BEST PRACTICE REGULATION
OF THE AUSTRALIAN SOLAR
INDUSTRY
CLEAN ENERGY COUNCIL
FEBRUARY 2015
1
This paper outlines the current regulatory framework for the
Australian solar industry, and the range of initiatives underway to
continue to refine this regime. This framework and approach has been
developed over more than a decade.
As the pace of change in the solar sector accelerates, it is important that stakeholders
understand the roles of different bodies, the current framework, initiatives underway and have
the opportunity to provide feedback on further initiatives that can ensure ongoing best practice in
the solar sector.
Feedback on this paper is welcome to [email protected].
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1. THE ROLES OF DIFFERENT REGULATORY BODIES
The current compliance regime applying to solar is overseen by a number of bodies including
the Federal Government Clean Energy Regulator, state government electrical safety bodies,
Standards Australia, state-based consumer protection bodies, distribution network service
providers and the Clean Energy Council (CEC). These bodies continue to work together to refine
the regulations and standards that relate to the sector as it evolves. A summary of each of these
bodies and their role with respect to solar is outlined below.
Organisation(s)
Role(s)
Clean Energy Council
Oversees accreditation of solar installers including installation
guidelines, continuing professional development programs
and dispute procedures.
Maintains listings of products eligible to be installed (based
on Australian and International Standards) and to access
incentives.
Manages Solar PV Retailer Code of Conduct.
Clean Energy Regulator
Overall responsibility for management of Renewable Energy
Target.
Ensures incentive is only provided where systems have been
installed by accredited installer and with valid products.
Undertakes
independent
inspection
of
a
statistically
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significant sample of installations.
State-based electrical
bodies
Overall responsibility for electrical licences, electrical safety,
and electrical product compliance in each state.
State-based consumer
protection bodies
Oversight for consumer related complaints in relation to
Australian Consumer Law, including product recall (in
collaboration with relevant state authorities).
Distribution network
service providers
Maintain and operate the high and low voltage electrical
networks. Their role is to ensure the network is supplying
reliable, safe electricity to the electricity meter at every
household and business.
Standards Australia
Oversight for the development and implementation of relevant
Australian Standards including AS4777 and AS/NZS 5033.
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2. CURRENT LEVELS OF PERFORMANCE AND COMPLIANCE
The CEC believes that the solar sector has a strong record of safety and quality, acknowledging
that isolated issues will arise from time to time. Coming to this conclusion and assessing the
effectiveness of the current regulatory framework requires an evaluation of a number of relevant
data sources, as follows:
•
Clean Energy Regulator (CER) data that shows that replacement solar panels account for
just 0.125 per cent of all certificates issued under the Small-scale Renewable Energy
Scheme (SRES).
•
There have been 67 complaints relating to solar systems lodged with the Clean Energy
Council in the past twelve months. Eight were related to products, of which six were
related to inverters, one to a DC isolator and one to solar panels.
•
More than 173,000 solar PV systems were installed in 2014, and only 24 complaints about
panels have been received by an industry complaints portal run by the Australian PV
Institute1 for the 4,500 installers and hundreds of thousands of solar customers.
•
The CER has administered an inspection scheme since May 2011. There have been
13,015 independent inspections of solar PV systems and 3.86 per cent (or 503) were
assessed as ‘unsafe’2. The CER notes that substandard rates have declined, which
“coincided with increased communication by industry… and improved solar products”.
Over 80 per cent of systems assessed as ‘unsafe’ were in relation to DC isolators, the
majority relating to the rooftop installation of these devices as recently required. This
1
Australian PV Institute fault reporting portal: http://apvi.org.au/climate-based-pv-performance-andreliability/
2 Inspections update No. 12, CER website:
http://ret.cleanenergyregulator.gov.au/ArticleDocuments/205/Inspections%20Update%20No%2012.docx.aspx
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matter and initiatives to address this issue are discussed below in this paper.
The CEC continues to work with the CER and state-based electrical safety bodies to reflect on
these findings and emerging and common issues to improve and evolve the regulatory
approach. Many of these developments are outlined below.
In reviewing this data it is evident that there may be clear benefit in undertaking an annual
assurance report of the sector. The report could collate data, evaluate trends and recommend
improvements to the regulatory and compliance framework. The CEC would welcome further
discussions about such an initiative with regulatory bodies.
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3. ENSURING SOLAR PRODUCTS ARE SAFE
Any solar panel or inverter that is eligible under the Small-scale Renewable Energy Scheme
(SRES) must meet well established international and Australian standards for quality and safety.
These standards are recognised and adopted throughout much of the world and ensure robust
consumer protections are in place, including stringent safety requirements.
Only products that meet these standards will be listed by the CEC and therefore be eligible
under SRES. Eligible product lists are regularly reviewed.
Panel approval
The CEC has a robust process for listing panels on the CEC-approved panel list, which is
reviewed regularly and benchmarked against international standards.
AS/NZS 5033 requires modules to comply with:
•
EN/IEC 61730-1 and -2 Class A (Safety Class I), and
•
either EN/IEC 61625(Crystalline silicon) or EN/IEC 61646 (Thin film)
Since 16 July 2013, PV modules installed on buildings must also be certified as Fire Safety
Class C (fundamental fire resistance) or better.
Additionally, panel testing must be performed by a test laboratory approved to test PV modules
to these standards under the IECEE CB scheme (CBTL). The certificate must be issued by a
national certifying body (NCB) associated with that laboratory, which is accredited to certify PV
module testing under the IECEE CB scheme.
Standards development is a key component to improving the PV industry. The CEC plays an
active role on the EL 42 standards committee that recently oversaw the revision of AS/NZS
5033, released on 6 November 2014. The CEC is also involved in the development of the new
inverter standard AS/NZS 4777. The ongoing evolution of these standards ensures that
Australian products keep pace with emerging issues and international best practice.
In addition, the CEC has also recently strengthened the requirements for listing of products. The
key changes are:
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•
All applications now require the Construction Data Form (CDF) associated with the
certificate to be supplied. The CDF details the materials certified for use in the modules.
This requirement was effective as of September 2014.
•
All modules on the approved product list will soon be required to display the certifier mark
on its label. This is so that the organisation responsible for certifying the module can be
easily identified. This will apply to all new applications from 1 March 2015. Existing
approved modules will be required to carry this mark on all shipments from the factory
after 1 June 2015.
•
All PV connectors must be certified to meet EN 50521.
•
Sales datasheets must not show the PV connector as 'MC4 compatible'. All datasheets or
installation manuals must specify the actual connector make and model used. Installers
are required to use the same connector to terminate the array.
•
Datasheet power ratings should specify both a sorting and a measurement tolerance. If
only a 'power tolerance' is given, this will be understood to include both the sorting and the
measurement tolerance. Measurement tolerances of +/-3 per cent are considered the
norm for crystalline modules.
•
The module label should correspond to the samples provided at approval. Labels must not
be changed after modules leave the factory. Changing labels without the written approval
of the CEC may be regarded as fraudulent and could lead to suspension of approval.
Inverter approvals
The CEC administers a list of approved inverters for installation by CEC accredited installers.
The process is based on a certification scheme where the inverter manufacturer or their agent
must provide evidence to a certifying body that their equipment is safe for use and meets the
required Australian Standards. The appropriate Australian Standards are listed on the certificate.
The CEC listing process will only accept certificates from JAS-ANZ (Joint Australia-New
Zealand) accredited certifiers or directly from state electrical regulators.
On the application to list an inverter the CEC also requires evidence that the manufacturer or
importer has registered as the ‘responsible supplier’ via the national responsible supplier
database.
The CEC listing process is rigorous, bearing in mind that solar inverters under current state
electrical safety requirements are considered ‘Level 1’ (non-prescribed) equipment. Without the
CEC certification process in place, this equipment would not require any certification (unlike
power points, toasters and other electrical appliances).
Improving DC isolator products and installation
As outlined above, Clean Energy Regulator inspections have revealed issues relating to DC
isolators. The majority of these issues relate to DC isolator products, rather than their installation
per se, and the majority of cases in relation to their installation on rooftops. As outlined below,
the CEC has been working with state electrical safety bodies to highlight this issue and review
potential solutions.
AS/NZS 5033 (the array installation standard) requires DC switch disconnectors used in
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Australia be certified to meet the IEC 60947 series of standards. The most appropriate version
of the standard IEC 60947-3 is currently undergoing a number of significant amendments with
regards to the testing regimes for these items. The state electrical regulators are aware of these
amendments and are currently investigating whether these amendments would increase the
level of safety of the switchgear in the Australian context. Ultimately it will be up to the state
regulators to decide whether to adopt or refer to the IEC standard.
In addition, the CEC has established a working group to review and recommend measures that
increase the safety of PV installations where DC isolators are installed. This working group
includes representatives from state electrical regulators, certifying bodies, equipment
manufacturers and equipment wholesalers.
This working group has commenced a review of DC isolators and it will consider the most
appropriate standards to which DC isolators should be certified, how best to deal with issues
raised and the development of a ‘best practice’ product listing process to display DC isolators
that have been deemed ‘fit for purpose’ for the Australian environment.
There have been several recalls of PV switch disconnectors over the last few years and it is
important to note that every one of these recalls has been due to inherent manufacturing
defects. It is also important to note that evidence suggests some of these recalled products were
tested and certified to meet the current version of IEC 60947-3.
To reinforce the need for ongoing scrutiny, the CEC is also considering the introduction of a
random testing regime for PV switch disconnectors. Testing would be carried out to specific and
agreed criteria and to a set procedure, possibly from the amended IEC standard or others as
advised from consultation with state regulators.
The CEC is also drafting a revised set of installer guidelines to address the issue of ‘array
isolator location’. The guidelines will advise on alternative locations and installation best practice
procedures with the intention of protecting the equipment from the effects of weathering by sun
and rain.
Best practice PV mounting frames
In order to improve the quality of information available to CEC accredited installers, the CEC has
completed the construction of a best practice listing process for PV mounting frames.
Many frame manufacturers have entered the Australian market, and much of the documentation
available to installers fails to provide sufficient information on the ‘where’ and ‘how’ for the safe
and compliant installation of the hardware that secures the PV panels to the roof structure.
The best practice procedure contains a stringent set of requirements that will need to be met in
order for a product to gain a listing.
__________________________________________________________
4. ENSURING THAT PRODUCTS ARE PRODUCED TO THEIR
CERTIFICATION STANDARDS
While a panel or inverter may be certified to a variety of national and international standards,
BEST PRACTICE REGULATION OF THE AUSTRALIAN SOLAR INDUSTRY
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concerns have been raised about subsequent product entering the Australian market that is not
produced to the same level to which it has been certified. There are a number of ways this issue
can be addressed including:
• Undertaking testing of products to ensure that they meet their certification levels
• Sharing information across the industry where products are not performing as expected
• Requiring that eligible products are manufactured in facilities with an ISO accreditation
The status and approach to each of these is outlined below.
The CEC has responded to this issue by introducing a new testing program to ensure that
panels are produced to the standard to which they are certified. As it is impractical to test every
panel on the Australian market, the CEC has developed a targeted testing regime to investigate
non-compliant and poor quality modules. Targeting is guided by complaints received from
consumers and installers. The effectiveness of the testing program will be reviewed regularly.
The CEC initiates testing that is carried out at university-based laboratories that have AAA-class
solar simulators with calibration certificates. Modules are subjected to a range of tests (including
flash testing) to ensure they meet their specifications. Components are also examined to ensure
they have been certified for use in those model numbers. If there are discrepancies, the
manufacturer or certificate holder will be asked to show cause as to why their module(s) should
not be taken off the approved modules list.
This program was established recently and the first results will be released shortly. If testing
reveals that the installed product does not deliver against the certification of the product, a range
of actions will be taken by the CEC. This includes:
•
Notification to the Clean Energy Regulator (CER);
•
Publication on the CEC website; and
•
Subject to CER advice, removal from the CEC list and subsequent loss of eligibility for
rebates under the SRES.
The CEC has recently tightened requirements relating to listings of inverters, to allow inverters to
be removed from product listing where the supplier has not been responsive or cooperative to
certain issues including where there has been a breach of Australian Consumer Law or
evidence of continued product failure or a recall notice.
While a panel testing program has been established to address concerns about panels being
installed that have not been produced to the level of their certification, there is scope to
introduce a similar program for the testing of inverter technology to ensure they also perform to
the level of their certification. The CEC welcomes feedback on such an approach.
Consumers can have greater confidence about the quality of products where they are
manufactured from facilities with stronger quality control, as recognised by ISO accreditation.
Further consideration could be given to requiring products to be produced from ISO accredited
facilities, to be eligible to be installed (and access SRES) in Australia. This proposal is worthy of
further consideration and the CEC is seeking feedback from stakeholders on the feasibility and
impact of such an approach.
The Australian PV Institute has established a fault reporting website portal for anyone who
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owns, operates, installs or inspects a PV system and/or has detected a fault/problem with whole
or part of the system. This ‘PV Module and System Fault Reporting Portal’ has been developed
to increase the understanding of the PV industry about the types of problems that are found with
different system components when they are exposed to the Australian environment. It helps to
improve future PV system design, component selection, product development and product
approvals for Australian conditions.
Feedback on the effectiveness of each of these approaches is invited from interested
stakeholders.
__________________________________________________________
5. ALLOWING CONSUMERS TO CHOOSE PRODUCTS OF HIGHER
QUALITY
The solar modules on the CEC-approved list must meet the relevant standards as outlined
above. This is a minimum requirement.
There is a range of independent PV module rating systems that set quality and performance
standards above the minimum standards. These can give consumers and installers more
information on the modules they are looking to install.
There are also some well-regarded testing facilities that provide data on in-situ operation of
modules, which can give an indication of the longer-term performance of modules. The
additional independent tests that are accepted by the CEC and are shown on the approved
module list are:
•
PV+,
•
VDE Quality Tested,
•
TÜV Thresher Tested,
•
Atlas 25+® certification,
•
Fraunhofer PVDI testing
This information is available to consumers3 to help them understand the differences in these
certifications and make informed choices.
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6. HELPING CONSUMERS MAKE WELL INFORMED CHOICES
The solar sector is highly competitive, with a large numbers of businesses offering many
different systems with different designs, levels of quality and performance and price points. This
has helped to provide choices for consumers and reduce prices.
It does, however, mean that consumer awareness is critical. It must be recognised that
3
‘PV module standards’, Solar Accreditation website:
http://www.solaraccreditation.com.au/installers/compliance-and-standards/standards/pv-modulestandards.html
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consumers will make different choices with respect to the quality and costs of systems they may
purchase. To help consumers understand their options and make a decision that suits them
there are a number of important measures in place:
•
A range of consumer guides produced by industry and consumer groups, including the
CEC’s guides to installing solar PV for households and businesses4. This is supported by
a range of consumer bodies such as Choice and the Alternative Technology Association.
•
The CEC’s Solar PV Retailer Code of Conduct, which allows consumers to purchase their
system from a retailer who voluntarily offers a higher level of service and support (as
detailed below).
•
Expansion of the CEC product listing to provide information about additional certification
levels for panels, and details of which panels have any additional certifications. This
information is available to consumers so that they can understand the differences in these
certifications and make informed choices.
The CEC’s consumer guide also provides advice on maintenance and support for systems. As
the uptake and age of systems increases, further consideration needs to be given on tools and
information to assist consumers to maintain their systems, monitor system performance and
safety. Smart meters can assist with performance monitoring. There are also commercially
available products designed to monitor solar system performance. Some distribution network
service providers proactively inform their customers regarding solar system maintenance, and in
some cases they refer their customers to the CEC’s consumer information and online guides.
The CEC and the solar industry are continuing to seek ways to better inform consumers and
welcome additional initiatives and suggestions to ensure consumers are well informed of the
choices they have in purchasing and maintaining solar panel systems. We welcome additional
efforts by governments and industry to improve consumer awareness of these matters.
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7. ENSURING THE SAFE INSTALLATION OF SOLAR SYSTEMS
The Australian solar industry has an established reputation for responsible self-regulation. The
industry has had an accreditation process since 1993. Many other countries either do not have
an accreditation process or commenced their program much later than Australia. The Australian
solar industry advocated for renewable energy training to be part of the electrical national
training package from the mid-1990s and this proposal was adopted around in the early 2000s.
Many other countries still do not have national training for renewable energy competency.
To be eligible for a rebate under the Small-scale Renewable Energy Scheme (SRES) solar PV
systems must be installed by a professional who:
•
Has an electrical licence;
•
Is accredited by the Clean Energy Council (CEC); and
•
Has completed the necessary level of training.
The installation of solar PV systems is overseen by the CEC accreditation program, which
4
‘Solar guides for households and businesses, Solar Accreditation website:
http://www.solaraccreditation.com.au/consumers.html
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ensures that any installer has the necessary level of competence. Inspections are undertaken by
the CER to reveal the level of compliance. Any issues of concern are raised with the CEC and
subsequently investigated. Responses depend on the nature of the issues identified and can
include cancellation of accreditation (in cases of serious breaches) or suspension of
accreditation, subject to the installer rectifying the issue and demonstrating appropriate
competence by completing necessary continuing professional development (CPD).
With the recent re-release of AS/NZS 5033, the CEC is currently updating the installation and
design guidelines. This will further improve installation practices and reduce the occurrences of
common issues.
Since October 2012 all renewing installers have been required to undertake training as part of
the CEC’s Continuing Professional Development (CPD) program. The CPD program enables
installers to maintain their current knowledge base, and encourages continuous updating of
skills and knowledge on emerging issues. It also helps installers and designers to install
correctly and stay informed of changes and updates to relevant Australian Standards.
There are currently over 180 approved training courses eligible for CPD points. Courses include
those that address issues in the industry (such as electrical skills), and those that aim to ensure
installers are up to date with the changing standards in the industry, such as the update to AS
5033.
The accreditation scheme includes a demerit point system which allows the CEC to recognise
and address poor installation practices. The CEC utilises data provided through disputes and
complaints, the CER inspection data and data from other information sources to allocate demerit
points.
Allocation of 20 or more demerit points within a 24-month period will result in the suspension of
an installer's accreditation. The compliance procedure allows the CEC to take a variety of
actions including suspension until competency is proven, or cancellation of their accreditation.
__________________________________________________________
8. PROVIDING SUPPORT FOR CONSUMERS IF SOMETHING GOES
WRONG
Most solar PV panels have performance warranties of 20 years or more. Consumers receive a
high level of protection under Australian Consumer Law, and have access to effective services
provided by state Fair Trading offices. Under Australian Consumer Law solar PV retailers and
manufacturers are required to honour express warranties. Further, warranties against defects
must comply with the requirements prescribed by the Australian Consumer Law.
Despite this, the CEC believes there is more that can be done to ensure consumers are
protected. This is the area where the CEC has focused much of its attention in recent years.
Consumers, the solar PV industry and the CEC identified the need for an industry code of
conduct that would address issues such as:
•
Misleading claims given to consumers regarding the performance of their PV system and
future electricity bills;
•
Misleading advertising regarding the size of PV systems, the value of available
government incentives, and the suitability of the PV system;
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•
The retailer not taking responsibility for the whole of the PV system including product
warranties and workmanship; and
•
The retailer not taking responsibility for the actions of subcontracted parties acting on their
behalf and any parties who generate sales leads utilised by the retailer.
To ensure the interaction between PV retailers and consumers is of the highest integrity, the
CEC developed the voluntary Solar PV Retailer Code of Conduct, which aims to promote and
further develop best practice measures and activities for retail businesses that sell PV systems.
The Code aims to drive increased accountability within the PV retail industry and to improve the
relationship between consumers and PV retailers. It is designed to provide consumers with
confidence that the retailer will act in compliance with relevant laws and regulations, and
conduct its business in a professional and ethical manner. One of the key elements of the Code
is the requirement for these retailers to offer a five year, whole-of-system warranty. This
demonstrates a higher level of commitment to the consumer, as well as driving the retail sector
to support higher quality product and installation.
The Solar PV Retailer Code of Conduct is approved by the Australian Competition and
Consumer Commission (ACCC). Since its launch on 20 November 2013 it has attracted 19
signatories and has become widely accepted as the benchmark for quality. Further information
is available online at approvedsolarretailer.com.au.
The CEC has recently applied to the ACCC to extend the scope of the Solar PV Retailer Code of
Conduct to providers of solar leasing products and solar power purchase agreements (PPAs).
A voluntary Code of Conduct can assist with directing consumers to retailers of the highest
integrity. However, as a voluntary initiative it cannot directly address warranty concerns across
the entire industry. There is scope to substantially improve consumer protection for purchasers
of solar PV systems by stipulating minimum warranty provisions for SRES eligibility.
Most reputable panel suppliers provide a product workmanship warranty of at least ten years
(and up to 25 years) for panels and a performance warranty of 25 to 30 years. The government
could consider limiting the availability of rebates under SRES to panels that carry a
workmanship warranty of at least ten years.
Stipulating a minimum warranty requirement under SRES would also assist in addressing the
problem of so-called ‘parallel’ or ‘grey’ imports. Grey imports are panels that are imported
through ad hoc distribution channels, often from China. Grey imports are legal and are eligible
for rebates under the SRES. However, they do not necessarily come with the level of warranty
and consumer protections expected by customers. It would strengthen consumer protection if
the CER were to limit eligibility to SRES rebates to PV panels that carry an industry best practice
performance warranty of at least ten years.
While the Clean Energy Regulator currently allows the replacement of panels to be eligible to
create certificates under SRES, this approach may require further review to avoid any
inappropriate behaviour. While often failed panels may be covered by insurance (such as a
house fire) or warranty where the panels fail within their warranty period, there may be instances
where incentive for replacement panels remains appropriate. The CEC would be pleased to be
consulted further on this matter by the CER.
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