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:

• Be producing clean, renewable energy.
• Reduce your power bills.
• Reduce greenhouse gas emissions.

Offsetting the initial investment in a PV system

You can offset your investment by selling your Renewable Energy Certificates (RECs) to Power and Water. Your PV system is certified for one REC for every one megawatt hour of electricity produced. RECs are sold on an open market so the price can vary. Power and Water will pay the market price at the time you apply to sell us your RECs. Under the Federal Government’s Solar Credits Scheme, the number of RECs for a home PV system is subject to a multiplier. This scheme has replaced the rebate offered previously in 2009. Please note that your installer may also offer to purchase your RECs at the time of installation.

See our fact sheet on RECs for more information.

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 total electricity you have generated.

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 – 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:         19.23 cents per kWh

Commercial customers
Standard flat rate:         22.37 cents per kWh

Commercial Time of Use customers
Peak (6am - 6pm):        28.63 cents per kWh
Off-peak (6pm - 6am):  16.12 cents per kWh

Rates are subject to change. Buyback rates are based on gross production. Rates are current as of 1 July 2010. The 'Time of Use' buyback rate can only be used in conjunction with the 'Time of Use Consumption' tariff. A customised rate will be negotiated for PV solar systems greater than 30 kVA and for customers consuming greater or equal to 750,000 Kwh.

What is the PV fee?

The PV fee covers the cost of your special metering requirements. Your fee may vary depending on your metering point set-up and if additional inspections are required i.e. the call out of a lines crew to attend your property.

Meter Type              Fee
Single Phase Meter  $115.23
Three Phase Meter  $280.23

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

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

First steps

Choose an accredited installer who can help you design a solar power system that suits your household needs. 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
• Application Form to Grid Connect a PV Inverter System

Please submit your application including the 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. All modification needs to be in accordance with the NT Building Act. In cyclonic areas the fixing of the unit must comply with the Deemed to Comply Manual.

You will need to negotiate the cost of the system directly with the installer and pay a metering fee to Power and Water. Additional charges may apply.

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. 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. 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.
• Do property owners who have installed a new PV system and are not connected to the grid need to contact Power and Water?
  No. If you don't intend connecting to the grid then you are not required to contact Power and Water, however you may still be able to sell your RECs to Power and Water. Please contact customer services for further information on Power and Water’s current price for RECs.
• 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.

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 Invertor Network Connection Agreement (Power Networks – Photovoltaic Inverter Network Connection Agreement).
• Completed and signed copy of the Power Purchase Agreement for PV Inverter System.
• Completed and signed Application Form to Grid Connect a PV Inverter System (pages 15 and 16 of the Requirements for Grid Connection of Photovoltaic Systems via Inverters)
• 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 (to see an example of the schematics view pages 8 and 9 of the Requirements for Grid Connection of Photovoltaic Systems via Inverters):
  • switches
  • inverter
  • PV-array
  • metering
  • earthing equipment
  • distribution circuits
  • protection, synchronisation and tripping equipment interlocks.

Your application can only be processed once the above required documentation is submitted in full.

More information

Please note that standards and rates may vary. Additional conditions and restrictions may apply. This information should only be used as a guide.

For your convenience, a print friendly version of the information on this page is available for download.

Contact us for more information.