Is Solar Really Worth It?
With electricity prices continuously on the rise, households are now seeing the benefits of solar, and what it can do to reduce your power bills. A solar system allows you to essentially ‘farm your own power’.
Solar systems are a great investment that can often pay themselves off over two or so years depending on your usage habits. It will keep on supplying your home for years with sustainable, reusable, sunny energy!
Solar Systems generate around 25 kWh a day (averaged across one year). Energy Retailers charge 28c per kWh (unit) to most residential homes. If you use all of the solar power your system generates, you can expect to save over $2,000 every year on your power bills. This is a general guide only, it does change per customer and their usage habits.
Understanding your bill:
Your house is filled with appliances that use power to function – such as fridges, air cons, ovens, TVs, laptops etc. The power is measured in kilowatt hours (kWh). On your electricity bill, kWh are referred to as units (kWh and units are the same thing).
Every unit of electricity your household uses, without a solar system, costs approximately 28c. The benefit of having solar is you avoid taking power from the grid, which charges out at 28c per unit. After a short while, the price of the solar system installation will be less than your electricity bills.
But, it is important to utilise as much power during the day as possible. Solar systems only function during daylight hours, so at night your energy needs to come from the grid. Households with a solar system are paid to send their excess energy produced, back to the grid at a lower rate of about 3c per unit.
So it costs 28c to draw a unit from the grid at night, but you get paid 3c to send one unit back into the grid (that you don’t use during the day). To offset 1 unit of power at night time, you need to be pumping 9 units back into the grid during the day, which is a little more excessive. It’s not the most ideal use of your system but you will still see a reduction in your bills, over time. Running your appliances during the day (even when you are not home) will be more effective, as you can essentially use the free energy from your solar system.
At this point, it seems fairly clear that solar is here to stay in Australia. With more than 2 million Aussie households already having solar, there are now more than one panel installed per human!
Virtually all industry analysts are predicting that solar (and battery storage) are Australia’s future of energy.
Stats on Solar In Australia:
Solar systems are a great investment. Not only do they provide you with low cost and sustainable energy, they add quite a lot of value to your home. Houses with solar tend to sell quicker than ones without. Solar systems are able to increase the value of a home, as it is essentially a money saving machine. After the solar system it’s paid off, it continues to be profitable in supplying sustainable energy, which you are able to sell back to the grid. As families become more educated about the benefits of solar power, there will be a higher demand. Essentially meaning, that homes with solar systems will have the competitive edge in the market.
The government incentives are in place to reduce the upfront cost of each system by 50-60% – making solar very affordable for everyone, in hopes to increase the amount of sustainable and eco-friendly energy the country consumes. The much lower upfront cost can now be paid off in around two-three years of savings from your solar system (see more on our government incentives page).
- Own your own power to reduce ongoing Electricity price increases
- Interest free cash flow positive from day one – It literally pays for itself!
- Huge government financial incentives to offset the upfront cost – Up to $3,385
- Pay off your system using the savings your system generates
- Protect against rising utility rates as electricity prices in Australia have increased by more than 30% in the last four years.
- Make use of your external roof area for solar which will also help with shading of your roof and associated cooling effects
- Going green will reduce greenhouse gas emissions
- Price for solar have never been as affordable
- Boost property value by adding solar
Please contact us for an assessment and quote