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Solar Energy System Savings
Solar panels have gained massive popularity over the years. With the increasing popularity, they have also become more affordable. Like many other countries in the world, there are so many reasons to install solar panels on your property in Australia.
Australia receives more sunlight than any other nation on the globe on average. In fact, the typical Australian family receives about 3,000 kWh of solar energy annually. This is much more sunlight than the traditional German home, which only accepts about 1,500 kWh annually.
As a result, installing solar panels in Australia makes sense since you can use the sun to produce a significant amount of electricity. Solar panels will be able to produce more electricity by absorbing excess sunlight. Here is how much money you can save with solar panels in Australia.
Australia's Typical Solar Bill
According to research, the average credit on the most recent electricity bill for families with solar panels is around $236 each quarter. South Australia (roughly $280) and Queensland (about $271) offered the highest solar subsidies on quarterly bills, while Victoria (around $169) and New South Wales (roughly $125) households get smaller refunds. On this basis, most Australians (around 58%) agree that installing solar was a good decision.
Energy Production By Solar Panels
Solar (PV) panels produce more energy during the day due to ample sunlight and low electricity usage. You could save the excess energy if you have backup storage, such as a solar battery. The surplus energy produced by your solar panels is exported to the grid.
You will then receive credit from your energy provider for the power you exported; this credit lowers your energy costs. Your home utilises the energy produced by your solar panels before it can turn to grid power. If your household's energy consumption is lower than your solar energy production, you could use a solar battery.
It will help you import the surplus energy earlier produced and exported to the grid by your solar system. On the other hand, you will need grid power if the amount of electricity your household consumes exceeds what your solar energy system can provide.
Feed-In Tariff Rates
Feed-in tariff rates refer to the credit rebates paid to households for producing and exporting surplus solar energy to the primary grid. Your utility provider will typically provide a rate of around 8 cents per kWh to consumers who sign an agreement with their energy provider for the solar energy that is exported into the grid.
If you want to know more about the tariff rates available in your area, it is preferable to contact your power provider. If possible, you should also shop to get the lowest costs. Explicitly speaking, feed-in tariff rates might also differ from territory to territory, so double-check your numbers before you can begin estimating your savings.
Size of solar energy system
Larger solar energy systems, like a 5kW one, will generate much more power than a 2kW system. The total amount you save is greatly influenced by the size of the solar system you install. Therefore, for maximum savings, it's crucial to pick a system that is sizable enough to handle your power consumption, shorten your payback period, and increase your return on investment (ROI).
The reason it's essential to install just the right size is that if your solar system is too big, your solar system will export power into the grid. Since the tariff rates are currently lower, this then means that you will be selling power back to your energy supplier for a lot less. Therefore, the secret to saving money is to choose a system that fits your home size and consumption habits.
Your residence
The amount you can save ultimately depends on your geographic location. This also affects how much electricity your solar energy system produces as it's dependent on the amount of sunlight your locality experiences. To put it in perspective, solar energy systems installed in Queensland will produce more solar electricity than a comparable unit in Melbourne.
To put it another way, a professional may install a 2kW system in a place with more solar radiation than another. However, you will require a 3kW unit to produce the same results as that region in an area with less solar radiation.
Benefits Of Installing Solar Panels
Solar panels are now cheaper to install
Solar panel installation has become a considerably more affordable choice for Australian homeowners as the cost has decreased over time. In fact, since 2009, the price of installing residential rooftop solar PV systems has been reduced by almost 50%, according to the Renewable Energy Target Review report published in June 2015.
This is encouraging for folks who are thinking about switching to solar electricity. So, going solar is a great idea right now, as the installation price is worth it, considering the expected benefits.
Tax benefits
You might not know this, but if you install solar panels on your property, you will receive tax benefits, which is one of the biggest reasons to go solar. For individuals who install solar panels, the Australian government provides a variety of subsidies and incentives to balance out the installation costs.
For every kilowatt of added capacity, the federal government provides a refund of up to $2,000. Some states and regions also offer their own discounts or other incentives. For instance, the government of New South Wales provides a refund of up to $3,000 for installing solar panels.
Reduces your carbon footprint
You will reduce your carbon footprint by going solar, which is another excellent reason to do so. It is estimated that around 15,800 kilowatt-hours (kWh) of power are used annually by the typical Australian home. Going solar will allow you to use clean energy without producing any carbon dioxide or other harmful pollutants. Thus, in addition to saving money on electricity, you will also play your part in environmental preservation.
At the peak of summer, when air conditioners are running nonstop, and there are high electricity prices, you could switch to solar panels as they produce clean energy when you need it most. Look into any possible solar rebate programs if you're considering installing solar panels on your home to help with the installation costs (there usually are).
Long-term financial savings
Going solar will also end up saving you money in the long term. You won't have to pay for power again if you install a sizeable solar system on your property. However, there is a one-time cost associated with installing solar panels. As it is a one-time purchase, your savings will eventually outweigh the initial price.
Longer warranty
After converting to solar energy, the typical household saves around $10 to $30 a month on their electricity cost. Over a year, this is a sizable sum of money that you could use for other expenses or save. Solar panels are an investment for your future, both financially and environmentally. Solar panels have a 25-year lifespan and don't require any ongoing maintenance; the only care needed is the occasional dusting or washing.
What Affects Your Solar Savings
The number of dollars you can save with a solar system depends on an extended range of factors. Let's examine the main factors that affect the future value of your investment.
Choosing the best system for your property
Learn about solar before making a purchase and consult reliable experts. Additionally, you must be fully aware of how much electricity you use at all times of the year. An excellent place to start is with your recent and prior electrical bills. Include all of your aspirations and goals for improvements, additions, and family growth.
You want a system that can accommodate your changing needs. Make sure the one you select is expandable if purchasing a size to cover the future is not currently financially feasible. You will get better suggestions from a solar expert if you provide them with additional information.
The best piece of advice is to choose a system that is big enough for your needs, in addition to insisting on a high-quality system. You will surely be let down if you set out on your solar journey with insufficient electricity. Going oversized and dealing with it later is far preferable to going undersized and dealing with it immediately.
If you have the roof space, invest in a system that offers considerably more coverage than your usage would indicate you require. Talk to your solar power professional about the gradual decrease in efficiency. By purchasing a more extensive system, you may want to make up for this reality right away.
Don't use cheap solar service providers
Although strong consumer support and regulation exist in the solar industry, it doesn't discourage persistent operators. Starting at roughly $6,000 are decent 6kW solar systems. You should avoid suppliers promising a lower price for a system of this scale. Use only reputable solar companies. Review all the equipment's specifications. Make sure you comprehend both what and why you're purchasing.
Change your lifestyle
You could maximise your electricity savings with a solar system by using your power-hungry appliances while the sun is out. If you don't have a reliable solar battery, the grid will supply you with any electricity you need at night. Here are some tips for maximising the power drawn from your solar panels:
- Use the washing machine, dishwasher, and dryer between 11 a.m. and 3 p.m. To make this easy, use the timer features on your appliances.
- Avoid using the evenings to charge electric tools or vehicles like cars and bicycles. During the day, charge them.
- At the wall, turn off as many standby appliances as you can. This can mean a yearly savings of roughly 4%.
- Prepare meals all day and then reheat. Compared to your electric cooktop and oven, the microwave uses less energy.
- Filter your swimming pool throughout the day.
- Put off-peak hot water off. You certainly do not want your hot water system to heat up in the dark.
- Get rid of all your halogen and incandescent light bulbs. Put in LED.
The goal is to find modifications you can implement to decrease night-time power draw. It's best to reserve as many gadgets as possible for daytime use. It is obviously impractical to go without electricity at night. Reduce your use of energy wherever you can. Anywhere you can use more power during the day. Alternatively, if money is available, buy a solar battery.
Impact Of Batteries On Solar Savings
Let's work with a top-of-the-line, cutting-edge Tesla solar battery to understand how batteries affect solar savings. This effectively enables the residents to utilise all the solar system's electricity.
- You can live entirely off the grid thanks to the battery. As a result, you will save around $3,200 a year on your on-grid electricity consumption.
- The lifespan of a solar system is about 25 years. If the system takes about eight years to pay for itself, the household will not have to pay an electricity bill for the next 17 years.
- This will save you a total of around $54,000 spread out over 17 years.
Indeed, adding solar batteries to your system is very significant. The battery gave the system complete control over how it produced its electricity—independence from the power grid. The same household could eliminate the annoyance of neighbourhood blackouts by adding a few practical accessories.
Electric Bill After Solar Panel Installation
Your monthly energy expenditures should significantly decrease if your solar system runs fully, starting in the first month. The reduction might range from around 50% to 80%. This depends on the size of your system and your household's energy usage. Due to the various aspects that impact your daily production, removing your utility company's power costs could be more difficult.
Therefore, if you use 500 kWh on average per month at a rate of about 25 cents per kWh, your monthly payment will be around $125. You will now save about $100 on your electric bill thanks to a 5kWh solar system that generates 600kWh per month at roughly 20 cents/kWh. One hundred additional kWh can be returned to the grid at the standard cost of around eight cents, earning you about $8.
Solar Power And Going Off The Grid
Do you think solar panels cut you off from the grid? No! You still need to pay your energy company a minimal amount each month in the form of power bills. Remember that your solar system's efficiency will be lower in the winter or during overcast weather. As a result, you will depend more on your utility provider. Going solar does not entail cutting yourself off the grid because you still require it.
While it is possible to have net-zero months occasionally, you will still have to pay a small fee to the utility provider to cover their losses. You can potentially get negative bills if your grid input is extensive, indicating that you were a net energy seller that month. This remainder will be carried over to the following month to be applied toward the bill.
Is Solar Power Worth Investing In?
The conclusion is clear: solar electricity is definitely worthwhile if you have the money to invest in a high-quality system from a trustworthy solar contractor. When appropriately scaled, it is possible to get a return on your investment in as little as three to five years.
You can have a trouble-free investment that will produce clean energy for decades, over twenty-five years, with better solar panel brands. Throughout a solar panel's lifespan, a 5kW solar system can save you up to $50,000 in electricity costs that you would have otherwise paid to the coal industry's accounts.
Additionally, people may now run their homes almost totally on solar electricity thanks to the availability of solar battery storage. As homeowners seek to strengthen their energy independence and maximise the usage of solar electricity in the home, solar power and storage systems are swiftly taking over.
Ready To Save More By Going Solar?
A properly sized, high-quality solar system can save tens of thousands of dollars throughout your lifetime. Without a doubt, if you do it correctly, however, these figures apply to the typical family. Australia has a large solar-powered population. The total amount you save will ultimately depend on several factors.
Naturally, your home's size and orientation will also significantly impact. However, because of the effectiveness of great modern solar technology, even those in the most solar-compromised situations can find a solar solution that will enable them to enjoy considerable savings.
As already mentioned, purchasing a solar system is now more affordable thanks to subsidies, and many people have learned about the significant savings that you can achieve. If you want to install solar panels in your home or at the office, you should seek expert help for the best results.
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