explain SA details?

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explain SA details?

Postby BruceM » Wed Jun 05, 2013 11:17 am

I was wondering if someone on here may be able to explain an advertising pamphlet I received dropped in my mail box?

I'm in SA. In BIG words it states "56c solar feed-in tarriff now available in SA*"
OK, I thought tarrifs that high stopped some time ago?
So I look down for what "*" represents & in little words it says...
* Solar feed-in tarrif:Promotion is via redemption and available on selected Blueline systems (2kw to 5kw)
I can elaborate more if need be...
......... BruceM
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Re: explain SA details?

Postby davidg » Wed Jun 05, 2013 8:45 pm

BruceM wrote:* Solar feed-in tarrif:Promotion is via redemption and available on selected Blueline systems (2kw to 5kw) I can elaborate more if need be...

What does the fine print say either on the blurb or the website and there will be some you just have to read it all. When something looks too good to be true it typically is.
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Re: explain SA details?

Postby sheila » Thu May 08, 2014 1:54 pm

There is even more duping going on. According to ESCOSA, the wholesale price of electricity (that's the generating cost to the companies) has decreased in SA therefore feed in tariffs have reduced by 2.2c per kWh. Yet electricity charges by these companies (the retail to customers)is about to rise substantially on July 1st. I may have done crazy math at school but in my book, if the buying price dropped then the selling price should also be lower, not higher - unless I was ripping off the customer.
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Re: explain SA details?

Postby Smurf1976 » Thu May 08, 2014 10:12 pm

All it is, is that the company selling the system is offering to subsidise your FIT for the specified period.

Eg you are paid $x under the "official" FIT (what the electricity retailer pays as per government regulation) and the solar company will "top up" this amount to their advertised rate.

The solar company would, of course, be building this cost (to them) into their selling price for the system noting that the electricity retailer or government has no involvement whatsoever - they're just paying the FIT they'd normally pay, the high rate coming about solely due to what the solar company does of its' own accord.

It's like saying that Holden (or any other car manufacturer) could offer you free petrol for 12 months if you buy a new Holden car. That would be a logical marketing trick to try and boost car sales and there's nothing "wrong" with it as such.

But all they'd do is give you a fuel card with one of the major oil companies (BP etc) which you use to get your "free" fuel. But BP etc isn't giving away petrol, all that's happening is that Holden is paying the bills on your fuel card. BP is still being paid for the fuel they supply and ultimately you are paying for it - all they've done is factor in, say, $2000 worth of fuel over 12 months and included this in the selling price of the car. At most, they might have absorbed part of the cost in the hope that they'd recover the loss via increased car sales. But someone has certainly paid for the fuel and it's not the supplier (eg BP) giving it away that's for sure.

Same principle with the solar. A different company not offering the subsidised FIT could likely sell you the same or a similar solar system at a lower price with you just getting the normal rate FIT from the electricity retailer.

In short, it's a marketing gimmick although such things can be attractive to some consumers. Eg someone who has plenty of money available today but where that is about to change (eg retiring) might see a benefit in paying a higher price up front for solar then having lower electricity bills (due to the subsidised FIT) for the duration of the offer. Same with the car example. That would be especially true if they wanted to get rid of their cash for some reason now rather than spending it gradually (eg in order to qualify for the pension or something like that).
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Re: explain SA details?

Postby Tracker » Fri May 09, 2014 9:44 am

..
And remember that there will be no guarantee, that after installing 50systems, at the inflated price to cover the generous FIT, that the business will simply "go broke", and magically do a Phoenix a few days later with a new "owner".. :lol:

Bottom line... you WILL pay for every cent of that FIT.... IMHO.... :cry:

You should be easily able to find a cheaper and better price..
..
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Re: explain SA details?

Postby davidg » Fri May 09, 2014 1:37 pm

Tracker wrote:.......the business will simply "go broke", and magically do a Phoenix a few days later with a new "owner"


Most often the same directors in fact................... :shock:
SPS Standalone Power System/Hybrid specialist - Store the Sun!
SELECTRONIC SPMC482-AU, 8.2kW's of Arrays
Selectronic Certified AC-Coupled Fronius 8.2kW Inverter
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An OTT Genset for a house.
PVOutput Stats

Sparkys light up your life :)
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Re: explain SA details?

Postby Tracker » Fri May 09, 2014 6:20 pm

..
and the most obvious example was CMS / Aussie Solar..
They started that 40c Feed In Supplement, and naturally, it would have all stopped when they went into Voluntary Admin... :( .. Leaving customers with faulty products and no FIT and no recourse..
..
.
Retired Engineer and keen PV experimenter - Always ready to learn and share.
2 x CMS2000 (fan cooled) GCI and SE 170W panels
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