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Solar Energy System Savings In Australia
The cost of electricity has continued to rise in Australia and most parts of the world, leading to high costs in electric bills. If you feel you are paying excess energy bills, it is wise to look for alternative ways to reduce these costs. One of the methods that you can try to save on your energy costs is by turning to the use of solar power.
Solar power not only aids in environmental conservation but also helps you save more since you don't have to pay the monthly energy bills. However, before installing solar panels in your home or business, it is good to get an idea of how much you would save if you made this transition.
Knowing your savings with solar helps you decide whether the solar panel installation is a worthy investment. This article looks at the amount you save with solar panels in Australia. But let's first look at some of the benefits of installing solar panels on your property.
Benefits Of Solar Installation
Boosts your home value
One of the significant benefits of investing in solar panels is that they help boost your home value. The panels produce power for free, meaning there are no bills you pay at the end of the month like with electricity power. With the solar panels installed on your roof, you can expect your home's value to increase. Therefore, once you decide to sell your home, it will find a higher price since buyers will consider it more energy efficient.
Buyers are ready to pay a high price for properties with solar panels since they know they will not incur electricity bills. They are aware that they will enjoy the immediate benefits of green energy. Besides, a solar installation helps you save the money you would otherwise spend marketing your home or hiring agents to help you find buyers.
When you install solar panels in your home, you become more energy independent. This happens because you no longer rely on the grid to power your home. As a plus, you will no longer have to face inconveniences that arise when there is a power blackout. With solar panels, you can store excess energy in solar batteries that you can use even when there is no sunlight. You will not be affected by the issues affecting those dependent on the grid.
By investing in solar panels, you contribute to the many initiatives by the Australian government geared towards reducing air pollution. People are encouraged to invest in solar energy since it does not lead to air pollution. The energy does not use fossil fuels such as gas, coal, or oil containing air pollutants. Solar power produces clean electricity and also does not lead to noise pollution.
Save on energy costs
Although buying and installing solar panels in your home is costly, you save more money in the long run since you no longer have to incur end-of-the-month power bills. You also don't pay taxes that come with the use of electricity that your power company provides. However, the amount you save is determined by several factors, as you will see below.
Factors Determining Savings With Solar Panels
Several factors will determine the amount you save when installing solar panels in your office or home. Before checking on these factors, it is also critical to have an idea of what the upfront cost of solar panels is. Similarly, several variables affect the initial costs. This is necessary as it will help you to effectively plan your budget and avoid surprises. Here are some of the variables.
- The size and type of your inverter
- Government or council solar rebate and incentives for solar energy
- The solar panel installation process
- The amount and type of solar panels you select
- The type of framing equipment, as well as any other system components
- Whether you purchase backup solar batteries
- After-sale service agreements and warranties
Based on the above, the initial cost of installing solar panels on your property can vary depending on your location in Australia. Thus, keeping the costs in mind is good as you try to calculate how much you will save. The following factors also determine the amount you save with solar panels.
Feed-in tariff rate
Most people usually enter into an agreement with their electricity supplier in which the supplier buys back their excess solar energy. This is referred to as a feed-in tariff, where you return extra solar power to the grid from your home. As a result, you receive a solar rebate on your energy bill.
Depending on where you live, most Australian energy providers provide a rate ranging from around 7-11c/kWh. Therefore, before planning your savings, do thorough shopping to get the best deal you need.
Solar backup storage
You need to consider if adding a solar battery solution is an excellent option for you to save money. Since solar panels only produce energy when there is sunlight, the batteries help store that energy to allow you to access it anytime you want, at night or on a cloudy day.
Although an upfront cost is involved, the reduced energy costs of utilising your stored solar power lead to lower electricity bills. You save more than the rebate you get from your feed-in tariff.
Current energy use and your solar system size
Getting a solar system that meets your energy needs is necessary to save more. To choose a proper solar panel system, the first thing to know is the monthly electricity you use. You can familiarise yourself with the amount by checking the back of your recent energy bills shown in kilowatt-hours. The size of your system also affects the amount of money you will save.
So, to maximise the amount you save, you need to pick a system that can produce electricity at a rate covering your energy usage while reducing the payback duration. In this case, a careful balance is required. If your business or home uses more electricity than your solar panels can generate, it has to source extra power from the grid.
On the other hand, installing a too large system means that you end up exporting an excess of renewable energy back to the power grid, which could be significant. Unfortunately, when the feed-in tariff rate goes down, you will end up selling power back to your power provider at a lower rate than the price of your electricity rates.
As is the case with upfront solar panel costs, your location also affects the amount you save in the long run. Australians get more solar radiation per square metre than any other continent. Consequently, you have ample opportunities to leverage the sun's power for electricity.
However, within the country, the overall energy production you achieve varies. For example, if you are in Adelaide, you might need a different solar system size to get the same results in Melbourne.
Your monthly electricity bill
This is a fundamental factor to consider since solar panels help save money by eliminating or reducing your electricity bill. Thus, the amount you pay for your bills determines the savings you get by using solar energy. The less you spend on your bills, the higher the savings. However, you also get lower savings if your electricity bill is high.
When Do Solar Panels Pay For Themselves?
The period it takes for the solar panels to pay for themselves in Australia depends on the quality of your system. A high-quality system might take around three to four years. But, note there are benefits since, during this period, they will have boosted your home value and helped reduce your footprint. Before the period lapses and you get your return, you will use the amount saved on electricity costs to pay for the panels.
Generally, your solar system will save you around $400 to $500 yearly. Understanding the saving rate allows you to decide whether you want to invest in mid-range panels that give a return in about three years or a top-range system that offers a return in about five years. You can also decide to get the quickest return by investing in the cheapest solar panels. You will get what you pay for, so pay extra attention to this when installing.
Cheap solar panel system
If you want to get the fastest return on your solar panel system, you can invest in the cheapest solar system. Typically, you will need to purchase solar panels with cheap parts/components resulting in a low-quality system. In most cases, such a system will need costly regular maintenance and might not even perform as required. So, in the grand scheme of things, you might spend more than you save with cheap solar panels.
High-quality solar panels
Premium solar panels are costly, so it will take longer to realise any returns. In most cases, it might take approximately three to four years to get a return on your investment; it might even take longer if you plan to buy solar battery storage. The good thing is that a high-quality system produces more energy with minimal maintenance.
It will also come with a more extended warranty and better after-sales services from your solar provider. High-quality solar systems also last longer than their cheaper counterparts, making them a worthy investment. Thus, if you want to save a significant amount with your solar panels in Australia, you need to pick high-quality solar panels. It might break the bank but is definitely worth it in the long run.
Are Solar Panels Worth It?
Now that you have information on the amount you might save by installing solar panels in your home or business in Australia, it's time to find out whether they are worth your money. It is worth investing in solar panels because, eventually, you will save more than you spent with the installation.
If you invest in high-quality panels, size correctly, and have the installation done by an expert, you will get a return on this investment within three to four years. You will save then a lot of money going forward as you will no longer have to pay those pricey energy bills for years to come. You should undertake in-depth research on the upfront costs and any other factors that will affect your savings to make a more informed decision.
How To Save More With Your Solar Panels
As you can see, you can make significant savings by installing solar panels in your home or business. And guess what, there are other things that you can do to save even more. Here are the tips to help you enjoy more savings from your solar panels:
Clean and maintain your solar panels
Like any other appliance you have in your home or business, you need to maintain your solar system for it to last longer. You can do this by simply wiping or cleaning the panels regularly to remove dust, dirt, and bird droppings. The obstructions affect the production and the quality of the panels.
With good maintenance, your panels will serve you for many years without needing repairs that cost you money. If you cannot clean your system, reach out to your solar company, as they can help do it professionally.
Shop for the best deal
You can save a lot on your solar panels by shopping for the best deal in Australia. There are many solar providers in the market, so take time to get one with the highest quality panels. In addition, it's crucial to look for providers with the most extended warranty for their solar systems.
This bargain hunting will help you save money on repair and other maintenance costs. Finally, look for a great solar feed-in tariff. Take time while shopping because solar panel installation is a critical investment, and you don't want to make a mistake that will cost you.
Invest in a battery
It will cost you more to have a solar battery, but eventually, you will enjoy other cost benefits. A backup battery ensures you can still access power from your solar system even without sunlight. Without a battery, you would have to go back to using electricity during such times, meaning that you will still have to pay energy bills.
The battery ensures that you don't revert to electricity; thus, you don't incur power bills. In addition, it offers convenience since you will never have a power blackout. Purchase a high-quality battery that will serve you for many years. Most of Australia's solar companies also provide batteries and solar panels.
Thinking Of Investing In Solar Panels?
As you can see, you will make massive savings when you switch to solar energy. However, if you want the highest quality system to realise the most savings within the shortest timeframe, you must work with the best solar panel provider. Look for a solar provider with a good name in providing great systems with high-level performance. The company should have the highest qualified solar installers, high-quality solar panels, and components.
Be sure to consider the warranty given because this determines the quality and performance to expect from your system. With the best solar power system, you save on energy costs and enjoy power on your property without disruptions. A good solar company will also help maintain and repair your system when needed.