Photovoltaic (PV) solar system

Going solar - The process of installing a photovoltaic (PV) system in your home

Installing a PV system is a method of generating your own electricity by harnessing solar energy via panels placed on your roof.

Why install a PV system?

Installing a PV system is a big investment, but it has a number of benefits. You will:

Produce clean, renewable energy;
Reduce your power bills; and
Reduce greenhouse gas emissions.

Offsetting the initial investment in a PV system

You can offset your investment by selling your Small-Scale Technology Certificates (STCs) to Power and Water. An STC is obtained for every 1 megawatt-hour (1000 kilowatt-hours) of electricity produced by small generation units unless the Solar Credits multiplier applies. STCs are sold on an open market so the price can vary. Power and Water's STC price is determined by reference to the spot price and current market conditions. Power and Water will pay the market price at the time you apply to sell us your STCs. Under the Federal Government's Solar Credits Scheme, the number of STCs for a home PV system is subject to a multiplier. Please note that your installer may also offer to purchase your STCs at the time of installation.

How much can you save on your electricity bill?

Your savings will depend on the size of the system, location and season. Keep in mind that shade and the system’s position can impact its performance. Your Power and Water invoice will display the total electricity consumed and a credit for the electricity you have supplied to the grid.

As a guide, an average Territory home uses 9,000kWh per year. The most common PV system installed is 1.5kW, which can produce between 1,650 to 2,000kWh a year. Over the year you can save up to 20 per cent. Your PV system’s output will vary from season to season.

How much can you earn?

Domestic customers
Flat buyback rate: 19.77 cents per kWh

Commercial customers
Standard flat rate: 23.00 cents per kWh

Commercial Time of Use customers
Peak (6am - 6pm): 29.43 cents per kWh
Off-peak (6pm - 6am): 16.57 cents per kWh

Rates are subject to change. Buyback rates are based on gross production. Rates are current as of 1 July 2011. The Commercial 'Time of Use' buyback rate can only be used in conjunction with the Commercial 'Time of Use Consumption' tariff.

The Domestic 'Time of Use' tariff is not applicable. A customised rate will be negotiated for PV solar systems greater than 30 kVA and for customers consuming greater of equal to 750,000 Kwh.

What are the PV fees?

The PV fee covers the cost of your special metering requirements and a new connection. Your fees may vary depending on your metering point setup and if additional inspections are required, ie the call out of a lines crew to attend your property.

Single Phase Meter $500.59
Three Phase Meter $644.14

Additional cost will be added to your next bill. To review additional fees and charges please view the pricing section.

PV feees must be paid when you submit your Network Connection Agreement (Power Networks - Photovoltaic Inverter Network Connection Agreement) and your Power Purchase Agreement.

First steps

We recommend a site inspection to confirm that your house is suitable for installation. The inspection will also provide an estimate of expected output and identify any additional work required to be undertaken as part of the installation, including any upgrade required to the meter panel or switchboard. You should speak to one or more accredited solar installers to arrange a site inspection and quote. A list of installers can be found at yellowpages.com.au

The installer will help you to lodge the application to connect to the power grid and the two agreements that need to be in place.

Network Connection Agreement (Power Networks - Photovoltaic Inverter Network Connection Agreement)
Power Purchase Agreement

Please submit your two agreements at the beginning of the process. The equipment, including the inverter, must comply with current Power and Water Requirements for Grid Connection of Photovoltaic Systems via Inverters and ESAA Australian Guidelines for Grid Connection of Energy Systems via Inverters. The system must be approved by a certified electrician.

Frequently asked questions

How long does it take?
After Power and Water receives the certificate of compliance from the installer it should take about six weeks, it may take up to eight weeks in remote communities. This depends on the installation being completed and the metering and connection point inspected by a Power and Water meter technician.
What is a Network Connection Agreement?
The Network Connection Agreement highlights the terms and conditions for the safe connection of your system to the local electricity network. An agreement must be in place for your solar power system to be connected to the network and feed power back into the electricity grid. This agreement enables Power and Water to ensure that your system meets all standards for safety purposes.
What is a Power Purchase Agreement?
The Power Purchase Agreement is an agreement between you, for the purchase of electricity generated by your system, and Power and Water to enable correct metering and billing standards to apply.
Is this revenue subject to tax?
Buyback revenue is not taxable for domestic customers so you won’t be charged tax on the credit you earn from your PV system. Commercial customer’s buyback revenue is taxable supply. Commercial customers receiving revenue from the electricity they produce must pay an additional amount equal to the GST rate applying to the taxable supply. This is general advice and you should seek independent tax advice re your situation.
How long is the agreement for?
The agreement will remain in force while you continue to live at the premises and remain a Power and Water Retail customer. Power and Water can terminate the agreement for safety reasons or you can terminate it when you leave the premises.
Will the solar system always be connected to the network grid?
The system may be disconnected at any time due to safety reasons. Details are in the Requirements for Grid Connection of Photovoltaic Systems via Inverters.
Why does the system lose power during power outages?
Your PV system has a safety switch, which is a device fitted to protect you, your family or business when an electrical fault occurs. The PV system will restart when mains power is restored.
Do new property owners need to negotiate new agreements for an existing system?
Yes. If a property is sold the existing agreements will become null and void. It is the responsibility of the new owners to contact Power and Water and set up a Network Connection Agreement and Power Purchase Agreement.
Why does the system installation need to comply with the NT Building Act?
When a PV system is installed on your roof, modifications are completed to your roof’s structure. These modifications must comply with the standards listed in the NT Building Act ensuring the continued safety of your building. See the Department of Lands and Planning’s website for more information.

Print friendly version - Going solar? The process of installing a photovoltaic (PV) system

Questions to ask your solar PV installer

Power and Water encourages customers to research installers and choose a quality system at a cost effective price. The following questions you can ask when installing a solar power system:

What brand of solar panels and inverter will be used - are these guaranteed to be used or will the supplier substitute equipment according to availability of supply?
If product substitution does take place, will the householder be informed in advance or given the option to withdraw?
Where does the installer intend to install the inverter? Inverters produce a ‘humming’ noise, they should be located away from day time living areas. Depending on the inverter, this may be outside, ideally out of direct sunlight.
What is the length and type of warranty? Five year warranty on inverter; 10 year product warranty and a 25 year (at 80% output) warranty is recommended as a minimum for solar panels.
What is the track record of use and servicing in Australia of the major components to be used?
What is the track record of the company (ask for references)? Who will they use to carry out the installation - are they local or ‘fly in’? Delays in turning the system on can result if the completion advice provided to Power and Water is incomplete or the PV installation is sub-standard advice.
Does the installer do a formal inspection of the site, assess expected output and provide a written quote before asking for a deposit or a commitment from the householder? Power and Water highly recommends site inspections prior to accepting a quote or paying any deposits.
How does the installer propose to provide local support for warranty and service claims?
Where package prices are advertised, are there extra costs involved? For example meter installation, grid connection, removal of asbestos, building permit
costs, two storey buildings, or any upgrades to the meter panel or switchboard.
Does the installer manage the process of connecting the solar system to the electricity grid or obtaining any applicable building permits?
Does the installer require a deposit and what is the timeframe between paying a deposit and installation?
Does the company provide a point of sale discount through the purchase of Small-Scale Technology Certificates (STCs) and if so, what price is paid for each STC?

Print friendly version - Going solar? Questions to ask your solar PV installer

PV application checklist

If applying to have your PV system connected to the Power and Water network, the following documentation must be included in your application:

Completed and signed copy of the PV Inverter Network Connection Agreement (Power Networks – Photovoltaic Inverter Network Connection Agreement);
Completed and signed copy of the Power Purchase Agreement for PV Inverter System;
Payment of PV fee;
A high quality combined power, protection and control schematic for the proposed electrical system. These diagrams may include connection arrangements and ratings for the following (go to Requirements for Grid Connection of Photovoltaic Systems via Inverters to see an example of the schematics view):
• switches
• inverter
• PV-array
• metering
• earthing equipment
• distribution circuits
• protection, synchronisation and tripping or equipment interlocks.
Your installer must submit a Certificate of Compliance and Schedule 3 of the PV Inverter Network Connection Agreement to the Connections Officer, Power Networks, Power and Water Corporation.

Completed applications can be lodged at any Power and Water Customer Service Centre. Alternatively the application can be posted, with a cheque for the PV fee made payable to Power and Water Corporation. Visit powerwater.com.au/contact_us for a list of regional Customer Service Centres and postal addresses.

Print friendly version - Going solar? PV application checklist