WA homeowners are to expect free solar installations and huge energy savings with new property developments
Tuesday, 08 May 2018

In an Western Australian first, new solar power purchase contracts are being piloted on a range of houses, apartments and townhouses, where rooftop solar systems will be installed at no expense to the buying homeowner.

WA homeowners are to expect free solar installations and huge energy savings with new property developments

Housing Minister Peter Tinley stands with MLA Margaret Quirk on the site of a new renewable energy focused estate. Source: www.businessnews.com.au

The innovative development at The Amble Estate in Girrawheen promises a saving of 40 per cent on daytime electricity tariffs (a tariff refers to the pricing structure of how a retailer charges the customer for energy consumption) over the next decade. The project is contracted to install solar systems on 129 new homes in an attempt to both cut down on residential bills and reduce greenhouse emissions.  

As WA’s cost of energy is already increasingly high and daytime tariffs are expected to rise even more in the coming years, homeowners can expect a potential saving of $6000 over those 10 years.

Saving thousands of dollars through installing a solar system sounds great to anyone, and with solar technology improving all the time, more developments like this are expected to be rolled out across the state. But to ensure you know what you’re getting out of this sort of deal, let’s break it down.


How exactly can this be done and what part do you play?

Solar suppliers set up the solar system installed on the roof of your home under a residential solar power purchase agreement, or a PPA. These agreements involve a homeowner purchasing the electricity from the supplier, instead of renting it from the retail energy grid. Not only will this be a fraction of what would you’d usually pay for grid electricity, but you will always have a guaranteed discount of 40 per cent of the standard energy tariff set by WA retailer, Synergy.

Under these terms, the supplier will maintain the system during the extent of the contract running 10 years, until it runs out. By the end of the contract, the homeowner will be offered to buy their solar systems for a trivial $1.

Following an energy cost increase of 10.9 per cent in 2017-18, WA should expect another average increase of 6.3 per cent over the next two years, a scheme to help budding homeowners cope with their energy bills could not have come sooner. 

Trends in retail electricity prices having grown to the point where it spiked last year in 2017. Prices are shown in cents per kilowatt hour (c/kWh). Source: industry.gov.au.

Although this is the first development of its kind, communities across WA are thinking of new ways to get off the grid. Follow the link here to discover more innovative movements in renewable energy.  

What happens when your contract ends?

Yolk Property director Tao Bourton, who leads the project explains after the after a decade of reduced energy bills, the homeowner will have free solar energy for the remaining life of the system which stands at over 20 years.

Mr Bourton also said if the trial runs successfully this could be not only an opportunity for new renewable energy property developments in WA but for Australia as a whole.

Along with increased savings for everyone involved in a project like this, if the scheme were to be adopted by developers on a national scale, there would be a significant reduction of carbon emissions. As you may have read in Australia’s renewable energy capacity, Australia has already exceeded the renewable energy target set for 2020, but we are still well below the required level of reduced greenhouse emissions, so having solar pre-installed on your property is a huge step forward to reaching the carbon objective.  

If you aren’t one of the lucky few houses in the solar trial, the Energy division at AICA can help you cut your energy bills down immediately with the perfectly tailored system to your home.

Knowing how important it is for new homeowners to take control of their bills, AICA only uses leading renewable energy technology so that you don’t have to worry about the worrying state of the energy sector. Trusting our systems with a 25 year warranty, AICA will give you the opportunity for a sustainable future for years to come.  

If you want to learn more about solar or wish to speak with one of our renewable energy experts, call us now on 1800 242 228.

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