Buying solar - what to look out for

There is currently a big push underway by solar companies to promote and sell solar electricity systems to households. For potential customers, how do you tell whether these deals are good value, what additional costs may exist, what products are best and whether you are getting value?

If you are considering one of the many offers out there, here are some questions to ask and things to look out for.

Rebates / RECs
The government rebate for solar photovoltaic electricity systems (solar PV) is now called the Solar Credits Scheme. The amount of subsidy varies, depending on the size and location of your system and is determined by allocating a number of Renewable Energy Certificates (RECs) for your solar installation.

For more on RECs for solar power systems and details on how this works, visit MEFL's explanation of RECs here

Typically, your solar installer or retailer will claim the RECs for you and offer it as an upfront discount on the cost of your system, so you don't need to do anything. The REC subsidy will be included in the upfront cost of the system and so the price quoted to you will be the price you have to pay.

Additional Costs
What is included in the quote and what additional charges may exist? Many offers will require additional payment for what they call 'non-standard installations'. This may include:

Electricity meter change-over
The majority of installations will require you to change your electricity meter, and this is often not included in the quote price. This may cost between $350 and $450. Older homes may also require an upgrade of the electricity meter board - potentially a few hundred dollars more.

Quote
It is important to ask about any additional charges before signing anything. It is recommended that you don't agree sign or commit to anything until someone has come and looked at your house and told you what the total final cost will be. Make sure there aren't any clauses in anything you sign to add additional costs or charges down the track.

Warranty
Warranties are an essential component of any purchase, so you should expect the following:

Shop Around
Finally, there are quite a number of retailers and installers offering solar electricity systems at present. Don't go with the first one you see. Shop around. Also, if ongoing customer service is important to you, give consideration to how long the company has been around. Established solar installers with a diverse business - not just doing solar PV installation - are more likely to be around in the long term, well after the rebate disappears.