Solar Power for Dummies

Solar Powered Home Loanswww.SPHL.net.au

Solar Power for Dummies – Disclaimer

• This presentation is designed to give you a quick dummies guide to solar power in a domestic environment in Australia.

• It is not a definitive guide and whilst all attempts have be made to be as accurate as possible we are not solar power experts.

• This is a basic guide only, a quick overview of common terms and jargon that is used in the solar industry so that you can gain a basic understanding of how a solar power system works

Solar Power for Dummies – The Basics

• Solar power systems for houses use a technology that converts sunlight into electricity

• This electricity can then be used on the property, stored for later use and/or sold back to the power companies for an agreed price

• The solar power systems are made up of solar panels (This is the part you see on the roof)

• An inverter, usually located near the power meter box• Mountings and racking that attach the solar panels to the

roof• In the next few slides we will cover some basic information

on how these systems work and traps to look our for. • There are also references and links to more information on

the various equipment etc

Solar Power for Dummies – Solar Panels

• We'll start out with a simple diagram that shows the basic building blocks of a solar array.• What we see is that solar cells are the building blocks of a solar module (also known as a

'solar panel'), and when you put more than one solar panel together you get a solar array.

When sunlight hits a solar cell, energy is absorbed by the cell's semiconductor material (usually silicon).

Solar Power for Dummies – Solar System

• When we have enough solar cells for a solar module, and enough solar modules for a solar array, we are almost ready for a residential solar installation.

• As we can see from this diagram, however, there are a few more pieces of the solar puzzle that we will require for a solar installation.

Solar Power for Dummies – Solar Inverter

• One of these solar puzzle pieces is a solar power inverter. This is the device that takes DC power from your solar panels and turns it into the AC power that can be used by your home appliances.

• We also see an electric meter in our residential solar diagram. This allows 'net metering' to take place. In a net metering situation, people are able to sell back to their utility company the excess electricity produced by their solar panel installation.

• The special electric meter in a grid connected system is able to 'run backwards' so the electricity fed back to the electric grid can be measured.

You can find out more technical information from the clean energy council: http://www.cleanenergycouncil.org.au/cec/resourcecentre/Consumer-Info/solarPV-guide.html

Solar Power for Dummies - Solar Panels

• Solar panels are the part most people see on the roof of a house• They are usually grouped together into a configuration called an Array. The size of the Array

(the number of panels) and the output of each panel will determine the overall output of the solar system (more panels = more power)

• As you can see from the chart above, panels come in various sizes and outputs• The quality of the panels also varies by manufacturer • The panels are basically a silicone semiconductor encased in a metal frame with a protective

glass covering• Panels are usually a “sealed for life” item and are not repairable if they fail

Panel Max Power Cell Size Length Width Weight

KD135GH 135W 156mm x 156mm 1500mm 668mm 13kg

KD185GH 185W 156mm x 156mm 1338mm 990mm 16kg

KD210GH 210W 156mm x 156mm 1500mm 990mm 18.5kg

Solar Power for Dummies – Equipment Quality

• Now that we have a basic understanding of how the solar system works, there are a few things that I have found to watch out for what partnering with a solar retailer

• Quality of the equipment.• Solar panels are rated by a government rating agency

into 3 tiers• They are tested for manufacture quality• Durability• Degradation rate (this is the slow but sure drop in

efficiency as the panels age under the Australian sun• Efficiency & output

Solar Power for Dummies – Tier 1 – 3 Equipment Quality

Without going into all the technicalities, some panels are better than others.• Tier 1 - Panels are of the highest quality, greatest efficiency and durability• Tier 2 - Are not as good• Tier 3 - Score the poorest in all the categories, they are generally also the cheapest

Likewise some inverters are better than others:• They carry better warranties and have better durability and efficiency than others• I have found the industry seems to agree, Xantrex, SMA and Aurora seem to be the

premium product

Solar Power for Dummies - Mounting systems

• This is an important but often not properly considered part of the installation.

• The solar panels need to be properly secured to the roof in accordance with building requirements and regulations

• The panels need to have clearance above the roof to allow proper circulation of air under the panels to reduce the risk of overheating

• Because the solar panel efficiency drops as temperatures rise air flow under and around the panel is important

• Mounting types and weather proofing of the mounting onto the roof is important

• Look for quality mounting systems that use high quality materials & secure mounting methods that will secure the installation in extreme weather conditions that may apply in your area

Solar Power for Dummies - Rebates

• Most people have heard of the rebates that are available from the government for people putting solar on their homes.

• These are provided in most cases by a combination of State & Federal governments but the main one that people can take advantage of are “Renewable Energy Certificates” commonly knows are REC (pronounced REX). You will hear the jargon in the industry of “this is the price of the system after REC’s”)

• REC’s are a tradable certificate that are issued to the purchaser for buying certain environmental or “Green” products. They have a value per certificate and can be traded.

• To make the process easier for the purchaser, most solar companies will have the client re-assign the REC’s to them and they then give the customer the value of these as a rebate up-front. So as far as the client is concerned they have a lower “Out of pocket” expense for the solar system. The solar retailer then deals with these later and recoups the value of the REC’s.

• In this way the client pays less for the system at the time of purchase and can receive the value of the REC’s off the total cost of the system without the need to redeem the certificates themselves.

Solar Power for Dummies – Quality

• Again without getting into all the technicalities, it is better to partner with a quality solar retailer

Some of the key things to look for are.....• How long have they been in business (experience in solar)• What equipment do they sell (quality install that will deliver true performance and meet

customers expectations up front and into the future)• Do they use Tier 1, 2 or 3 panels• What inverters do they use• What racking/mounting systems do they use• Are they part of a national organisation, or a proven business or are they a “insulation retailer turned solar”

Solar Power for Dummies - Why does this work?

• We have found that the solar retailers have little or no options for finance.

• They have some interest free finance provided by Certegy, but they are not that keen on it because they pay the set up costs. (can be as high as 20% of the finance amount)

• MyBuy was an option for some retailers but with the advent of NCCP, this is largely off the table due to providers needing to be authorised credit reps.

• Some of the regional banks have started to offer personal loans tailored to Green home improvements, but these relationships are few and far between and the bank products on offer are unimaginative, just personal loans with low rates and app fees.

Solar Power for Dummies - Why does this work?

• The solar companies are not credit sellers and don't want to be.

• They just want to be able to focus on their core business and have someone they can trust to take care of the finance details. Aussie and the SPHL concept is a perfect fit for their needs

• They are concerned about how their clients are handled and the possibility of the client seeing it as “all too hard” when we come along and talk through refinancing options.

• Our experience is that in most cases we are able to cement the client in because they are getting independent confirmation that they are getting a great deal all round

• Those that get buyers remorse, usually have it before we get to see them and not after

Solar Power for Dummies - What’s Next

• Subscribe to the Solar Powered Home Loans Web site.• Contact me directly or register your interest on www.sphl.net.au • Download the items you want to use from the Partner forms page• Download the presentation power point to assist with presenting to the solar prospect

company.• Research what solar companies you have in your area. You can use local or state

newspapers, junk mail, yellow pages and Google to find what companies are in your area.

Solar Power for Dummies - What’s Next

• Determine if they are a suitable candidate to be partnered with Aussie for SPHL (would you put your brand with theirs?)

• Find out who the sales or general manager is and their phone numbers and mailing address

• Mail the introduction letter• Follow up with a phone call to make an

appointment to present SPHL to them,(many companies ring us when they get the letter), if possible try and get in front of the sales team at a team meeting (this may need a second appointment after you have met the managers first)

Solar Power for Dummies - Signing them up

• Once you have shown them the program, 100% of the companies we have spoken to want to be a part of the program. In fact, they ask for exclusivity to the program.

• Download the Privacy consent forms and the privacy and confidentiality forms from SPHL (these have been done by Aussie legal). You will need to edit the agreements with the correct business entity’s and ABN etc for both your Aussie Business and the solar company

• These need to be signed and retained in an appropriate way for future compliance audits if required

• Fax a copy to 07 3368 2025 and we will add your referrer to our master list• Register the solar company in the usual way with Aussie as you would any other

referrer, as per NCCP requirements. (more information on this on the Aussie Intranet)

• Encourage them to register on the SPHL site so we can give them access too

Solar Power for Dummies - Making it work

• From the pilot program we have been running for 6 months, we have found that the tighter the relationship between the AMA and the solar company, the better the response. On average we have been getting 20-30 leads per month from a couple of solar companies we have been dealing with that have really taken to the concept and run with it and lodged over $5m in loans so far

• Try and get to present to their sales team so you can show them the concept all at once and answer questions. (When the sales guys see it they get really excited.)

• From a finance point of view, we treat the application as a cash out for home improvements, you can add quotes from your customer to satisfy bank requirements if needed. Treat the loan as a top up or refinance in the usual way

Solar Power for Dummies - Making it work

• You can download the Flyers from the partner forms and have these customised by your local printer to your details for use with your solar partner.

• Down load and use the Finance Options form and provide to the solar company to make it easy for them to refer their clients to you. We then treat this referral as we would any other lead.

• We keep all faxes in a file for future reference and also create a master Excel spreadsheet of these referrals so we can track each outcome and we report this back to the solar company on a weekly basis to let them know what is happening with their clients.

Solar Power for Dummies - Conclusion

• So far we have found this to be hugely successful. • The solar companies are excited and see it as a competitive advantage• Some take to it more than others so the building of the businesses partnership

relationship is important to your success• We have done all the hard yards on this with Aussie and they are excited to roll

it out into the network. I have also spoken to marketing and we are working on how we can get some national exposure on shows like today tonight

• We have submitted the concept to the QLD Premiers Environmental Awards for consideration

Solar Power for Dummies - Conclusion

• There is no fees or commissions paid for the referrals, and there is also opportunity for co-op marketing and promotion of your Aussie client lists etc to cross refer with your solar company partner.

• We have kept the costs to subscribe modest to try and recover costs and expenses we have already incurred to get the program to this point and maintain the development as the program grows

• This is a fantastic opportunity for Aussie franchises to take some of the environmental high ground and we are definitely ahead of the curve on any competition in this market.