1. Clever Climate Economics
A Solar Revolving Fund Scheme for Local Councils

2. How the CORENA solar model works
Donations provide ‘free capital’
CORENA gives interest-free loans to NFP orgs
Loans repaid out of savings on electricity bills
Loan repayments fund subsequent projects
The solar panels ‘pay for themselves’....then the capital is used again!
Quarterly loan repayments return to a revolving fund and are used in conjunction with new donations to fund subsequent projects

3. CORENA revolving fund model
At any point most of the funds are tied up in solar projects, but each quarter loan repayments are returned to the revolving pool and are used again and again to achieve yet more reductions in carbon emissions.
Key Point: The donated money is never ‘used up’.

4. In first 5 years CORENA has achieved...
202kW is enough to power Australian homes.
MWh and CO2 figures grow every day, and would continue to grow for the next 25 years even if we stopped funding new projects right now.
Climate ethical capitalism with an ROI of 75%
Installed 202kW of solar, avoided 496MWh of grid usage, reducing carbon emissions by roughly 446 tonnes (as of July 2018)

5. How much could a climate-conscious local council achieve?
Scaling it up
If a non-profit group can do this via donations, with no paid staff and almost no admin budget, just imagine...
how much more could a body with access to a LOT more ‘free’ capital achieve?
How much could a climate-conscious local council achieve?

6. Combining the best of both worlds
CORENA
Very cost-effective reductions in carbon emissions
Capital is never ‘used up’
Recipients end up with ‘free’ solar
Local councils
Access to MUCH more capital
No GST payable
Bulk buy prices
Economies of scale

7. Darebin Council ‘Solar Savers’

8. Solar Savers model
Model used by Darebin, Adelaide, and some other Victorian local councils:
Council funds the scheme via a low-interest loan
Suppliers submit tenders
Installer makes site visits and gives quotes
Homeowners repay Council over 10(?) years
Solar recipients get generous immediate savings and ultimately ‘free’ solar that has paid for itself
- Tenders are at bulk-buy prices and must meet high quality and warranty requirements - Homeowners and landlords pay for their solar installations via a special charge added to rates notices - If a landlord of rented a rented property, the tenants get the savings benefit, but the landlord can charge a slightly higher rent next time the property is rented out.

9. Does your Council want to....
Model climate responsibility and empower your community to reduce their carbon emissions? OR
Help disadvantaged householders to reduce their electricity costs?
A bit of both?
Council can adjust the scheme parameters to design a solar scheme that best suits your aim(s).

10. Parameter 1: Cost of capital
CORENA uses free (donated) capital Councils generally will take out a low-interest loan BUT If Council passes on the interest cost to all solar recipients, in effect Council is using ‘free’ capital (the scheme becomes self-funding).
- Darebin CC covers the cost of the interest for pensioners and non-profits, but not for others.
- Adelaide CC passes on the cost of interest.
- With a CORENA style revolving fund, the repayments from solar recipients can be used again and again to fund future rounds of the solar scheme.

11. Parameter 2: GST
Darebin CC pays the solar supplier, including the GST, but claims back the GST.
Householders only pay the GST-free amount.
Note: Solar PV will ‘pay for itself’ quite quickly even if the cost to householders includes both GST and interest.
Since solar recipients are paying 10% less than normal under the Solar Savers model, Council can easily pass on the capital cost (interest cost) to householders.

12. Parameter 3: Solar installation size
Best kW/$ figures: 5kW or 10kW
For householders Darebin CC offers: 3, 4 or 5kW
For climate cost-effectiveness, Darebin CC suggests a 5kW system if it will fit on their roof.
Note: If a householder has low daytime electricity usage, 5kW of solar might not ‘pay for itself’ within Council’s preferred payback term. However,
if immediate savings are not an issue, a householder might choose 5kW for the sake of greater climate benefit.
Over the lifetime of the system a 5kW installation will save householders a lot more than a 3kW solar installation.
- Generally small solar installations cost a lot more than larger ones. - Even 3kW might generate more electricity than some households use during the day, but anything smaller is not cost-effective.

13. Parameter 4: Solar quality and cost
CORENA and Darebin CC both insist on:
top-quality panels and inverters
accredited installers
the best available warranties from reputable suppliers
Top quality of course costs more, but a Council solar scheme cannot risk choosing unreliable options, and in the long-term top-quality solar installations will perform better than cheaper ones.
A very real drawcard of the CORENA and Solar Savers models is that householders KNOW they are getting a good system.
Even the most expensive panels will ‘pay for themselves’ quite quickly!
- A real barrier to householders installing solar is not knowing who to trust to give them a quality system.

14. Parameter 5: Payback term
CORENA wants to maximise climate benefit
payback term as short as possible while ensuring that savings on bills cover loan repayments (≈5 years)
Darebin and Adelaide both want solar recipients to have immediate savings on bills
10-year payback time for everyone
To maximise cost-effectiveness of climate benefit, Council might consider setting:
a reasonably short payback term for everyone
allow pensioners, for example, to ask for a longer term
- Both set 10-year term even though in Adelaide (but not Melbourne) solar often pays for itself in 5 years or less.
-A 5-year term will give twice as much reduction in carbon emissions from any given amount of funding compared with a 10-year term because the funds can be used twice in 10 years.

15. Setting a reasonable payback term
The ‘pay for itself’ time is shortest for:
Large solar installations (eg. 5kW)
High on-site use (high daytime electricity use)
For some households the payback time will be considerably shorter than the payback term set by Council.
Payback terms that will work well for most householders:
5 year payback: Adelaide, Brisbane, Canberra, Perth, Sydney
7 year payback: Darwin, Melbourne
8 year payback: Hobart
See the Appendices for indicative costings for each city.
- Actual time for solar to ‘pay for itself’ varies greatly in different states due to differing solar prices, electricity prices, solar radiation, and feed-in tariffs.

16. Appendix 3: Adelaide indicative figures
With solar PV cost shown in apricot cells (includes paying GST)
4% interest added to payments to Council over 5-year term
and average Adelaide electricity costs and feed-in tariff
Sweet spot is the yellow cells – less than 5 years for the solar installation to ‘pay for itself’ if GST and interest are added to the solar cost. Note this is the ‘worst case’ scenario. If interest rate is lower, or bulk-buy prices apply, or GST is not payable, the solar installations will pay for themselves more quickly than shown above.
See the accompanying Excel sheet to interactively explore other combinations of settings.

17. Suggested messaging
Council is enabling residents to reduce their carbon footprint at no cost to the householder/business.
Savings on electricity bills pay back the solar cost to Council over [number] years.
Short-term savings might be minimal, but after payback the savings will be substantial.
From Day 1 your solar installation will be reducing carbon emissions, which benefits everyone.
Council’s solar scheme empowers ALL householders to be climate good guys!

18. Finally...what will you call the scheme?
CORENA - Quick Win projects
Focus is on giving immediate ‘free’ solar
Immediate ‘free’ climate benefit (reduction in carbon emissions)
Darebin CC - Solar $avers (with a dollar sign)
Focus is on giving householders significant immediate savings
Distracts from the fact that householders ultimately get free solar
Ignores the climate motivation and benefit
Possible names
Solar Champions
Solar for Everyone
100% solar for [council area name]
Solar Savers: Saving the planet & saving on bills
???

19. Key points Solar PV quite literally ‘pays for itself’.
A revolving fund provides the temporary capital required, with no impost on ratepayers if you pass on the interest cost to solar recipients.
The only cost to Council is the work-hours to set up the solar revolving fund scheme.
EVERY household in your area could have solar at no cost to themselves!
The capital never disappears – at end of the scheme all the capital will have flowed back to Council.

20. Thank you for your time! For more information see:
CORENA Quick Win solar scheme: or
Darebin Solar Savers: or or phone Darebin Council on (03)
Adelaide Solar Savers: FAQ: or
The Excel sheet mentioned in the Appendices is available from

21. Appendix 1: Sydney indicative figures
With solar PV cost shown in apricot cells (includes paying GST)
4% interest added to payments to Council over 5-year term
and average Sydney electricity costs and feed-in tariff
Sweet spot is the yellow cells – less than 5 years for the solar installation to ‘pay for itself’ if GST and interest are added to the solar cost. Note this is the ‘worst case’ scenario. If interest rate is lower, or bulk-buy prices apply, or GST is not payable, the solar installations will pay for themselves more quickly than shown above.
See the accompanying Excel sheet to interactively explore other combinations of settings.

22. Appendix 2: Perth indicative figures
With solar PV cost shown in apricot cells (includes paying GST)
4% interest added to payments to Council over 5-year term
and average Perth electricity costs and feed-in tariff
Sweet spot is the yellow cells – less than 5 years for the solar installation to ‘pay for itself’ if GST and interest are added to the solar cost. Note this is the ‘worst case’ scenario. If interest rate is lower, or bulk-buy prices apply, or GST is not payable, the solar installations will pay for themselves more quickly than shown above.
See the accompanying Excel sheet to interactively explore other combinations of settings.

23. Appendix 3: Adelaide indicative figures
With solar PV cost shown in apricot cells (includes paying GST)
4% interest added to payments to Council over 5-year term
and average Adelaide electricity costs and feed-in tariff
Sweet spot is the yellow cells – less than 5 years for the solar installation to ‘pay for itself’ if GST and interest are added to the solar cost. Note this is the ‘worst case’ scenario. If interest rate is lower, or bulk-buy prices apply, or GST is not payable, the solar installations will pay for themselves more quickly than shown above.
See the accompanying Excel sheet to interactively explore other combinations of settings.

24. Appendix 4: Brisbane indicative figures
With solar PV cost shown in apricot cells (includes paying GST)
4% interest added to payments to Council over 5-year term
and average Brisbane electricity costs and feed-in tariff
Sweet spot is the yellow cells – less than 5 years for the solar installation to ‘pay for itself’ if GST and interest are added to the solar cost. Note this is the ‘worst case’ scenario. If interest rate is lower, or bulk-buy prices apply, or GST is not payable, the solar installations will pay for themselves more quickly than shown above.
See the accompanying Excel sheet to interactively explore other combinations of settings.

25. Appendix 5: Canberra indicative figures
With solar PV cost shown in apricot cells (includes paying GST)
4% interest added to payments to Council over 5-year term
and average Canberra electricity costs and feed-in tariff
Sweet spot is the yellow cells – less than 5 years for the solar installation to ‘pay for itself’ if GST and interest are added to the solar cost. Note this is the ‘worst case’ scenario. If interest rate is lower, or bulk-buy prices apply, or GST is not payable, the solar installations will pay for themselves more quickly than shown above.
See the accompanying Excel sheet to interactively explore other combinations of settings.

26. Appendix 6: Melbourne indicative figures
With solar PV cost shown in apricot cells (includes paying GST)
4% interest added to payments to Council over 7-year term
and average Melbourne electricity costs and feed-in tariff
Sweet spot is the yellow cells – less than 7 years for the solar installation to ‘pay for itself’ if GST and interest are added to the solar cost. Note this is the ‘worst case’ scenario. If interest rate is lower, or bulk-buy prices apply, or GST is not payable, the solar installations will pay for themselves more quickly than shown above.
See the accompanying Excel sheet to interactively explore other combinations of settings.

27. Appendix 7: Darwin indicative figures
With solar PV cost shown in apricot cells (includes paying GST)
4% interest added to payments to Council over 7-year term
and average Darwin electricity costs and feed-in tariff
Sweet spot is the yellow cells – less than 7 years for the solar installation to ‘pay for itself’ if GST and interest are added to the solar cost. Note this is the ‘worst case’ scenario. If interest rate is lower, or bulk-buy prices apply, or GST is not payable, the solar installations will pay for themselves more quickly than shown above.
See the accompanying Excel sheet to interactively explore other combinations of settings.

28. Appendix 8: Hobart indicative figures
With solar PV cost shown in apricot cells (includes paying GST)
4% interest added to payments to Council over 8-year term
and average Hobart electricity costs and feed-in tariff
Sweet spot is the yellow cells – less than 8 years for the solar installation to ‘pay for itself’ if GST and interest are added to the solar cost. Note this is the ‘worst case’ scenario. If interest rate is lower, or bulk-buy prices apply, or GST is not payable, the solar installations will pay for themselves more quickly than shown above.
See the accompanying Excel sheet to interactively explore other combinations of settings.