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So, you’re wondering about adding solar power to your farm?

Monday 21 October 2024

Installing solar power provides a great way reduce energy costs, and the emissions associated with electricity generation. Solar Power is generated by Solar Photovoltaic (PV) systems which convert sunlight to energy.

Matching up your on-farm electricity consumption with generation

A lot of farm operations are seasonal, with energy consumption patterns from their cold rooms, packing, and irrigation systems changing throughout the year. Similarly, the amount of power produced by a Solar PV system can change throughout the year due to changing solar intensity and day length. For example, solar systems generate more power during summer than winter.

These changes can make it challenging to match your consumption to generation so you may still need to import power from the grid or export excess solar power at different times.

Exporting solar power

Farms are generally able to export excess solar power to the electricity grid, subject to approval by the network operator Energy Queensland (Ergon and Energex). All solar systems need to be approved by the network operator who will stipulate any export restrictions that might apply.

Feed-in-Tariffs (FiT)

You may be able to earn a Feed-in Tariff (FiT) for any power you export. Most electricity retailers offer FiTs for exported power.

In regional Queensland, there is a regulated FiT available to Ergon customers. To be eligible for the regional FiT, the site must:

  • Be a small electricity customer (using no more than 100,000 kWh of electricity per year).
  • Have an inverter capacity of less than 30kW.

If you are a large customer, or if you install a large solar PV system with inverter capacity greater than 30kW, you may be able to export surplus power, however you may not be eligible for the Feed-in Tariff.

If you are a small customer and want to earn a feed in tariff for exporting solar power to the grid, consider a system with a maximum inverter size of 30kW.

The key is getting the right sized system

Solar systems that are designed to supply mainly on-site power will generally achieve a better return on investment than systems that export power and rely on earning a Feed in Tariff (FiT). The value of power that can be offset from consumption on-site is greater than the value of the FiT rate. For example, for a farm on Ergon’s Tariff 20, the purchase price for power is 36.59 c/kWh in 2024/25 while the regional solar FiT rate is 12.377 c/kWh in 2024/25.

Once you know the most suitable size, you may then decide to increase the size to accommodate planned future growth.

A solar designer will be able to help you find the most suitable system based on your current pattern of consumption, then adjust for future growth.

Grants and finance

New Solar PV Systems are still eligible for funding under the Commonwealth Government’s renewable energy target. Funding is divided into two groups:

  1. Systems smaller than 100kW capacity which are eligible for Small-scale Technology Certificates (STCs) which are paid at the time the solar system is purchased in the form of a discount off the purchase price.
  2. Systems larger than 100kW capacity are eligible for Large Scale Generation Certificates (LGCs) which must be accounted for and acquitted annually.

Case studies

The Queensland Ag Energy Hub (an initiative of QFF) has many case studies, showcasing farms that have implemented solar power systems and saved energy and costs.

A recent QBEST energy audit of a Gayndah citrus farm recommended a Solar System of 99kW which would be eligible for STCs and due to the seasonal nature of the packing shed, just over half of the power generated would offset site power, with the rest exported. The site would not be eligible for a FiT for its exported power and have an estimated payback period of 4.9 years.


Next steps

  • View case studies: The Queensland Farmers’ Federation’s (QFF) Queensland Ag Energy Hub offers various solar power case studies from farms that have implemented solar power systems and saved energy and costs, including a recent energy audit of a Gayndah citrus farm and the savings they acquired through a new solar system.
  • If you are located in the Southern Downs, Western Downs, Toowoomba, Goondiwindi, Lockyer Valley or Scenic Rim regions, QFF’s energy team can also assist with a free energy assessment and advice.
  • The Energy Information Service for Landholders (EISL) allows growers to speak to a member of QFF’s energy team to learn more about energy efficiency on their farm, including solar and tariff information. Call 07 3329 7500 Monday to Friday.


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