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Solar 2015

Ivor Frischknecht

Chief Executive Officer14 May 2015

2Source: http://www.lyberty.com/encyc/articles/siliconvalley/Source: http://www.lyberty.com/encyc/articles/siliconvalley/

3Source: http://reneweconomy.com.au/2014/china-now-worlds-largest-solar-pv-market-91139

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Mount Bischoff Mine (1883)Tasmania’s first hydro electric generating plant

Source: http://www.bonzle.com/c/a?a=featuredpics&yr=1912&pg=0&or=3&sz=4

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The last remaining turbine from the Salmon Beach Wind Farm

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Greenough River Solar Farm , WA

Source: http://www.abc.net.au/news/2014-04-09/solar-farm-panels-sarahjpg/5376774

Australia’s first large scale 10 MW solar farm

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FUNDING

$2.5 billion to 2022 (nearly $1.5 billion still available):• Projects• R & D• Knowledge

Capture & Sharing

2. Increase supply of renewable energy

ARENA’s objectives

OBJECTIVES

1. Improve competitiveness of renewable energy technologies

Knowledge Mandated obligation to collect, store & disseminate knowledge & learning from renewable energy projects & initiatives that ARENA funds

HOW

1. Improve the technical and commercial readiness of technologies in Australia

2. Address current energy issues through renewable energy

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Large solar costs more than wind

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Augusta, WA

Australia is leading the residential rooftop solar revolution

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60% of residential PV costs are local and in your control

Module

Inverter

Balance of Systems

Other *

Customer Acquisition

PII ^

Installation Labour

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5$AUD/W

$2.40/W

25%

21%

14%

40% non-controllable, coming down globally

^ Permitting, Inspection and Interconnection * Other includes sales tax, fees, margins, other administrative and indirect costs.

Source: Rocky Mountain Institute, July 2014, based on 2013 data

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Balance of Systems

Other *

Customer Acquisition

PII ^

Installation Labour

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

$1.6

Germany Australia

$AUD/W Australia vs Germany - Local Costs Only

Germany has lower installation labour and hardware costs

30c/W

^ Permitting, Inspection and Interconnection * Other includes sales tax, fees, margins, other administrative and indirect costs.

Source: Rocky Mountain Institute, July 2014, based on 2013 data

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Non-Production*

Electrical: Off Roof

Electrical: On Roof

Module Prep & Install

Racking Prep & Install

Pre-installation

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

Germany Australia

$AUD/W Australia vs Germany: Installation Labour Costs

Potential for efficiency gains in installation processes

• Off-roof electrical costs driven by connecting inverters to electrical panels

• Potential for more automation, less labour intensive installation, and using modern rail-less racking systems could drive down costs even further

* Non-Production includes clean-up time, breaks, and other tasks

Source: Rocky Mountain Institute, July 2014, based on 2013 data

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90

100

110

120

130

1.5 kW System 5 kW System

Relative Solar PV Prices Across States

Perth Brisbane Sydney Adelaide Melbourne Hobart Canberra

5kW in Perth = 4kW in Canberra

Source: SolarChoice, May 2015 PV Prices, adjusted for REC rebates.

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At the Powerwall launch and beyond, Tesla has managed to generate serious interest in something that really isn’t all that sexy – a backup household battery system.

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Want to know more?

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