Solar panels

If you're considering adding solar panels to your property, we’ve put together a list of things you should understand before making the commitment.

Choosing an installer

The installation of solar panels must be undertaken by either a licensed builder or a licensed electrical contractor.

Check a licence online or call NSW Fair Trading on 13 32 20.

Electrical wiring

The wiring of the solar panel installation must be done by someone holding an electrical contractor licence or an electrical qualified supervisor certificate or under the supervision of someone who holds an electrical qualified supervisor certificate.

Connecting to the electricity distribution network

Permission must be granted from the electricity distribution network owner prior to the connection of a solar installation to the electricity distribution network.

The electricity distribution network owner may have requirements in regards to the restriction of the size of the solar panel installation and the amount of energy, which can be exported to the distribution network.

Normally the solar installer will undertake the approval for connection application to the electricity distribution network owner on behalf of the customer.

If the installed and wired solar panels need to be connected to the electricity distribution network, additional work may be required to be undertaken by a suitably qualified person authorised under the Accredited Service Provider (ASP) Scheme must complete the work.

The Electricity Supply Act 1995 gives electricity customers the right to choose who carries out this work.

Go to the Department of Planning, Industry and Environment to find a list of ASP's and their contact details.

Electrical meter

To gain the benefits, and prior to the connection, of a solar installation the electrical meter is required to be an advanced Smart Type 4 or Type 4A meter.

If your existing meter hasn't been upgraded to a Smart meter, or you are not sure of your meter type, you'll need to contact your electrical retailer who will arrange for the necessary metering works to be undertaken.

If your existing electricity meter is a type 6 (analogue meter) and the inverter for your solar installation is switched on, the meter will cease to correctly register your ongoing electricity consumption.

As a result, you'll receive estimated electricity bills from your energy retailer, and you won't be credited for any energy generated by the solar panels and exported to the grid.

Any estimated bill you receive won't account for solar energy generated by your new system.

You could also receive a defect notice from your local electricity distribution network for the non-compliant connection.

You won't receive any benefit for solar energy exported to the grid until a type 4 or Type 4A meter is installed.

This means your invertor shouldn't be switched on until a type 4 or Type 4A meter is installed at your property.

A Smart meter is larger than an existing meter, speak to your solar installer if additional work is required to be carried out on your electrical switchboard to enable the fitment of the meter prior to conducting the solar system installation work.

This additional work may be required to be undertaken by a qualified person authorised under the Accredited Service Provider (ASP) Scheme must complete the work.

The Electricity Supply Act 1995 gives electricity customers the right to choose who carries out this work.

Go to the Department of Planning, Industry and Environment to find a list of ASP's and their contact details.

Before paying any money

Before paying any money for the supply and installation of solar panels, or allowing any installation work to commence, you must ensure that your installer gives you:

• a written contract
• a copy of the free Fair Trading consumer building guide, which details important information you need to be aware of
• a certificate of cover under the Home Building Compensation Scheme if the total cost of labour and materials is $20,000 or more.

The installer must provide you with an insurance certificate when the contract price is over $20,000 or, if the contract price isn't known, the reasonable market cost of the labour and materials involved is more than $20,000.

Any rebate you claim for installation mustn't be deducted from the cost of the work for the purpose of avoiding the $20,000 threshold for insurance under the Fund.

Deposits

Under NSW home building law, the maximum deposit that you can be asked to pay is 10 percent.

If the work needs to be covered by insurance under the Home Building Compensation Fund, it's illegal for the contractor to ask for a deposit or other payment under the contract unless this insurance has been taken out for your job.

Using compliant systems and components

Any system installed in, on, or around your premises, whether connected to the electricity grid or in a stand-alone situation, must be compliant with applicable Australian Standards.

Safety considerations

You need to make sure your installer has met important safety considerations.

Most stand-alone systems and some grid-connected installations have batteries forming part of the system.

Hydrogen gas is released during the charging process of the batteries.

Hydrogen is a flammable gas.

All battery installations need to be installed to be compliant with AS/NZS 5139.

This Standard has requirements for location of battery systems and equipment.

Signage is required to be installed to let people, and emergency services, know that a system has been installed.

After installation

After completion of solar panel installation work, the installing electrician must check that your system is safe and provide you with a Certificate of Compliance for Electrical Work (CCEW).

This is your assurance that a licensed electrician has completed and tested the work to ensure it is effective and compliant with Australian Standards.

You should have also received documentation on how to use your system.

It should include a list of all equipment supplied, a shutdown and isolation procedure in case of emergency or maintenance, system connection diagrams and handbooks for all of the equipment installed in the system.

Installation checklist

Key points to remember:

• only use a licensed builder or electrical contractor to install solar panels on your home
• only use a licensed electrical contractor or qualified supervisor to wire up the installed solar panels
• check the licence details of any builder or electrical contractor with Fair Trading before entering into a contract with them for the installation of solar panels.

Remember, your contracted builder or electrician must:

• give you a written, signed contract as well as a copy of the Consumer building guide
• give you a certificate of cover under the Home Building Compensation Scheme if the total cost of labour and materials (regardless of any amount of rebate you may claim) exceeds $20,000
• not ask you to pay them a deposit above 10%.

If your contract is with a builder only they must also:

• sub-contract a licensed electrical contractor to wire the solar panels. You should ask to see their licence and check the details with Fair Trading before work commences
• sub-contract to an accredited service provider if additional work is required prior to connection to the electricity distribution network
• obtain permission from the electricity distribution network
• ensure the correct meter has been installed

If your contract is with an electrical contractor they must also:

• ensure that the installation and wiring of the panels are carried out by the holder of an electrical contractor’s licence or an electrical qualified supervisor certificate - you should ask to see their licence too and check the details with Fair Trading before work commences
• also be, or sub-contract to, an accredited service provider if additional work is required prior to connection to the electricity distribution network
• obtain permission from the electricity distribution network

Solar panel safety FAQ

Some frequently asked questions and answers about solar panel safety.