Student: Andre Souza da Costa

ID: 1635969

PEP 11

Photovoltaic solar electricity for domestic use in Australia

Student: Andre Souza da Costa

ID: 1635969

PEP 11

Table of contents Executive Summary 1. Introduction 2. Environmental advantages of solar energy 3. Feasibility 3.1. Photovoltaic Power Stations 3.2. Residential grid-connected systems 4. Residential use of photovoltaics 5. Government Initiatives 5.1. Feed-in tariffs 5.2. Solar Homes and Communities Plan (SHCP) 6. Conclusion Reference list Bibliography I 1 2 3 3 4 5 6 6 7 8 9 11

Student: Andre Souza da Costa

ID: 1635969

PEP 11

Table of illustrations Fig. 1. Emission of greenhouse gas per sub-sector in 2011 in Australia 2 Fig. 2. Photovoltaic Power Station in the United States Fig. 3. Potential areas for solar electricity gathering 3 3 4

Fig. 4. Residential photovoltaic system in South Australia

Fig. 5. The cumulative grid-connected distributed PV 5 Fig. 6. New installations of grid-connected distributed PV Fig. 7. Feed-in tariffs implemented in currently in Australia 5 6

Student: Andre Souza da Costa

ID: 1635969

PEP 11

Executive Summary This report provides an analysis of the advantages and of the feasibility of solar photovoltaic electricity as an alternative to fossil fuel based resources in Australia. Special attention is given to the residential use of photovoltaic panels. Some government initiatives taken in order to develop this market in Australia are explored, and it is shown that small-scale grid connected photovoltaics are the most feasible area of application for photovoltaic cells. Findings suggest that this market has great potential to become auto-sustainable in the future, however, massive government support is still necessary in order to make solar energy from photovoltaics as competitive as fossil fuel.

Student: Andre Souza da Costa

ID: 1635969

PEP 11

1. Introduction Most of the generated electricity in Australia comes from fossil fuel based sources such as coal, oil and gas, which has led the country to be the one of the main contributors to the emission of green house gas in the western world (Yusaf, Goh & Borserio 2011). On the other hand, Australia is rich in terms of solar radiation, which is a clean and renewable source of energy. Based on this, the country has a great potential to develop a solar-based electricity system and simultaneously reduce its emission of greenhouse gas. The purpose of this report is to investigate to what extent the generation of electricity in Australia using photovoltaics is advantageous and feasible relative to fossil fuel based sources. A special focus will be given to the residential use of photovoltaics. The first section is an analysis of the environmental advantages of solar energy relative to fossil fuel. Then, a study of the feasibility of photovoltaics use in Australia will be provided. In the following sections, the residential use of photovoltaics and some government initiatives will be addressed. Finally, conclusions will be drawn from the data provided.

Student: Andre Souza da Costa

ID: 1635969

PEP 11

2. Environmental advantages of solar energy

Solar energy is a renewable source for electricity generation and has very few negative impacts on the environment. In fact, Bahadori and Nwaoha (2013) argue that it is environmentally advantageous relative to any other energy source. However, Australia is highly dependent on fossil fuel for electricity generation and this represents a serious environmental issue. It can be observed from figure 1 that the electricity sector is the main source of greenhouse gas emission in the country.

Fig. 1. Emission of greenhouse gas per sub-sector in 2011 in Australia, Department of Climate Change and Energy Efficiency 2012

Therefore, solar energy has strong environmental justifications for replacing fossil fuel based resources in the process of electricity generation in Australia. These justifications include: No depletion of natural resources. No greenhouse gas emission. No generation of solid or liquid waste products. Increase of national energy independency.

Student: Andre Souza da Costa

ID: 1635969

PEP 11

3. Feasibility The exploitation of solar energy to produce electricity can be done either in large or small scale. The main photovoltaic applications are power stations and residential grid-connected systems. 3.1. Photovoltaic Power Stations

Fig. 2. Photovoltaic Power Station in the United States, PV Magazine

A Photovoltaic power station is a system designed to supply electricity in large-scale, rather than to individual buildings. Researches suggest that this application is not economically viable at the present (Green 2004; Yusaf, Goh & Borserio 2011). This is because the prospect sites for the construction of large power stations are inland deserts, and the investment in the infrastructure necessary to transmit the generated electricity to urban centres would not be compensable (Yusaf, Goh & Borserio 2011, p. 2218). Figure 3 shows the potential areas for large-scale exploitation of solar energy in Australia.

Fig. 3. Potential areas for solar electricity gathering, Bahadori and Nwaoha 2013.

Student: Andre Souza da Costa

ID: 1635969

PEP 11

3.2. Residential grid-connected systems

Fig. 4. Residential photovoltaic system in South Australia, PV Magazine

Residential grid-connected systems are small-scale photovoltaic plants designed to supply electricity to individual buildings. These systems are connected to the electricity grid, which means that the electricity surplus can be sold back to the grid. Lovegrove and Dennis (2006) suggest that grid-connected photovoltaic panels on domestic house roofs nationally could supply as much energy as large power stations in the desert. In this sense, the residential use of photovoltaics may be an alternative for the infrastructural problem associated with the transmission of solar electricity from inland desert areas to urban centres.

Student: Andre Souza da Costa

ID: 1635969

PEP 11

4. Residential use of photovoltaics Urban residential photovoltaic electricity generation is becoming the dominant area of application for solar cells (Green 2004). The figures 5 and 6 show the development of the residential photovoltaics market in Australia.

Fig. 5. The cumulative grid-connected distributed PV, Zahedi 2010.

Fig. 6. New installations of grid- connected distributed PV, Zahedi 2010.

It can be observed from the charts that there was a steady increase in the total number of grid-connected residential photovoltaics from 1992 to 2008 in Australia. The number of new systems installed also had a significant increase, especially after 2006. This is a result of large government investments into the solar energy market in order to stimulate its development (Stark, Penney and Feng 2012). Green also suggests that it is likely that photovoltaics will enter a period in which costs will be low enough to sustain the market without government subsidies. This is based on the fact that prices have been reducing significantly over the past two decades (Green 2000, in Green 2004).

Student: Andre Souza da Costa

ID: 1635969

PEP 11

5. Government Initiatives Government support is important to maintain the price of photovoltaics accessible. Initiatives such as feed-in tariffs, the Small-scale Renewable Energy Scheme and the Solar Homes and Communities Plan have been taken to stimulate the photovoltaics market in Australia. 5.1. Feed-in tariffs Rebates are paid by the government in order to stimulate the acquisition of new photovoltaic systems. Feed-in tariffs are used to calculate the rebate amount to be paid to households for the solar electricity generated by their photovoltaic systems. Rebates are paid for both the electricity generated for their own consumption and for the surplus. The rebate is paid per kWh generated. Figure 7 shows the feed-in tariffs adopted by some Australian territories.Small-scale Renewable Energy Scheme (SRES)

Fig. 7. Feed-in tariffs implemented in currently in Australia, Zahedi 2010.

5.2. Small-scale Renewable Energy Scheme (SRES) The SRES is a government program designed to encourage the installation of small- scale renewable energy plants. Under the SRES, customers installing small-scale solar panels can be entitled to Small-scale Technology Certificates (STCs). These certificates are a type of electronic currency that households can assign to a registered renewable energy agency in exchange for either a delay in the solar panel payment or a discount in the upfront cost.

Student: Andre Souza da Costa

ID: 1635969

PEP 11

5.3. Solar Homes and Communities Plan (SHCP) This program was also aimed at stimulating the residential photovoltaics market. It provided rebates of up to $AU 8,000 for 1 kWp of residential photovoltaics. The program ended on 9 June 2009 and had a significant impact on the photovoltaic market. Under the SHCP, 69,7 MW were installed and AUD 500,8 million provided (Watt et al 2010).

Student: Andre Souza da Costa

ID: 1635969

PEP 11

6. Conclusion Despite the high incidence of sun radiation in Australia, large-scale use of photovoltaics is not economically viable at the present due to limitations in electricity transmission. However, the installation of grid-connected small-scale photovoltaics on the rooftops of houses nationwide may be an alternative for this issue. Several government initiatives have already been taken in order to stimulate the photovoltaics market in Australia, with special incentives for the residential sector, which has caused it to become the main area of application for this technology. Photovoltaic solar electricity has potential to become the main source of electricity in Australia. It lies on environmentally friendly premises and has seen a steady decline in prices in the last decades. However, improvements in existing technology and more government support are still needed in order to make solar photovoltaic energy as competitive as fossil fuel.

Student: Andre Souza da Costa

ID: 1635969

PEP 11

Reference list Bahadori, A and Nwaoha, C 2013, A review on solar energy utilization in Australia, Renewable and Sustainable Energy Reviews, vol. 18, pp. 1-5.

Department of Climate Change and Energy Efficiency 2012, Australias emissions projections 2012, DCCEE, Canberra, ACT.

Lovegrove, K & Dennis, M 2006, 'Solar thermal energy systems in Australia', International Journal of Environmental Studies, vol. 63, no. 6, pp. 791-802.

Green, M A 2004, 'Recent development in photovoltaics', Solar Energy, vol. 76, no. 1, pp. 3-8.

Residential photovoltaic system in South Australia, PV Magazine, viewed 23 January 2013, <http://www.pv-magazine.com/news/details/beitrag/south-australia--rooftop-pv-reduces- electricity-demand_100008041/#axzz2IbrChvEu>

Photovoltaic Power Station in the United States, PV Magazine, viewed 23 January 2013, <http://www.pv-magazine.com/news/details/beitrag/us--record-year-for-residential-solar- installations_100009550/#axzz2In9erYDf>

Stark, C, Penney, K & Feng, A 2012, 2012 Australian Energy Update, BREE, Canberra, August.

Watt, M, Passey, R, IT Power (Australia), Johnston, W & SunWiz 2011, PV in Australia 2010, Australian PV Association, May.

Student: Andre Souza da Costa

ID: 1635969

PEP 11

Yusaf, T, Goh, S & Borserio, J A 2011, Potential of renewable energy alternatives in Australia, Renewable and Sustainable Energy Reviews, vol. 15, pp. 2215-2219.

Zahedi, A 2010, Australian renewable energy progress, Renewable and Sustainable Energy Reviews, vol. 14, pp. 2008-2213.

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Student: Andre Souza da Costa

ID: 1635969

PEP 11

Bibliography Bahadori, A and Nwaoha, C 2013, A review on solar energy utilization in Australia, Renewable and Sustainable Energy Reviews, vol. 18, pp. 1-5.

Department of Climate Change and Energy Efficiency 2012, Australias emissions projections 2012, DCCEE, Canberra, ACT.

James & James 1997, Solar energy houses, Science Publishers, London.

Lovegrove, K & Dennis, M 2006, 'Solar thermal energy systems in Australia', International Journal of Environmental Studies, vol. 63, no. 6, pp. 791-802.

Green, M A 2004, 'Recent development in photovoltaics', Solar Energy, vol. 76, no. 1, pp. 3-8.

Residential photovoltaic system in South Australia, PV Magazine, viewed 23 January 2013, <http://www.pv-magazine.com/news/details/beitrag/south-australia--rooftop-pv-reduces- electricity-demand_100008041/#axzz2IbrChvEu>

Photovoltaic Power Station in the United States, PV Magazine, viewed 23 January 2013, <http://www.pv-magazine.com/news/details/beitrag/us--record-year-for-residential-solar- installations_100009550/#axzz2In9erYDf>

Sabady, P 1978, The solar house, Butterworth & Co, London.

Sivaraman, D & Horne, RE 2011, Regulatory potential for increasing small scale grid connected photovoltaic (PV) deployment in Australia, Energy Policy, vol. 39, pp. 586-595.
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Student: Andre Souza da Costa

ID: 1635969

PEP 11

Stark, C, Penney, K & Feng, A 2012, 2012 Australian Energy Update, BREE, Canberra, August.

Watt, M, Passey, R, IT Power (Australia), Johnston, W & SunWiz 2011, PV in Australia 2010, Australian PV Association, May.

Yusaf, T, Goh, S & Borserio, J A 2011, Potential of renewable energy alternatives in Australia, Renewable and Sustainable Energy Reviews, vol. 15, pp. 2215-2219.

Zahedi, A 2010, Australian renewable energy progress, Renewable and Sustainable Energy Reviews, vol. 14, pp. 2008-2213.

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