.
Anna Burley, CEO of BWNG, explained what a great financial benefit the solar electricity is to the Centre and that in 3 years they will be able to self-generate most of their electricity needs. She also spoke about the energy saving improvements the Centre had made to the building as a direct result of an energy audit.
Jarra Hicks from Community Power Agency in Newcastle spoke about the large and increasing number of community energy organisations and projects that are happening around Australia.
This lent support to some of the other projects that EG is investigating and left members with the feeling that we are amongst a very worthwhile group of community energy organisations. She congratulated EG for its work and the success of this solar PV project.
Project Updates
BWNG Roof
This project is now operational and providing electricity to the Neighbourhood Centre. It has taken some time to get all the approvals and connections in-place, but we have done it!
The BWNG is now purchasing the electricity from EG and this will mean that they will own the system in about 3 years and their electricity cost will be substantially reduced.
Thanks to all the people who have loaned money to EG for this project. If any EG members know of similar projects that we may be able to design and construct, please let us know.
Community Generation
We have done the pre-feasibility study for this project and need to move to a detailed technical and financial feasibility study. EG applied to the NSW Government for a grant under the Clean Energy Knowledge Sharing Initiative but we were unsuccessful. The committee is now considering other funding sources for this study.
Solar for Rental Properties
EG is developing a project based on the article on page 2 of this Newsletter. More information about this in the next newsletter.
Bulk Buy
EG is in contact with Farming the Sun, about the feasibility of a bulk buy event in our area. We hope that this may happen later this year and enable people to buy cheaper, quality solar panels.
Biogas
We’re continuing to investigate this concept. It would use food and vegetable waste from shops, restaurants, garden refuse and perhaps the saleyards.
New Schemes to Help Renters get Solar Panels on their Roof
The ever-more-elusive dream of home ownership means an increase the number of renters. This is now over 30 per cent in many communities, and these rented properties tend to be the "solar have-nots". What can renters do if they want to save money and reduce their greenhouse emissions?
The main problem is what is called a 'split incentive' as it’s landlords who will usually be installing and paying for the solar panels, but it's the tenant who sees the benefit on the electricity bill.
What are the options?
The first option involves splitting the costs and the benefits of a rooftop system between the tenant and landlord.
An initial step could be to ask the landlord if they are willing to install a system in return for an increase in the rent to help cover the cost. But this can be hard to negotiate, not least because it requires the landlord to fork out some thousands of dollars up front.
Luckily, the falling cost of solar has seen an increase in affordable finance options, not only in the private sector but also among not-for-profit groups.
Our neighbours Z-Net Uralla recently teamed up with the not-for-profit CORENA fund (Citizens Own Renewable Energy Network Australia) to give landlords interest-free loans to install solar on their rental properties. CORENA also helps broker a fair rent increase to help cover the cost of repayments.
"We are hoping that the partnership can be a model for communities elsewhere to copy," MargareHender of CORENA said. "We make sure that any rent increase is no more than half the savings that the tenant will get from having solar installed."
Councils also take the lead
There's also a move among some local councils to offer landlords interest-free loans that can be paid off via rate instalments.
Under the "Solar Savers" scheme pioneered by Darebin City Council in Melbourne, landlords can even transfer their loan to the new owner when the property is sold. Darebin is now targeting landlords, which means renters will be able to negotiate a rent increase to help cover the loan repayment. The City of Adelaide is another council that has followed this lead.
No Cost to the Landlord
But there are also solutions that don't require the landlord to be out of pocket at all. This can involve a company installing rooftop solar — with permission from landlord — and then charging the tenant, either for the electricity they use, or a fixed lease repayment.
Seek Professional Advice
Whether solar benefitutweigh the cost of finance and by how much, depends on the individual case and needs to be worked by a professional. The calculations will include the pattern of energy use and what electricity tariff the tenant is currently paying. The most economic solar project is when they have medium to high daytime electricity use.
Tenants can also reduce their energy usage as well as increase their savings by making their homes more energy efficient. This involves such things as using energy efficient light bulbs, choosing energy-efficient appliances, sealing windows and doors to keep out draughts, closing blinds and curtains to keep out the heat in summer and to keep in the warmth in winter.
Another elephant in the room is the problem of tenure.
A major barrier to roof PVs is really the insecurity of tenure that tenants have. However, as home ownership falls and people rent further into their lifespan, a growing number of tenants can actually afford the upfront cost to put solar on their roof.
The average rental tenure in Germany, for example, is about 10 years. But in Australia it is more like 18 months to two years. This makes rooftop solar payback times of three to eight years just a bit harder to justify.
So what's stopping us?
- Cheaper solar and more expensive grid electricity mean it's more affordable to finance rooftop solar
Schemes are emerging that help renters get access to rooftop solar
Experts warn renters need to weigh costs as well as benefits to decide if it's worth it.
EG is hoping to initiate a project in this area soon
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