Advanced Solar Solutions and EV Charging with Ben Masters - podcast episode cover

Advanced Solar Solutions and EV Charging with Ben Masters

Sep 30, 20241 hr 56 minSeason 1Ep. 26
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Episode description

Curious about how a software developer can revolutionize the solar industry? Join us as Ben Masters from Solar Hub shares his incredible 14-year journey, blending advanced software solutions with home energy systems to deliver bespoke solar solutions that maximize customer benefits. We'll explore the challenges of navigating government policies and rebates, and the critical importance of maintaining high standards in solar installations to ensure long-term customer satisfaction.

Discover the expanding horizon of home electrification services beyond just solar energy. Delve into the financial and environmental perks of comprehensive electrification packages, featuring air conditioning, hot water systems, EV chargers, and induction cooktops. We'll discuss why progressive regions like Canberra and Victoria are leading the shift away from gas and how integrating batteries with solar systems can significantly enhance energy efficiency and cost savings.

Look toward the future of energy with insights into the benefits of solar energy adoption, the rise of electric vehicles, and the necessity of robust public charging infrastructure. Learn about the concept of Virtual Power Plants (VPP) and their game-changing potential for providing consumer savings and resilience during power outages. Ben Masters also emphasizes Solar Hub's unwavering commitment to quality and community engagement, highlighting the long-term benefits of investing in reliable and innovative solar solutions. Don't miss our spotlight on the exciting developments in the EV charging space and the emerging revolution in energy management systems.

Transcript

Solar Hub

Speaker 1

Hello everybody , today to our latest podcast , and today we have a really special guest . Actually , I would argue this guy is one of the smartest guys in the solar industry , because you know what ? He's not just in the solar industry . If you're smart , you do many other things , not just solar .

And we've got Ben Masters today from Solar Hub in Canberra , but you guys do in Canberra but also the south coast of New South Wales , so got a branch in Canberra , but you guys do in Canberra but also the south coast of New South Wales , so got a branch in Melbourne as well . So tell me how long you been in solar Ben .

Speaker 2

We started the business about 14 years ago now , so quite a long time . I'd probably considered a veteran . I guess you look too young for that . Well , it's aged me . I look a lot younger back then . These days there's grey hairs everywhere , grey beard . Even so , no , it's been an interesting ride , like most companies that sort of started out back then .

We've seen the ups and the downs and those times unfortunately haven't gone away . We've seen a recent , I guess , case of that with the New South Wales battery scheme . It just sort of feels like Groundhog Day , back to government sort of intervening , promising rebates , a trough , a peak . It's a tough industry to be in , but a rewarding one .

I think what we've done over that time is built a really good business with great staff , a really good brand . We really keep the customer's best interests at front of mind when we're designing systems . So it's been enjoyable and rewarding , but certainly very , very challenging .

Speaker 1

Right , right , so to give you a bit of background there . So what happens is , let's say , you're running around , you have your business running and then the government decides to help you and announce a rebate in six months' time .

Speaker 2

What happens ? Well , the problem is people stop buying batteries for that period of time , don't they ? Because they're waiting for the rebate . So during that period we have our own installers that don't have work to do and we've just sort of got to ride it out for that period of time . So it's bad policy to implement rebates like this .

Really , what should have happened ? Either they announced it right before it was due to start or potentially considered some sort of retrospective arrangement where we can provide that rebate for today , but perhaps we can't claim it off the government until November .

And look , I know the New South Wales government and industry associations are looking at some changes , possibly to bring that date forward or allow us to provide that rebate earlier , and I'm sure the industry would welcome that . Right , right .

Speaker 1

Look , it would make sense that , let's say from 1st of August or so they let you actually start claiming it , correct , but then you can only cash it in when they have the infrastructure behind it . But yeah , when politicians get involved in solar , I haven't seen many good outcomes , I'm sorry to say involved in solar .

Speaker 2

I haven't seen many good outcomes , I'm sorry to say no , there haven't been . I mean , probably the only thing that's been good policy , I think in our industry is the STC scheme . I mean that's been around now for nearly 15 years . It's been a reliable way to incentivise solar uptake .

We've got some of the highest uptake in the world and I think in a large part that's due to a scheme that really hasn't changed . When it was first designed . You know the rebate ticks down every year all the way out to 2030 . So it's a known quantity for installers and customers and it's really built the industry here in Australia . So that's good policy .

Good long-term thinking is what we need , not sort of short-term , vote winning policies . Those aren't good for industry .

Speaker 1

Well , you know , you kind of we're kind of in the podcast right when we kind of want to be normally halfway through the middle Because I really want to find out . So you were , what ? Were you an electrician , and one day you fell over a solar panel , or how did you all start it ?

Speaker 2

Actually a software developer or engineer by trade . I spent 12 years working on software in various industries , from sort of banking to insurance to logistics .

I got into solar really because I was quite interested in it and the person I started the business with at the time was really passionate about it too and she had a degree in environmental science and she was actually working for another solar company at the time and I said , look , you know how about we do this ourselves ?

I think we can do a better job , you know , and that's sort of how it started . So I worked two jobs for a really long period of time there , but you know , very quickly the business took off and I got more heavily involved and I think my background is in software development has really helped the business .

You know , we're very forward thinking with the software and the solutions that we provide to customers and these days the home energy systems are just one big software platform , if you like . There's lots of integrations between devices , there's data about how they're performing each day that customers have got to look at and visualize .

So I think some of that experience has certainly helped our business .

Speaker 1

So it's not just about slapping a couple of panels on a roof when it comes to solar .

Speaker 2

No , solar Hub prides itself on designing solutions that provide the most benefit to customers . So that starts with an assessment of someone's energy bills . We then look at , obviously , the available roof space , how much we can fit . Ideally we're fitting as much as we possibly can on the roof , but you don't want to oversize it either .

If people are only home at the evening times there's only two of them and they don't use a lot of energy then we'll go for a slightly smaller system . But if it's a big family , really high energy users , they want to leave that air conditioning on all the time all year round .

Then , of course , they're going for a 10 , 13 , 15 , even a 20 kilowatt system for some of these bigger premises . So , yes , as I said , solhub really prides itself on that design element . We're not just slapping cookie cutter systems onto roofs .

We sit down with customers in their homes , talk to them about their energy use now and what their energy use is going to look like in the future . Are they going to buy an EV , for example ? That would obviously change what we would do from a design point of view .

So , yeah , we certainly value that customer engagement and pride ourselves on designing solutions that are the right size for customers .

Speaker 1

So when it comes to Solar Hub , it's not just your customers who have to get educated about their whole consumption pattern , but your sales staff actually has to be on top of that too . They can't just be cookie cutters . How does that ?

Speaker 2

work ? Not at all . So when we recruit , this really starts when you bring people into your business and the type of people that you're looking for . We don't hire traditional salespeople . Usually our salespeople have got either a background in engineering or environmental science . Perhaps they might have a trade background .

So we look for people that are looking for good and well-engineered solutions for customers , not just sitting there trying to sell them something and walk out the door . So that really starts with how we recruit and as part of our job description is having a technical aspect and a technical expertise within those teams .

So all of them know I'm not saying they know as much as our installers , but we try and get them as close to that sort of knowledge base as possible .

Speaker 1

Right ,

Home Electrification and Energy Efficiency

right . So what services do you do nowadays ? You started with solar . You're doing more than that .

Speaker 2

Yeah , we've expanded a lot in the last few years . I mean customers now want to see that full home electrification package from installers . So we recently added air conditioning to our suite of products that we offer . We also offer hot water systems as well , ev chargers . We actually go all the way down to induction cooktops , which we don't do a lot of them .

But really the last thing typically that someone will want to change over to get off gas is the cooktop . I know for me I'd done the whole house . I had got the solar , the battery , the reverse cycle air conditioning , swapped over the hot water , but I held on as long as possible to that gas cooktop because I do like cooking a lot .

Surprisingly , when I changed over to a really good induction cooktop I actually came to grips with it fairly quickly . I mean there's some real advantages to induction cooking and certainly the bill savings at that point were really high for me because all I had the gas connection into my home for was the gas cooktop .

So it was really nice to be able to ring up the retailer and say , hey , come and disconnect that gas meter please , and haven't got a gas bill since .

Speaker 1

Wow , wow . Okay , so you're saying to people that really that electrification is that unstoppable now .

Speaker 2

I think so . I mean , we live in Canberra , where the government's very progressive . I know both the ACT and Victoria have set dates for when they're going to switch the gas off , so that's really incentivising home electrification . So , yes , I think it's almost inevitable . Now the gas supply is becoming a bit of an issue .

The gas price has obviously been going up considerably in Australia , and if you can electrify your home and power that from a solar and battery that you've purchased yourself and is your own generator on your own roof , and certainly the return on investment getting off the gas is really quite high .

You can't generate your own gas on site , but you can generate your own electricity and that's the key thing .

Speaker 1

True , but I mean in Canberra you do have cloudy days . You sometimes don't get enough solar . Is a battery a solution in those cases ?

Speaker 2

Definitely , and the batteries are really starting to come into their own now , I think . From a payback perspective , the feed-in tariffs are going down . Unfortunately , you're getting a lot less for your exports to the grid now than you might have in previous years .

Once upon a time , I recall days where you were getting paid 20 cents a kilowatt hour , for example , for your feed-in . Now you're lucky if you get three , four , five cents for your feed-in , and there's even talk about it going even lower than that . And this is where a battery plays a really important role .

It charges during the day from your solar system , often when you're at work not using any energy , and then when you get home at night and you turn on your air conditioner , you start cooking . You can discharge that battery into your home and use all that solar power that you were generating the day yourself , rather than exporting it .

So this is where batteries are coming into their own . The costs are coming down slowly . There are rebates as well coming for batteries , which will make them even more of a promising option for customers . So , yes , I think it's inevitable that we will get off gas .

It's only a matter of time , and electrifying your home is definitely something you should start the journey now . It's not just do it all in one go . I mean , it'd be nice to have all the money to do it in one shot , but certainly as things fail in your home , like your hot water system fails , you should look at an electric option .

Speaker 1

A couple of years ago the New South Wales government , for example , gave you money to get rid of your old electric hot water heater , but nowadays I actually find electric hot water heaters can work very well with solar .

Speaker 2

Can you explain ? Yeah , there's two options for hot water . You can either use an element , a standard element tank , so it's a bit like a big kettle where it's , you know , heating up the water from a resistive element in the tank . So that's just your traditional way of doing it . But there's also hot water heat pumps as well , so- .

Before you get onto that one , but those ones you could then fire up and run through the solar , of course , so anything that sits behind the meter that uses electricity can be powered from your solar system . Now , it's not directly happening . It's not like the solar is going directly from the inverter straight into your hot water tank .

It's going to a number of things in your home , and the hot water tank is just one of those things . Heat pumps and standard storage tanks can both be smart controlled .

Now , though , right , so you can look at an immersion controller for a hot water tank , where it will turn the element up and down in the tank depending on how much solar you have available , and the same with hot water heat pumps . You know these things can be set on timers to run during the daytime .

Some of the new ones have smarter control , so they're looking at what your solar is doing and heating the hot water accordingly .

Speaker 1

So if it's a solar , basically you're going to have all these other appliances and elements in the house , so it becomes kind of like a bit of an orchestra , is it ?

Speaker 2

It does , and this is where there's a lot of innovation occurring at the moment . You're seeing it from the manufacturers . You know the Enphases of this world , the Phonius of this world , the SunGrow they're all looking at expanding their technology further into the home , beyond just the solar inverter . So we're seeing that happen aggressively now .

But you've also got independent companies looking at this too . You've got companies that are looking at providing hardware and software that can talk to all these devices and orchestrate all these devices . I mean even things like Google Home , alexa all these things are pretty capable of controlling devices in your home .

The traditional solar manufacturers that are looking at getting further into the home and the smart home device manufacturers that are looking at providing control and apps for you to use in your home as well .

Speaker 1

But I mean , the end customer really doesn't want to get involved in delving in if this one is winning the race or that one is winning the race .

Speaker 2

What kind of advice can you give there ? Look , ultimately it depends on who you are , and there's multiple different types of customers . Some people are really , really interested in this stuff . They want to see all the data .

They want an app that tells them exactly what the solar is doing , what the battery's doing when the air con's on , what the temperature is , and they're right into it . And that's a whole swathe of customers that want to see that level of data . But for the most part , marcus , people just want a lower bill .

Ultimately , that's the thing that customers are driven by . They're looking at their bill go up and up every year , and it's not going up by a little bit . It's not going up by 2% or 3% like inflation . In some cases it's going up 10% , 15% , 20% , 30% each year , and those costs are getting exorbitant really .

I mean , the average home is probably spending somewhere between three and four grand a year on electricity now . Yeah , your hand shakes when you open the envelope Exactly , and if , you're sitting there and starting to make decisions about what you can or should and shouldn't

Future of Energy

do in your home . Should I turn that air conditioner down ? Should I leave it off ? potentially , no holidays this summer , correct , and so the best way to tackle your bills is to take control back .

You know the retailers aren't acting in your best interest , so you need to act in your best interest and partner up with an installer that is acting in your best interest , and the best way to start is with solar . Add a battery on . Next , get off . Gas is probably the third thing you consider doing .

All these things are going to reduce your energy costs and shield you against further price rises . That's the thing . When you get your bill next year and you're generating your own energy , then who cares if it's gone up by a few percent ? You're not really paying anything anyway , right ? So it doesn't matter to you , and that's the key thing .

Speaker 1

I would say , when the EV comes really into the fullness , then basically some roofs won't be big enough . Is that right ?

Speaker 2

Correct , and I mean modules . The solar modules have become a little bit more efficient year on year , but that rate's really quite slowed down and so , yes , you're right , we start to be constrained by roof space , by available roof space . There's not enough of it .

Ev is an interesting one because , yes , you're going to do a good chunk of your charging at home each day , but you're also probably going to charge on public infrastructure as well .

Wherever you're parking your car so maybe it's in a car park those car parks have got EV charges through them and you're charging up there , possibly at a subsidized rate , because the cost during the day of energy now is really quite low .

You look at the wholesale rates for electricity during the day , because there's so much solar around on the grid , it's really quite low .

So I think the most obvious way to combat not having enough roof space , for example for solar , is to charge your vehicle , probably during the day , on public charging infrastructure that are offering you subsidised energy because they're charging it off solar .

That's something that SolarHub have been looking at and we've got a solution called SolarHub Charge , where we're putting in public charging infrastructure on sites where we've got solar right . So these could be on a commercial building , on a car park , on a factory roof , and allowing customers to charge up their car during the day at a subsidised rate .

That's what we're doing with Solar Hub Charge .

Speaker 1

I really find it very strange that the energy retailers are complaining about all this extra solar in the system in the middle of the day , because now , with EVs coming , we've got a perfect source which can take all that solar as long as we put some interesting tariffs together . Why isn't that happening any faster ?

Speaker 2

I don't know I mean EV adoption over the last couple of years has obviously increased rapidly . It's tapered off a little bit over the last six to 12 months but I'm a long-term believer in the EV industry . I do think that over the next five to 10 years we are going to see some significant uptake .

The cost of EVs is coming down rapidly and it's not just the Teslas of this world driving it . You've got companies like BYD which are making cheaper vehicles , and that's going to lead to wider spread adoption of EVs through the network . The problem with putting public charging infrastructure in a lot of the time is that the grid itself is usually the constraint .

Infrastructure we're in a lot of the time is that the grid itself is usually the constraint .

As much as we would have thought the grid operators were investing wisely and upgrading the infrastructure over the last 10 years with all that money we've been giving them , they really haven't invested enough and so putting in public charges where you've got sort of really high demand , high peak power within those charges , it is going to put strain on the grid .

So we've got to be pretty smart about where we put this charging infrastructure . That's the biggest constraint at the moment . It's not so much that the wholesale price of solar is cheap during the day . It's that actually finding really good places to put these public charges is hard because there's not enough investment being made in the networks .

Speaker 1

I say put it all in the Aldi car park .

Speaker 2

Yeah , well , that's one good place , you know , but we need to put it in all sorts of places . We need chargers everywhere to take advantage of this . In every car park , you know . You see them on light poles as well . You know we're going to need them in all sorts of places .

So , wherever you park your car , you put up , you plug it in and away you go , because not only do you want to be potentially charging from these things , but having your car plugged in does provide if it's orchestrated well , the networks with the ability to potentially use a little bit of that energy in your batteries to support the grid , if you need to right

. So there's lots of smart things that you can do with EV chargers .

Speaker 1

So I'm coming back to my orchestra sample . So it's really like where the olden power station had it all generated , one centrally and it's sent out all that way . When we're now getting cars that are locked into the grid , when we get batteries that support the grid , it's kind of a backwards and forwards constantly , and solar is the driver of all of that .

Is that support the grid ? It's kind of a backward and forwards constantly , and solar is the driver for all of that Is that where the future is going , definitely .

Speaker 2

I mean , these cars are mobile but you can take that energy that you've charged your car up during the day . You can drive home At some point . You'll be able to plug it in and use that energy in your home at night .

Speaker 1

So if I have a blackout , my car could actually keep my house going is it .

Speaker 2

I mean , we've got some work to do on the standards and all these things , you know , before that becomes a reality .

Renewable Energy Solutions for Homes

But that is not far off and that's going to mean that customers might need to buy energy and any energy from the grid , right ? These cars have 70 , 80 kilowatt hour batteries . That's significantly more than most homes need or require , I use nine or 10 at night .

Speaker 1

So if I walk in with an 80 kilowatt hour battery and I fall only 10% to keep me over going through the night .

Speaker 2

Yeah , and then you still have plenty to go back to work in the morning . This is the thing People talk about . Oh well , what happens if I don't have enough energy for the next day ? Most people aren't driving hundreds of kilometres every day , right ? They're driving to and from work or to and from school .

Maybe they're using 10 , 15 kilowatt hours out of their car battery . The rest of it's just sitting there , wasted , right ? So you can use some of that excess in your home and then drive to work the next day , plug into a public charger and top it back up to full again , right ?

Speaker 1

So SolarHub basically supplies quite a number of services . Just let's play the yes and no game you do solar yes , batteries , yes , heat pumps . Yes , for hot water , yes . Heat pumps for air cons , so basically air conditioning systems , correct . You do even do induction cooktops . We do yes .

Speaker 2

Anything . I forgot . Ev chargers is the other thing , but they're the primary services that we provide for homeowners . We do provide support and maintenance as well . You know these things need regular cleaning .

You look at air conditioners they need filters changing Solar systems don't need a huge amount of maintenance , but every few years it's good to get someone to come out and check it , make sure it's performing optimally , possibly clean the panels every few years as well .

So we provide a support and maintenance function as well within our business , and that's across all of those product lines . So one of the big differences I think about SolarHub is that we do not only sell you the system , but we're there to support you through the life of that system too , with our own technicians .

Speaker 1

So it would be your windscreen wiper . You're not just wiping this bit , you're really . Solarhub is an energy hub .

Speaker 2

Correct . Yeah and Dan . Maybe I should have used a better name when I first started it .

Speaker 3

Rather than calling it a solar hub . I should have called it an energy hub .

Speaker 2

But ultimately , Marcus , none of this electrification thing works without solar . That's the key thing . You know , you need solar as the generator . Otherwise where are we getting our energy from right ?

Speaker 1

So solar allows us the privilege of turning all these things on when we want , you know for free , and I mean most people don't realise , but in Australia we're very lucky with the sun hours we have . We probably do triple what Europe gets out of the same sky . So Australian solar is very strong and creates a lot of energy .

Speaker 2

It is , and in most places of the country I mean even down in Tasmania they've still got better solar radiance than , you know , most of the country . I mean even down in Tasmania , they've still got better solar radiance than most of northern Europe . So pretty well everywhere in Australia there's an abundance of solar , pretty good weather for the most part .

Yes , we have some storms and some cloudy days , like anywhere , but most of the year round in solar you've got good , solar generating weather . So , yes , all rooftops , in my opinion , in the country should be covered with solar . That's something we should certainly be trying to achieve , and everyone should have a battery too .

That's where we're headed is that everyone should be able to generate their own power , store that power and be independent from the grid as much as possible .

Speaker 1

I mean what I don't get with the Australian government . They're spending the big bucks at the moment with all those solar farms and then they need these big transmission lines to bring it into the cities . Why aren't they trying to really make all the roofs of the city a big solar farm ?

Speaker 2

Not sure of the answer to that question . I think it's a tricky one . I mean , obviously we probably need both right ? So you think about big businesses and factories with really high energy demand .

You know there's probably not enough roof space for them to become energy independent , so you are going to always need , in this new renewable world , you're going to need large-scale solar farms , wind farms , onshore and offshore . You're going to need hydro . You need all these bigger things to supplement the roof .

It can't all be done , unfortunately , with rooftop solar , so you're going to need a mix . The big benefit , though , at least for the average Joe in their own home , is that for the most part , they can become pretty independent and they can get their bills down by just putting in solar on their own roof and electrifying the home .

That's something that every individual person can take responsibility for . We can't all be responsible for the big business at the end of town . That's got to be worried about by governments and the big network operators . But we need a combination . We need to be tackling all of these things . We can't just look at one single renewable solution .

Speaker 1

We've got to be looking at a raft of things big storage , big wind , but people can basically take responsibility for their own home , their own life and their own electricity bills Correct and have some significant savings , you know , and it's a cost effective thing to do .

Speaker 2

Most return on investments for solar these days , you know , are somewhere around about that four to five year mark . You know . With batteries maybe it extends it out to sort of six or seven . You start doing full home electrification . It's sort of around that seven to eight mark at the moment . But these paybacks are mostly within the warranty periods .

It's a pretty good investment . You think about either putting the money in the bank and earning interest or putting into this . The better investment is to electrify your home and put solar on your roof .

Speaker 1

So I mean I do still see on Facebook and other places some critical people going nah solo doesn't make me any money Does it make you money ?

Speaker 2

Of course it does . You know what saves you money at the very , which is basically making you money right , rather than having to pay a retailer ? Do the sums for me . How does it make sense ?

Well , I mean you're paying upwards of 60 cents a kilowatt hour , sometimes in peak rates these days and shoulders sort of 20 to 30 cents off peak , somewhere around about that . 20 , 20 , 25 cents a mark . Now that's money you're paying a retailer . You've got no control over it . They keep upping the rates .

You've got to pay more and what a solar system does is prevent you from having to buy that . And that's where the saving is . You're generating that energy , you're using it in the home , potentially storing it in a battery , and then you're not having to pay a retailer for that energy . That's where the saving is and it's significant .

Depending on how much you spend on a solar system seven , eight grand , something around that mark you're generating energy for the next 25 years at a very reduced rate . So if you think about that investment over that lifetime , you can be paying somewhere around four to five cents a kilowatt hour in reality for that energy . So the savings are not paying .

That's the key thing . It's not paying the retailer , not paying the network operator generating that power yourself . That's the key thing . It's not paying the retailer , not paying the network operator generating that power yourself . That's where the saving is .

Speaker 1

But would you say then what a normal solar system gives you $300 a year , or is it two and a half thousand ? Which one ?

Speaker 2

It is really dependent , this one . I'm cautious of giving a single answer , but it depends on the size of your house .

Speaker 1

Let's say , four people , average house , average billing . I mean it's not a big deal . I've got the experience myself . I'm saving about $2,500 . But is that about ?

Speaker 2

normal . That's probably a little bit on the higher side , I think certainly the average would be somewhere around about that $800 to $1,500 mark would be the average savings you could expect . It differs depending on where you are in the country . Canberra actually has slightly lower energy prices , although they've just gone up considerably recently .

Speaker 1

I know the Canberrians really feel that we're being ripped off and we're paying too much , but I trust you in other parts of . Australia .

Speaker 2

Canberra prices look very beautiful they do , and I mean they've got a bit of a rude shock recently because they've gone up a lot and New South Wales didn't increase as much and arguably Canberra's prices will possibly catch up to the rest of the market at some point . Canberra's prices will possibly catch up to the rest of the market at some point .

But in New South Wales , for example , we've got customers that are paying up to 60 cents a kilowatt hour In peak times . In peak times I mean five years ago , that might have been 30 or 40 cents a kilowatt sort of doubled in that period .

Speaker 1

Look , it's not going to be an energy retailer bashing program here , but I found it very interesting when the Ukraine war started and everybody was going oh my God , energy's gone up and we paid 30% more on the 1st of July two years ago for electricity . Now the wholesale has come back , mostly back to the old level and they gave us 1% off the next July .

So what happened to that ? 29% in between . That's all in profit , is it ?

Speaker 2

I think a lot of it would be profit . I think some of it's being reinvested in the network as well . I mean , they're having to , where governments are pushing them to increase their investments in the network . But I think , yes , it's a combination of profit . Equally , their costs have gone up too .

Everyone's costs have gone up in business , so the costs of maintaining a line , labor costs , all these things have increased as well . So , yes , those savings have probably been banked in profit . Some of it's been spent on the infrastructure , some of it on their operating costs .

But yes , I think for the most part they're probably making a bit more money than they used to .

Speaker 1

But if you go solo , you can avoid basically all those cost increases , because your bill will still go up a little bit too , because you're still getting some from the grid , but your dependency and the amount that's going up is going to be significantly reduced .

Speaker 2

Well , I mean , it's pretty easy maths . If you've got a $4,000 a year bill and it goes up by 20% , then that's $800 . But if you've brought that bill down to $1,000 a year , let's say , and it increases by 20% , then that's only $200 . It's pretty easy maths .

You're shielded from those price increases by reducing the amount of energy you need from the grid and those percentages just don't hurt you much . In dollar terms . They don't hurt you as much , Right , right .

Speaker 1

I hear that you guys qualified for a very special rebate in New South Wales which makes a purchase from SolarHub much cheaper than many others when it comes to batteries . Can you explain ?

Speaker 2

SolarHub's been very progressive with batteries . We installed some of the first Powerwalls , for example Powerwall 1 in the country . In ACT no-transcript the upfront costs of batteries for consumers . We want to offer a $4,950 rebate and we would like you guys to subsidise this project .

Speaker 1

Hang on , hang on . Nearly $5,000 rebate for homeowners in New South Wales on the South Coast . Correct , but only available through .

Speaker 2

SolarHub Correct , yeah , so it was a tender process and it's something that we're building exclusively in that part of the world that's a third of the battery cost . Literally it is yeah , no , it's a substantial amount off the Powerwall

Advantages of Virtual Power Plant Membership

. You need to commit to being part of the VPP to access that , but the VPP provides you additional benefits , Just for anybody .

Speaker 1

Vpp is virtual power plant , which means that the energy retailers , at certain times when the grid is tight for energy , is allowed to access your battery , should there be additional power available . But then you also got some benefits out of the VPP .

Speaker 2

You do so , you get a supply charge discount , so your supply charges is waived for that first 12 months , and you also get a higher feed-in tariff . So it's actually a 15-cent feed-in tariff , and that applies not just to your battery exports , to your solar exports too .

So both those two things combined deliver , you know , somewhere around about $500 to $600 in benefit to you as the consumer for being part of that . Yeah , being part of that VPP .

Speaker 1

Can you get in Sydney ?

Speaker 2

No , no , we actually don't , unfortunately , operate in Sydney .

Speaker 1

I want to get one for my own place .

Speaker 2

No , we only the regions . It's pretty well everywhere south of Sydney . So we deal with anywhere from Wollongong all the way down to the Victorian border , eden Into sort of the Canberra and the snowy regional area Right right , and Goulburn as well , so sort of draw a line around that .

That's our operating area and that's where the VPP is being built , and part of it was obviously in response to the sort of disastrous fires that the South Coast community had down there . And you know I personally was there when those fires were on and you know our house didn't have any power , you know , for a whole week .

And so it's not just about , you know , moving your energy around and saving your bills , but also having backup protection as well . You know , in the event that the grid goes down for days or weeks at a time , that you've got a battery there to provide backup protection . So there are some other benefits people don't talk about as much .

It's not all about ROI and bill savings . It's about the fact that I was the only bloke in the street with the lights on and the fridge on . So it's yeah , that's sort of how we've reached it .

Speaker 1

It adds to the comfort of the home , of course , because if the grid is down and you've got a decent-sized battery and you're not starting to bake electric cakes every five minutes , then theoretically during the day your battery can be filled up .

You use it again at night and , theoretically , as long as you're not getting 10 days of rainy weather , you will be actually able to live off the grid .

Speaker 2

All these bushfires generally happen in summer , don't they , you know ? And when you've got pretty good solar conditions , yes , yes . So yeah , a battery will definitely get you through the night time . You do have to be a bit more conservative , you know .

If you're in backup mode , as you say , you don't want to be baking cakes , but certainly powering your fridge , your lights , your Wi-Fi , even all of these things can stay on . You've still got most of your creature comforts . What about the PlayStation for the kids ?

100% , they actually don't use much power , but , yes , certainly , cooking , sort of maybe a spa or your pool . You might want to turn those things off , but life's essentials , those devices can stay on . And if you decided to go for two or three Powerwalls , yeah , oh yeah , you could go a lot longer and possibly completely self-sufficient .

You could have the air con running as well . So , yeah , certainly , if you've got multiple Powerwalls , you could have a party , yeah .

Speaker 1

Invite all your friends over . Neighbours are really bored .

Speaker 2

Yeah , well , there wasn't much going on . You're the only bloke with light , yeah , and the fridge full of beer , that'll attract them all .

Speaker 1

Yeah , they bring their warm beer to bring it .

Speaker 2

and cool it down . Yeah Well , you're the most popular bloke on Australia , for the only one with cold beer , surely , yeah ?

Speaker 1

Now you've been going for how many years ? You said 14 ? 14 , yeah so do you now get repeat customers who actually had a system 14 years ago and are looking at replacement ?

Speaker 2

Repeat customers is , I think , about half Solar Hub's business .

We have people coming back all the time for new things and now that we also do air conditioning and hot water induction , cooktops and these other products , we'll people hear that we do that now and they decide to use us for those products because they had such a good experience with us on the solar or the battery system .

So , absolutely , a good business is built off its repeat customers , you know , and if you don't have those repeat customers , then you're definitely doing something wrong .

So , yeah , we focus on providing a great experience and then , yeah , people come back when they want to do the next thing experience and then people come back when they want to do the next thing . There's people coming back and upgrading their solar now Systems that we put in over 10 years ago .

A lot of them are still working quite well , but they're a two or a three kilowatt system and customers now want a few more panels . So we stick on another five or another 10 and scale it up for customers .

Speaker 1

But in a lot of cases , those small solar systems , the rules have changed . You can't actually bolt extra to it . You really need a separate system next to it sometimes , is it Correct ?

Speaker 2

So , yeah , you're usually putting in an additional inverter and additional panels A lot of these old systems . They just work . It's ironic because back then solar was a bit more simple . The inverters didn't do a lot , some of them don't even have a screen on them , but they did just work .

We did a lot of SMA back then , which is really good German tech , and those systems just haven't missed a beat . So , yes , we usually just leave those alone and then put on a new one on another different roof space or different roof angle and go again .

Speaker 1

Now let's say I'm a customer who had a one and a half kilowatt system , but I went for the cheapy-deepy . And you get there and you find actually somebody plonked it right in the middle of the roof , in the best possible spot , and now building little panels around it would look really silly .

Speaker 2

Do you ?

Speaker 1

sometimes have to replace .

Speaker 2

We do quite a lot , unfortunately . And look , if those cheap systems have lasted 10 years , I'll eat my hat . I mean , they don't generally last that long . Generally , if we get to a system like that , it's been dead for a few years , hasn't ?

Speaker 1

it Correct .

Speaker 2

And a customer maybe hasn't noticed , or someone new has moved into the home and didn't realise that system was off and thought they were buying a house with a solar system on it , but the reality is that solar system had died years ago . It's definitely important to buy quality , I think , up front .

But yes , we take those systems off and we do recycle most of those materials . There's companies that will take the inverters off us and break them down and take the high-value materials out of them . There's solar panel recyclers now as well , and for the most part those solar panels can be recycled and then we put a new one on .

But you know , as I said to you , yes , there's cheaper systems where we have to go and replace them , but there's plenty of smaller , older systems that are still working really , really well and we just don't touch them , you know , we just leave them . Let them run another 10 years , Right , right .

Speaker 1

Let's say I mean there's solar panels that have a slightly higher quality , there's inverters that have more functionality , hybrid inverters , so you can get different cost factors in the gear that you supply . If I get the best possible brands , can it still be stuffed up ?

Speaker 2

Of course it can . For me , the gear these days look it's important and there are certainly cheaper options that I wouldn't advise customers to go with , and there's obviously the ones that we suggest that customers go with that we're happy with and are reliable and we think are good products to offer .

But the installation is really important too and it gets overlooked and I know this is a hard thing for customers to go . Well , am I getting a good installation off this company ?

Speaker 1

No , it's just a cable running along the wall On the outside I can see it .

Speaker 2

Yeah , a lot of , unfortunately , that's where I think a lot of the quality issues come Certainly . A lot of , unfortunately , that's where I think a lot of the quality issues come , Certainly where a lot of the longevity issues come . Poor connections , you know that , lead to devices failing within the system . So what about ?

Speaker 1

I save a bit of money on the cable and give you a thinner cable .

Speaker 2

Yeah , that can happen too , you know , or I can just run everything external down your you know , beautiful new wall and on new house , house you've got and I've got ugly conduit running down the side . What's wrong with orange ?

It looks ugly in my opinion , but you know a good installer will tuck those things away where they can and , yep , upgrade the cable you know to make sure that you're not getting any sort of voltage losses or drops . So yes , the install is for me more important often than the gear .

I know this sounds counterintuitive , but getting a good installer that's been around for a while , that has made all the mistakes I guess you could say is more important for me than probably what gear you pick . And that's the kind of guy you guys employ . Of course we do . Yeah , I mean , we are very picky about who we work with .

We have a mixture of our own installers on staff . We do use some contractors too , but those contractors have often worked for us or we've been working with them for a really long time and they may as well be part of our staff .

Unfortunately , with you know , with the good , the good installers , the ones that we've sort of trained up through their apprenticeship , a lot of them actually want to move on and do their own thing , you know .

But we generally they stay part of the Solar Hub family , you know , and we keep working with them , even when they've sort of got their own little business that's set up . So we like to think that we train our installers to be the best installers in the industry and we hope they stay .

But sometimes they do move on to their own business and we're happy to engage with those businesses because we know exactly what they're like . We train them . So you know we're really happy to work with them , do you think ?

Speaker 1

you can say with confidence that SolarHub is the most experienced battery installation company in the ACT .

Speaker 2

Oh , absolutely within the ACT , you know . The question is possibly a question is whether we're the most experienced in the country . We've done a lot of batteries . I would by no means say we've done the most .

There's probably plenty of companies that have done more , but we've been doing it now for about eight or nine years , so it's a decent amount of time and we would have several thousand battery installations out there already .

So , yes , we've experienced all the joys of going through as an early adopter into that space and I think now our installers are really experienced and knowledgeable on batteries . And yeah , solar Hub would certainly be the biggest in the OCT .

Speaker 1

Right right Now . How do you ensure the quality of the gear that you ?

Speaker 2

pick . So Solar Hub has some really stringent processes for bringing new products into our business . We actually have a little lab that's out the back of our warehouse . That's got a whole bunch of inverters on it . We've got a whole bunch of panels on the roof . But we generally put things through their paces before we were releasing to the market .

Ensuring Quality and Safety in Solar

So the first thing you've got to do is make sure that you've got a really good filter at the front , that you don't let poor quality products into your range . That's the first thing you can do . The second thing is obviously a great installation right .

So getting experienced tradespeople to install these products with care is the next most important thing you can do to ensure quality . And probably the third thing I think is having a really good inspection regime . So we don't just rely on the clean energy regulator inspectors or the local electrical inspectors to inspect our systems .

We actually have an internal inspection regime . So we go out and handpick a portion of the installs that we do and we go and look over them . We get an independent person to go over and make sure that it's meeting all the standards , meeting our best practice guidelines .

We think that's a really important part and something that does differentiate us from most of our competition and that we have internal auditing processes .

Speaker 1

And have you found . Sometimes corners work hard .

Speaker 2

Yeah , we do and we fix them . I mean , yes , from time to time either someone's stressed that day or dropped the ball , or yeah , of course we pick up mistakes but we fix them , and that's no one's perfect . It's about what you do when you find those errors .

And if we see those errors and it's a particular install of them , we go back and do even more of an audit and make sure that we resolve those problems . So , yes , we do find problems from time to time , but we fix them , we engage with the customer , make sure that that solution is brought up to standard .

So we'd be naive to think that we are completely perfect . We're very , very good , but we make sure we find the bits where we're not good and we improve , and we're constantly looking at improving . The other aspect I think that's important to note about solar is we take safety really , really seriously too . You know this is something that does concern me .

I drive around every day and I see , you know , young , 18 year old installers on roofs , no harnesses , no ropes . You know no safety , you know .

Carrying this huge panel in the middle of a windstorm a bit of wet on the tile and I shudder because you know , I know and have heard of , you know , young people dying doing these things and you know it does worry me and it's something that really grates me when I see it , you know , but you save some money .

Speaker 1

Sure . The installation company can give you a $300 cheaper system because he didn't bother with the harness , he didn't bother with edge protection , and I think those people are normally called roof monkeys .

Speaker 2

Yeah , well , or cowboys . I think those are the things that I hate to see . It's a bit of a blight in our industry . I think it's something that happens way too often and , as I said , we've seen people fall through skylights and fall off roofs and all these things .

That are quite tragic stories and I certainly don't want that to happen to any of our guys .

Speaker 1

I mean , even as a homeowner , do you really not want to look at that solar system and think a young bloke fell off and broke his leg , and all that because the company tried to cut a couple of corners ? So what do you do for safety ?

Speaker 2

Well , we have edge protection as a mandatory part of our business . So it doesn't happen on every site because not all sites can have edge protection , but I think 80% 90% of the time we're using edge protection around the roof .

Now that takes a bit more time to set up and pack down , but for me it's the best engineering control that you will have is having a protective barrier around the roof , so it's basically a fence around the roof .

Speaker 1

So , if you happen to roll somewhere and slip , there's actually right on the edge something that you can hold on to like a rail , and that makes the difference between you falling down or not .

Speaker 2

And sometimes you're up on a double-storey building . It's not just a two-metre fall you're potentially exposed to , it's a four or five-meter fall , and a four or five-meter fall you land on a concrete . It's going to end pretty badly for you . But just coming back to your original point about , yes , some people cut corners on safety .

Generally it goes hand in hand with cutting corners on quality . I find is that the people that are cutting corners on safety maybe save you $300 because they've not set up a proper safety system . Generally those installers are also cutting corners with what they're doing with your installation too . So those things go safety and quality go absolutely hand in hand .

Speaker 1

The good installers , the good operators , take both of those things seriously and for the end customer to kind of make it clear how they can cut corners . There are steel cable ties , for example , which will last 10 , 20 years , or there are plastic cable ties which , in our UV , will die after two years . They end up in your gutter . Your gutter gets blocked .

You then wonder why you're getting water into your house . So those are the little things where people can cut a corner . You wouldn't notice on the day of the install , but three , four , five years later you will notice it .

Speaker 2

Yeah , is that what's happening Definitely . I mean we cover a whole session on the things that you could do wrong or cut corners on install . There's hundreds of things that people do . I like .

Speaker 1

my favourite is always just use silicon . Yeah , nobody bothers with a screw . Yeah , I mean , that's the thing .

Speaker 2

You break a tile , you know and it does happen you should be replacing it with a new one , particularly if you break it down the middle . But dodgy companies will just put a bit of silicon on it and give it another three or four years and that'll become a roof leak .

Speaker 1

But I'll put it right in the middle under the solar will never notice about it . I'm really good at this stuff . I should tell you all the tricks you can do to do a cheap solar system and cause the customer a lot of pain later , but on the day of the install they'll still make me a cup of tea .

Speaker 2

Yeah well , you don't know about it until later . That's the thing , that's the key message .

Speaker 1

By then , I've actually closed the company of Dun Rana . So you wouldn't ever know either , and that happens far too often too . I'm in Hawaii having a surf . Yeah , I mean , what can you do ? You can over-silicon everything . Basically use silicon where you could have done it properly . What about in the inlet getting into the roof ?

Don't I just drill through the tile and put a bit of silicon ?

Speaker 2

No , Well , I mean , and that's probably been done in the past , but you know you should be using a proper deck , tight , that's secured and waterproofed . When you're running the cables through the roof space . They should be tied up . You should be using conduit when you're going .

Speaker 1

But in the roof there's nobody there . I can just run it along the floor . Who cares ?

Speaker 2

Yeah , until you poke your head in there and a know , when you leave the site and customer gets up on the roof space , you know to I don't know collect some boxes that they put up there and you've got cables running around in the roof space potentially exposed .

Speaker 1

It's a safety risk . High voltage mate , I'd chew on that .

Speaker 2

Yeah , it's . You know , those sorts of things scare , worry me . So you know , as I said , a good installer will take that really seriously , to make sure that when they leave the system is as safe as it can be .

Speaker 1

Did you know you can save about $20 or so by using a few less like roof hooks and stuff like that ? Just a few less brackets and all that you can't notice under the panels .

Speaker 2

Well , not until you get big wins . And the problem with you know the array . You're really not going for my savings measures , are you ? No , but you know , if you don't follow the standards with respect to your feet , spacings and the rail and all these things that you use underneath the panels .

Speaker 1

There's standards are there .

Speaker 2

There are standards . When you get big winds , you know generally what will happen is these things will loosen up over time . Right , because they're moving too much on the roof and you know , next minute you've got a panel flying off and you know , hitting the neighbour or a kid oh , that's a warranty claim . No , no , that's .

You know you're potentially killing someone , you know . So these are things that are all hidden . They're all out of sight , out of mind , you know , until something bad goes wrong . You sound to get really quite emotional about this stuff . I'm a bit cynical .

Perhaps I don't know if I'm emotional , but I'm pretty cynical about it because I know this is a way that you know when we get a quote that's saying gear 500 . That's what you compete against . Exactly , it's $500 less and I'm going yeah , okay , it's less . Because of these things . I know where the corners have been cut .

Unfortunately , the homeowner just doesn't see that Right . So again it comes to you know how long has your installer been around ? How long have they been doing it ? How much experience do they have ? How long have they been in the market ? Ask these questions . Go and look up how long their ABN's been registered .

Make sure they've got an electrical contractor's license . These are things that you can go and check quite easily yourself . Go and do those checks .

Speaker 1

Most people wouldn't know all these things .

Speaker 2

I know , and it's hard to , I guess , get that message and that word out there , but certainly if anyone asks me , you know , why is this cheaper ? I generally say , hey , just look . Maybe they've got a great deal at the moment . Maybe they are a good company , I don't know .

But just go and satisfy yourself , by going through and checking the very least , that they've got an ABN that's been around for more than six months . They've got a contractor's license . They've got some skin in the game . Check out their record . Maybe ask to talk to one of their other customers . Look at their Google reviews .

Make sure they're legitimate Google reviews .

Speaker 1

Oh , there are lots of fake . I mean , if they have 300 Google reviews , you already straight away know that 200 is fake . I always say , go to the lower ranking ones because they're the real ones . Yeah , look at the one and the two stars .

I mean not lower ranking as a company , but when somebody has low and high , I click the low to see what some unhappy customer said and , more importantly , everybody can stuff up . What was the response of the company to anybody putting a criticism out there ? Were they ignoring it or they're actually turning it into a learning exercise ?

Speaker 2

Look , we had a one-star review not long ago , dare I say it but we turned it into a three-star review and the guy changed his mind because we hadn't got back to him with a quote . I think it might've been in the spam folder or something and he was annoyed because he hadn't received his quote from us . But we got onto it .

We saw the review , we rang him , hand-delivered the quote and , as much as he was still pretty unhappy about his religion experience , he updated his Google review to a three-star and he might even buy a system

Power Solutions and Consumer Choices

off us . But again , everyone makes mistakes . Not every company's perfect , but it's what you do when you make those mistakes . That is the difference between a really high-quality , good company that's going to last a distance and one that's going to shut up shop in 12 months and leave you stranded .

Speaker 1

And I think about 900 companies have done that . Have you had any like that in Canberra too .

Speaker 2

Oh , all the time I remember when we were really the industry was booming in sort of 2012 , quite a long time ago now when they had a premium feed-in tariff there . Now , when that feed-in tariff ended , most companies packed up and left , you know . They took their money and ran , and there were probably about 15 companies around in Canberra at that point .

Out of all those ones , I don't know of anyone other than Solihub that's still there . I think they've all gone , but new ones keep on coming , of course , you know , and some stay , you know around for a decent amount of time , some don't .

We also , unfortunately , get a lot of Sydney companies that you know pretend that they're local and open up a presence in Canberra and then disappear as soon as there's a warranty issue . So buy local is another really important message . You know . Buy off someone that you can walk into their showroom and eyeball them .

You know that have got a bit of skin in the game and a shop front and employing local people . That's also really important .

Speaker 1

Solar Hub . You're in Canberra . Do you kind of put anything back in the community , or is it just all about the money ? What's your social engagement ?

Speaker 2

Oh , we do lots of community initiatives . You know we've donated systems from time to time we have sponsorships with a lot of community sporting organisations .

Speaker 1

You can name a few ACT , netball , act , netball , yeah , east Lakes .

Speaker 2

Football Club . You know so we do , and right down to I think we sponsored the roller derby down there . I don't know if you know it , it's a bit of a fringe sport , but you know right down to sort of maybe more obscure sports as well that we sponsored over the years .

So we do believe in giving back and typically that's through sort of sporting organizations . But we have given away systems as well to some schools on occasion , which is also one way that we can , you know , give back to the community . So we're very community focused in Canberra . You've got to , you know , you've got to be .

I live in Canberra , I work with these people and my kids go to the same school as these people . Wherever we can help , we do .

Speaker 1

Mike , so you're going to get a lot of people now inquiring about a free game . Yeah , we .

Speaker 2

I mean , we can't give them all away , right , but you know where there's a a really good case for it ? We do , you know , or certainly at a substantial discount .

Speaker 1

Okay , you get a free netball game .

Speaker 2

Yeah , we go to the netball games . You know we donated a whole bunch of netballs there at one point as well to ACT Netball .

Speaker 1

With a SolarHub logo .

Speaker 2

Yeah , we put our logo on it Of course we did , but you know it's one thing that we've had that relationship now for about seven years with ACT Netball .

Speaker 1

If you would be an end customer and you think about solar . Do I now just buy solar , or do I buy solar and a battery ?

Speaker 2

Look , I would have to look at your energy bills and decide what's most appropriate for you . I would think now I would be telling people to buy a solar and battery . I think it's gotten to that stage now with batteries where the cost has come in far enough . The power prices have gone up , obviously considerably too .

The feed-in tariffs have gone down , and that's where a battery really comes into its own . It's when you can offset that peak time , which is generally when it's dark when you get home from work . That's when the power is the most expensive and that's when a battery provides you with the most benefit .

So I would say for most people definitely consider going solar with a battery . Look at your hot water too . That's the other big thing . If you're still using gas , consider getting a heat pump . Would be the other big suggestions that I would look at .

Speaker 1

How much is hot water in the energy footprint of a house ?

Speaker 2

Look , it can be upwards of 30% , 40% of hot water .

Speaker 1

Of my total energy just goes into hot water , yeah it depends on how long you have showers .

Speaker 2

You know some households it's more Typically , we find , with younger kids . You know they're running baths and having longer showers and those sort of things . Teenagers yeah , teenagers as well . They generally have higher impact from hot water systems . So definitely , hot water is one good way . And then look , hot water acts as a bit of a battery as well .

This is a bit of roundabout , but if it's heating the water during the daytime and you've got solar on your roof , then , effectively , that solar is going into your hot water tank , isn't it ?

Speaker 1

Yeah , so your hot water tank becomes the poor man's battery , correct ?

Speaker 2

Yeah , and it's a very cheap option . I mean you can get a heat pump for you know , four , five grand you know , as an entry-level option up to about seven for something more expensive . So it's , you know , it's half the price , less than half the price of a battery .

Speaker 1

I mean , I always find it strange when you look at batteries and other things , people always bring the return of investment , but when they buy a couch they never look at the return of investment , correct ?

So I mean , isn't a battery also adding to the comfort level of your home and you're de-risking future electricity price rises , you're de-risking in case of a blackout . You're adding value to your house . So these are all pros for a battery nowadays .

Speaker 2

Of course I mean the economics . Just to be clear , the ROI probably stacks up for a battery already . But yes , there are some other benefits , and backup's the obvious one . I mean , you have a grid outage and you've got your power out .

Speaker 1

There's $300 worth of groceries that are just wasting now . Your freezer , everything melts in your freezer .

Speaker 2

It can be more than $300 . Some people have got big chest freezers with probably thousands of dollars of meat and fish and all these things in there that they've frozen . You and fish and all these things in there that they've frozen . You can lose a lot if you have a blackout .

So , yes , batteries aren't just about ROI , right , there's that sense of independence which I think is , you know , a really altruistic sort of thing for customers to think about . You know , I'm standing on my own two feet here . You know that's a great thing to feel . I mean to say it bluntly .

I think a lot of people don't like their energy retailer and if they can actually give them the middle finger , that is a very nice feeling . I think it was a choice , or it was one of the independent rating agencies that said that retailers were the least trusted brand in the country . I think it was worse than banks .

Speaker 1

So you know , they're definitely a bit on the nose , because every time they have an opportunity to screw you and put the prices up because you've got no choices . And then they say , oh you know , ring around , they all have the same price .

Speaker 2

Yeah , and yeah , it's marginal , isn't it the discount you get , and often the discounts are just to keep you , and then six months it goes back to the way it was .

Speaker 1

Yeah , and then if you've been loyal to them for five years , you yeah . And then , if you've been loyal to them for five years , you actually pay more than the one that is coming new . This is what really gets me pissed off . So that's why I go on solar and battery , because I really want to be able to have as little to do with my energy retailers .

I just don't like them .

Speaker 2

Look , get solar and battery , but also shop around . This is the thing that amazes me . Get on the phone , get on one of those comparison websites Watch for and websites . Move For the electricity For the electricity . If you're not happy or you know you're paying too much , move .

Don't be wedded to one particular retailer just because you've been with them the last 15 years . They're not loyal to you . So why are you loyal to them ? You know , ultimately you're just buying a commodity . Electricity is just electrons flowing from some point in a generator to you right ? Anyone can sell you these things .

Speaker 1

Anyone can sell you these things , so get the best deal . Can solar hub actually ? Let's say , I buy solar from you and a battery can you advise me which are actually the more competitive companies in your region ?

Speaker 2

We do and we recommend some plans that we know are good and retailers that we know are good in our region . But ultimately you've got to make that move yourself . We can't move you . You've got to go and instigate that process yourself , obviously due to privacy concerns . So , yes , we do make some recommendations where we think there's really good value .

That VPP offer that I talked about is with Actuagel . It's a really good deal . But if you're not happy with the deal that you're currently getting and you think you're getting ripped off , move , ring around some of these retailers . Ring your current retailer and see if you can get on a better plan .

Nearly always they'll find something cheaper for you to keep you . They want to keep you .

Speaker 1

Or if you're threatened to go and want a better plan , correct .

Speaker 2

Yeah , I mean , it's funny . Someone we work with moved retailers last week and then the old retailer rang up and all of a sudden he's got this amazing deal and he moved back straight away , you know , because he got this other deal . So , whatever , as I said , don't you know ?

Shop around , you know , and don't be afraid to leave , because when you leave , that's probably when you get the best deal .

Speaker 1

Bit like a relationship .

Speaker 2

Yeah , sure Not allowed to comment on that .

Speaker 1

No comment the old systems , the you know , the one and a half kilowatt solar system , six panels , 175 . And now what we've got , which is a whole energy solution infrastructure . Has it changed a lot ?

Speaker 2

Yes , it has dramatically . I mean , the old systems were really simple things and , don't get me wrong , I liked the old days . You know , from a retail and store perspective they were pretty simple things to put in and you know , you basically plug in the solar panels , plug the grid in , walk away , right , it was much easier to commission .

I mean , you didn't even connect to the internet back then right no monitoring . No monitoring . You know , you just plug in and , that said , that's probably why they're still working . You know , a lot of them were just set and forget .

Importance of Reliable Solar Installation

These days , everyone wants to connect to the internet , everyone wants to see what it's doing . You know , they want to see it right down to panel level , as to what each panel is doing . They want to control their heat pump and they , you know , want to talk to it through Amazon Alexa and have it on their phone , and you know . So there's all these .

You know they've become computers , right ? You know it's not just about converting DC to AC anymore , it's . They've got computer chips in them and they're actually doing a whole bunch of data processing as well .

So , yes , it's gotten more complicated from an installation point of view , but also gotten a little bit harder from a support point of view , because we've got a couple of people that just sort of sit on the phones and help people reconnect their inverters to the internet , for example . This thing can happen the Wi-Fi can drop out .

So , yes , they have got more complicated and , in response to that , we've ensured that we've resourced our business in the right way to support customers , because it's no longer just , as I said , set and forget , walk away .

There's now all sorts of things going on with that system from a monitoring point of view , from a control point of view , and we've got people answering phones , answering emails to help customers when things do go wrong .

Speaker 1

So if you were SolarHub , you do get after-sales support .

Speaker 2

You do . We've got only two , but we've got two dedicated people that answer phones and we've actually got a dedicated team . We've got four tradespeople three electricians and one apprentice , and all they do is support and maintenance .

We take responsibility for that and we really pride ourselves on being able to help customers and answer the phone and respond and get out to help . I mean , there's actually a . If you call us after hours , we've got a 24-7 phone line . There's always someone there to answer your call . Wow .

So if you've got an emergency or a question , we're there to answer it . So even I think I've even been called on Christmas day before you know . So it's yeah , that's something that we differentiates us from the rest is the fact that we have that support and maintenance function in our business .

Speaker 1

Your phone doesn't ring out . No , it doesn't . We answer .

Speaker 2

I mean we've got . We would have over 10,000 systems out there now . I think it's getting close to 15,000 systems now . So there's a lot of customers that we've got to support , and sometimes it's nothing that went wrong . It's just , oh , you know , and then it finds out that someone switched the modem off in the house , for example .

We just have to switch it back on and it reconnects . So sometimes it's actually a really simple fix , but you've got to have someone there on the other end of the phone to help you through it .

Speaker 1

I've been in this industry now for close to 20 years . Yeah , a cheap system inevitably is dying in the backside within three to four years , yeah , or the whole installation is a total nightmare . So let me tell you one story . My lovely brother-in-law is a bargain hunter . For two years he's been looking at solar .

Every time he sends me a really cheap solar quote system , I check the company out . They're usually gone for three months . Six months later they're gone again . So I always stand in front of like a truck and say don't do it , not with this company . Don't go for the bargain , pay the proper price , get the right company . I turned away . I was on holidays .

He got his solar system At my son's Christmas party , birthday party . He's sitting next to me and telling me about his $7,000 roof repair he now needs because five monkeys crawled over his roof and broke 28 tiles , took the ridge caps off and the roof was actually so brittle to tiles that side of the roof they should have never installed it .

Can't find the company Gone and I was sitting there inside of me seething and going . You bloody idiot . I've been telling you for two years this is what's going to happen and you still got stuck by the bargain and now you're paying the price . His whole roof , all the water damage , that's additional the mould , all of this , and he's got a huge stress now .

He could have avoided all of that . Have you had stories like that ?

Speaker 2

Oh , all the time , marcus , yeah , I mean , it happens . As I said , in a large proportion of instances , when people buy a cheap system , something does go wrong All the way down to , as you say , water damage , mold in your home because water got through from the roof .

So , yes , it happens a lot , it happens far too much , and the thing that probably makes me most angry is the fact that these companies get away with it . They continue to get away with it . That's probably the biggest frustration .

Speaker 1

It's been going for 10 years , isn't it , of course , because Australians are gamblers . Yeah , we are they like to see a nice $2,999 and they think they can get $40,000 return on that .

Speaker 2

Yeah .

Speaker 1

Ready .

Speaker 2

Yeah , you're going to get the return . The point is , with the return , it's only as good as the life of the system . You know , if yes , you might have paid a little bit less now .

But if the system lasts you 20 , 25 years versus a cheaper system like it lasts you five , well , you know your payback's significantly better going for the system that lasts you the distance right .

Speaker 1

Yeah , yeah .

Speaker 2

It might be good for a few years , but when it goes wrong , you're going to absolutely you pull it out . Yeah , exactly , so you're starting again . So you're going to buy twice . You know that's the .

Speaker 1

But what I don't get is between , sometimes , one quote and another . It might be only $1,000 difference . That's like less than six months of waiting for your electricity bill savings . So sometimes for that little difference you're willing actually to compromise the long-term outcome . I don't get it .

Speaker 2

No , I don't . And it comes back to what I think I said earlier was you've got to focus on the installer . It's not so much about the product , it's much about the price . Find someone reputable . Find someone local .

Find someone that's been around for I would say at least five years would be the sort of benchmark that I would look at that's got proper skin in the game . Find someone that's got a support phone that you can ring with technicians there to respond to issues . If you've got them , make sure they're licensed .

If you want someone with a shop front , it's probably the other thing that I would look at too . You know if they're nowhere to be found and you know the registered address is some unit block at the top of a commercial building , run away .

Speaker 1

Kennards Higher . I found one . Yeah , it was a Kennards Higher box .

Speaker 2

Yeah , so these are red flags . They're not difficult to find these red flags . If you find one of them , go somewhere else , right . And if you stick to those things and you stick to finding good companies using that methodology , then for the most part you'll be fine right . It avoids you dealing with the cowboys doing the simple checks .

Speaker 1

I mean , my first advice is always go local , of course , because in two years' time , when you want to upgrade or you need a question , there's somebody there .

Speaker 2

Yeah , the other thing with buying local is that the regulations , the grid connection requirements are all different depending on where you are in the country . Right , and the local companies will understand these things . They'll understand the pitfalls .

What you've got to do with export limiting what the grid approvals look like , you know , often we find when people come , maybe down to the South Coast of New South Wales , for example , and they've bought off a Sydney mob , is that their system . No one's actually done a certificate of electrical safety , no one's told anyone that they're installing the system .

They haven't told the network operator , they haven't registered the system . They probably didn't even use qualified tradesperson . So you've got this system on your roof . That , yeah , you've got a pretty good deal on . But as far as a network operator's concerned , it's not even there . So guess what they can do ?

They can come along and they can switch it off Because it doesn't comply . Correct , yeah , and where are you stuck ? You're stuck with a system that's tagged out that you can't touch , absolute dead duck . You've got to drive to Sydney and complain on some kind of Well , that company isn't coming down .

They sent a team , as I said , to do two installs once a month and they drove five hours away . They're not coming to help you . So that's the difference between using someone out of town and someone local . So understand the local rules . It's their name on the line and they're going to follow those local regulations and that protects you as the consumer .

Speaker 1

Okay , that's good . Do you guys have to tell me a little bit ? I'll let you drink something for a minute . How are we going , leonard , from your perspective ? Yeah , how long do you have ? Oh , we've still got a bit . What's the time now ? One hour and 15 minutes . Huh , we're talking too much . No , you've got a lot of knowledge .

I would say another half an hour , give me a bell in 25 and we wind it down . Okay With Ben , we probably have to get him back another time . He can pay again . Are you paying me ? I'm learning , I'm happy to .

Speaker 2

Paid appearance . Yeah , yeah .

Speaker 1

As long as I don't have to wear a Solar Hub shirt , we'll be fine there's nothing wrong with that . I'll bring you one . Can you explain the solar and battery warranties to me ? There's product performance , workmanship .

Speaker 2

Warranty's pretty complicated . I mean , with panels you're going to have two warranties that really are applicable , although I'd argue it's really only one that's applicable , and that's the product warranty . The product warranty is the thing that keeps the manufacturer on the hook if something goes wrong with that panel . So let's say it's 25 years .

That means that in that 25-year period if something goes wrong from a manufacturing perspective with that panel , they'll replace it . Now some retailers will pay not just for the part , they'll also pay for the labor right . But then there's for the labour right , but then there's a performance warranty .

Now that performance warranty is different for every different panel out there and there's different ways to measure it , different lines on graphs that you see on the spec sheets

Battery and Warranty Considerations in Solar

. Ultimately , the performance warranty I don't think is worth the paper it's written on . It says that the panel is going to perform at X . You know , let's say it's 80% at year 25 of what it did in year one . Right , and they warrant that .

Now , in order to prove , for example , that a panel you know is performing at 79% at year 20 , geez , you've got to have a lot of data and a lot of confidence in the data as well . I mean I've got to get the panel off the roof in the first place Exactly to check it . So , as I said , I just wouldn't worry about a performance warranty .

There's manufacturers that promise 40-year performance warranties and you see these sort of numbers You're like it's just not worth the paper it's written on . Have a look at the product warranty that keeps the manufacturer on the hook to replace that panel if there's a fault in that panel , and make sure that it's 25 years .

Speaker 1

In my opinion , that's minimum what you should be looking for . So what about a workmanship warranty ? That's the warranty that Solar Hub will give to the end customer .

Speaker 2

What do you ?

Speaker 1

get for that .

Speaker 2

So we provide a 10-year workmanship warranty . So that's on anything that we do with respect to the installation .

So , as you said , running conduit and cable into the roof space , installing the racking system that we put on the roof , safety switches , safety , any switches that we provide , anything that our tradespeople have done to install that system , we will warrant for 10 years . Right Now , batteries are also pretty complicated from a warranty point of view .

Most will say it's 10 years , but you've got to read the fine print because some will warrant a certain throughput , and by that I mean how many times you can charge and discharge that battery through that lifetime . Some will have quite a low throughput , some will have quite a high throughput .

Some will say , at the end of that 10 years , we're going to warrant 60% . Some will say that we're going to warrant 70% , so hang on .

Speaker 1

So read the fine print . So it's like it's a 10 kilowatt hour battery . Yeah , then after 10 years , if it's a 70% warranty , it'll still hold 7 kilowatt hours because there is a degradation factor over the years , isn't it Correct ? Right , right , right .

Speaker 2

And it's the same with panels . Panels , you know , degrade as well over time , batteries more so . You've got to , you know , have a look at the fine print with these things . You really want to see , with a battery , a minimum of a 10-year warranty and you want to see a minimum of 60% .

I would think you'd really want 70% at the end of that 10 years , right At a minimum and you should be looking for things that are obviously shooting higher than that .

Throughput's a little bit more of a challenging one to sort of cite numbers now , because it depends on whether some manufacturer be connecting it to a VPP or not as to what throughput they look . But it's an easy way to compare right ?

So if you're looking at two different batteries , grab the spec sheets of both batteries , go into the warranty of both batteries and eyeball it for yourself .

Have a look at how long the warranty term is , have a look at the degradation at the end of that warranty period and have a look at the throughput that they're warranting and compare the two , and often you'll find that one's more expensive for a reason it's because those things are better .

Speaker 1

Right right Batteries , have they become more reliable ?

Speaker 2

Yes , definitely . I mean , when we first started installing batteries , we had quite a lot of issues , I'd say . Now , for example , the Powerwall 2 that we install , we very rarely have problems with those batteries and if we do , Tesla are really quite responsive . Same with Enphase .

We've been installing some Enphase batteries and some power batteries as well and we really haven't had widespread issues with those batteries recently .

If you go back four , five , six years , yes , when the battery industry was quite new and there were a lot of early adopters around , there were a lot of teething issues , but for the most part now those things have been solved and batteries are fairly easy to install and pretty reliable .

And if I would have an issue with my battery do you send me to the manufacturer or are you going to look after it ? No , so you'd always come back to us in the first instance . We're the ones that answer the phone . We'll help you diagnose it . We've got to make sure that it's not something that we can fix or something that else has gone wrong .

And then if we determine that it is a warranty issue , then we will engage with the manufacturer to support customers through that warranty process to get a replacement , and then in most cases we'll go out and undertake that replacement ourselves and we'll deal with the warranty and the paperwork side for our customers .

There's really nothing customers have to do in that situation . If there is a warranty issue , we take care of all of it .

Speaker 1

I had a problem with my solar system and I rang the initial installer and they actually pumped me off to the manufacturer and he didn't want to know anything about it . Do you do that too at SolarHub ?

Speaker 2

No , we don't . It's something that we pride ourselves on is helping you through that , because it can be quite a complicated process . I mean manufacturers . They don't want to have to replace a product , you know . If they don't have to , so they'll give you the runaround . You know they'll take a while to get back to you .

They'll make you fill in forms , make you give them data , all these sort of things . So you know it's not in their interest to give you a free replacement .

Speaker 1

Especially when they're in China and I can't speak .

Speaker 2

Chinese Correct . So that's where a good installer will help you out . They know they have those relationships with manufacturers . They can help you with the initial diagnostic gathering , whatever data needs to be done , all that initial investigation , and then help you with the claim as well . That's what a good installer will do .

Speaker 1

And you guys at SolarHub do that . Of course we do . But , you're not making money on all of that stuff .

Speaker 2

No , we get a very small amount back from the manufacturer , but it doesn't cover our costs , which again incentivizes us to sell you a product at the start that's not going to have those problems . As I said , prevention is better than a cure .

So it does start out with product selection and making sure that the products you put in at the start are high-quality , reliable offers that have been well tested before we install them . So we don't get the warranty issues .

Speaker 1

So what batteries does SolarHub specifically install and recommend , and why ?

Speaker 2

Mostly we're doing Tesla Powerwalls at the moment . That's our mainstay , but we also recently introduced two other offers One from SunPower . It's their SunPower reserve battery , which is a 10 kilowatt hour battery , and that's good . We've done probably about 40 of those , I think , so far , and we've also just started recently introducing the Enphase battery as well .

So you know , we've been suppliers of Enphase micro inverters for quite a few years now and it makes sense to put their battery in for customers who've already got an Enphase system . So yes , we do all those three .

Speaker 1

And they all allow you to do VPPs .

Speaker 2

They do yeah , Look , depending on which option is what types of VPPs you can participate in . I mean , all of them are capable of doing energy arbitrage , that sort of moving your energy around . Some are more capable with doing things like frequency control , like the Powerwall 2 . But they've got different features depending on the battery .

But they're all batteries that we would recommend and are comfortable recommending to customers and happy to install .

Speaker 1

There's a very trendy term going about lately which is called the smart home and the HEMS . What is that ?

Speaker 2

So HEMS is Home Energy Management System , Right . So it's a term that's getting bandied about a fair bit now , and it can mean multiple things to multiple people . Ultimately , HEMS is about controlling the energy devices both consuming and generating in your home to deliver you value .

So by that I mean , if you're generating solar , it might make sense to heat your hot water . If you've got excess solar , rather than exporting to the grid , direct it into the battery . If your battery's full well , how about we pre-cool or pre-heat your home ?

Or what about , if I have my EV plugged in , send it off to my battery Correct , yeah , so a home energy management system will deal with all of those energy flows , but it's about priority , right ? It's about what things you do first .

If I've got excess solar , maybe I want to charge my battery first , maybe I want to put it into my car first , and so a home energy system will generally provide some sort of interface to the customer that allows them to set these rules up and their priorities for themselves .

Home Energy Management Systems and Interoperability

That's what HEMS is all about , and , as I said , there's multiple ways to tackle this . Some of the inverter manufacturers , like Enphase and SolarEdge and Fronius and Tesla they're sort of looking at it from their angle , but you do have some independent companies looking at this too .

Speaker 1

So is it a bit like the VHS and the Beater that we've got to actually still work out who's going to win that war ?

Speaker 2

Look , the biggest issue is and this is something that hasn't been solved yet is interoperability . It's a big word , but that means Can you say it again Interoperability .

Speaker 1

Oh very good Very good .

Speaker 2

So , obviously , when you've got different manufacturers involved , you might have one manufacturer making your EV charger , another one that makes your solar inverter , another one that makes you the battery . They all want to do things their way and they don't always play nicely together , all right .

So a good HEM solution will take away all that complexity for you right , and allow you to control those devices from one interface , the problem being that a lot of manufacturers don't want to play ball right so they want you to stay in their infrastructure .

Speaker 1

It's a bit like the .

Speaker 2

Apple Android thing . Apple love you being on their iPhone , apple TV , apple Mac . They really want you to be in their ecosystem . But someone like Android , they don't mind if you play with others , so they're a bit more flexible with who they integrate with .

So you're sort of seeing that battle play out , I think , and I don't think there's one that will necessarily win out over the other . I don't think this is a sort of Betamax VHS type battle . I think both will coexist . Some customers want one manufacturer for everything . They want the ease of that , they want the flexibility of that .

You're probably going to pay more , right ? Others want to buy that thing because they like that and this thing or this manufacturer like that and I'll do it more piecemeal , and so they're more like the sort of Android people that are going to get a slightly different experience . So there's a place for both .

But the industry does need to do a bit of work to catch up on the standards . It's something that's been worked on by lots of industry organisations at the moment and standards organisations . This isn't just an Australia problem , it's an around the world problem to make all these devices play nicely with each other .

Speaker 1

But listen , I don't want a headache about all that . Can SolarHub just give me good advice ?

Speaker 2

Yeah , we do and where we can , we make sure that those things integrate and talk nicely to each other . But often we go into homes and they've already bought a heat pump off someone else and they've already bought an EV charger off someone else and we're coming in to do , you know , the solar and battery . So it actually gets quite complicated .

You know our consultants that go out and do the site visits need a huge amount of knowledge to understand you know what we can do in the home , how we can get these things to communicate with each other . It's very technical .

Speaker 1

I mean . My advice to people is whoever is initially putting your solar in , pick a good local company , because then , when all the other bits need to be bolted onto it , you've got one player who knows what's going on . Otherwise , you're going to end up with something what I call puzzle solar .

Puzzle solar is when four different installers come in and all try to make it work , and that's not always a good experience .

Speaker 2

No , and , as you said , it comes back to the company you're buying off . It's not so much about the products here , but about the company that you're buying your system from .

Pick someone local , pick someone that's got some skin in the game , pick someone that's been around for more than five years , because they'll be there to help you with the other things that you want to do in your home , and I'll set you up right from the start .

Speaker 1

Now you are called Solar Hub . You do solos , you do batteries . Why would I let you get anywhere near my AC ?

Speaker 2

We have AC technicians on staff . We take pride in that . You know we're not just selling you an air con system and getting someone else to do all the design work on it . We actually do that ourselves .

But it's a natural evolution , I think , for a lot of solar companies to get into these other spaces , because these things can't be discreet in their own right . They are , through HEMS , increasingly been interconnected .

You know , if I've got excess solar and I'm getting three cents to export it to the grid , well , why don't I turn my air conditioner on and pre-cool my house so that when I get home it's nice and cool ? Why not use that solar energy , you know , to cool my house down or heat my house up in the winter ?

Speaker 1

I think in Canberra you probably want to say heat your house up .

Speaker 2

Yeah , well , certainly there's both , and so that's why we're doing all of these additional things . It's not that we're just slapping an air conditioner system in and you know you get to control the mode .

It's that increasingly , there's linkages between what your solar systems is doing and what other energy-consuming devices are doing in your home , like air con , like heat pumps , like EV chargers right , so there's a connectivity between these things .

Speaker 1

So you're actually saying that if you buy an air con , it's better to get an energy solutions company , because the air con gets bolted into the rest of it , than just a simple air con company , because everything's become a little bit more interconnected and complex , correct ?

Speaker 2

And when we come out we have a look at everything . This is the other thing we're looking at , not just the solar , but we're looking at air con hot water and we'll tell you what we think the priority is . An air con company comes out , well , they're just going to say do the air con first . Of course they are .

But if you know an air con company comes out , well , they're just going to say do the air con first . Of course they are , you know . But if someone like Solar Hub comes out and looks at your home , looks at your bills , looks at your energy profile , looks at who's in the house , Would you look at ? my insulation in the roof too . No , we don't .

Actually that's one thing we don't do , but I always of view it's like a sieve right . So insulation is something you should definitely do . It's not something that we do as a company but I would always recommend it .

Speaker 1

But would you basically , let's say , you come out and do an energy audit for me and you notice that I have no insulation . There's just a gyprock and that's it .

Speaker 2

We would tell you to put some insulation in and there's a few names that we can give customers if they're interested . But you should certainly start with that . But coming back to the energy usage in the home , it may be best for you to swap out your hot water initially rather than do air con , then do your air con .

If you've already got solar , we may say , oh , maybe don't do a battery yet . We don't think you're the perfect case for it . Maybe you should do your heat pump next and then do your air con and then look if you've got a bit of money in a few years , then we'll do your battery right .

So it's about setting up a plan for you as the consumer which is in your best interest . What are the best uses of your money ? You know not everyone's home electrification thing up front . It's usually a journey that takes a few years . What things should you do first ? What things should you do last ? So we help with that prioritisation .

Speaker 1

If I think about solar and batteries . But I don't have the big bucks right now to spend 15 , 20 grand .

Speaker 2

Is there an option to maybe pay five grand and do the rest ? On finance , look , it depends on where you are in the country as to what can be provided . We do have all sorts of financing options . In the ACT there's a thing called the Sustainable Household Scheme . This gives you a $15,000 interest-free loan which can be used to electrify your home .

The criteria are a little bit different depending on whether you're buying solar or whether you're buying a heat pump . It's a bit more stringent on the solar . So the rules around whether you can access the funding but that's certainly the first thing I would look at is generally are there any interest-free sort of government backed financing programs around ?

After that , there's green loans that you can access through companies like Bright or Plenty that provide interest bearing . So they do have an interest rate , but often it's a subsidised interest rate , so it's a little bit lower than the normal interest rates and you can use that to buy products for your home .

So , yes , there's all sorts of options , from paying cash up front to government subsidised interest-free loans , through to interest rate reduced loans . You know where you're not paying the full whack of interest . You're getting a little bit of a subsidy off the government .

Speaker 1

Because solar gives me quite a good return . Can it be sometimes , if I finance a solar system , that actually my repayments would be less than what I would have to pay for the interest ?

Speaker 2

payments yes , particularly if you go for the interest payments . Yes , particularly if you go for a slightly longer term loan . So if you're looking at somebody's loan , sort of go out five , seven years , and yes , you can make it cash flow neutral or positive .

Speaker 1

Or positive .

Speaker 2

Yeah , just a little bit . I mean again , it depends on where you are , it depends on your energy bills and your consumption profiles . But , yes , you can make it very marginally cash flow positive in some cases .

Speaker 1

So , in terms of the teams that you have that work for SolarHub , I hire you in . Do I get novices or really experienced guys or guys who are nearly worn out ? What's your team like ?

Speaker 2

Oh , it's diverse and I think that's its strength . We've got a bunch of people that have been with the business since the start right , and we've got others that are new and just starting out their apprenticeship , and everyone in between right , and I think that creates a really healthy culture to have a diverse range of views and experience within the business .

We take our company culture really seriously and and are very supportive of each other . So , yeah , we have a whole range of people , a whole range of ages , a whole range of backgrounds and I think I think that puts us in good stead . You know , not every solution has the same answer .

You know , having different perspectives and different views in the business is really healthy .

Speaker 1

But is satisfied staff also makes for a better end customer experience .

Speaker 2

Of course it does yeah , I mean , if you're having a good day and you feel supported by your colleagues and you're having a fun time at work , well then that is absolutely going to be replicated into your phone manor or how you are when you meet someone on site . So , yes , I believe in um having a healthy , happy culture at work .

We actually have a um , uh , a nine day fortnight at solar hub . Um , I know it's maybe a bit progressive , but we um , we still work similar , the same sort of hours .

But yeah , every um , every fortnight , um , you get a Friday off and people use that to do their shopping , do their chores , spend the day with their kids , pick their kids up from school or what have you . So it's something that we implemented quite a few years ago now and I think people love it .

People work really hard when they're there and we're firm believers in that and sometimes long days , but hey , every second Friday I get the day off to go do what I want and I think that really leads to a happy culture .

Speaker 1

So happy . Solar hub staff means end customers getting a smile when they walk on the job .

Speaker 2

Correct If you're feeling refreshed and you know , not burnt out and you're at your best and that absolutely replicates into good customer service .

Speaker 1

Got it Okay . In-house installers versus contractors what's your position there ?

Speaker 2

Look , we have both in our organisations . We have both internal staff that do the installations , but we also use contractors as well . Now those contractors , just to be really clear , they're handpicked selected . They may as well . Now those contractors , let's be really clear , they're handpicked selected . They may as well be part of Solar Hub .

We treat them like they are part of Solar Hub . No backpackers , no , no , these are companies that we've had long-term relationships with that we treat as part of the broader team .

Quality and Sustainability in Solar

The issue with good installers when we have people do their apprenticeship with us , get all the way through to being qualified , quite often the best tradespeople at some point want to go and do their own thing , you know .

So for a company like ours that's been growing as much as we have over the last 14 years , we like to maintain a relationship with those installers when they go out and potentially run their own companies , and so typically we find ourselves sort of sitting there going well , hang on a minute . You know that's a really good tradesperson .

Maybe we should use him as a contractor rather than bringing someone else on . And so we end up finding ourselves with both internal installers and also external contractors . But a lot of them have been through their training with us so they know how we do things .

Speaker 1

So if you do go with SolarHub . You've got somebody that actually knows all your processes , knows how you do the quality control and sticks to the script yeah , we don't chop and change .

Speaker 2

We're not just picking any installer off the street . You're either getting one of our internal teams or you're getting a very trusted contractor .

Speaker 1

Yeah , when you talk about the solar industry , there are terms called solar shark and solar cowboys and roof monkeys . What are those type of ?

Speaker 2

people Look , they're people that don't take customers' needs seriously . It's a very cutthroat industry solar , you know it's very competitive . Unfortunately , it's very price focused .

You know people , as you say , want a really good deal and what that means when you go with a cheaper deal is generally someone's got to cut a corner to make a profit out of that or even just to break even out of that deal .

Or they're doing them at really high volume , you know so they're giving you a slightly better price , but they're doing thousands of them and you know they're employing anyone they can get their hands on to do these installs . You know they don't care about quality .

So typically those words are used to describe either installers or companies that don't care about the installations and the quality and the safety as well .

Speaker 1

Matt do you sometimes wake up in the morning and go gee , this is a tough business because I'm trying to do the right thing by the customer , but in this industry a lot of people are corner cutters and I'm kind of doing the right thing , but some customers are not even aware about how they're being ripped off .

Do you sometimes kind of wonder if going the quality way is the right way ? No , never .

Speaker 2

I'm a firm believer that doing a quality job is the only way long term , if you've got any hope of being in this industry over a long period , you need to focus on quality and safety , and if you don't , you know we'll go the way of the dodo and you'll put yourself out of business because you'll get bad customer reviews , bad experience .

The warranty issues will kill you . Focusing on quality is the only way to ensure that your business is going to be around for a long time . So I take those things really seriously . It's probably one of the big reasons why we've been around for a long time . So I take those things really seriously .

It's probably one of the big reasons why we've been around for as long as we have is that we've taken quality seriously from the start . It's been part of our ethos from day one .

Speaker 1

I hear that and I'm always admired

SolarUp Charge

about you . You're kind of a bit of an innovator . So what are you guys doing , innovative in the space for , let's say , ev charging ?

Speaker 2

Yeah . So about two years ago we started working on a product called SolarUp Charge so same name , albeit with a little word tagged on the end and that's our public charging network and application .

So there's a number of public charges that we've been putting in in the Canberra region and that's about to expand quite quickly over the next six to 12 months and those are branded Solar Hub charge charges . They range from your sort of fast AC 22 kilowatt charges right the way up to sort of faster DC 50 to 60 kilowatt charges .

But like anything Solar Hub does , we've really focused on the customer experience . So unfortunately for a lot of the public charging infrastructure they got a bit of a bad name Number one people rocking up and they're not on right , so these charges are unavailable . They've got faults .

You know customers can't use them because they're down and they're waiting on parts . People aren't supporting the network . So this has been a bit of a blight on the charging industry for the past few years . Is the actual public charges themselves have been reasonably unreliable .

So we focused again on testing to make sure that the charges we're using are fit for purpose and reliable . But again it comes back to support . We've got technicians there and available that if there is an issue with these charges that we're out there fixing it , you know , as quickly as we can to get that back up and running .

So these charges can be accessed via our app . You can download it from the Apple or Android stores . It's called Solar Hub Charge . It allows you to tap onto these charges , put in your credit card details and plug your car in and off you go .

You can charge your car at one of these public charging stations and there's about to be a lot more of them put in over the next six to 12 months .

Speaker 1

Mainly in the ACT .

Speaker 2

Mainly in the ACT , yeah , but all the way down in our region . So we've already done three down on the South Coast . There's one at our head office down there , there's also one at the Cabargo Hotel and one at the Browley Brewhouse . So there's three chargers down there .

Our aim is to have a network across that whole area that we operate in , so a charger no more than sort of maybe every 100 kilometers . We've got a charger there on our network .

Speaker 1

That's the goal and because you guys do the after-sales service and the support . It shouldn't be that the thing is down and about and sits there for a week or two , is it ?

Speaker 2

Yeah , so we've got our charging platform up on a screen in our office and we've got people that are monitoring it constantly . If there's any faults in that charger , we'll know about it and we send someone out to fix it .

So , again , it's about responsiveness , it's about the reliability of the network , it's about having technicians on the ground to be able to fix problems if they crop up .

Speaker 1

Panel position I turn up at your house . The front roof is easy . I just whack it on there . Is that the way to go ?

Speaker 2

No , Obviously , panels will perform better if they're facing north . I mean , we're in the southern hemisphere , so you want them facing north where you can , but that's not always possible , so we try and put them there in the first instance , providing it's not heavily shaded . That's probably the first thing to look at .

Have I got lots of really tall trees around my house ? I mean , there are times , Marcus , where you know we come to a house , we sit down with a customer , we do a walk around and we politely say look , sorry , I don't think solar's for you .

Speaker 1

But hang on .

Speaker 2

I want to spend my money with you . No , you've got to be prepared to say no , because if it's really heavily shaded , then there's just no point doing it right .

So there are times that we do walk away and the irony is we'll often rock up and there'll be six quotes on the kitchen table and you're sitting there scratching your head going well , why don't any of these other companies say , hey , this is not a good idea ?

So we don't say it often , but there are cases where in very heavily wooded or shaded areas , it's not ideal and that's not a good investment . Then it comes back to well , okay , you know , as long as we don't have too much shading or we can mitigate the shading , it's only in one part of the house and not the other .

Is putting solar panels on the best orientations right ? And that starts with north and obviously then east and west , you know , are not as optimal , but they're still okay . Look , even if it's slightly southwest , slightly southeast , those roof positions are okay too . But ultimately it's about designing a system and when you say what the system is going to do .

So we'll put all these orientations into our tool and it will spit a number out what you're going to generate in the winter what you're going to generate in the summer , any sort of shading factors that are applied . You see all this in the data that we provide you when we provide a quote . But it's about being honest about that .

You know , the last thing I want is a customer ringing up in two years and say , hey , you know , you said the system was going to do X and it only does Y . What's going on ? You know you've got to be upfront with your customers about what that system's going to do . And too often I see other companies that put no shading factors on that .

You know , even though they're putting panels in the south , they in their tool they model it as north and you know they completely lie about what that system is going to do . And customers go hang on , your system says it's going to do less than this guy . Why is that ? I'm like , well , because they haven't done this , this and this .

So hang on Our quotes are conservative , but on point .

Speaker 1

So you're selling solar ethically ?

Speaker 2

I know it's hard to imagine , you know , but In this industry , yeah , yeah , it's , in my view , again coming back to longevity , we've been around for such a long time now .

If we'd approached it by lying to customers about what their systems are going to do , overstating the savings people were going to have , then we wouldn't be here , because people would have , you know , rounded us on social media or on Google reviews , or not , told their friends about how good we are , and we wouldn't be standing here today .

So if you want to be in this business for the long time , you've got to be honest , you've got to be upfront , you've got to be ethical .

Speaker 1

Wow , you're the first guy I've heard say that . No , I'm not kidding . All the companies that are there in solar for a long time , who've done the decade plus , who survived the solar coaster , those companies that's their philosophy . So you're not actually the only one .

There are good companies all around Australia who follow , go local , go quality , sell with ethics . They're the key things .

Speaker 2

Oh , we're definitely not the only one . I know lots of companies . I've been in industry long enough to have quite a few close friends in the industry , and there's plenty of good operators out there . Again , I think the biggest differentiator I see between the quality ones that I know and the ones that I know aren't is how long they've been in the market .

That's the key thing . If they've been over five , good . If they've been over 10 , fantastic . If they've been over 10 , fantastic . Those are the companies you want to find .

Speaker 1

So if you would advise a friend at a dinner party , how do I get a good solar and battery deal ? What are your top five tips ?

Speaker 2

Pick a local installer . Number one Pick a company that's been around for a good period of time five years minimum is number two Pick a company that's got their licences . This is something that just amazes me , the amount of . In New South Wales , for example , it's actually mandatory to have a New South Wales electrical contractor's licence if you're selling solar .

This isn't if you're installing it , this is if you're selling it . It amazes the amount of companies that don't have this and , unfortunately , it's not well enforced right . So get the name of their company . Go onto the New South Wales Fair Trading website . You can look this stuff up . Enter the name . Find their contractor's license .

If they've got a contractor's license , it's usually a pretty good sign , right , that they've got their own installers , their own electricians on staff and they've got some skin in the game . Those are the top three things that you need to focus on On product . Look at what is out there . Look at what your friends and family have done .

Ask them about their experiences . I don't think this is done enough . Don't be afraid to tap into your networks , you know . And if someone says , hey , don't go with this company , listen that's a reason you know , don't then go and do it anyway because they got a good deal right .

If someone's had a bad experience , it's probably going to be replicated over and , over and over again . So listen to those networks . Read their worst reviews .

Speaker 1

But what about the other way ?

Speaker 2

if a friend and family says I had a good experience with that company , Look , I would definitely look at them I mean , if they've had a really good experience and definitely look at them . But don't take that as the only thing either . As I said , make sure you do all these other checks too .

Sometimes , dare I say it , the cowboys do remarkably pull off a good install for one customer . It does happen . It's rare , but it can happen . So you've got to do all of these checks .

Speaker 1

Now . But the other thing is also , if you just had the system installed , maybe the roof leaks haven't come through and all of that . So I think , talking to family and friends who had the system installed for a number of years- and the system's been reliable and there were no issues afterwards .

Speaker 2

Well , even better is if they'd had a little issue and that customer responded and fix it . That's even better , in my opinion .

Speaker 1

You mean the installer , installer ?

Speaker 2

yeah , If the installer's been back out there and supported and answered the phone , that's a really good sign too , because , as I said , no installer , no install is going to be completely bereft of issues for its whole lifetime . You are going to have some things that go wrong , and it's how people respond .

Speaker 1

Let's say I've decided SolarHub are the right company to install my solar , my battery and my EV charger . Now I want to know what to expect on the morning . Are you guys going to do it in two hours , in three days ? Are there four guys ? Are there 50 guys ? Tell me the story .

Speaker 2

So we , from the time someone purchases a system off us and , as I said , it might be an air conditioner or a solar system and an EV charger it then goes into our review process . So we then have a number of people that review it , make sure we've dotted the I's , crossed the T's , make sure there's no issues . We then put in the approval paperwork .

That's the next thing . So often that's sending it off to your network operator to make sure that we've got the right approvals to install your system . So we do that . Then we make sure we've got the gear . Often it's in the warehouse , sometimes it's not , sometimes there's specialty things we've got to order in .

So we make sure we've got that gear and then we schedule our installers to go out . Now , depending on the situation , it can all be done in a day . We have done nearly full home electrifications in a day , in a single day . Quite often , though , it does take more than a day if you're going to do a full home electrification right .

So a solar and battery system can generally be done before two o'clock in the afternoon . Dv charger might take a couple more hours . But an air conditioning is a whole other crew right , particularly for a duct system and that's going to take the minimum of a day , sometimes a little bit longer . So we will always coordinate those resources .

We'll talk to customers , make sure they're home , make sure they're available , make sure they've got any questions or there's dogs that need to be secured , you know , for when we're there we help them through that process and lead them through every step of the way .

But it generally takes minimum a day to do a sort of solar and battery and then if we're doing full home electrification air con , hot water it generally takes at least two days .

Speaker 1

And thorough communication all the way through .

Speaker 2

Of course I'm a firm believer , and not just that , as soon as we finish the job , someone's on the phone the next day to make sure that the customer understands what they've purchased , whether they've got any questions about how to use it .

I mean , our installers do a good job of handing that over on the day , but often until you actually start using an app or playing with the controller for the air con , you don't really have all the questions there immediately . So we're always there to answer questions for the days after , when you start getting familiar with the system that you've purchased .

Speaker 1

Sounds good . There is going to be what's called an EV revolution coming . I mean , we've taken off slowly now with EVs , but I think it's inevitable . How's that going to affect the whole electronic infrastructure of the home solar sizing , batteries , the whole thing ?

Speaker 2

Well , evs will need to be charged , you know , and the ideal place to do that is from a solar system . So that's the first thing is having the charging infrastructure in the home , and that's just one direction .

That's coming from solar or from the grid , if you need it as a backup , and having a charging point in your garage or wherever you park your car and the ability to plug your car in . So that's the first thing .

Future of Solar and Electrification

Where the revolution is going to come is when we start talking about power flows in the other direction .

So people talk about vehicle to home , v to H , vehicle to grid , v to G , and they talk about they use these acronyms to talk about energy flows that start coming from the car , either into the home or , in some cases , maybe all the way into the grid to take advantage of very high feed-in tariffs at certain times of the day .

So that's , I think , the big revolution . We're installing EV chargers every day now for people that buy new cars and they're working . Well , you know , they charge their car overnight , they charge their car on the weekend . We can put smart charging on to charge it from the solar if there's excess . We can do these things .

Now the big revolution is going to come when we start thinking about these cars not as cars but as batteries . They're big batteries on wheels that move around and that battery is the most valuable part of that car .

It's a big energy bank , and if you control the flows of energy in and out of that car right , you can actually make some money or at least reduce your bills .

Speaker 1

Wow , so there's a lot of change coming in that field . Going forward , is there ?

Speaker 2

There is . There's a lot of trials at the moment on vehicle-to-grid , so cars exporting power from the car into the home and then into the grid , so those things are happening .

Now there's a bit of standards , like anything , that have got to play catch up here to make sure we've got the right standards in place , make sure we've got the safety right for these things . Before you know , we implement them widespread . But in the next two to three years we're going to see a lot of innovation in that vehicle-to-grid , vehicle-to-home space .

Speaker 1

Wow , wow . Canberra , I don't know , you don't really have a big manufacturing industry et cetera , but do you guys do commercial solar for Solar Hub ?

Speaker 2

Yeah , so we've been doing commercial solar since the get-go . I was actually only driving down through Barton in Canberra the other day and I drove past the first commercial system we did on a block of units there . It was a 20-kilowatt system . I remember at the time it was big . You know , this is probably 2013 , 2014 , something around there .

I remember at the time we were like you know , you're just selling , you know , three , four , five kilowatt systems to homeowners and you know this is one of the first big systems that we did , you know , and I thought 20 kilowatts was big back then . I was super proud of it . In fact it's still running . Super proud of it . In fact it's still running .

The system's fine , had no issues with it since we installed it . But yeah , now we're doing much bigger systems . Commonly we're doing 100 kilowatt systems on factories , but we do right the way up to half megawatt projects as well 500 kilowatts on factories and commercial buildings . So , yes , it's a big part of our business .

It's actually a growing part of our business as well . You know businesses . If we think homeowners have been paying a lot for electricity , you should see what businesses are paying for electricity . They're paying even more in some cases and then being slapped with things like demand charges as well . No-transcript .

So homes generally it's weighted more to sort of mornings and afternoons is when the high power demands are , but businesses , it's right in the middle of the day . And guess what's happening in the middle of the day ? That's when the solar is at its best . So we do find that solar paybacks for businesses are actually lower than they are for homeowners .

So I sometimes scratch my head as to why not every business has done it already , because the savings are huge for businesses , every business .

Speaker 1

And we could talk about childcare centres who use electricity during the day yeah . Swimming schools with pools yeah . Car mechanics which use quite a bit of electricity yeah . So it's those type of businesses . Swimming schools with pools , car mechanics which use quite a bit of electricity so it's those type of businesses .

Speaker 2

It's all businesses , marcus . It's those retail businesses , it's government businesses , it's government buildings , it's unit blocks , it's factories , it's warehouses and industrial districts . It's all of those types of businesses that would benefit from solar .

I don't think we've sort of come across one where the payback , you know , doesn't impress every sort of CFO that we run the proposal under . Usually they get a scratch in the head going . Well , why have I not done this earlier ?

Like for businesses , as I said , the payback's better than for most homeowners , so it's something every business owner should be looking at .

Speaker 1

What about solar and batteries in the commercial space ? Is that ?

Speaker 2

coming up . It is , but it doesn't actually make as much sense , ironically because they're using most of the solar during the day . For a lot of businesses they're really high energy users . You think about factories . They're using a lot of energy , right , so we'll fill the roof up with solar , and usually they don't have a lot of export .

There's not a lot that generally needs to go back to the grid , so the case for batteries is a little bit more remote . On commercial , there's some commercial businesses that do benefit from batteries , but for the most part going big on the solar is generally the best thing they can do .

Speaker 1

So give me some of the big Canberra companies that have used solar for their commercial . A little birdie told me you did something for the Canberra Raiders .

Speaker 2

Yes , so we did multiple jobs for the Canberra Raiders . They've obviously got a lot of clubs around Canberra and we did a bunch of sites for them . The Canberra Airport is probably the one that's most noticeable . We've done a whole heap of installations for the Canberra Airport .

Recently we did the National Museum of Australia I don't know how familiar you are with Canberra , but we did an installation there Also for the National Gallery it's another sort of well-known name and the ANU as well the Australian National Gallery it's another sort of well-known name and the ANU as well , the Australian National University .

We've done quite a few installations for the ANU and in addition to that we've done probably 20 or 30 schools around Canberra as well over the years under various school programs . So quite a lot of well-known businesses that we've dealt with . They're often return customers . They've they've got upgrades and additional sites that they want to put us in .

So yeah , we do get a lot of return business in Canberra as well .

Speaker 1

So they're all very reputable companies and businesses . They would have done their due diligence . So the fact that they all picked you , that's a good sign .

Speaker 2

It is . I mean I think we've got a lot of experience . But I mean I think we've got a lot of experience . But I think the big thing is , you know we're very big on safety and this is really important , more so for businesses . They take this stuff really seriously .

If you're going to be on their building it's a work site you know they certainly don't want you cutting corners on safety and quality . They generally got their own facilities managers , their own internal auditors , their own you know , work safe people .

So we find that the quality and safety aspects really step us above most of our competitors and that we take these things seriously . We've got really good processes , riso accredited , all this sort of stuff , and businesses take that seriously and value that . So I think that's why we do so well in the commercial space .

Speaker 1

Well , okay , ben , you've been basically riding the solar coaster and now the battery coaster for over a decade , if you put your little wise glasses on what's coming over the horizon in the next two to five years .

Speaker 2

It's electrification . This is the buzzword . But I can't stress enough that the government's setting some very aggressive objectives to get Australia off gas . Act and Victoria in particular are quite aggressive in setting their targets for actually switching the gas off . Now my trajectories , you know .

You take what the government says with a grain of salt , but trajectories I have . I think that the rate of electrification needs to be much quicker than what the government's saying now and , like anything the government are going to get , you know , five years out from the target and go . Oh no , you know we need to incentivise this even further .

We need to put more money on the table . So I think this electrification space is going to really take off and I think there's going to be a lot of money thrown at it by both state and territory and federal governments over the next few years . So that's the big takeaway .

Evs yes , you know that's obviously another space that's going to take off , but I think for our business , where we're going to see a lot of growth is in the electrification side . So air conditioning , heat pumps , solar batteries , cooktops .

Speaker 1

So instead of just a solar system being bolted on , it becomes really the whole energy footprint . So when somebody walks in . That's what they analyze . They're not just flogging you a quick cookie cutter . What do you call it ? They're not just flogging you a quick cookie cutter system . Are you guys equipped to explain all that to end customers ?

Speaker 2

It's hard and we've had to skill up a lot . We've had to do a lot of training with our teams to get ourselves skilled up on air conditioning and hot water , these things that I guess weren't our traditional lines of business . But we've done that work already . We've built some new systems as well which help us assess and analyze those energy savings .

Have a look at people's bills . We've done all that legwork so we're really ready to hit the ground running on this now and I think coming to one provider to do the whole thing is going to be really valuable for people , because you know you think about if you want to go and get an air con , you go get six quotes .

And then you want to swap your hot water and you get another six quotes . And you know you want to do your solar and you get another six quotes . I mean that's 18 quotes , 18 companies that you're going to have to deal with , then trying to pick which ones you go with . And the left hand doesn't talk to the right hand .

This is really where I think we're going to come into . Our own is providing that turnkey end-to-end electrification solution for homeowners . That's what we're focusing on .

Speaker 1

So then if anything goes wrong I know I've got to call you because you're taking that- responsibility and we're happy to .

Speaker 2

We've sold you a good product , so you know we're not going to get many of those calls , so we're happy to answer them when you do ring Sounds like it's right for me .

Speaker 1

Excellent , ben , look , I like your passion . You really care for the end customer . I would feel I'm in good hands if I'd use you . Unfortunately , I don't afford a house in Canberra yet .

Speaker 2

No , you've got a big house in Sydney , don't you ? Thanks , Marcus . Thanks for having me on . Thank you so much .

Speaker 3

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