$89 Installed + 20% of power bills for 10yrs.
Surely this can't be legit…
The 20% credit means the installer is getting 100% of the Feed In Tariff and then paying you back 20% of your bill I assume.
The only way this is good for the customer is if the installer goes belly-up in a few years time.
But then they will own the equipment, ie the liquidator will come and take it off your roof maybe.
very interesting so many terms and conditions though, like
The Solar PV system remains the property of the National Electricity Provider until the end of the agreement
Here is the catch :
It's one of those schemes where they install the panels on your roof but you have to use their energy supplier for your electricity (at their rates) which is how they offer you a 20% discount.
You don't get paid for the energy fed back into the grid.
Basically your generating green power for them to sell at a profit to customers who want it, and in return they provide you with a discount on your electricity bill.
The biggest catch is that it is not clear what rates they are charging for electricity supply, so the 20% could be effectively useless.
Is it legal to make you agree to sign up to a contract for 10 years without disclosing the rates?
I would imagine so, hopefully the 143 people who bought the deal get the money back if they don't like the rates.
don't know about getting your money back, but I think most or all states have a "cooling off" period, so if people check it out immediately, hopefully they can call it all off, if it isn't to their liking
Basically your generating green power for them to sell at a profit to customers who want it
This is wrong. They can't make any profit with that. Retailers can buy GreenPower for under 6 cents/kWh.
They probably break-even on the system/installation by selling the STCs, but their real profit comes from the electricity they will sell to you over 10 years.
Also, it's a 1.5kW system, not kWh.
I've got a feeling that the "national electricity retailer" mentioned is Diamond Energy - new but decent company.
Fair call, this was an assumption based on the fact that we don't know what constitutes the 20% discount.
For example if the 20% discount also includes the credits from the generated solar power and the supply price is inflated, the discount could 0% and you could effectively be generating power for them to on sell cheaper.
They haven't included enough information in this deal to make an informed decision. In fact it even seems contradictory:
It says: "Own a 1.5 kWh Solar PV System outright with no out-of-pocket expenses for the life of the contract (10 years)" which gives me the impression that YOU actually own the system for a period of 10 years?? That doesn't sound right. Then it goes on to say: "The Solar PV system remains the property of the National Electricity Provider until the end of the agreement" which means that they own it, not you. Make up your mind Spreets! Which is it?
It doesn't say that you wont be paid for the energy you feed into the grid. However if we assume that you don't receive these credits then the only time you will be benefiting will be when it is sunny and the panels are actually producing energy. But who's at home using appliances during the day anyway?
In the end if they want to make money on this deal they will have to do it through selling you electricity for 10 years. Another thing to consider is the usable life-span of the panels. AFAIK solar panels degrade over time and don't produce as much energy as when they were new. How much energy will that 1.5kW system still be generating in 10 years time?
EDIT: According to http://sroeco.com/solar/solar-efficiency-losses-over-time "Realistically expect less than a 3% decrease in output the first year, and about .5% decrease per year after that for most panels." I guess the panels will still be viable for a number of years after the contract expires.
I signed up and its sounds legit to me $89 down includes 1.5kW system and standard install.
Instead of getting the state Feed in Tariff i get 20% off the regulated rate and i end up owning the system at no extra cost in the future. In the mean time i have just secured from what i can see a 20% discount off my electricity bill without outlaying a huge amount for a new solar system
My electrify bill is usually around $500 per quarter,A 20% discount versus my current 5% means i should get my $89 investment back within the first 3 months. Not Bad :)
On the assumption that the electricity will be supplied at your current rate :)
All electricity discounts are always off the regulated amount for your state or region so you can safely assume that a 10% discount represents a better deal then 7%
Unless part of the deal is to enter a market contract, where the prices for supply and usage can vary.
Well i have read all the T and C's,
Prices only increase as the regulated rate rises and so does my discount and i'm happy with that.
like i said 20% beats 5% and i end up with a 1.5Kw system.
Awesome if it works out that way, although there wasn't enough info in the original deal to make an informed decision.
When will they install them? Anyone had an update?
I've been given 21st of September
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