Installing Solar for a Profit.

03 March, 2017

Once upon a time the only people who installed solar where those who didn’t have access to mains power or those who did it for environmental reasons. The danger of installing a renewable energy system for profit is that doing something for profit their mentality is to make as much money as possible and that outlook or attitude will always cost you in the long run, because of decisions being made for profit, when things don’t go to plan the renewable energy system always gets the blame, let’s be honest how many people out there like to admit they made a mistake and a poor decision?
I have been a business owner for over 20 years, my whole life I have been in the industry of making money and what I have learned is that when you make a choice for a financial reason it always cost you more in the long run! Let me explain.

Most people that install a solar system will install a system that the numbers work when buying. The problem is that most companies that have designed a system that make the numbers work when buying have done exactly that deigned a system that make the numbers work. They have not designed a system that is going to help you become energy independent.
In reality if you are thinking of going solar or installing a renewable energy system the best money that could be spent is to pay a consultant to do a site audit for you. The problem with good renewable energy designers is they are few and far between these days because all the installers that make money from installing your system do a free site audit!
Now being in business all my life and in sales, I know one thing for sure is that there are very few sales reps out there that would tell you no, this is not the product for you. That is the reason paying a renewable energy consultant to design your systems and point you in the right direction is one of the best things you can do when looking at a renewable energy system. The only thing better would be to learn as much about the field yourself, and double check with a consultant. I have been to people’s properties that have paid for a system and turned up to do an energy audit and asked them well where are they installing the panels? They said of the installer is going to tell us that on the day. I then asked a few more questions on the size of the system they paid for and found out they had paid for a 10KW system and found that they only installed a 1KW system because that is all the roof space that was available on an east facing roof with shade!

The sad thing about this is the customer ends up thinking renewable energy is no good, there are solar consultant’s out there taking people’s money and not delivering the correct product and who gets the bad name? The Renewable Energy System. The client then runs around saying I had a 10KW system installed cost me a fortune and didn’t do anything to my power bill! It all comes back to lack of education on the client’s behalf and the sales reps behalf and all because they were both doing something form a financial incentive. Another story I can tell you from clients installing a solar system for financial reason is getting a cheap system because that’s all they could afford and they wanted to go solar. The ugly side of this is cheap panels which do not produce what was specified and also cheap inverters breaking down after the warranties have finished or the company that installed them has gone out of business.
I have also seen people pay for top quality panels in the quote and when I have been on the roof I have pointed out that they have had cheap nasty panels installed. I see this all the time as being a consultant to educate people on their energy requirements.

Now here is a different outlook you can have and yes I will be bias as this is my business, and I don’t care whether you use my business to get the information or someone else’s, just spend the time and educate yourself on installing a system that is the best for the environment, because if you do that, it will always pay you back financially. I have not ever consulted on someone’s house that has installed a quality system. For example I have been to plenty of homes to consult ion a solar energy system and I see a good quality solar hot water system form Solarhart or Apricus and ask the clients what their experience has been with the solar water system and its always the answer I get is they were more expensive and best money spent. We then move to the solar energy system and it’s a very different answer, it was installed because the numbers worked compared to the price of electricity form the grid, and now they are stuck buying another system or getting rid of it completely because it did not last long enough to pay its self-back.
We all lose in this situation, the client has wasted money the earth’s resources have been used up and wasted and there is not much I can do except be the bearer of bad news.
Now if you install a system for environmental reasons you will most of the time get a very different result. By researching and taking your time on really understanding how a renewable energy systems works this is what I normally see happen.

The client always reduces their energy load to start with as that is the cheapest way of reducing your system cost is reduce your energy load to start with. I have seen people do this and it has saved enough money in the 1st place that the system has already paid for itself before install.

Once your load is reduced and you really understand the watt hour, you will have a very different understanding to most people to what a kilowatt hour means from panels on the roof and that bigger is not always better. As I said if you were to choose the most environmentally friendly solar panels to install you would most likely be installing some type of thin film solar panel. These panels are not always the highest performer when producing energy and they are the most consistent, they are shade tolerant perform well in high temperatures, and when I say high temperatures most solar panels loose performance when the panel’s gets above 25 degrees Celsius, which in Sydney Australia for example is about a 16 degree day. Thinfilm panels also have the fast embodied energy payback period; they also perform better on cloudy days. As you can see the point I am making is you will get more consistent performance from thin film panels and in reality that is what you want, as we want to spread out of energy production so you can self-consume as much of it as possible if you are not installing batteries.
The most common item I see people waste money on is the inverter, simple way to see if you have purchased or looking to purchase a good quality inverter is look at the weight of it. Grid tied inverters are made to be light and easy to transport to reduce the upfront cost of the system, the reason a good quality unit cost more is it has a toroidal transformer in it which is really just a big piece of copper and a magnet, this adds costs to the unit in production freight, sometimes they require to installers because of the weight to install and you can see how the costs are added. If you install a good quality unit to start with, they last longer and outperform the cheaper ones upfront. I have seen some old school inverters that have been working for over 20 years and the only reason the client is changing is they want a bigger system. A cheap until you will replace every 3-5 years that cost will add up over the life of your system. And think of the impact on the environment of shipping the same product 4 times over your systems life and having that product reproduced 4 times?
Choosing a quality inverter upfront will save you money in the long run.

The next hot subject that everyone is talking about is renewable energy battery storage. If you are thinking of installing batteries you will have to replace your inverter. What you saved from installing a grid feed system will quickly be lost when you have to buy another inverter to replace your old one. And in most cases you will be required to rewire your panels on your roof. You can see how waiting could have saved you money in the long run.
There are some many debates about batteries and bad information on the internet it crazy! Everyone wants to sell you there batteries because they are the best or they are the cheapest and this is an area to really spend some time and learn about batteries yourself. The three most common types are lead acid, lithium and Nickel Iron Cells. Every day I feel like there is some new battery technology that is invented and is going to be the best thing for the future.
My personal opinion on batteries is this. I drive an old school 4wd which compared to a new 4wd of the same class to get what my 35 year old car had standard in the drive train you have to buy the top of the range vehicle in that class and then you get the exact same drive train my 35 year old piece of metal come standard from the factory with 35 years ago, and I mean exact the parts are the same part numbers! My point is that they use to make cars and most things to last for ever, a business prided itself on providing you a product that would be something you buy and have for ever, how many of our grandparents purchased a car or an item that they had used their whole life and in some cases certain items were handed down from generation to generation. Most people these days plan to buy a new car every 5 years some even more.

I personally have chosen Nickel Iron batteries for my renewable energy storage as all the research I have done the bad comments on this type of cell is they are heavy; well I don’t really plan on carrying them around on my push bike. You have to maintain them? Ok so top them up with distilled water every 6 months and they off gas Hydrogen are the 3 most common negatives you get. The reason I choose them is I am happy to put water in them, they are serviceable so can be repaired not thrown away when something goes wrong. I have designed a natural air flow to control the off gases and they have been around for over 100 years and there are people that have had them in operation for over 50 years and I have personally talked to these people not trusted the information on the internet or the salesman selling them to me.

When I wanted to design a system that was going to last as long as possible and provide my family with a system that will not only reduce our energy bills but eliminate them. Having the environment at top of mind in all aspects of the system design, it gave us a system that was little more upfront which meant we saved for a bit longer and is a system that we will be leaving to future generations to come. In the long run will never be required to buy power from the grid ever again. Watt would you be willing to spend to make that happen? The average Australian Family spends $7 per day on energy at the current prices 2015. If you are going to use energy for another 20 years from the grid it will cost you over $50,000 if prices don’t change. For our family I know our system will last that long and energy prices can do whatever they want as it will never personally concern my family as we are energy independent.
The reason we found such a system is because we were researching to find the most environmentally friendly renewable energy system available on the market, this also in the long run gave us the most financially viable system for our family in the long run which means we will save the most amount of money over time!

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