Small scale renewable energy scheme

Friday, 12 November 2021

[redacted]
Renewable Energy Transition Branch
Electricity Division
Department of Industry, Science, Energy and Resources

Via form submission only

Dear [redacted]

Clean Energy Council’s submission on the exposure draft of the Renewable Energy
(Electricity) Amendment Regulations 2001, dated 22 October 2021 (the Draft
Regulations)

The Clean Energy Council (CEC) is a not-for-profit, membership-based organisation and
peak body for the clean energy industry in Australia. In addition to advocating for the
renewable energy industry and the broad interests of members, the CEC also manages
an industry regulation program to support community and government expectations for
effective renewable energy system designers, installers, retailers and products.

The CEC’s regulatory program engages with the entire renewable energy ecosystem
including more than 900 businesses operating in or supporting the development of
renewable energy (such as solar, wind, hydro, bioenergy) and energy storage, along with
just under 9000 solar installers, in excess of 1400 solar retailers, over 100 PV module
manufacturers and over 100 inverter manufacturers.

The CEC has welcomed the release of the Clean Energy Regulator’s (CER) Rooftop Solar
PV Sector Review (the Review) and the Government’s response to improve regulation
and compliance within the rooftop solar PV sector.

In particular, the CEC supports the strengthening of the CER’s powers to exit the most
culpable or negligent installers, retailers and product manufacturers from the Small-
Scale Renewable Energy Scheme. These developments can only improve the operation
of the co-regulatory framework. We are generally supportive of the increased use of

Phone: +61 3 9929 4100 Level 15, 222 Exhibition cleanenergycouncil.org.au
Fax: +61 3 9929 4101 Street, Melbourne, VIC
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written statements and additional conditions for the creation of certificates to drive
better compliance outcomes. This would complement the CEC’s existing regulatory
programs.

Please find attached our detailed submissions in response to the Draft Regulations
(Attachment A). Please note that we have only identified matters which are critical to
the successful implementation of the recommendations made in the Review.

Without derogating from the importance of each submission, I take this opportunity to
draw your attention to the following critical suggestions in particular (references are to
CEC comments on each of the Draft Regulations listed in Attachment A):

a) To ensure that installers are not required to make an enforceable statement in
relation to matters that are beyond a particular installer’s role, and legal
entitlement (see draft reg 11).

b) To ensure that the new retailer statement requirement include additional
clarification (see draft reg 12).

c) Commencement of the upgraded installer statements from 1 January 2022 does
not allow sufficient time to undertake the educational engagement across the
industry to support implementation (see draft reg 25).

On balance, the Draft Regulations deliver the outcomes of the Review, with some
matters requiring refinement as set out in our submissions. These matters have largely
been the subject of discussions with representatives of the Department and the CER,
with some exceptions.

The CEC is committed to continually driving better outcomes within the rooftop solar PV
industry. In the welcome context of a more empowered CER, we look forward to further
enhancing our regulatory, compliance and enforcement services.

Partly in response to the Rooftop Review, the CEC’s regulatory strategy is now targeting
a number of reforms, including:

• an increased focus on building consumer confidence in the renewable energy
industry
• an increased focus on effective and targeted compliance activities
• engagement with other regulatory bodies to support and/or coordinate relevant
enforcement activity

We would be pleased to discuss the implementation of the CEC’s strategic plans for
continuous improvement of our regulatory services to support the expectations of the
renewable energy industry, government, and the community.

Should you have any queries in relation to the matters raised in this submission, please
contact Mindy Lim, A/Executive General Manager, Industry Integrity [redacted]

Kind regards,

Kane Thornton
Chief Executive
Attachment A
Comments on Renewable Energy (Electricity) Amendment Regulations - 22 October Exposure Draft
Clean Energy Council 11 November 2021

Exposure Draft Regulation CEC Comment
1 Subregulation 20(1) No comment. This removes the reference to "circumstances mentioned in regulation 20AC" from the method of calculation.

2 Paragraph 20(1)(b) No comment. Clarifies that the calculation references the zone rating at the time of installation.

3 Regulation 20AC Supported. Modified the heading to replace "requirements" with "conditions".

4 Subregulation 20AC(1) This change prompts the need to clarify the STC scheme eligibility criteria, as provided in the r 3 definition of "small scale generation unit". Are the
thresholds AC or DC? How is the word "rating" defined? Is the intention to continue to rely on CEC guidelines for oversizing of inverter
requirements, for battery-connected systems, number of installations permitted per day, and other core requirements?

5 Paragraph 20AC(2)(e) Supported. This aligns with CEC's regulatory strategy to ensure that the CER quickly exits installers that deliberately or seriously fail to comply with
fundamental compliance obligations, and is supported.

6 After Subregulation 20AC(2) Supported. This calls up the site attendance requirements from the accreditation into the conditions for an STC certificate. CEC accreditation
requirements will also retain the on site requirement for non STC work. Additional resources will be required to implement.

7 Subregulation 20AC(4) This neglects the issue of compliance with non-government DNSP requirements. This is an important requirement to ensure that connection to the
grid can be completed. Variation in DNSP connection processes and requirements creates a regulatory challenge that the CEC is well-placed to
target for improvement - specifically to better integrate DNSP requirements with designer and installer accreditation requirements. Inclusion of DNSP
requirements is essential to meet consumer requirements. Additional resources will be required to implement this increased obligation.

8 Subregulation 20AC(5) Supported.

CEC comments on REE Amendment Regs of 22 Oct 2021 1 of 3
Attachment A
Comments on Renewable Energy (Electricity) Amendment Regulations - 22 October Exposure Draft
Clean Energy Council 11 November 2021

Exposure Draft Regulation CEC Comment
9 Subparagraphs 20AC(5)(a)(ii), (iii) and (iv) This neglects the issue of compliance with non-government DNSP requirements. This is an important requirement to ensure that connection to the
grid can be completed. Variation in DNSP connection processes and requirements creates a regulatory challenge that the CEC is well-placed to
target for improvement - specifically to better integrate DNSP requirements with designer and installer accreditation requirements. Inclusion of DNSP
requirements is essential to meet consumer requirements. Additional resources will be required to implement this increased obligation.

10 Paragraph 20AC(5)(b) This conditions neglects the key issue of network connection. The relevant DNSP approves connection to the grid and assesses the suitability of the
inverter and other requirements for grid-connection. This often occurs several weeks after the installation has been completed. As a core consumer-
expectation, grid-connection requirements ought to be a condition for making a certificate.

Further, the CEC will be revising its guidelines to simplify requirements, to emphasise quality and consumer satisfaction requirements and to align
with electrical safety regulatory duties of state and territory governments.

11 Paragraphs 20AC(5)(d) to (f) (including New reg 20AC(5)(d)(ii) should allow for variation of the system design on the day of installation. There are times when an installer gets to site and the
the note) design provided needs to be amended due to issues such as shading, available roof space, etc.

New regs 20AC(5)(d)(iii)&(iv) - The Installer is not in a position to take responsibility for the performance of the system, especially if that person is a
sub-contractor. The installer has not entered into a contract with the owner. It is unworkable to require the installer to assess the figures provided to
the owner under the contract. This obligation should remain with the retailer and the system designer. Retailer and designer regulation is supported
by distinct regulatory schemes that ought to be engaged, when there are issues, not the installer accreditation alone. The installer should only be
responsible for installing the system to the specified design. More reform of the accreditation scheme may assist in consolidating responsibilities to
ensure the desired outcome for the consumer.

The intent of new reg 20AC(5)(e)(iii) is not clear. It requires a written statement by the installer that the model of inverter is complaint with
AS/NZS4777.2: 2020. This requirement should be included in the requirements for approved inverters provided in new reg 20AC(10) as this section
steps out the requirements for product listing and aligns with requirements written for PV Modules. The onus of assuring that a product meets
product standards should be on the publisher of the product lists, not the installer.

However, if the intent is to mandate that the commissioning of the system is completed per the options set out in AS/NZS4777.2, the wording needs
to change to reflect this e.g. (iii) if the system uses an inverter and is a grid-connected power system— a written statement by the installer of the unit
that, when the unit was installed, the inverter was commissioned in accordance with AS/NZS 4777.2:2020, Grid connection of energy systems via
inverters, Part 2: Inverter requirements.

Any reference to standards (e.g. in 20AC 5 e(iii) and 20AC 9a) should be followed by the statement "as updated from time to time" to ensure future
updates to the standard are captured without the need to modify the regulations.

CEC comments on REE Amendment Regs of 22 Oct 2021 2 of 3
Attachment A
Comments on Renewable Energy (Electricity) Amendment Regulations - 22 October Exposure Draft
Clean Energy Council 11 November 2021

Exposure Draft Regulation CEC Comment
12 After Subregulation 20AC(5) The requirement for the unit to be complete and generating and connected to the grid as required in the statement, will introduce a delay into the
process of claiming a certificate by the person entitled to make a claim. This will introduce additional financial strain for owners, installers, retailers
and any person entitled to make a claim - as the process of connecting to the grid typically requires an inspection by either the state electrical
regulator or a DNSP or both.

New regs 20AC(5A)(f) and (g) require information to be provided to the owner, but falls short of requiring the information to be provided in writing.
We suggest amending reg 20AC(5A)(h) to require information (under (f) and (g)) to be provided in writing.

New reg 20AC(5A)(i) requires any conflict of interest to be disclosed. Without more context, this obligation is uncertain. The SRES Review Report
describes circumstances where the retailer may also be the REC trader, and where related parties may be officers of the retailer. It is not clear what
matters are required to be disclosed. Without more clarification, this will create uncertainty and confusion.

CEC comments on REE Amendment Regs of 22 Oct 2021 3 of 3