General Framework

Commonwealth governments to assist remote households in reducing their reliance on diesel fuel. Total off-grid cumulative installed capacity accounts for 87 % of PV installed in Australia. The off-grid market is expected to remain strong due to a booming minerals sector, which utilizes PV for telecommunications and signalling. However, this market is also impacted by the strength of the agricultural sector, which is just emerging from severe drought, and by infrastructure developments undertaken by the telecommunications sector.

Grid connected PV has grown from zero to 13 % of installed capacity over the past decade, with most of this (10 %) being PV on residential and community buildings. The national PV Rebate Programme, Greenpower programmes and, to a lesser extent, the Mandatory Renewable Energy Target, account for a major portion of grid connected PV installations. These programmes are expected to remain the major market drivers in the short term, with the Solar Cities programme, described below, beginning to provide a new focus.

A number of utilities maintain a watching brief on PV developments with a view to increased use for peak load supply and grid support. Utilities with diesel grids continue to support the addition of PV to their systems, although recent decisions to remove fuel excise for off-grid diesel use will make PV less cost effective. For main electricity grids, PV remains a high cost option for utilities and the most immediate areas of interest are in safety and grid reliability issues associated with the interconnection of privately financed distributed PV systems.

PV is increasingly being accepted at the local government level, for street lighting, traffic management, parking meters and other applications in urban areas. Building developers have also been encouraged to consider PV through a special component of the PV Rebate Programme while most States have instigated Solar Schools programmes. These initiatives will gradually increase public awareness and confidence in PV.
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National Programmes

• Existing programmes
  The Australian Government has initiated a number of measures over recent years to support renewable energy in general and, in some cases, PV in particular. These include:

  • Mandatory renewable energy target (MRET) - which seeks to increase the contribution of renewable energy sources in Australia's electricity mix by 9 500 GWh per year by 2010, with that target continuing until 2020. Since 2001, electricity retailers and large energy users must purchase increasing amounts of electricity from renewable sources. A trade in Renewable Energy Certificates (RECs) and financial penalties for non-compliance are features of this scheme. Twenty nine PV systems have so far registered for REC creation. Small generating sources, such as rooftop PV systems, are allocated RECs on the basis of deemed generation over their lifetimes, rather than claiming RECs annually. For PV, RECs have been available on installation for up to 5 years of operation.
    This time period has now been extended to 15 years, which is expected to boost the number of PV systems registering for RECs. In addition, the size of systems eligible for deemed RECs has been increased from 10 to 100 kW.

    

  • Renewable Remote Power Generation Programme (RRPGP) - commenced in 2000 and is expected to make available around 200 MAUD over nine years for the conversion of remote area power supplies (including public generators and mini-grids) from diesel to renewable energy sources, and for new renewable installations that would otherwise have used fossil fuels. The RRPGP provides up to 50 % of the capital value of the replacement or new renewable generation for off-grid users of diesel-based power systems. From 2005 eligibility was extended to fringe-of-grid installations, displacements of other fossil-fuels (not just diesel), energy efficiency measures and solar water heaters. The programme is administered by and is slightly different in each State and Territory, in line with local priorities. Some States have also provided supplementary funding. From 2006, only Western Australia and the Northern Territory have significant funding remaining. Important national sub-programmes also funded include Bushlight (an indigenous renewable energy services project) which aims to install suitable renewable energy power systems in small remote aboriginal communities, as well as to increase industry capacity to service indigenous communities and to build greater understanding of renewable energy issues within communities, and RESLab, a renewable energy systems test centre. 3,8 MWp of PV had been installed under RRPGP by early 2005, of which 0,28 MWp is installed in large utility run diesel grid systems.

  • PV Rebate Programme (PVRP)- commenced in 2000 and currently runs until 2007. Funding is provided by the Australian Government, with administration by the State Governments. Rebates on PV capital costs are provided to householders or community building owners who install grid-connected or stand-alone photovoltaic power systems. Householders are eligible for a rebate of 4 AUD/W capped at 4 000 AUD per residential system. Rebates will be reduced in stages to 3,50 AUD/Wp over the coming two years. Smaller rebates are also paid for extensions to an existing system. Community buildings attract a 4 AUD/W rebate but have had a higher cap of 8 000 AUD. This cap will be reduced to 4 000 AUD from 2006.
    As part of the Programme, the Australian Government has made available one million Australian dollars to fund projects by residential housing developers and display home builders. A rebate of 3,50 AUD/Wp, reducing to 3 AUD/Wp by end 2007, is available in 50 000 AUD blocks. Since the start of the programme in 2000, more than 6 600 systems, using 8 MWp of PV, have been installed and rebates of over 30 MAUD have been provided. Slightly more than half the installed capacity has been grid connected.

• New Programmes In line with the 2004 Energy White Paper “Securing Australia's Energy Future”, several new support programmes for renewable energy technologies have been introduced. Those relevant to PV include:

  • Solar Cities Trials - 75 MAUD have been allocated over 5 years to demonstrate high penetration uptake of solar technologies, energy efficiency, smart metering and other options aimed at improving the market for distributed generation and demand side energy solutions.
    Tenders were called for consortia to install PV and other distributed generation options in four or more urban sites, with detailed monitoring and associated tariffs, marketing and financing also being supported. Eleven consortia from around Australia have been short-listed from 23 applicants. Each short-listed consortium will receive 50 000 AUD to assist them in preparing a detailed business case, which will be assessed by an expert panel, before a final decision is made mid 2006 about the location of Australia's Solar Cities.

  • Renewable Energy Development Initiative (REDI) – launched in October 2005, this programme will provide 100 MAUD over seven years in the form of competitive grants to Australian industry to support early-stage commercialization; research and development; technology diffusion and proof-of-concept activities in renewable energy technology. Projects are required to demonstrate strong commercial and emissions-reduction potential. Origin Energy received 5 MAUD in the first grant round to assist with commercialization of its Sliver™ Cell PV technology.

  • The Low Emissions Technology and Abatement (LETA) initiative is a 26,9 MAUD measure to reduce greenhouse gas emissions over the longer term by supporting the identification and implementation of cost effective abatement opportunities and the uptake of small scale low emission technologies in business, industry and local communities. Support for renewables is provided via an industry development sub-programme and will be available to State and Territory Government agencies and renewable energy industry associations.

  • Advanced Electricity Storage Technologies , including batteries, electro-mechanical, thermal and chemical storage, will be supported via a 20,4 MAUD fund, as part of the government's push to overcome barriers to renewables and other intermittent energy sources.
    Expressions of interest were called in late 2005 and funding will be awarded in 2006. The aim is for Australian industry to demonstrate world-leading electricity storage technologies and develop creative solutions that will benefit both the electricity storage and renewable energy industries.

  State and local government policies also increasingly support PV market growth directly or indirectly and are expected to play a more significant role in future.

Research, development and demonstration

University based PV research is undertaken in a number of facilities:

• The Centre of Excellence in Advanced Silicon Photovoltaics and Photonics, University of NSW, has research streams focussed on short, medium and long term technology needs. Research undertaken includes cost reduction and efficiency improvements for wafer based silicon cells, improved silicon thin film processes and all-silicon tandem cells.
• The Centre for Sustainable Energy Systems at the Australian National University undertakes research into solar thermal and photovoltaic technologies including parabolic trough and paraboloidal dish PV concentrator systems, and associated concentrator cells, trackers, controllers and mirrors, as well as a Combined Heat and Power Solar System. It is also undertaking research into thermochemical storage and phase change energy storage materials.
• The Solar Energy Applications Research Group at Monash University undertakes research into renewable energy power systems design, analysis and storage. It works with off-grid and grid applications. The Sustainable Energy Centre, University of South Australia, undertakes research into PV applications, including commuter cars.

Other university PV programs include:

• University of NSW - GaAs solar cells
• Murdoch University - low cost silicon production
• Flinders University - improved dye sensitised solar cells
• University of Queensland - semiconductor biopolymers
• Newcastle University - nanoscale polymer devices
• University of Western Australia - Tantalum-Silicon cells.

In industry, some of the most innovative product development is occurring with PV concentrator systems. Solar Systems Ltd. Continues development and commercialization of its PV tracking concentrator dishes for off-grid community power supplies and end of grid applications. Current systems achieve 500 times concentration and use air or water cooling. System efficiencies of 20 per cent have been achieved. The systems are currently based on silicon cells, but work is continuing on development of non-silicon devices.

• Green and Gold Energy has developed the smaller SunBall™ concentrator system, aimed at domestic and commercial applications. The company is currently undertaking its final trials before beginning pilot manufacture in Adelaide. The concentrators use a Spectrolab triple junction GaInP2/GaAs/Ge cell mounted on a copper heat spreader. The cells are placed at the focal point of a Fresnel lens and mounted in an aluminium hemisphere. The sphere is double axis tracked. The company claims to maintain operating temperatures at less than 18 degrees C above ambient and efficiencies higher than 30%. The first product will be a 1m 2 diameter system, rated at 330 W and is expected to retail at 1 100 AUD, excluding taxes. The company is anticipating electricity prices of 0,1 to 0,2 AUD, depending on location.
• BP Solar is the largest commercial PV manufacturer in Australia and continues its development of automated production equipment, improved cell and module manufacture and systems development.
• Origin Energy is commercialising the “Sliver cell” PV technology developed by the Australian National University. The technology promises crystalline Si cell performance with significantly lower wafer requirements. A 5 MW Pilot Plant was installed in Adelaide in 2004 and trial 10 W modules produced. More extensive manufacture is anticipated in 2006. The pilot plant will be expandable to approximately 25 MW p.a. capacity if pilot production is successful.
• CSG Solar (formerly Pacific Solar) undertakes R&D on Crystalline Silicon on Glass (CSG), a thin film PV technology based on initial research at the UNSW. CSG cell and module manufacture is scheduled for 2006 in Germany.
• Dyesol Limited, formerly Sustainable Technologies International, has broken into the global solar energy market with a 3,15 MAUD contract to supply dye sensitised solar cell (DSC) technology and materials developed in Australia for Europe's first manufacturing plant for dye solar cells, which is to be built in Greece by Solar Technologies AE over the coming two years. Dyesol continues Australian manufacture from its pilot facility in Queanbeyan.
• PV Solar Energy Pty Ltd continues development of its PV roof tile which uses a low cost pluggable PV junction box and monocrystalline solar cell laminates. Installation options include active air flow in the roof space below the modules to keep them cool and allow for warm air circulation into the building during winter months.

Implementation

Module costs have risen, in current dollar terms, to around 10 AUD per Wp, reflecting international market prices. Prices for some inverters and for grid systems have also risen. Installation costs have been impacted by increasingly stringent occupational, health and safety regulations associated with insurance.

PV cell production capacity in Australia increased to 40 MW in 2004 and to 50 MW in 2005. Cell production increased to 35 MW and module production remained at 8 MW. 77 % of cells and 50 % of modules manufactured in Australia were exported in 2004 while around 40 % of modules installed were imported. A 5 MW pilot line was installed for the new Origin Energy Sliver™ technology and production is expected to commence in 2006.
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Industry status

• BP Solar remains the major PV manufacturer in Australia, carrying out cell fabrication from imported wafers, through to module fabrication as well as total system production. BP Solar's module ratings continued to increase, with modules now rated up to 180 W.
• Solar Systems continues to install its CS500 solar concentrator PV dishes in remote communities. These parabolic solar tracking dishes consist of 112 mirrors concentrating to the equivalent of 500 suns onto 24 kW water-cooled upgradeable receiving modules. Four systems with a combined rating of more than 1 MW are currently being installed in central Australia. The first 220 kW system is already operational.
• Dyesol Limited manufactures Titania based Dye Solar Cell (DSC) products in its pilot facility in Queanbeyan with in-house manufacturing of all the key materials for DSC technology: titania paste, dye, electrolytes, catalytic paste, interconnecting material and internal sealants. The product is aimed primarily at façade integration.
• CSG Solar continues research on its thin-film CSG product in Australia, but will begin manufacture in Germany in 2006 in partnership with Q Cells.
• Origin Energy continued to establish its pilot line in Adelaide during 2005, and expects to begin pilot production of its Sliver™ modules in 2006.
• PV Solar Energy Pty Ltd continues development and installation of its PV roof tile, based upon a versatile extruded aluminium frame. The tile uses a new low cost pluggable PV junction box and monocrystalline solar cell laminates.

There are several Australian manufacturers of inverters, controllers, batteries and other components, as well as of specialized end use products, such as water pumps, electric fences, lights and hybrid power supplies. Manufacturers are consolidating their product ranges and specializing. Some are concentrating on export markets, others on diesel systems, grid systems or small scale off-grid systems.
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Market development and future outlook

New programmes at national and State level are likely to maintain interest in PV development, but seem unlikely to impact significantly on the market in the short term. Programmes such as Solar Cities and State Government building regulations are, however, expected to create an increasing PV market over the longer term.
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Further reading about Australia

• Australia - Country information