RECs Catastrophe

and Creditable Solar Solutions

1st Free Introductory Report on Successful Solar Strategies

An free solar power industry report by Warwick Johnston, SunWiz, October 2009

Copyright © Warwick Johnston 2009

Cover Image: Mykl Roventine and Warwick Johnston – Licensed under Creative Commons
Introduction
This free report provides a succinct insight into why the REC price is almost certain to be low for the
foreseeable future, and provides insights into what can be done to manage your REC Risk.

Over 200 hours of research have gone into this report. It has been offered for free in the interests of the solar
power industry, as an industry that is forewarned can take action to ensure its future prosperity.

This free report is supplemented be by three more reports that will be released over the course of a week.
Together these show:

• why the REC price is likely to remain low and volatile

• what impact this could have on the solar power industry
• and, crucially, strategies for solar success whatever the REC price.

This free introductory report has been abridged so that the whole industry can quickly read and understand its
key implications. A wealth of supporting information than provides the bigger picture has been collated and
documented into the “Successful Solar Strategies report” – this information helps readers more deeply
understand the drivers behind REC prices, the risk to their business, and what they could do to prosper in
uncertain and difficult times.

There are a lot of background information and assumptions that omitted from this concise document.
You should not act upon this information without first researching and confirming its applicability to
your situation.

The full picture fills 80 pages, and contains advice that will assist the reader’s business to prosper. To ensure
the competitive advantage of the reader, a limited number of reports will be made available over the period
21 – 27 October 2009.
Foreword
It is official: the REC Catastrophe that was predicted has occurred.
The problem is: the Solar Credit Crisis is not about to go away.

In this introductory report, you’ll learn:

• What experts opinion is on the future REC price

• What will keep the REC price low until the window of
opportunity for PV has passed
• Why the REC price is volatile, and how this could eat into your
profits
• What you can do about it

Expert Opinion on the REC price

Experts agree on the bleak prognosis for RECs for the foreseeable future:

“Our analysis suggests that on the basis of current subsidy proposals, the REC market may be
significantly oversupplied by [PV, SHW, and Heat Pumps] in the period to 2015, … all stand to be
affected by this oversupply and we advise careful consideration of the implications” – Carbon Market
Economics 1

“REC prices are likely to be depressed as the new supply is Read Successful Solar
absorbed... The recent collapse in prices is arguably partly Strategies for full
driven … more so by the massive incremental supply to come expert quotations on
from PV solar as announced in the recent budget” – UBS further reasons the REC
Consulting2 price is likely to be poor
for a long time ahead
“We are forecasting an oversupply of RECs for the next few
years … this is likely to keep a downward pressure on REC prices”. Ric Brazzale, Managing Director,
3
Green Energy Trading:

Why the REC price is low, and why it will continue to be.
To answer this question, we need to consider the background to the Renewable Energy Target. But consider
this, the most crucial consideration: Already by October, there are 5 million more RECs on the market than are
needed for 2009. And 2010 requires only 4.4 million more RECs to be surrendered than in 2009. So next year’s
target may already have been met. Up until recently, electricity retailers were buying up RECs (thus keeping
the REC price higher than what it would otherwise be with such an oversupply) so they don’t have to buy next
year when their shortfall penalty increases to $65. As retailers don’t need to buy many RECs next year, expect
a low REC price for 2010.

Here’s a pictorial summary of the situation:

1
www.carbonmarkets.com.au/text/FoREsight3.pdf
2
UBS Consulting, July 2009
3
http://www.environmentalmanagementnews.net/storyview.asp?storyid=1034595&sectionsource=s0
 Demand Supply

As depicted in the figure above, the REC price is set, like any market, by supply and demand. On the demand
side is the Renewable Energy Target (RET) and GreenPower, both of which create the need to purchase and
surrender RECs. The demand for RECs has limits that are known in advance with a high degree of accuracy. On
the supply side, a number of renewable energy technologies compete to supply the required number of RECs.
If supply is less than demand, then a shortfall penalty ($65 from 1/1/2010, which is equivalent to a post-tax
liability exceeding $90) is paid. However, if REC supply exceeds demand, then the REC price is established by
the technology that can most-cheaply create RECs – for this reason, PV competes with other renewable energy
technologies for a share of the REC market.

On the demand side, the graph shows the number of RECs that must
be surrendered each year under the old MRET and the expanded As you’ll read in the
National RET. While the curve trends up, indicating the requirement Successful Solar Strategies
for more and more renewable energy generation each year (left axis report, AGL has “around
of the graph), the additional amount of generation in each year isn’t A$1 billion [in wind farm
huge (shown in bars and read from the graph’s right axis)– 4,400,000 projects] ready to go, and
RECs more in 2010 than 2009, and 2,325,000 RECs more in 2011 than well over $2 billion more in
2010. the pipeline”
 Renerable Energy Targets
5000 50000
4500 45000
4000 40000
1000s of additional RECs

1000s of RECs (Total)

3500 35000
3000 30000
2500 25000
2000 20000
1500 15000
1000 10000
500 5000
0 0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Additional RECs MRET RECs Expanded National RECs

Consider carefully: 4.4 million RECs may sound large, but 1.5 kW systems generate 155 RECs in Zone 3. Thus
it would only take installation of 28,400 PV systems to fully meet the increase in RET from 2009 to 2010. The
situation is worse in 2011 – half as much increase in deployed renewable energy is required. If the REC price
creeps up in 2012, the reduction in solar multiplier will continue to make life tough for PV. For this reason, the
PV industry needs to become independent of RECs.

On the supply side, the PV industry - well capable of installing 30,000 systems per year - competes not only
with other renewable energy technologies but also with itself. Furthermore, the Solar Hot Water industry,
already a dominant creator of RECs, is in rapid expansion mode on the back of the $1600 federal rebate it
receives in addition to other state rebates.

REC Creation: PV vs SHW (2009 YTD)

6,000,000

5,000,000

4,000,000
RECs

3,000,000 SHW

2,000,000 PV

1,000,000

0
2001 2002 2003 2004 2005 2006 2007 2008 2009
The REC price is prevented from going too high by the availability of free As you’ll read in the
PV or Solar Hot Water Systems. If the REC price gets near $50, then you
complete extended report,
can have free solar PV and free solar hot water systems competing for a
solar hot water systems
share of the REC market. As the REC market isn’t that large, it wouldn’t be
“are economic at a lower
long before supply exceeded demand and the REC price would dive again.
REC price than even wind
Large-scale renewable energy technologies are also competing to create requires”
RECs, with over 800 MW of wind power ready to be deployed in the next
1-2 years 4, and up to 6000 MW over the next 10 years5 - plus other
renewable energy technologies such as bagasse, landfill gas, etc. A high REC price hastens the development of
these power stations, which can flood the market with RECs and thus lower the price dramatically. Therefore,
PV businesses cannot expect a high REC price anytime in future.

The figure below conceptually illustrates the “piece of the pie” that the PV industry has to compete for
amongst other suppliers. Solar Hot Water systems had already created 5.4m RECs in 2009 by September,
capturing 55% of the market this year. Other renewable energy technologies have created 5.4m in recent
years, but modelling performed by Carbon Market Economics 6 suggests that wind farms alone may create
another 2m RECs over the next 1-2 years. The 10,000 schools 7 within the National Solar Schools Program could
generate about 1m RECs, and the 63,000 system backlog of Solar Homes and Communities Program could
generate 1.3m RECs. How many RECs are needed from Solar Credit PV systems?

Solar Credits
Other RETs •????
•Historically
5,400,000
•extra 2,000,000 in
2010?

SHW
•5,400,000 by Sep Excess RECs on
2009 Market
•>55% of total market

Solar Schools SHCP

•Up to 1,000,000 •1,300,000 Backlog
•Was 8% of total
market

4
Carbon Market Economics, “Renewable Generation Projects 2009 – 2028, Revised Final Report”, January 209
5
“Australian renewables law to spark wave of wind projects”, BusinessGreen.com, 21/8/09
6
Carbon Market Economics, “Renewable Generation Projects 2009 – 2028, Revised Final Report”, January 209
7
http://www.abs.gov.au/AUSSTATS/abs@.nsf/MF/4221.0
In summary, here are the threats that face your PV business:

• There is a huge oversupply of RECs available on the market – perhaps enough to cover 2010..
• Subsidised sectors such as Solar Hot Water, Solar Schools, and the Solar Homes and Communities Plan
continue to supply RECs almost without regard to their price
• The REC price is prevented from getting much above $50 by the resulting “free” solar systems
• Other large-scale renewable energy technologies could flood the market with RECs in coming years
• The Solar Multiplier means very few systems can be installed before the REC requirements are met.

The following graph puts this all together into an outlook for RECs supply and demand. While it is difficult to
estimate the exact amount of RECs that will come from each sector in future years, combining analysis of a
number of scenarios with some sensible assumptions allows the exploration of likely outcomes. Consider that:

• There may be 18 million RECs available by the end of 2009, 8 million more than needed
• This would mean 2010’s requirement of 12.5 + 1.9 = 14.4 million RECs (RET + GreenPower) would only
require creation of 6.4 million RECs.
• Existing wind farms and other renewable energy power stations create 5.6 million RECs per year.
• Solar Schools and Solar Credits are likely to produce 0.6 million RECs in 2010
• This leaves at least 0.2 million RECs required in 2010 between PV and Solar Hot Water

The major unknown for 2010 and 2011 is the performance of Solar Hot Water. Considering that it has already
created 5.4 million RECs this year, it seems likely that it will easily create 0.2 million RECs in 2010. The graph
below shows scenarios of a 10% contraction of SHW to end of 2009, and a 75% and 50% contraction
(conservative and highly conservative estimates) for 2010, and the same levels of SHW deployment in 2011.

2009-2010 Banked REC Scenarios

25,000 20,000
Thousands

1.5 kW PV Systems (155 RECs each)

18,000
20,000 16,000
14,000
15,000 12,000
RECs

10,000
10,000 8,000
6,000
5,000 4,000
2,000
0 0
2009 2010 Estimate2010 Estimate 2011 2011 Highly
Projection Conservative Highly Conservative Conservative
Conservative

SHW Wind
Other RE SHCP Backlog
Solar Schools Previous Years' RECs
Solar Credit PV RET + GreenPower
1.5 kW PV Systems (155 RECs)
 There are many conditions and assumptions that relate to the modelling and the presented graph that
are detailed in the Successful Solar Strategies report. Reading Successful Solar Strategies is essential in
order to understand how these numbers were created, and what it could mean for your business.

The graph clearly demonstrates that even with significant contraction in SHW, there are enough banked RECs
to cover most of 2011 levels. PV RECs are necessary to meet the target only if HW retreats to its 2008
installation level, and there is no other renewable energy power station development. However, the major
players have 6000 MW of wind development representing billions of dollars of investment, and the
deployment of 800 MW of wind can create 2 million RECs. In summary, not much need for PV systems to
create RECs, and the phantom RECs they create exacerbate the problem. Thus the future of the PV industry
might be quite constrained.

It is not all bad news! In the Successful Solar Strategies report, a number of ways of rapidly gaining
significant market share are explored.

Although we’ve discussed the “piece of the pie” that remains for the PV industry, remember that if a wind
farm is financially viable with $35 RECs, or there is high demand for solar hot water systems even with $30
RECs, then it is likely that the REC price will remain near that level. The
technology that can survive with the lowest REC price is likely to gain Over ten almost-untapped
greatest market share, and if the PV industry has difficulty selling systems markets for profitable NET
when RECs are less than $40, then there could be significant downsizing Feed-in Tariff exploitation
within the industry. So too, if one company within the PV industry are presented in a bonus
discovered a way to sell a large volume of PV even with a REC price of $25, report
then the rest of the (PV and renewable energy) industry may suffer.

A number of ways of successfully and profitably selling PV systems even without RECs are presented in
detail in the Successful Solar Strategies report.

REC Price Volatility

The REC price is quite volatile, which can have a huge impact upon your
business. Because RECs take three weeks to register and clear, and Read the complete
because PV businesses are now highly exposed to and dependent upon extended report for four
REC prices, any significant movement in REC price can hurt both in the ways to beat REC price
short- and long-term. Consider that the past 18 months has seen $7-10 volatility, including how to
price falls happen over the course of weeks. A $10 drop in REC price avoid the worst time to sell
can cost your business $1550, evaporating your profit. If you’ve RECs
installed 20 systems in the last two weeks – that’s $31,000 you may
have to wear… and then try to carry on business with a higher sales
price.

There are a number of reasons the REC price is volatile. Like any market, the REC market is subject to player’s
perceptions of what the price will do in the future. This can easily be influenced by government
announcements, or the construction of a new renewable energy power station. The REC market gamed in
favour of the buyers, further complicating matters. In simple terms:

• The buyers only have to surrender their RECs once per year. They have all year to strategically make
REC purchases. If they have RECs in the bank, they can wait indefinitely before their next purchase.
 • There are a huge number of sellers whose cashflow and livelihoods depends upon selling their RECs
so that they can continue to install solar power, solar hot water, and heat pumps. These pressures
mean that they need to sell, often at below-market rates. Also due to this reason, any sudden
downwards shift in RECs price can unleash plenty more RECs from desperate installers wanting to cut
their losses. For reasons explained above, the buyers can simply wait until the price bottoms out
before taking advantage of the situation.

Stable Solutions
Some of the solutions include making conservative REC assumptions, sharing the REC risk, and understanding
REC price cycles. Of course, the best strategy is to become independent of the REC price altogether. How to do
all of this is explained in detail in the Successful Solar Strategies report.

Summary
To summarise the threats to the industry, and to the success, sustainability, and prosperity of your business:

• 2010’s RET has effectively already been met, keeping REC prices low for at least the year ahead.
• SHW installations also act as a significant supply of RECs
• A flood of Solar Credits could supply the entire REC Learn what the REC price is
requirements for the coming years likely to be: Discussion on
• Other subsidised markets including schools and SHCP backlog each of these points is
will also contribute to supply RECs, independent of REC price expanded upon within
• Other large-scale renewable energy projects that have been “Successful Solar Strategies”.
waiting for an expanded RET will be deployed, leading to bulk
increase in supply of RECs.
• REC market forces favour the buyers in the market
• Although market forces also act to stabilise the REC price, the REC multiplier creates a high degree of
sensitivity to REC price fluctuations for the solar power industry.

Granted, it’s unlikely that all of the above comes true to its fullest extent – that would be a nightmare scenario.
It’s more likely that a low REC price would dampen development of certain renewable energy technologies and
of particular projects. However, some renewable energy technologies are supported by direct government
rebates, grants and commitments – these projects may be less impacted by a low RECs price, and thus
continue to create RECs and thereby keep the REC price low? Furthermore, solar power businesses are five
times as exposed to REC price fluctuations than other technologies.

Many market analysts have suggested that a low REC price is likely for the foreseeable future. Unfortunately, a
PV industry that was solely reliant upon RECs would probably generate far fewer RECs if certificate prices
dropped to $10 – the industry would grind to a near-complete halt.

This is something nobody wants to occur. Like you, I wish to see the industry shine,
to succeed in covering Australia with solar power. For this reason I’m presenting you
the opportunity to learn how to make your business prosper, whatever the REC
price. The problems identified all have solutions – and they’re detailed in the
Successful Solar Strategies report, which you’ll get a further sample of in our next
Free Introductory Report, due for release later this week.
 st
The Successful Solar Strategies report can help your business to prosper. It will be released on 21 October
2009.

• It contains invaluable analysis and industry insight that can contribute to your success.
• It provides a more detailed assessment of the RECs supply market, and provides four strategies for
managing the risk of a sudden drop in REC prices.
• It includes payback graphs that can assist you to sell solar power to your customers
• It explores in depth more than ten strategies to sell an abundance of profitable solar systems,
including opportunities to exploit while the REC price is moderate, and advice on how to capitalise on
a high REC price.
• It demonstrates profitable ways to sell solar power even if RECs were worthless.
• It provides a financial analysis of commercial installations, with favourable outcomes
• Plus industry-proven sales advice, some of which is based on successful international PV sales models.
• Plus a list of untapped target markets highly suitable for net Feed-in Tariffs
• Plus much, much more.
About SunWiz – Solar Energy Consulting:

SunWiz has extensive knowledge of all facets of solar energy:

solar photovoltaic solar drying

solar heating and cooling passive solar design
concentrating solar power

SunWiz is able to provide the following services related to solar energy systems:

Award-winning PV System Design System Performance Monitoring and

Tender Preparation Reporting
Procurement Advice Technology Evaluation
Independent Tender Evaluation Feasibility Studies
Business Opportunity Identification and Installation supervision and sign-off
Evaluation

Warwick Johnston, manager of SunWiz has:

Won two awards for Best Australian Solar Power System

Managed the delivery of over 600 kW of PV systems
BCSE/CEC Accreditation (Design and Supervise) and Membership (pending board approval)
Completed a Masters in Renewable Energy (November 2009)
Been awarded a fellowship for solar air conditioning
Been a member of the PV directorate
Been the treasurer of ANZSES (Victoria)
Presented at a number of conferences

Consulting projects that Warwick has been involved with include:

Opportunity identification for PV inclusion in Tsunami reconstruction on behalf of an international

NGO
PV opportunity identification and pre-feasibility studies for a number of local councils
PV opportunities investigation on local council sporting pavilions
Identification of 10 MW of untapped renewable energy resources in one council area
Analysis of Victoria’s off-grid market potential for renewable energy
Pre-feasibility study for two 250 kW tracking PV power stations
Energy Efficiency Opportunity Assessments for large electricity users

Phone: +61 (0)413 361 534

Address: PO Box 263 Bangalow NSW 2479
Accreditation #: P1902

Member: ANZSES, ISES, ATA, EWB

 Larger Systems:
More Profitable
Less RECs Exposure
2nd Free Introductory Report on Successful Solar Strategies

An free solar power industry report by Warwick Johnston, SunWiz, October 2009

Copyright © Warwick Johnston 2009

Cover Image: David Blaikie– Licensed under Creative Commons

Introduction
This free report demonstrates why larger systems offer favourable benefits to your business and your
customer, and are essential for your business prosperity during periods of moderate REC prices.

Over 200 hours of research have gone into this report. It has been
offered for free in the interests of the solar power industry, as an
industry that is forewarned can take action to ensure its future
prosperity.

This free report is supplemented be by three more reports that will

be released over the course of a week. Together these show:

• why the REC price is likely to remain low and volatile

• what impact this could have on the businesses like yours
in the solar power industry
• and, crucially, strategies for solar success whatever the
REC price.

This free introductory report has been abridged so that the whole
industry can quickly read and understand its key implications. A Over the course of this week you'll
wealth of supporting information than provides the bigger picture see the three elementary pieces of
has been collated and documented into the “Successful Solar the jigsaw puzzle that fit together with
Strategies report” – this information helps readers more deeply synergy and present businesses a
understand the drivers behind REC prices, the risk to their business, roadmap to solving the REC Crisis
and what they could do to prosper in uncertain and difficult times.

There are a lot of background information and assumptions that omitted from this concise document.
You should not act upon this information without first researching and confirming its applicability to
your situation.

The advice in this report is of a general nature only and should not be relied upon, in and of itself, by
readers. Before making any decisions or commitments based on the content of this report, it is
recommended that readers discuss their individual circumstances with their own professional
accounting and investment advisors. Should a reader wish to tailor the advice in this report to his/her
particular circumstances, please contact the author.

The full picture fills 80 pages, and contains advice that could assist the reader’s business to prosper. To ensure
the competitive advantage of the reader, a limited number of reports will be made available over the period
21 – 27 October 2009. If you have received this report without registering your email address on the
www.SunWiz.com.au then you might miss out!
RECs Catastrophe– a recap
In the RECs Catastrophe introductory report, we learned of the threats to the solar power industry, and to the
success, sustainability, and prosperity of your business:

• 2010’s RET has effectively already been met, keeping REC prices low
If you haven’t already
for at least the year ahead.
received your free copy of
• Deployment of other large-scale renewable energy projects that
RECs Catastrophe, contact
have been waiting for an expanded RET would lead to a bulk
warwick@sunwiz.com.au
increase in supply of RECs.
• SHW installations act as a dominant supply of RECs
• Other subsidised markets including schools and SHCP backlog will
also contribute to supply RECs, independent of REC price
• REC market forces favour the buyers in the market
• Although market forces also act to stabilise the REC price, the REC
multiplier reduces the amount of PV systems needed to meet the
RET. It also creates a high degree of sensitivity to REC price
fluctuations for the solar power industry.

In “Strategies for Solar Success Part 2: Larger Systems, More Profitable, Less
REC Exposure”, you’re going to learn one strategy you could employ when
the REC price is at a moderate level. Part Three will be made available later
in the week, and will extend upon Part Two, informing how you might maximise your revenue from Feed-in
Tariff Target Markets. These are just tasters of the full content available in the Successful Solar Strategies
report, which covers this material and much more in far greater depth.
Moderate REC price?
It becomes more difficult to sell 1.5 kW systems for little out-of-pocket Read the extended report
expense to the consumer when the REC price is below $50. How can solar for four strategies for
power companies thrive and prosper when their bread-and-butter moderate REC prices, plus
customers desert them on the back of a $23 REC price? This section one strategy to use to
demonstrates one strategy that successful solar businesses can use when advantage if the REC price
the REC price is at a moderate level. again becomes high

Sell Larger Systems!

Although 1.5 kW systems attract the greatest solar credits-per-installed Watt, the system price that the
customer sees on this system is also highly sensitive to fluctuations in the REC price, as shown in the graph
below.

Price-per-Watt vs System Size

$10
$9
$8
$7
$0/REC
$6 $10/REC
$/W

$5 $20/REC
$4 $30/REC
$3 $40/REC
$2 $50/REC
$1 $60/REC
$0
1000 3000 5000 7000 9000
System Size (W)

For example, if your 1.5 kW GST-inclusive system price is $11,946 and

attracts 155 RECS, your customer pays $4,196 if RECs are $50, but $8,071 if The extended report
RECs price halves to $25. The customer sees this as a doubling in the demonstrates ways to attract
system price for no apparent reason. The price of larger systems remains high-value, loyal, quality-
proportionally more stable as REC price fluctuates. Under the same seeking, payback-minded
diabolical situation, a customer interested in a 5 kW system only faces a customers interested in large
25% increase in price rather than a 100% increase. systems

Although there may be fewer customers willing and able to pay $25,000 for
a solar system, it stands to reason if you get such dedicated, high-quality
customers may be more tolerant of a $1,000 change in system price than a
customer interested in a $4,000 1.5kW system.
Other benefits of larger systems include:

• Exposure to REC price fluctuations is proportionally smaller

The extended report
with larger systems. Profits are thus less likely to be entirely
includes international
swallowed by a change in REC price.
research on costs of PV
• Advertised system prices are change less when the solar
advertising that could be
multiplier reduces overnight. A customer-base that demands
critical to your future
larger systems may be less likely to evaporate overnight.
business prosperity
• Larger systems should have a higher per-system gross profit.

Customers residing in states with net Feed-in Tariffs stand to benefit

The extended report
most from a larger solar power system, simply because a larger system
graphically shows why a
is more likely to export power, more often, and more of it. The graph
2 kW system pays for
below shows an example payback calculation that demonstrates that
itself sooner than a 1.5
the payback can be significantly improved if a high amount of power is
kW system in most
export. This is less likely for smaller systems, but is quite likely for larger
circumstances.
systems installed in the right places.

The Successful Solar Strategies report calculates the likely amount of power export from houses, based
upon expert measurements. This is integrated into the feedback calculation to categorically
demonstrate that larger solar power systems are far more likely to pay for themselves sooner than
small systems.

The complete Successful Solar Strategies report replicates these graphs for NSW Zone 2 & 3,
QLD Zone 1 & 2 & 3, Vic Zone 3 & 4, SA Zone 2&3, and the ACT. These graphs assume the proposed
NSW net Feed-in Tariff passes as indended.
Observations:

• The payback of a 1.5 kW system is highly dependent on REC price. The payback of a 10 kW system is
more stable.
• At $30/REC, the payback is longer for a 1.5 kW system with 25% of exported power (13 years) than
for a 10 kW system with anything more that 40% export.

Summary
Larger systems can help offer businesses like yours the following benefits:

• Increased per-system profits

• Proportionally lower exposure to REC price fluctuations
• Lower variability in customer price with REC price movements
• Less price-per-Watt at low-moderate REC prices
• Less proportion of system cost that must cover advertising overhead
• Greater likelihood of exporting power, and thus greater likelihood of quicker payback

Other Strategies for a moderate REC price

Other strategies for a moderate REC price that are described in the Successful Solar Strategies report are:

Target Zone 1 & 2 – Learn how this strategy increases your RECs by 11-17%, and could increase the annual
return on investment for business customers by 2.5% even at $30 REC prices.

Bulk Installation – Learn how this strategy can mean large sales and significant cost savings, including 3
example markets

Focus upon customer experience – learn why quality and customer experience as essential features of the
solar credit sector.

Like you, I wish to see the industry succeed in covering Australia with solar
power. There are many more great solutions to the REC Catastrophe – including
one strategy to use when the REC price is high, and four strategies to use when
the REC price is low. A favourable outcome is demonstrated for commercial
customers even when the REC price is zero! You’ll get another free sample of
these strategies later this week.
 st
The Successful Solar Strategies report could help your business to prosper. It will be released on 21 October
2009.

• It contains invaluable analysis and industry insight that can contribute to your success.
• It provides a more detailed assessment of the RECs supply market, and provides four strategies for
managing the risk of a sudden drop in REC prices.
• It includes payback graphs that can assist you to sell solar power to your customers
• It explores in depth seventeen strategies to sell an abundance of profitable solar systems.
• It demonstrates profitable ways to sell solar power even if RECs were worthless.
• It provides a financial analysis of commercial installations, with favourable outcomes
• Plus industry-proven sales techniques, incorporating successful international PV sales models.
• Plus a list of untapped target markets highly suitable for net Feed-in Tariffs
• Plus much, much more.
About SunWiz – Solar Energy Consulting:

SunWiz has extensive knowledge of all facets of solar energy:

solar photovoltaic solar drying

solar heating and cooling passive solar design
concentrating solar power

SunWiz is able to provide the following services related to solar energy systems:

Award-winning PV System Design System Performance Monitoring and

Tender Preparation Reporting
Procurement Advice Technology Evaluation
Independent Tender Evaluation Feasibility Studies
Business Opportunity Identification and Installation supervision and sign-off
Evaluation

Warwick Johnston, manager of SunWiz has:

Won two awards for Best Australian Solar Power System

Managed the delivery of over 600 kW of PV systems
BCSE/CEC Accreditation (Design and Supervise) and Membership (pending board approval)
Completed a Masters in Renewable Energy (November 2009)
Been awarded a fellowship for solar air conditioning
Been a member of the PV directorate
Been the treasurer of ANZSES (Victoria)
Presented at a number of conferences

Consulting projects that Warwick has been involved with include:

Opportunity identification for PV inclusion in Tsunami reconstruction on behalf of an international

NGO
PV opportunity identification and pre-feasibility studies for a number of local councils
PV opportunities investigation on local council sporting pavilions
Identification of 10 MW of untapped renewable energy resources in one council area
Analysis of Victoria’s off-grid market potential for renewable energy
Pre-feasibility study for two 250 kW tracking PV power stations
Energy Efficiency Opportunity Assessments for large electricity users

Phone: +61 (0)413 361 534

Address: PO Box 263 Bangalow NSW 2479
Accreditation #: P1902

Member: ANZSES, ISES, ATA, EWB

Maximum Feed-in Tariff Revenue
3rd Free Introductory Report on Successful Solar Strategies

An free solar power industry report by Warwick Johnston, SunWiz, October 2009

Copyright © Warwick Johnston 2009

Cover Image: Nozee Le Snoop and Warwick Johnston – Licensed under Creative Commons
Introduction
This free report does shows how to legitimately target net Feed-in Tariffs as part of your effective sales
message, bringing you all the benefits of selling larger systems that were described previously.

Over 200 hours of research have gone into this report. It has been
offered for free in the interests of the solar power industry, as an
industry that is forewarned can take action to ensure its future
prosperity.

This free report is supplemented be by three more reports that will

be released over the course of a week. Together these show:

• why the REC price is likely to remain low and volatile

• what impact this could have on the businesses like yours
in the solar power industry
• and, crucially, strategies for solar success whatever the
REC price.

This free introductory report has been abridged so that the whole
industry can quickly read and understand its key implications. A Over the course of this week you'll
wealth of supporting information than provides the bigger picture see the three elementary pieces of
has been collated and documented into the “Successful Solar the jigsaw puzzle that fit together with
Strategies report” – this information helps readers more deeply synergy and present businesses a
understand the drivers behind REC prices, the risk to their business, roadmap to solving the REC Crisis
and what they could do to prosper in uncertain and difficult times.

There are a lot of background information and assumptions that omitted from this concise document.
You should not act upon this information without first researching and confirming its applicability to
your situation.

The advice in this report is of a general nature only and should not be relied upon, in and of itself, by
readers. Before making any decisions or commitments based on the content of this report, it is
recommended that readers discuss their individual circumstances with their own professional
accounting and investment advisors. Should a reader wish to tailor the advice in this report to his/her
particular circumstances, please contact the author.

The full picture fills 80 pages, and contains advice that could assist the reader’s business to prosper. To ensure
the competitive advantage of the reader, a limited number of reports will be made available over the period
21 – 27 October 2009. If you have received this report without registering your email address on the
www.SunWiz.com.au then you might miss out!
RECs Catastrophe– a recap
In the RECs Catastrophe introductory report, we learned of the threats to the solar power industry, and to the
success, sustainability, and prosperity of your business:

• 2010’s RET has effectively already been met, keeping REC prices
If you haven’t already
low for at least the year ahead.
received your free copy of
• Deployment of other large-scale renewable energy projects that
RECs Catastrophe, contact
have been waiting for an expanded RET would lead to a bulk
warwick@sunwiz.com.au
increase in supply of RECs.
• SHW installations act as a dominant supply of RECs
• Other subsidised markets including schools and SHCP backlog will
also contribute to supply RECs, independent of REC price
• REC market forces favour the buyers in the market
• Although market forces also act to stabilise the REC price, the REC
multiplier reduces the amount of PV systems needed to meet the
RET. It also creates a high degree of sensitivity to REC price
fluctuations for the solar power industry.

Benefits of Larger Systems – a recap

As shown in Part Two of the Strategies for Solar Success Introductory reports, larger systems can offer the
following benefits:

• Increased per-system profits

• Proportionally lower exposure to REC price fluctuations
• Lower variability in customer price with REC price movements
• Less price-per-Watt at low-moderate REC prices
• Less proportion of system cost that must cover advertising overhead
• Greater likelihood of exporting power, and thus greater likelihood of quicker payback

Big Systems are only one small part of the solution to the REC Crisis. But they are a fundamental to the
solution. Like a jigsaw puzzle, the overall picture only becomes clear when the pieces lock in together. But BIG
Systems are like the corner puzzle piece – the rest of the puzzle becomes easy once this piece is found.
Low REC Price: Target Feed-in Tariff
At a low REC price, solar power systems cease to be simply a “cheap buy”, and more sophistication is required
in selling the benefits of solar power. At $24/W, 155 RECs only
mean a 30% discount on a 1.5kW system.
The extended report contains
Why would a customer spend $8,000 on a system if it will only
a graph of measured data
offset $300 a year in electricity? If that same system earned
that demonstrates that a
$1,200 a year, then it might be a sound investment - but an
1 kW system typically exports
extraordinarily difficult claim to justify, one that could leave
insignificant amounts of
companies inviting legal action (the Australian Financial Review
power
recently reported on this topic 8).

If your business operates in a state with a net Feed-in Tariff, then your customers could be earning up
to four times as much revenue from their solar power system.

The conservative practice of quoting annual revenues of $200-$800 per kW of solar power might have been
acceptable when the customer was receiving a free system, but it doesn’t offer much confidence to customers
now paying significant amounts of money for their solar power system.

Although it may be difficult to estimate a customer’s electricity usage patterns,

you can be certain of two things:

• The solar power system installed has to be larger than the customer’s
base daytime load if they are to export power and thus take advantage
of the feed-in tariff.
• Large systems are more likely to export more power than smaller
systems, for the period in which the customer’s loads are met by a solar
power system will be longer for a larger solar power system, and the
system will export more power during that period.

Thus, a customer can create substantially more revenue by both decreasing

their daytime power consumption AND increasing the size of their system. Other cross-selling
If you have data supporting a claim that a larger system is a better strategies that can
investment, you might more easily convince your customers to increase build your business
their system size. This could quite possibly mean more profitable resilience are
installations, lower REC exposure, etc. You might also be able to cross-sell described in the
energy efficiency services, and in doing so create a better customer extended report.
experience that means they are more likely to promote you to everyone
they know.

Wouldn’t it be great to have data that showed that a larger system is a better investment? Wouldn’t it help
you sell more kW if you could show a 2 kW system paid for itself faster than 1.5 kW?

8
Matthew Dunkley, “Solar Sales Pitch Could End in Hot Water”, Australian Financial Review, 26/9/09
Graphs such as the ones in last week’s report on larger systems are useful – they show that the payback for a
high-exporting large system is quicker than that of a low-exporting small system. But they don’t say what a
1.5 kW system exports on a typical house. Theoretically a 2 kW system will export more, but its impossible to
say how much more without measured data.

Fortunately, this data exists. And it allows us to produce this graph, which combines the likely amount of
power to be export from various size systems, for three typical residential power consumption levels. Here’s
what it looks like for NSW Zone 3 with $24 RECs.

The complete Successful Solar Strategies report replicates these graphs for NSW Zone 2 & 3,
QLD Zone 1 & 2 & 3, Vic Zone 3 & 4, SA Zone 2&3, and the ACT. These graphs assume the proposed
NSW net Feed-in Tariff passes in its presently proposed form.
This clearly demonstrates that for a system price that is As a bonus, if you act swiftly
commonly achievable by most of the industry, and at upon release of the Complete
$24/REC, a 5-10 kW system installed on an average house Report, you’ll also receive a
pays for itself far more quickly than a 1.5 kW system. spreadsheet that allows you
to re-create these graphs as
All the evidence for this graph is included in the
they relate to your location,
complete report. The extended report covers each
costs, profit margin, and RECs
Zone of each state with a Feed-in Tariff.
value.
Admittedly, most of these graphs have focussed on Zone 3
NSW. How do the paybacks of larger systems compare Australia-wide?

The South Australian and Queensland Feed-in Tariffs allow

for up to 30 kW in three-phase installations. This could Over ten target markets
mean even higher export percentages that justify even for high export power
larger systems. are identified in the
complete extended
This graph shows that in order to achieve <10 year paybacks on large
report. Most of these
systems in states other than NSW and ACT, high export fractions are
markets are mostly
needed. So, locations with low amounts of daytime power
untapped.
consumption are an essential target market for the industry.
So, its difficult to sell on price alone when the REC price is $24, but it may still be possible to sell on payback, if
you’re able to target specific markets of opportunity. But it’s important to act swiftly. The following graph
conveys a message that isn’t commonly discussed – the Feed-in Tariffs are to be reviewed after a limited
amount of PV has been installed.

Feed-in Tariff Caps The extended report

contains even more
120,000 strategies for a selling
100,000 when the REC price is
low; strategies that
80,000 aren’t dependent on
RECs or a Feed-in Tariff
kW

60,000

40,000

20,000

0
NSW VIC Qld SA ACT

Since 2000 Since 2009 FiT Review Threshold

Already SA has reached their threshold for FiT review, and Queensland is rapidly approaching its own. NSW
and Victoria’s FiT won’t last too long at today’s installation rates. Although the process of reviewing SA’s FiT it
clearly demonstrates that this highly valuable opportunity to sell on good paybacks may not be around for
long.

Summary
• When the REC price is low it becomes to sell PV systems on their low upfront price
• A wiser selling strategy may be to sell PV systems on their payback time
• This is difficult (and legally risky) to advise without appropriate evidence to justify your claim
• The evidence is available that could make it easier to sell systems on payback, and to sell larger
systems, with their associated benefits to your business.
• PV systems can have a rapid payback, depending upon a What if you could tell your
number of circumstances customers that investing in a
system was like putting money in
Like you, I wish to see the industry succeed in covering Australia with
the bank and earning an interest
solar power. Payback is just one way of evaluating whether it is
rate of 12% AFTER tax?!!! Find
financially wise to install a solar power system. There are more
out how in the Extended Report
strategic ways of selling commercial systems that are covered in the
Successful Solar Strategies Report, including financial and tax analysis.
These are introduced in the final part of the free Solar Strategies
Introductory Reports. A favourable outcome is demonstrated for
commercial customers even when the REC price is zero! But you’ll have
to buy the Successful Solar Strategies Report to have the complete
picture.
 st
The Successful Solar Strategies report could help your business to prosper. It will be released on 21 October
2009.

• It contains invaluable analysis and industry insight that can contribute to your success.
• It provides a more detailed assessment of the RECs supply market, and provides four strategies for
managing the risk of a sudden drop in REC prices.
• It includes payback graphs that can assist you to sell solar power to your customers
• It explores in depth seventeen strategies to sell an abundance of profitable solar systems.
• It demonstrates profitable ways to sell solar power even if RECs were worthless.
• It provides a financial analysis of commercial installations, with favourable outcomes
• Plus industry-proven sales techniques, incorporating successful international PV sales models.
• Plus a list of untapped target markets highly suitable for net Feed-in Tariffs
• Plus much, much more.
About SunWiz – Solar Energy Consulting:

SunWiz has extensive knowledge of all facets of solar energy:

solar photovoltaic solar drying

solar heating and cooling passive solar design
concentrating solar power

SunWiz is able to provide the following services related to solar energy systems:

Award-winning PV System Design System Performance Monitoring and

Tender Preparation Reporting
Procurement Advice Technology Evaluation
Independent Tender Evaluation Feasibility Studies
Business Opportunity Identification and Installation supervision and sign-off
Evaluation

Warwick Johnston, manager of SunWiz has:

Won two awards for Best Australian Solar Power System

Managed the delivery of over 600 kW of PV systems
BCSE/CEC Accreditation (Design and Supervise) and Membership (pending board approval)
Completed a Masters in Renewable Energy (November 2009)
Been awarded a fellowship for solar air conditioning
Been a member of the PV directorate
Been the treasurer of ANZSES (Victoria)
Presented at a number of conferences

Consulting projects that Warwick has been involved with include:

Opportunity identification for PV inclusion in Tsunami reconstruction on behalf of an international

NGO
PV opportunity identification and pre-feasibility studies for a number of local councils
PV opportunities investigation on local council sporting pavilions
Identification of 10 MW of untapped renewable energy resources in one council area
Analysis of Victoria’s off-grid market potential for renewable energy
Pre-feasibility study for two 250 kW tracking PV power stations
Energy Efficiency Opportunity Assessments for large electricity users

Phone: +61 (0)413 361 534

Address: PO Box 263 Bangalow NSW 2479
Accreditation #: P1902

Member: ANZSES, ISES, ATA, EWB

 Commercial Systems:
Wise Investment Targets
4th Free Introductory Report on Successful Solar Strategies

An free solar power industry report by Warwick Johnston, SunWiz, October 2009

Copyright © Warwick Johnston 2009

Cover Image: Alan Cleaver and Warwick Johnston – Licensed under Creative Commons
Introduction
This free report demonstrates the highly favourable opportunities in the commercial PV market.

Over 200 hours of research have gone into this report. It has been offered for free in the interests of the solar
power industry, as an industry that is forewarned can take action to ensure its future prosperity.

This free report is supplemented be by three more reports that have been released over the course of a week.
Together these show:

• why the REC price is likely to remain

low and volatile
• what impact this could have on the
businesses like yours in the solar
power industry
• and, crucially, strategies for solar
success whatever the REC price.

This free introductory report has been

abridged so that the whole industry can
quickly read and understand its key
implications. A wealth of supporting
information than provides the bigger picture
has been collated and documented into the
“Successful Solar Strategies” report – this
information helps readers more deeply
understand the drivers behind REC prices,
Over the course of this week you'll see the three
the risk to their business, and what they could
elementary pieces of the jigsaw puzzle that fit together
do to prosper in uncertain and difficult times. with synergy and present businesses a roadmap to
solving the REC Crisis
There are a lot of background
information and assumptions that omitted from this concise document. You should not act upon this
information without first researching and confirming its applicability to your situation.

The advice in this report is of a general nature only and should not be relied upon, in and of itself, by
readers. Before making any decisions or commitments based on the content of this report, it is
recommended that readers discuss their individual circumstances with their own professional
accounting and investment advisors. Should a reader wish to tailor the advice in this report to his/her
particular circumstances, please contact the author.

The complete picture fills 80 pages, and contains advice that could assist the reader’s business to prosper. To
ensure the competitive advantage of the reader, a limited number of reports will be made available over the
period 21 – 27 October 2009. If you have received this free introductory report without registering your email
address on the www.SunWiz.com.au then you might miss out!
RECs Catastrophe – a recap
In the RECs Catastrophe introductory report, we learned of the threats to the solar power industry, and to the
success, sustainability, and prosperity of your business:

• 2010’s RET has effectively already been met, keeping REC prices
If you haven’t already
low for at least the year ahead.
received your free copy of
• Deployment of other large-scale renewable energy projects that
RECs Catastrophe, contact
have been waiting for an expanded RET would lead to a bulk
warwick@sunwiz.com.au
increase in supply of RECs.
• SHW installations act as a dominant supply of RECs
• Other subsidised markets including schools and SHCP backlog will
also contribute to supply RECs, independent of REC price
• REC market forces favour the buyers in the market
• Although market forces also act to stabilise the REC price, the REC
multiplier reduces the amount of PV systems needed to meet the
RET. It also creates a high degree of sensitivity to REC price
fluctuations for the solar power industry.

Larger Systems and Feed-in Tariff Targeting – a recap

As we saw in Parts Two and Three of the Strategies for Solar Success Introductory report series, using a Feed-in
Tariff sales-pitch could be a sensible approach:

• When the REC price is low it becomes to sell PV systems on their low upfront price
• A wiser selling strategy may be to sell PV systems on their payback time
• It is difficult (and legally risky) to advise of payback without appropriate evidence to justify your claim
• The evidence is available - it calculates the amount of power export based on typical consumption
• Selling PV systems on payback could make it easier to sell larger systems, with their associated
possible benefits, including
• Increased per-system profits
• Proportionally lower exposure to REC price fluctuations
• Lower variability in customer price with REC price movements.
• Less proportion of system cost that must cover advertising overhead
• PV systems can have a rapid payback, depending upon a number of circumstances
Commercial Systems
Payback is just one way of evaluating whether it is financially wise to
install a solar power system. Business customers might be more likely
Learn of the effective return
than residential customers to have access to the $65,000 it can cost
on investment for all states
to install a large solar power system. However, many businesses also
with Feed-in Tariffs, for a
won’t be interested in anything less than a three year payback. What
variety of system sizes and
if you could tell your customers that investing in a system was like
REC prices in the complete
putting money in the bank and earning an interest rate of 14% AFTER
report
tax over at least the next 20 years?!!!

This is possible, through the savings available to commercial customers.

The first part of their saving is the GST. Business customers that are registered for GST effectively get a 10%
discount. Unfortunately, they also pay at least 10% lower electricity rates than residential customers, because
they can claim back the GST on their electricity bill. That evens up the payback calculation, but at least gives
you the chance to quote prices that are in effect 10% lower.

Solar power systems that are installed for business use (namely reducing electricity bills) can claim
depreciation over the 20 year effective life of the asset. As seen in the figure below, over the course of its life,
depreciation can mean a further $15,000 saving on a $60,000 (ex GST) solar power system, assuming a 30%
company tax rate applies.

Depreciation
$70,000
$60,000
$50,000
Capital value
$40,000
$30,000
Post Tax Depreciation
$20,000 Savings
$10,000 Accumulated Post Tax
$0 Depreciation Savings
0 5 10 15 20 25
Year

As part of the budget stimulus measure, the Federal Government made selling solar systems to businesses a
little bit easier. As part of the Investment Allowance: small business and general business tax break, small
business entities (those with less than $2m turnover per year) are entitled to:

“An additional tax deduction of 50 per cent of the cost of eligible new tangible depreciating assets
where the business commits to investing in the asset between 13 December 2008 and 31 December
2009 and first uses the asset, or installs it ready for use, or (in the case of new investment in an
existing asset) brings the asset to its modified or improved state on or before 31 December 2010.” 9

9
http://www.ato.gov.au/taxprofessionals/content.asp?doc=/content/00175431.htm
Larger businesses (those with turnover larger than $2m per year) that commit to spending a minimum of
$10,000 before 31/12/09 and are installed prior to 31/12/10 are eligible for a 10% tax break (they were eligible
for 30% if they committed to purchasing prior to 30/6/09).

The 50% tax break could means that your customer’s $60,000 (ex It’s wise to act quickly to take
GST) solar power system could mean they pay tax on $30,000 less advantage of the tax break. Learn
income. This is equivalent to $9,000 extra post-tax income10. That’s a about how greatly it affects your
15% saving for small businesses, but only a 3% saving for larger customers’ financial decision in
businesses, but only if they act quickly. Naturally, time-limited the complete extended report
incentives could also greatly assisting you in closing your sale.

This graph presents how a $65,000 solar power system may ultimately cost the customer less than $30,000 in
post-tax out of pocket expense. This is the amount that is needed to be paid back by the (GST-adjusted,
company tax-adjusted) electricity generated by the solar power system.

So, the million dollar question: what is the return on investment

for a solar power system? How can you assist your customers in Learn more about the Risks
making prudent financial decisions? The most appropriate metric involved with an investment in a
to use is typically the Internal Rate of Return, which is equivalent solar power system (and how
to the amount of post-tax annual compounding interest rate that these risks can be minimised) in
would be received if the same amount of money was invested in a the Complete Extended Report.
bank loan.

The following two graphs answer this question for a 10 kW system in NSW and for a 5 kW system in Victoria.
They show that over a 20 year period, money invested in a solar power system could earn its owner a post-tax
compound annual interest rate of over 14%. To me, an interest rate of 14% sounds more appealing than a five
year payback, especially if that’s post-tax declared income. The situation in Victoria isn’t as lucrative, but still
favourable in certain cases. At $30/REC, the maximum IRR jumps to 15% in NSW Zone 2.

Each REC Zone in South Australia, Queensland, New South Wales, Victoria, and the ACT are graphically
presented in the Successful Solar Strategies report, along with a sensitivity analysis on the price of panels
and tax break. If you act before Friday 23/10/09, you’ll also receive a bonus spreadsheet that allows you to
enter in your own costs and determine the payback and IRR for your situation.

10
at the 30% company tax rate
 These graphs use a
conservative
performance
assumption. High
performance
installations could
have even greater
financial merit.

A system whose
payback is longer
than the duration of
the Feed-in Tariff will
have poor financial
outcome, as its
income dwindles in
its twilight years.

The graphs clearly demonstrate that in order to achieve reasonable return on investment in States with a net
Feed-in Tariff, a high proportion of generated power must be export. Indeed, an IRR of 18% could be reached if
100% of power can be export from a 1.5 kW system located in NSW Zone 2 with $30 RECs. Exporting 100% of
power from a 1.5 kW system is not likely, but exporting a significant amount from a 10 kW system is quite
achievable, depending upon the power consumption of the site to which its connected. The challenge then
becomes to identify and target businesses with large roofs and low daytime power consumption

Over 10 virtually-untapped target markets with potential for high export power are included as a
bonus in the Successful Solar Strategies report, if you act quickly upon its release.

You’ll also have to act quickly to take advantage of the Tax Break, which contributes about 3% to these IRRs.

The figures presented in this document are based on personal research and ATO taxation advice, and use the
most general, conservative tax assumptions possible. For the same reasons, treat the advice given within this
document as advisory in nature only, and consult a taxation professional as appropriate.
Conclusion
This is pretty exciting stuff, and quite a journey. After glimpsing the
business risks involved with RECs and seeing what the REC price is likely
to do and how it could seriously affect your business for the worse,
perhaps you were thinking of closing down shop. Yet we’ve just had a
small insight into how lucrative the Strategies for Solar Success can be.
We’ve just seen a bright future for strategically-minded solar power
system installers, even without RECs. And there’s so much more depth,
detail, strategies, target markets, marketing material, sales strategies,
ways to mitigate RECs risk, the list goes on. Even the challenge of
identifying target markets for large, Feed-in Tariff eligible, highly exporting systems has been taken care of.

Comments on the Complete and Introductory Reports

“This is a very well researched report, appropriately attributed, and with good direction back to source
material. As a text book on the very specific subject of renewable energy certificates (RECs), it is the only
document I have seen that covers the subject so comprehensively.”

- Bruce Hannam, President, SEIA (Sustainable Energy Industries Association Inc).

“Our Company could hardly wait for the rebates to be removed. Since this has happened we have sold more
large systems than the entire time of Rebates. As you say in your emails large systems provide the only gain
economically and genuine reduction of green house gas. Reduced RECS do not effect these larger systems (as
you have pointed out). I look forward to a spreadsheet that will show kWhr daily usage versus solar daily
delivery with approximation of feed in tariff credits.”

- Brian Springer, Springers Low Voltage Specialists

“Just read your first report. I think it is outstanding. I thank you for making this public to the solar installers of
the country.”

- Mark Hickey, Nickel Energy

nd
Plus further endorsements from the CEO of Australia’s largest PV REC trader, ATRAA founder and 2 longest
established (30+ years) solar company, Partner in a CleanTech Venture Capital firm, and more…
 st
The Successful Solar Strategies report could help your business to prosper. It will be released on 21 October
2009.

• It contains invaluable analysis and industry insight that can contribute to your success.
• It provides a more detailed assessment of the RECs supply market, and provides four strategies for
managing the risk of a sudden drop in REC prices.
• It includes payback graphs that can assist you to sell solar power to your customers
• It explores in depth seventeen strategies to sell an abundance of profitable solar systems.
• It demonstrates profitable ways to sell solar power even if RECs were worthless.
• It provides a financial analysis of commercial installations, with favourable outcomes
• Plus industry-proven sales techniques, incorporating successful international PV sales models.
• Plus a list of untapped target markets highly suitable for net Feed-in Tariffs
• Plus much, much more.
About SunWiz – Solar Energy Consulting:

SunWiz has extensive knowledge of all facets of solar energy:

solar photovoltaic solar drying

solar heating and cooling passive solar design
concentrating solar power

SunWiz is able to provide the following services related to solar energy systems:

Award-winning PV System Design System Performance Monitoring and

Tender Preparation Reporting
Procurement Advice Technology Evaluation
Independent Tender Evaluation Feasibility Studies
Business Opportunity Identification and Installation supervision and sign-off
Evaluation

Warwick Johnston, manager of SunWiz has:

Won two awards for Best Australian Solar Power System

Managed the delivery of over 600 kW of PV systems
BCSE/CEC Accreditation (Design and Supervise) and Membership (pending board approval)
Completed a Masters in Renewable Energy (November 2009)
Been awarded a fellowship for solar air conditioning
Been a member of the PV directorate
Been the treasurer of ANZSES (Victoria)
Presented at a number of conferences

Consulting projects that Warwick has been involved with include:

Opportunity identification for PV inclusion in Tsunami reconstruction on behalf of an international

NGO
PV opportunity identification and pre-feasibility studies for a number of local councils
PV opportunities investigation on local council sporting pavilions
Identification of 10 MW of untapped renewable energy resources in one council area
Analysis of Victoria’s off-grid market potential for renewable energy
Pre-feasibility study for two 250 kW tracking PV power stations
Energy Efficiency Opportunity Assessments for large electricity users

Phone: +61 (0)413 361 534

Address: PO Box 263 Bangalow NSW 2479
Accreditation #: P1902

Member: ANZSES, ISES, ATA, EWB