Rooftop solar the next pink batts?

Are we about to see a repeat of the pink batts drama relived in slow motion on rooftops equipped with solar photovoltaic systems? A NSW government audit certainly raises this spectre.

If the situation revealed by the NSW Department of Fair Trading yesterday that an audit of 658 homes revealed 122 major defects – an alarming 18.5 per cent – turns out to be as widespread as that sample suggests, then Australia has yet another problem created by governments mindlessly unleashing market forces without considering the consequences.

Apparently, the department found evidence of wiring problems that could lead to electrocution. It also found the majority of systems examined had minor faults.

I have no idea how that translates to Western Australia’s 40,000 or so installed rooftop PV units but I can’t imagine why our state would be any different to NSW which has 120,000.

I’ve already been more than a bit sceptical about the cost of rooftop renewable energy and how it is a feelgood policy that could actually interfere with a more sensible approach to tackling the need to reduce carbon emissions. In that regard, I might be a little biased towards finding an even more alarming problem than just cost.

I might also add that the NSW government has been trying to cut back this expensive scheme which it inherited from its Labor predecessor and been politically bruised in the process, so there may be some political opportunism in highlighting this issue.

Then again we are dealing with electricity here, so the big concern is whether these devices are safe, not who was right or wrong in setting up the scheme. I might add, the warnings issued by the NSW government are serious (see its release below), even though only two fusebox fires have been so far resulted from rooftop solar installations.

The Clean Energy Council has also sought to allay fears, suggesting an issue with faulty circuit breakers was identified last year.

Nevertheless, I had heard very recently that there might be long-term issues with cheap or badly installed solar PV quite and was already cautiously pursuing the subject, so I find the NSW government’s findings quite illuminating.

From what I can gather, there are two big concerns raised by NSW’s audit – installation and long-term reliability.

The first issue was exposed in the pink batts drama when government-led incentives distorted the market and created demand that qualified installers could not keep up with. The result was cowboys entered the industry.

The second one is the danger that cheap products, even properly installed, may not be of a quality to withstand the Australian climate, leading to problems in a few years’ time. That issue is the same as the installation problem in a way - the worldwide demand mainly created by government incentives in many countries, has revved up the solar panel demand to a point where quality producers could not keep up with it.

Consumers don’t help themselves either. They are busting so hard to get these systems on their rooftops to start making money while saving the world (or before the incentives are removed) that they are not making purchasing decisions in the same way they normally would.

Below is NSW government release from yesterday and a response from the Clean Energy Council:

RESULTS OF SOLAR PANEL AUDIT

Householders are being advised to ensure their solar panel systems are safe following an audit which found that up to 18.5 per cent of installations have major defects.

Premier Barry O’Farrell said today the review of 658 homes in Sydney’s north-west by Fair Trading inspectors found widespread defects in solar panel units.

He said 18.5 per cent had major defects and 63.5 per cent had minor defects. The major defects related primarily to incorrect installation of some components or incorrect wiring while the minor defects generally related to incorrect marking and signage.

Mr O’Farrell stressed that, of the 120,000 homes in NSW with solar installations, only two had reported minor fires in their fuse boxes.

He said the most important advice to householders was NOT to turn off their solar panel systems but to call a qualified expert if they were concerned that their installation may be defective.

An education campaign will be launched immediately to advise householders of the action they should take if they are concerned that their solar installations may not be safe.

As a first step, those with concerns should contact the company which sold them their solar panel system to confirm that the installer was qualified and that the system has a Certificate of Compliance. Where the company cannot confirm that the system is safe, owners should ask them to inspect it again.

Those who are still not satisfied with the response or who want an independent inspection of their system, should go to the Clean Energy Council website at www.solaraccreditation.com.au where customers can access a list of accredited solartrained electricians who can check systems for a fee

Mr O’Farrell said that where there is a problem with a system the installer is required to fix the defects as soon as possible at no charge.

NSW Fair Trading can also take action against substandard installations of solar panels where complaints are lodged.

Mr O’Farrell said that electricity distributors are also now writing to customers with detailed advice on what to do and are standardising their inspection procedures to check that solar PV systems are properly connected to the electricity network.

He said it was clear that the solar bonus scheme had been bungled by the previous Labor overnment at every stage.

“The scheme was too generous, there was a rush to get panels installed and we have ended up with many homes having defective systems,” Mr O’Farrell said.

“Where major defects were found during this audit the systems were shut down by Fair Trading inspectors and the owners informed.

“Fair Trading is also contacting the installers responsible for the defective work and directing them to rectify the problems.

“It is appalling that Labor implemented a scheme which was open to abuse and resulted in so many homes being left with defective units.

“But the key message now is for householders to follow the safety advice which means NOT fiddling with their installations – but calling in an expert to do any checks instead.”

Below is a release from the industry:

Industry reassures consumers on solar power
29 Jun 2011

The renewable energy industry has allayed consumer concerns about household solar power systems following a NSW Government statement today about the results of an audit conducted by the Office of Fair Trading.

Mr Matthew Warren, the Chief Executive of the Clean Energy Council, which represents more than 300 solar companies and is responsible for the accreditation of solar installers, said solar systems were safe and the risk to solar households was very low.

"Australian solar has an excellent track record and some of the most stringent safety standards in the world," Mr Warren said.

"The main issue identified by the NSW Government related to a particular type of switch called a DC circuit breaker that has been installed incorrectly in some systems.

"This is not a new issue. It first came to the attention of government and industry late last year and remedial action has been underway since December. We will continue to work with the NSW Government to address this problem and to ensure that it is fixed."

The safest thing for people to do is to leave their system alone and contact the company where they purchased it if they have concerns. The other option is to visit solaraccreditation.com.au and find an accredited installer who can independently check systems for a fee.

Most of the defects identified by the NSW Government in its audit of 658 systems related to incorrect marking and signage. The "major" defects mostly related to incorrectly installed DC circuit breakers.

Mr Warren said there had been only three minor incidents reported from more than 300,000 solar panel installations nationwide, and no actual house fires.

"In contrast there are more than 2000 house fires caused by faulty electrical wiring in Australia each year.

"This is a safe industry and we welcome the increased scrutiny by the government. Solar systems are required to be installed by a licensed electrician with special training and there are rigorous standards for installing solar power systems that were first introduced by the Howard Government in 2001."

An information sheet for households about DC circuit breakers is available on the Clean Energy Council website here.