Home owners' guide to solar panels
Want to add solar panels to your property? Here's what you need to know.
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 the Building Commission NSW on 13 27 00.
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
Getting approval
You must get approval from the electricity network owner (like Ausgrid, Endeavour Energy, or Essential Energy) before connecting your solar system to the grid.
In most cases, your solar installer will apply for this connection approval on your behalf.
Size and exporting to the grid
The network owner might limit:
- how big your solar system can be
- how much electricity you can send back (export) to the grid.
Physically connecting to the grid
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.
Find an ASP
Visit NSW Climate and Energy Action to find a list of Level 2 Accredited Service Providers.
Smart meter requirements
Before your solar system is connected to the electricity grid, you must have a Type 4 or Type 4A smart meter installed.
This will enable you to get the full benefits of your solar system.
Check your meter type
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.
Why you shouldn't use an old meter
If your existing electricity meter is a type 6 (analogue meter), your solar energy won't be measured properly.
If your inverter is turned on before upgrading to a smart meter:
- your electricity usage won’t be recorded correctly
- you’ll get estimated bills that don’t include your solar savings
- you won’t be credited for any solar energy you export to the grid
- you might receive a defect notice from your electricity network.
Additional work
Smart meters are larger than older, existing meters. Your solar installer can check if your switchboard needs upgrades to enable the right fit.
For the installation of a smart meter, contact your electricity retailer who needs to arrange for the meter to be installed.
What you must do before you pay
Before paying any money for the supply and installation of solar panels, or allowing any installation work to begin your installer must give you:
- a written contract
- a copy of the free Building Commission NSW Consumer Building Guide, which details important information you need to be aware of
a certificate of cover under the Home Building Compensation Fund if the total cost of labour and materials is $20,000 or more (or, if the contract price isn't known, the reasonable market cost of the labour and materials involved is more than $20,000).
Deposits
Under NSW home building law, the maximum deposit that you can be asked to pay is 10%.
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.
If your solar system includes batteries - whether it's a stand-alone setup or connected to the grid - there are important safety rules to follow:
Hydrogen gas risk
Batteries can release hydrogen gas while charging. This gas is flammable, so proper ventilation and safety measures (link) are essential.
Battery installation
All battery installations must follow the AS/NZS 5139 Standard, which sets rules for:
- where batteries can be installed
- how equipment should be set up safely.
Signage requirements
Clear signs must be installed to:
- alert people that a battery system is present
- help emergency services respond safely in case of an incident.
Qualified installer
Make sure your installer is familiar with these safety requirements and is qualified to install battery systems according to the AS/NZS 5139 Standard.
After installation
After your solar panels are installed, the installing electrician must check that the system is safe.
They must give you a Certificate of Compliance for Electrical Work (CCEW).
This certificate shows that a licensed electrician has completed and tested the work to make sure it is effective and compliant with Australian Standards.
You should also get documents that explain how to use your system including:
- a list of all equipment installed
- Instructions for how to shut down and isolate the system in case of emergency or during maintenance
- diagrams showing how the system is connected
- handbooks for the equipment installed.
Installation checklist
Licensed tradespeople
What you need to know before hiring people to install your solar panels:
- 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 Building Commission NSW before entering into a contract with them for the installation of solar panels.
Your contracted builder or electrician must:
- give you a written, signed contract, and 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 exceeds $20,000 (regardless of any amount of rebate you may claim)
- only ask for a deposit of up to 10% of the total contract price.
If you're hiring a builder only they must:
- sub-contract a licensed electrical contractor to wire the solar panels.
- You should ask to see their licence and check the details with Building Commission NSW before work commences
- sub-contract to an accredited service provider if additional work is required before connection to the electricity distribution network
- obtain permission from the electricity distribution network before connecting to the system
- ensure the correct meter has been installed.
If you're hiring an electrical contractor you should 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 Building Commission NSW before work commences.
The electrical contractor you have hired must:
- 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 FAQs
Homeowners should not try to check the installation panels themselves.
Homeowners should not simply 'turn off' their panel systems. Solar panel systems need to be shut down according to a specific shutdown procedure. Turning off the panels in the wrong way can contribute to problems, not prevent them.
After your solar panels are installed, a licensed electrician must check that your system is safe.
The electrician must give you a Certificate of Compliance for Electrical Work (CCEW). The electrician should have completed the certificate and given you a copy before they left your property. They are also required to provide a copy to the energy authority.
This certificate is your assurance that a licensed professional 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 that was installed
- instructions on how to shut down and isolate the system in case of an emergency or during maintenance
- system connection diagrams
- handbooks for all of the equipment installed.
If you have any questions about the safety of your solar PV system, contact the company that sold you the system.
They should confirm that the installation received a certificate of compliance signed by a licensed electrician, that your installer was licensed and qualified.
Where the company cannot satisfy you that your system is safe, you should ask them to come and inspect it.
The electrician who checks your system should give you a Certificate of Compliance for Electrical Work (CCEW) before leaving your property.
Certificates of compliance are required to be provided to the householder and to the network operator. If you don't have a copy, you should ask your installer or electrician to give you a copy.
If you have not received a Certificate of Compliance for Electrical Work, you should contact the electrician that installed your panels to get a copy.
If you are not satisfied with the response from the company that installed your solar panels, or you want an independent inspection of your system, visit Solar Accreditation Australia's website.
You can check if the contractor is licensed at our Home building licence check or call the Building Commission NSW on 13 27 00.
Based on advice provided to the Building Commission NSW, panels can operate for years without problems. However you may not know there is a problem with the DC breaker until a chain of events occurs that puts the system under stress.
If this happens, talk to the company that organised to have your panels installed, or to the builder or electrician that did the work.