One year on from Energy Transition

A year on from the sale of the first residential solar and battery system, the Norfolk Island energy transition strategy is starting to deliver for all islanders.

Under the leadership of the Norfolk Island Regional Council as part of its broader strategy to improve its environmental and operational performance, the $5.25M project was developed by Incite Energy and utilises its innovative BESY Energy Platform.

The project began with the installation of time-of-use meters so that dynamic electricity tariffs could be established with application for all island's residents and businesses, whether they are buying or selling energy. Now, every half-hour the applicable tariff can be lowered when solar energy is abundant and the island’s diesel generators are turned off, reducing the tariff to as low as just 5c/kWh.

The project also involved the installation of solar and battery solutions on Council-owned premises, and a subsidy for local residents and businesses to install residential batteries.

NIRC complemented the project through purchase of electric vehicles and charging stations for its Council fleet. Incite Energy engineers supported the Council’s operation of the network as it transitioned towards the use of the Consumer-owned Energy Resources (CER).

After one year the positive impacts of the project are starting to be felt. Most importantly, average electricity tariffs on Norfolk Island have fallen by 15 per cent so far and are set to fall further as summer approaches

All members of the community benefit from this regardless of whether or not they can afford to invest in solar, with lower electricity prices helping to expand economic activity.

The reduction in diesel consumption is also delivering a return on investment against the project costs. Diesel fuel savings are already averaging more than $100,000 per month, before consideration of carbon emissions costs.

These saving help support Council activities and reduce the dependence of Norfolk Island on Commonwealth Government support. The BESY Energy Dashboard shows some of these improvements, comparing for example the daily energy production of solar versus diesel generators.

After only one year, 200 solar generation and battery energy storage systems are now registered in the new BESY Energy Platform. This represents approximately 15% of all residents and is in addition to the 30% of residents who had existing rooftop solar systems.

The BESY Energy Platform provides two important functions – it captures consumer’s preferences through the price at which their battery will buy and sell power, and it provides enough control to the power station operator to ensure the safe and reliable operation of the island electricity grid.

While the subsidy towards the cost of residential batteries is no longer available, the return on investment available on residential solar and battery solutions remains attractive at about 5-years.

Incite Energy’s Managing Director Greg Denton said “We sought this win-win-win outcome for residents, government, and investors in residential battery systems on Norfolk Island as a way of ensuring that the benefits of the energy transition were dynamic and will compound every year. With the solution now in place, each new investment decision helps the entire community.”

Mr Denton expects the year ahead to bring more investment in solar and batteries, taking the displacement of diesel generation past 50%. He anticipates seeing consumers increasingly electrify activities, particularly in the middle of the day, now that consistently low prices prevail.

“We have only displaced about a third of the diesel fuel used for electricity consumption so far, so there is still a long way to go. We’ll keep upgrading the BESY Energy Platform so that it can incorporate more devices while continuing to empower consumers. We are about to add a feature that allows consumers to ensure their battery is fully charged going into an adverse weather event so as to ensure its availability for emergency supply” he said.

Luke Howlett, resident and community member of Norfolk Island said that “Gardel Electrical and Solar, along with BESY, installed a fantastic solar system for me in October 2023, and I’ve been blown away by the results over the last 12 months. With a 38% ROI, it's one of the best investments I’ve made. The dynamic tariff system and the battery charge/discharge algorithm that BESY developed is a game-changer.

“I’m already seeing huge benefits and know that I am contributing to lower prices for the community as well, and it’s amazing to know that BESY along with the community's help is guiding Norfolk Island closer to our renewable energy goals, so it's a win-win. Thanks for us, Greg and all the team at BESY.