Lightsource BP offering residential PPAs

Lightsource BP, a UK based solar and smart energy solutions company, is preparing to move into the Australian market where they will offer residential rooftop PV solar power at no upfront cost – instead using the PPA (Power Purchase Agreement) model usually reserved for large-scale solar installs. 

Lightsource BP Solar in Australia

Lightsource BP in Australia
Lightsource BP in Australia (source: bp.com)

Lightsource Labs Australia Pty Ltd (LS Labs) have applied to the Australian Energy Regulator (AER) to launch their product, asking for an individual exemption to hold a retailer authorisation. The application says that LS Labs could launch their product in NSW, SA, QLD, and VIC within a couple of weeks, so all eyes on the regulator to see if they’re happy to grant the exemption.

The way LS Lab’s product will work is that they will supply, install, operate and maintain a solar array, batter and smart metering system to homes, and then sell the renewable power to the client at a fixed price under a PPA model. According to Renewables Now, the period of PPA could be up to 20 years and price per kWh will depend on the terms of each individual contract (i.e. it’ll be cheaper depending on how long the contract is). They also note that customers will be offered the opportunity to buy the system at any time after the second year of the PPA.

RenewEconomy is reporting that Lightsource BP partnered with French company Edf in the UK – using LG Chem batteries as part of the ‘Sunplug’ program. These PPAs were around 9.9p/kWh (~$0.18 AUD) so it’ll be interesting to see how this fares in the Australian market. 

Last month, Lightsource BP acquired Ubiworx Systems to help support a plan for the global launch of a smart-home solution. Kareen Boutonnat, COO of Lightsource BP, said at the time that the “power of the home” will be very important with regards to shaping the world’s “new energy future” – a situation where the energy market transcends monitoring and controlling of consumption, turning ‘smart homes’ into ‘genius homes’ (as we call them). Will be exciting to see where this goes over the next few years! 

 

 

 

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Solar Gardens – ‘ground solar’ – ARENA funding.

Those unable to get traditional solar systems installed on their roof may wish to take a look at the upcoming solar gardens scheme we will see in Australia. The Australian Renewable Energy Agency (ARENA) are funding a trial of the ‘ground solar’ in (mostly) regional areas of NSW, Queensland and Victoria.

Solar Gardens – Alternatives to Roof Solar

Solar Gardens in Australia
Solar Gardens in Australia (source: ARENA)

According to the Sydney Morning Herald, those without a rooftop who still want to invest in solar power will be in luck if they’re based in Blacktown, Shoalhaven, Byron Bay, Townsville, or Swan Hill – ARENA and ‘other participants’ are providing around $550,000 in funding to assist the trial.

Dr Liz Develin, the NSW Department of Planning and Environment’s deputy secretary of energy, water and portfolio strategy (wonder if she has to buy extra long business cards?) discussed how the department are hoping to achieve with the rollout:

“We are trialling solar gardens with the aim of helping renters, low-income households and those living in apartments save on their energy bills,” she said.

“Blacktown is a hotspot for rooftop solar and we are really excited to see how this trial goes. The average Western Sydney household with a 4-kilowatt solar system on their roof could already be saving up to $900 a year.”

Specifics on the scheme are still a little thin on the ground (sorry…) but the solar gardens are ‘generally’ under 100kW so as to keep the STCs (small-scale renewable energy generation certificates). The University of Technology Sydney’s Institute for Sustainable Futures and the Community Power Agency will lead this project.

Solar gardens are growing faster than any other segment of solar power in the US (200MW of new capacity was rolled out in 2016) – so perhaps this is the start of a revolution where the word ‘solar’ doesn’t necessarily conjure up the image of panels on a roof. I have no doubt we’ll see blockchain technology integrated or, for the bigger gardens such as those at mid-large size apartment blocks, some microgrids available to help balance demand.

Are you interested in applying to join the solar garden trial? Watch this space. More info to come as we have it!

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SunYield by Stoddart Group – Rental Solar

Brisbane-based Stoddart Group have announced Australia’s ‘first landlord and tenant friendly solar solution’ which they are naming SunYield. They’ll have solar systems + storage installed as default for any new homes built by the group – the systems will also be integrated with SunYield system which makes it simple for renters to benefit from the solar system as well as the owners. 

SunYield by Stoddart Group

Stoddart Group’s General Manager for Energy Systems Adam Taylor was quoted in a press release discussing how difficult it can be to find a balance where having solar installed is beneficial for tenants and landlords:

“Renters have long missed out on the benefits of solar power simply because it was too hard or complicated for landlords to justify the cost.”

“SunYield changes this by ensuring that solar on a new rental property is a good deal for the landlord, as well as the tenant” said Taylor.

“With SunYield, if the tenant chooses to use the solar panels, all solar and grid power is measured automatically via a smart switchboard and the tenant receives a single monthly power bill for all electricity consumed from both the solar and the grid. The process is completely automated, with the landlord then receiving a payment for all solar generated, whether it was used by the tenant or sent to the grid.

“With this technology, the landlord owns the solar system and can either sell the power to their tenant at a discount to the market rate or export it to the grid if the tenant chooses not to buy it.”

The SunYield package has a 6.5kW solar system with a Stoddart Smart Board (which replaces the standard meter box). It’s battery-ready and is being delivered in conjunction with Powershop and Reposit. It was launched in Queensland with leading investment builders Choice Homes, Brighton Homes, Fortitude Homes and MetInvest, who will all include the solar system as part of their new home builds.

This is a lot different to other types of rental solar schemes we’ve seen – having the solar + storage built in to the price of a new property means there’s no annoying paperwork or organisation required by either party, and there’s no requirement for the renter to use the solar system if they don’t want to. 

For example, last month we wrote about SunTenants – a scheme where the system is bought by the owner but subsidsed by renters (who, in turn, save money on electricity). There’s also ShineHub which offers ‘fixed rate, free access’ but they retain ownership of the panels/storage. 

We’re starting to see more and more different options to offer solar power to renters – great to see another option which simplifies the process and is a win for everyone! 

Stoddart Group plan to install 15,000 systems over the next three years. 

SunYield by Stoddart Group - General Manager for Energy Systems Adam Taylor
SunYield by Stoddart Group – General Manager for Energy Systems Adam Taylor (source: supplied)

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ShineHub offer ‘fixed rate, free access’ solar.

A company named ShineHub has released a ‘fixed rate, free access’ contract Australia wide (except NT and Tasmania) where users can have solar+storage installed for free. The trial program will be for 1,000 contracts and will be expanded in the future. 

ShineHub’s fixed price solar service.

Shinehub Fixed Price Solar
Shinehub Fixed Price Solar (source: shinehub.com.au)

ShineHub’s contract means that they actually own the system and are responsible for the maintenance of it. The contracts run for 20 years and lock the customer into a 20 year contract to buy the electricity the system produces. According to the team the cost of an average system ShineHub will install is $15,000, so that’s quite a big saving if you’re not able to stump up for the system upfront.

“This is the first contract of its kind available to residential homes across Australia for a solar and battery package,” ShineHub co-founder Alex Georgiou told news.com.au in an interview.

“This provides a simple way to purchase (a system) and everything is taken care of. There are no additional fees, we’ve taken the uncertainty out,” Mr Georgiou said.

“It’s a very easy way for consumers to get what they want, without getting scared off by either the cost or the reliability.”

The program could be particularly good for landlords who don’t want to stump up the fairly sizeable upfront cost to install solar+storage but want to help their tenants enjoy the reduced electricity prices having solar panels can bring. We’ve written fairly extensively about the difficulty of installing solar power for renters – perhaps ideas like ShineHub could be a step in the right direction so they’re able to  enjoy some stability with regards to their electricity bill.

Some more information about the service:

  • Installation will be in July this year.
  • You can buy out the system at a discounted rate. If you want to sell your house it’s possible to transfer the ShineHub contract to a new owner.
  • You’ll remain connected to the grid and will have to pay the ongoing access fee for it.
  • They’ll use Bloomberg rated Tier 1 solar panels from Longi, Alpha ESS’s SMILE5 hybrid inverter and battery system.
  • ShineHub are partnered with 85 certified solar companies in Australia to help deliver their idea. 

If you’re interested in applying for one of the ShineHub systems, you can contact them for a consultation to see if you’re eligible. 

As per news.com.au, the average electricity rates and ShineHub prices are listed below.

NSW:

  • Highest price is: $0.39/kWh
  • Average rate is: $0.24/kWh
  • Price starts at: $0.18/kWh
  • Typical savings bracket: 20 per cent to 35 per cent.

VIC:

  • Highest price is: $0.34/kWh
  • Average rate is: $0.21/kWh
  • Price starts at: $0.18/kWh
  • Typical savings bracket: 14 per cent to 30 per cent.

SA:

  • Highest price is: $0.47/kWh
  • Average rate is: $0.35/kWh
  • Price starts at: $0.18/kWh
  • Typical savings bracket: 35 per cent to 50 per cent.

QLD:

  • Highest price is: $0.35/kWh
  • Average rate is: $0.22/kWh
  • Price starts at: $0.18/kWh
  • Typical savings bracket: 18 per cent to 30 per cent.

WA:

  • Highest price is: $0.26/kWh
  • Average rate is: $0.26/kWh
  • Price starts at: $0.18/kWh
  • Typical savings bracket: Around 30 per cent.

 

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SunTenants offer solar power for renters.

A new Australian company named SunTenants is trying to solve the problem of making the installation of solar panels / storage on rental properties a tenable one for both parties involved. 

SunTenants – about the system.

The process works for both residential and commercial systems, and is simplified into four steps on the website:

  1. Owners install a solar PV system
  2. Tenants pay extra rent, but save more on electricity
  3. SunTenants will monitor the system to ensure it’s a mutually beneficial setup.
  4. Owners will make returns on their investments, and tenants will save money on their electricity (more than the extra rent they’re asked to pay).

For owners, the enhanced property value and increased rental yields will equal over 10% return on the solar investment, according to founder Dr Bjorn Sturmberg.

An article on The Fifth Estate quoting Dr Sturmberg at the All-Energy Australia 2017 Conference:

“Almost one in five Australian households have solar – that’s over 1.7 million properties,” he said. (In Queensland and South Australia over one in three Australian households have solar power installed.)

“But one in three Australians are locked out of solar.” Dr Sturmberg continued. “They’re locked out of energy efficiency as well. They are locked out of EV charging when it comes along. They are locked out of everything because they rent and or live in an apartment.”

“It’s a problem because solar is now the cheapest energy and so you are locked out of taking control of your energy bills,” he said.

“There’s a huge amount of value in there,” Dr Sturmberg continued. “How do we unlock that value?”

His solution is SunTenants – where both the tenant and the homeowner are incentivised to ‘invest’ in solar power for a rental property. 

An example of the SunTenants System

On their website, the company offer the following example of how their system can benefit both the landlord and the tenant:

SunTenants Rental Solar
SunTenants Rental Solar Example Figures (source: suntenants.com)

If you want to learn more about the system they have released an overview video about the process which you can view below:

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