The Queensland Government Office of Clean Energy has officially announced that from 10 July 2012 the Queensland Solar Bonus Scheme feed-in tariff for surplus electricity generated from domestic solar photovoltaic (PV) panel systems with a less than 5kW capacity will be reduced from 44 c/kWh to 8 c/kWh.   The Government notes that the 44 cent rate was set in 2008 when the capital cost of installing a domestic solar PV system where much higher than they are now, and that the scheme has met is original objectives of making solar power more affordable for Queenslanders and stimulating the local solar industry.  It continues on to argue that the rising future costs associated with delivering the scheme unaltered meant change was essential to protect consumers from significant power bill increases.

There is good news for existing solar PV households currently receiving the 44 cent rate. Nothing will change, for now at least, provided you don’t change the capacity of your existing system.  The new rate only applies to new applications to the solar scheme – that is households installing a new solar PV system, households setting up a new account for a property with an existing solar PV system (e.g. moving house) or households changing the capacity of their existing solar PV system.

The Big Question: With the reduction in the feed-in tariff, is it still worth getting a solar PV system installed?

The Answer: ”Yes“. Admittedly, you may not get the same financial return you would have got before the changes, but you will still be better off than households without a solar PV array installed.

The extent to which the scheme changes will affect your final quarterly electricity account depends heavily upon each individual household’s usage habits.  Under the Queensland net-feed-in system, if you use electricity as you generate it, you receive a financial benefit of 22.76 c/kWh on your electricity bill, the amount typically currently charged by your electricity retailer for your use. For every additional kilowatt hour you generate that you don’t use, you will receive a financial benefit of 8 c/kWh. No matter which way you look at it, you are getting a financial payback and will be better off in the long term. The time over which a full return on investment will be realised may be extended , however to what extent will also be subject to the increases in energy cost over coming years.

Interestingly, the decision to install a solar PV system has always been influenced by the period over which a return on investment will be realised.  I wonder how many swimming pools or granite bench-tops suffer the same level of interrogation. Maybe it’s time to change the way we measure the benefits of solar PV inclusions in our homes.

The reality is energy costs will continue to increase over the coming years and any facility that helps you to have a control over these costs and subsequently the affordability of running a home can only be seen as an advantage.

Written by Ecolateral

Lighting has been reported to account for up to 20% of a developed country’s energy consumption.  Any devices that can contribute to the reduction of power will no doubt reduce Co2 emissions.  Developed in China by E-Energy, the invention of their Lighting Management  System technology facilitates a reduction of power consumed by a building’s lighting system.   The technology is based around an electronic transformer that reduces the voltage flow to a building’s entire lighting circuit.  By reducing the amount of voltage provided, power consumption can be reduced from 18-30%, depending on the type of lamp of the luminaire.

Additionally, by nature of regulating the mains current to the light fitting, a consistent voltage is provided to the lamp and hence lamp life is extended.  Some building owners will be well aware of the voltage irregularities their lighting systems are subjected to and the consequent effect and cost this has on lamp life.

The process involves a simple installation of a small 123mm×304mm×219mm kit at a building’s switch board.  The electronic transformer can be precisely controlled and measured to reduce the voltage flow to the building’s light fittings.  While there is a reduction in lux (a measurement of the quantity of light), the drop is minimal and can be controlled to suit the need of the particular space in which the fitting is located.  The system can be monitored remotely via a web application to ensure the appropriate energy savings are being achieved.

We at Lightwave understand that this product is currently undergoing testing to achieve certified compliance with Australian Standards and we are advised to expect a release to the market early in 2012.  Current pricing indicates that the product will provide a return on investment within 2-3 years.

The Lighting Management System is well utilised in Hong Kong and the Hong Kong Police Headquarters and  the Hong Kong Airport report 20% energy savings in locations where the LMS has been installed. We understand the distribution agencies are sought throughout Australia.

Rammed earth makes rustic yet elegant walls

The use of rammed earth walls in region is the holy Grail when it comes to an architect’s search for the expression of truth in materials and structure.  Predominantly made from a limestone sand mix, an abundant material in the region, the rammed earth walls provide a solid thermal mass wall highly appropriate for the regions climate (that is cold winter months and hot summer days with cool nights). The rammed earth walls in this region have been developed by a number of local tradesmen who have worked in a craftsman like manner to refine and develop the technology so it can meet the demands and rigors of modern construction requirements.

A formwork shutter system similar to insitu concrete is used as forms for the rammed earth walls

The rammed earth walls are made from a limestone gravel mix, with a 12-20mm aggregate depending on the required performance and finish.  An admixture is included into the mix to provide additional waterproofing and also prevents any long term deterioration.  This mix is placed into a formwork not dissimilar to a concrete shutter system in a series of 600mm increments.  A pneumatic compactor compresses the earth and the process repeats itself until the desired height is reached.

The tie bolts that hold the form together also provide the textural circles that form a part of the material's finish

Varying the quantity of lime in the mix will alter the colour… colour hues can be modified to appear as  rusty orange tones through to more pinky tones.  The limestone nature of the rammed earth walls makes the product very similar to concrete (concrete is after all lime and aggregate) with the warm texture of a natural material.  The walls can be structural or decorative, and single storey walls are 300mm wide, with two storey walls requiring a width of 400-450mm wide.  Costs of the rammed earth wall start at $350m2 and require no painting, rendering or additional internal finish.

Colour hues can be modified by varying the amount of lime in the mix

All in all an incredibly delightful material that is sustainable, durable and practical and adds significantly to the quality of a space in which they are used.

Acknowledgement to Peter McCartney from South West Rammed Earth, Margaret River who will be the subcontractor on our aged care project in Mandurah.

Written by Mark Walsh

Have you ever considered the investment potential of your household solar system against a blue chip stock such as BHP?  David Hetherington of the Financial Review recently posed the question and came up with the following results.

The recent technological advances in solar technology, including the storage of generated power have been great and an obvious shift in the power generating industry is apparent.  One of the first laws of technological change is that the big and successful players mostly fail to adapt and embrace revolutions in their industry.  The newspaper and recording industry are testamount to this.  Indeed it was only a few years ago that retailers were preaching that consumers would never fully embrace the internet, and now we hear of their significant loss of sales to the internet.  All failed to grasp the new technology and embrace its entrepreneurial opportunities.

The electricity industry may well be the next large industry to be subject to radical changes as the technological revolution gathers speed. Electricity currently costs around 23c-27c per kilowatt per hour plus general supply costs.  What is generally unknown is that power is wholesaled at the power station for only 3.3c per kw/h.  A massive 85% of the actual cost of electricity is in distribution costs and transmission loss.  It is clear that distribution is highly inefficient and leaves the door open for more cost effective solutions.

In recent times, the cost of solar panels and storage batteries has been reducing year on year.  This has been due to a number of factors including improved technology, increased demand and hence supply and of course the Aussie dollars exchange rate.

Now to consider the investment numbers…..we know property will not grow at the same rate it did over the last decade, and will commodity prices always enjoy their time in the sun?  Two facts can be guaranteed: we will always require electrical power, and we will always pay tax. Consider the following:

• A power bill of $1000 per year
• A BHP dividend of 98.5 c per share
• Current share price of $47.00 per share

To generate $1000 of dividend requires approximately $47,000 worth of BHP shares, and that’s with after tax money.  Current power prices mean that a 2kw/h system will generate $1000 worth of electricity per year, and a full system including storage batteries will cost $15,000.

• So a $1000 return on the $15000 investment is a 6.7% return
• No tax is payable so its actually equivalent to a 9.5% return
• BHP currently yields 3% before tax

…….and the above figures do not consider commodity price cycles or the given electricity price increases over the next 10 years.

So all in all, this type of investment reduces household carbon emissions, reduces the load on the public grid and consequently the cost of building new infrastructure, and offers a very attractive return to investors.  It is only a matter of time until innovative businesses find the funding to deliver substantially different electricity distribution services.  Alternatively, it may even be in the financial products arena that new entrepreneurs capitalise on this rapidly changing market.

While popular in Europe since the 1970s, natural swimming pools are now gaining popularity in Australia. In today’s synthetic environment where over-stimulation and technology are common factors in people’s lives, natural alternatives and chemical free environments are taking hold.  Natural pools are an organic alternative to the usual backyard pool as they aim to mimic the conditions of a freshwater swimming hole or mountain stream and the aesthetics of nature. Not only are they ecologically friendly but they use no chemicals, are low maintenance and cost very little to run.

A natural pool is all about building and blending with nature and a perfect example of Permaculture – a holistic ecological approach to the design and development of part of a human settlement, using natural resources, landscape and plant systems.

Design options range from free form to formal design with architectural lines. Common materials used are gravel stone and clay, in place of concrete or fiberglass, with either synthetic liners or a layer of bentonite clay to seal the soil.

Aquatic plants are used instead of harmful chemicals and complicated mechanical filtering systems; the plants enrich the pool with oxygen, support beneficial bacteria that consume debris and potentially harmful organisms, and give habitat to water life such as frogs and dragonflies.

A popular set up option is for the swimming area to be separated from the planted, biological filter area with a waterfall offering aeration. A skimmer collects large debris and a UV steriliser finishes off the water cleaning process and assures biological safety.

Structure of a Natural Swimming Pool

The pool is divided into two areas: one for plants (the regeneration zone) and one for swimming. At least half of the pool’s surface area will be shallow plants. A rim within an inch of the water’s surface keeps plants in their place but allows water from the swimming area to move to the plant zone for filtering. As the water passes through the root structure of the plants, bacteria concentrated on the plants’ roots act as a biological filter, removing contaminants and excess nutrients in the water. Decomposer organisms, also found in the plant’s root zones, consume the bacteria effectively eliminating underwater waste buildup. Submerged and floating vegetation occupy the deeper area.

Besides cleaning the water and making your pool beautiful to look at, the shallow plant zone warms the water quickly and provides habitat for frogs. They’ll appreciate the shallow water for breeding and will in turn eat the mosquito larvae.

Very little maintenance is involved with a natural pool – removing plant litter and keeping your water level constant. Inexpensive test kits, available in garden centres, will allow you to monitor your pool’s nutrient levels, alerting you to problems.­ Think of looking after your pool more like gardening with the result being an ecologically diverse system that is relatively inexpensive and once established requires only minimal management and enjoyment for years to come.

The redevelopment coincided with the introduction of the Pilot Green Star Rating tool for Retail.  The presentation was hosted by Paul Donoghue, Regional Development Manager for Colonial First State Global Asset Management and Micheal Delaney of Simpson Kotzman.

We were surprised to hear an asset manager, who generally operate purely on returns to investor, describe the future of their business and see Green Buildings as providing additional returns to their investment portfolio.

Points of interest included:

• Colonial First State Mutual manage 4500 specialty leases over forty shopping centres.  As the green redevelopment was undertaken, new conditions were added to new leases to encourage  tenants to reduce their environmental footprint.
• The West Mall  development achieved a Five Star Rating under the GBCA Retail Tool V1.  This section of the $500 million dollar total development was $100 million dollars.  The total cost of sustainability initiatives implemented was $2million representing 2% of total development costs.  Electricity savings alone in the first year equated to $170,000 per annum and savings are projected to increase over time.  Capitalised over 10 years, this is $1.7million.  Additional electricity savings are on offer to the owners and tenants of the building.
• Due to the implementation of water management solutions as required under the rating tool, mains water consumption and subsequent savings are substantial.
• The project received points for innovation by providing a luxurious and comfortable airconditioned transit lounge for public transport commuters.  The lounge includes real time bus scheduling.  All in all providing significant advantages to utilize the available public transport system.

Project Challenges –

The existing retail complex includes a large glass vaulted ceiling that provides light to a central courtyard surrounded by a typical retail racetrack.  It was a requirement of the owners that this type of ceiling is included in the West Mall redevelopment.  The anticipated heat load on the buildings airconditioning system was substantial.  The project team devised a customized double glazed system that thermally insulated the indoor air from outdoors.  Of crucial importance was thermally separating the aluminium framing system from both the glass and the structure.  In addition, the buildings airconditioning design involved some clever solutions to trap the hot air in the unused vault space as illustrated in the sketch below.

Paul Donoghue ended the presentation by stating that all retail investment projects presented to his board must now be a green star project.

Its great to see designers, financiers, investors and asset managers working together to reduce our ecological footprint and at the same time achieve the necessary commercial outcomes.  It just shows that we need some rethinking of how we go about building our environments.