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Last week the Clean Energy Regulator held an online information session titled, “Update on the Integrity Review of the Rooftop Solar PV Sector.”\u00a0 It outlined major changes aimed at kicking crap solar installers out of the industry.<\/p>\r\n
The big shakeup<\/a> starting next year puts the Clean Energy Regulator (CER) in charge of solar installer accreditation, giving them the power to police the industry and punish shoddy installers.\u00a0<\/p>\r\n These new powers will mean:<\/p>\r\n Enforcement by the CER will mainly occur by responding to complaints by home and business owners who have been hard done by.\u00a0<\/p>\r\n Sadly, a compulsory solar inspection scheme will not be introduced.\u00a0<\/p>\r\n As far as I can see, the changes are all for the better.\u00a0 Installers that do high-quality work should have nothing to worry about and will only benefit overall from the changes.<\/p>\r\n The implementation of new rules may cause problems for installers doing the right thing.\u00a0 But the Clean Energy Regulator is clearly trying to get it right and I’m fairly confident they’ll only cause headaches for those whose work is substandard.\u00a0<\/p>\r\n If the new rules are well-implemented:<\/p>\r\n The Clean Energy Regulator online information session began with a recap of how there has been huge growth in rooftop solar installations over 5 years.\u00a0 During this period the subsidy for rooftop solar power — the number of STCs received per kilowatt of solar panels1<\/a><\/sup> — has been declining but installations have taken off:<\/p>\r\n The dotted line with the long dashes at the end is the estimate for this year if last year’s boom had continued, while the short dotted line is the estimate if COVID threw a spanner in the works. The reality has been between the two. This graph shows the number of installations and not\u00a0 solar capacity installed, which is higher than the graph suggests because the average size of systems has been growing.<\/p><\/div>\r\n Around 3 gigawatts of rooftop solar were installed last year — a 35% increase over the 2.2 gigawatts installed the year before.\u00a0 While growth in the number of installations has been much lower this year, I expect Australians will install over 3 gigawatts because the average system size continues to increase.<\/p>\r\n Solar power<\/a> is popular is because it’s an excellent deal for almost every home and business.\u00a0 For most Australians, the simple payback period<\/a> of a solar system — from an installer who does quality work — is under four years2<\/a><\/sup>.<\/p>\r\n The problem is, not every installer does quality work.\u00a0 There are quite a few offering rock bottom prices along with rock bottom quality.\u00a0 If you get a badly installed solar system then the simple payback time can be infinity years because…<\/p>\r\n Using high-quality panels and a reliable inverter won’t protect you if the installation is lousy.\u00a0 You’re not going to win any races in a car put together by monkeys, no matter how high quality the components may be. \u00a0\u00a0<\/p>\r\n The integrity review of the solar industry was undertaken because Angus Taylor, the Honorable Minister for Energy and Emission Reductions — or perhaps based on his usual behaviour, the Minister for Energy and Avoiding Emission Reductions Where Ever Possible — called for it.\u00a0<\/p>\r\n I don’t know if he honestly wanted to do something about dodgy installers or just wanted to throw shade on solar in an attempt to squeeze a few more months of operation out of coal power stations, but either way, thanks for doing the solar installation industry a good turn, Angus.\u00a0 If we could convince him not to use our money to pay coal power stations to remain open<\/a>, that would be great.\u00a0<\/p>\r\n Sometimes you have to put all the rage behind you and not look back in Angus.<\/p><\/div>\r\n You can read the Government’s response to the review here<\/a>.\u00a0<\/p>\r\n The scope of the Integrity Review was to develop solutions for:<\/p>\r\n At the moment these issues are handled through the Small-scale Renewable Energy Scheme (SRES) and the Clean Energy Council (CEC).\u00a0<\/p>\r\n SRES:<\/strong>\u00a0 This scheme is responsible for the STCs that lower the cost of rooftop solar<\/a>.\u00a0 It is gradually being phased out and 2030 will be its final year.\u00a0\u00a0<\/p>\r\n CEC:\u00a0 <\/strong>The Clean Energy Council is an industry body or “peak body”.\u00a0 It’s in charge of solar installer accreditation and panel\/inverter testing and approval.\u00a0 A solar power system cannot legally receive the STC subsidy unless a CEC accredited installer is present and signs off on it.\u00a0 Panels and inverters that don’t pass their tests are not approved and any system using them cannot receive STCs. \u00a0<\/p>\r\n For various reasons, the CEC has not been highly effective at ridding the industry of low-quality installations.\u00a0 Some of the reasons are not the CEC’s fault, while others are.\u00a0 One reason there are still so many substandard installations is the CEC lacks “teeth”.\u00a0 Because of this, the Clean Energy Regulator is taking over enforcement, and things will get quite bitey.<\/p>\r\n The SRES is being gradually phased out, with no more STCs after the end of 2030. However, in 2028 the number of STCs received by small-scale solar will be one-third the current amount, so from that point on some installers may not bother to use them.\u00a0 This means changes need to be made well before then to ensure the end of the SRES and STCs does not result in a future rooftop solar quality decline.<\/p>\r\n The Integrity Review made 13 recommendations and the government accepted 12.\u00a0 The recommendation that wasn’t accepted but only “noted” was about Buy Now Pay Later finance.\u00a0 The dirty dozen that survived — or maybe tidy twelve since it’s the Clean <\/em>Energy Regulator — cover three main areas.\u00a0 In the CER’s own words they are:<\/p>\r\n I’ll cover the main changes that will occur below.<\/p>\r\n In a major change in enforcement, if an installer puts in just one solar system that does not perform as promised — or perform at all — and does not rectify the situation, the CER can require them to show cause why they should not be disqualified from installing solar.\u00a0 This is a major change from the current situation where bad operators supply multiple poorly performing systems while remaining in business year after year.\u00a0<\/p>\r\n The CEC currently accredits solar installers.\u00a0 This will be changed to put the CER in charge of accreditation.\u00a0 They will decide what training is required to become a solar installer and then tender out the process.\u00a0 One or more bodies will be selected and paid to perform the role of accrediting installers.\u00a0 \u00a0<\/p>\r\n Having one Commonwealth regulator in charge of accreditation with the power to kick out offenders should be far more effective at reducing low-quality installations than the current set-up. \u00a0 \u00a0<\/p>\r\n The CER made the point the current training of solar installers is good.\u00a0 For the most part, it is likely to be kept in its current form.\u00a0 But the CER will add training in the legal obligations of installers.\u00a0 Part of this will make it very clear that committing fraud by signing false statements is not on.<\/p>\r\n For a solar installation to be eligible to receive STCs, the system must be designed by a properly accredited person. An accredited installer must be on-site at the beginning, middle, and end of the installation.\u00a0 (Going to lunch or popping off for a fag is permitted.)\u00a0<\/p>\r\n Some large solar retailers have had an accredited installer sign off on installations they never attended.\u00a0 The CER made it clear that this will stop and the CER will bring fraud charges against those who do it.\u00a0 It appears serious jail time is on the cards for some people.\u00a0<\/p>\r\n To ensure compliance in the future, the Clean Energy Regulator is likely to require an accredited installer to take selfies with geo-locked coordinates at the beginning, middle, and end of an installation.\u00a0 So, Big Clean Brother will be watching.<\/p>\r\n While the quality of the majority of solar panels<\/a> and inverters<\/a> used in Australia has improved over time, it is still currently too easy for a manufacturer to send in decent quality components for testing and then, after they’re approved, supply lower quality versions.\u00a0 This is how we can end up with panels in Australia that fall apart after a few years and are potential fire hazards.\u00a0<\/p>\r\n Manufacturers of quality solar hardware have complained about this many times in the past.\u00a0<\/p>\r\n The top three steps to fix this are:<\/p>\r\n Component testing and listing will be opened to the market and made more competitive.\u00a0<\/p>\r\n While consumer guarantees protect households, installers buying wholesale are not.\u00a0 This improvement in the quality control of components will provide them with additional protection.\u00a0<\/p>\r\n In addition to the CER making it difficult to be a dodgy installer, they will also make it difficult to be a solar retailer that uses dodgy installers and fails to fix the problems that result.\u00a0<\/p>\r\n The CER will have the power to prohibit poor performing retailers from selling solar PV or receiving STCs.\u00a0 These prohibitions can apply to the company’s senior officers so they will no longer be able to work in the solar industry.\u00a0 This will prevent them from “phoenixing” and restarting an old company under a new name.\u00a0 As a further anti-phoenix measure, the Clean Energy Regulator will disqualify new retailers linked to bad actors.<\/p>\r\n While the CER will take no strong action to improve the current, dishonest by design, state of the buy now pay later (BNPL<\/a>) industry3<\/a><\/sup>, the Clean Energy Regulator says they will keep an eye on it.\u00a0 This action is not as strong as what I’d like to see taken against its more disreputable aspects…<\/p>\r\n\r\n
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Demand For Solar Is High<\/h2>\r\n
![\"Rooftops](\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2021\/09\/integrity_pv_growth.jpg\")
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Why A Review?<\/h2>\r\n
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Goals Of Integrity Review<\/h2>\r\n
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SRES & CEC<\/h2>\r\n
SRES & STCs Ending 2030<\/h2>\r\n
One Dozen Changes<\/h2>\r\n
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<\/p>\r\nOne Strike — You’re Out<\/h2>\r\n
CER Will Control Solar Installer Accreditation<\/h2>\r\n
Training On Legal Responsibilities Will Be Required<\/h2>\r\n
An Accredited Installer Must Be On Site<\/h2>\r\n
Improved Testing For Solar Panels & Inverters<\/h2>\r\n
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Solar Retailers To Be Held Accountable<\/h2>\r\n
CER Will Keep An Eye On Buy Now Pay Later<\/h2>\r\n