While some households invest in solar power due to it being an environmentally friendly and renewable source of energy, most people are more concerned about the savings aspect. After all, it doesn’t make any sense to invest money in something if it doesn’t generate a good return. You can always use the power grid to meet your electricity requirements. This blog post is focused on helping you understand the amount of money you can save using solar panels.
Examples of Solar Panel Savings
There are 2 ways for a solar panel PV system to help you save money. The majority of your savings will come from the electricity you use directly in your household and the other part is the money you get back from your electricity retailer through feed-in tariffs. Let’s first consider the savings you will make by utilising the solar electricity produced by your system.
Let’s assume that you choose to invest in a 6.6 kW solar system. Previously, the average solar installation was less than 5 kW but Australians have are now increasingly opting for bigger systems, and 6 kW and 6.6 kW systems are becoming increasingly more common for families.
On average, the system is expected to generate 8,000 units of solar electricity in a year which is typically enough to meet around 75% of the power requirements of a standard household. If you currently consume around 8,000 units of electricity each year, it should roughly cost you around $3,200 annually (the actual amount will vary based on your location).
If the solar power system meets 75% of your electricity requirements, your electricity bill will come down to just $800 annually. You will also get a few hundred dollars from feed-in tariffs. Keep in mind that the rate of the feed-in tariff is much lower than the price you pay for retail electricity. You should save around $2,400 in the first year.
If the purchase of a good quality 6.6 kW solar system costs $6,500, it wouldn’t take long for you to get your money back.
A good quality solar panel system should last you anywhere from 20 to 25 years. In short, you will be saving more than $50,000 over the lifetime of the system.
While these are some broad numbers, the actual amount will depend on your location, quality of the solar system, weather conditions and several other parameters. The fact remains that solar power is the future. It not only saves a substantial amount of money but also allows you to virtually become energy independent and also play a part in keeping the planet green.
Solar Savings When Adding a Battery
If you do not have a solar battery for storing electricity, the electricity will either need to be used for household consumption or sent back to the grid in which you can make money through feed-in tariffs. If you choose to invest in a battery, you might be able to completely cut off from the power grid as all your requirements will be met by solar electricity.
However, a solar battery is not cheap. A top-of-the-line battery will cost you around $15,000 and should allow you to become energy independent. The total cost of the system including battery will increase the total cost to around $21,500. With a battery, you should be able to save around $3,200 each year.
In short, you will be able to reap your investment back in around 7 years. With the expected lifetime of 20 to 25 years, you will still make a substantial return on your investment. Investing in a battery also gives you the added advantage of not being dependent on the power grid and complete independence from local blackouts.
Factors That Affect Solar Savings
Several factors affect the amount of solar electricity generated by the system which, in turn, affects the amount of savings you can make with your system. Here is a list of some of the parameters that have a substantial effect on your savings:
- Location – Southern Queensland is better compared to Southern Tasmania.
- Roof direction — A north-facing roof is best for solar panel installation
- Weather conditions throughout the year
- The efficiency of solar panels
- Rate of feed-in tariffs
- Amount of available rebate – which goes down each year.
How Much Can You Save with Solar Energy in Australia?
As far as the exact amount of money you can save with solar energy in Australia is concerned, it depends on several factors. To give you a rough idea, investment in a 5 kW solar system should help you save around $1,000 each year in most parts of Australia. With a 5 kW system in Queensland, you can expect to save upwards of $1,100 each year whereas a similar system in Tasmania would allow you to save approximately $800 each year. This difference is due to the different rates of solar electricity in each location and variable solar potential in different parts of the country.
Australia is already one of the leading countries in the world when it comes to per capita rooftop solar panel installation. Installation is affordable with the available government rebates and feed-in tariffs. Also, it doesn’t take long for you to get your money back. In most cases, you should be able to make your investment back within 5 years. Since a solar panel system is expected to work efficiently for 20 to 25 years, you can expect to save a substantial amount of money over the lifetime of the system.
Switch to Solar Energy!
Overall, millions of Australian households have already embraced solar energy. Solar energy is affordable, environmentally friendly and easily available.Macedon Ranges Solar Power is the premier solar panel retailer and installer of choice. We are CEC approved and accredited and have installed hundreds of solar power systems in the region.
Please give us a call today on 1300 974 991 or make an enquiry.