Australia enjoys high levels of sun exposure. All that means is a lot of power radiates onto our roofs. On the other hand, electricity prices keep rising. So, when you add the growing concerns about the environmental impact of traditional energy sources, you will see why more people are turning to solar energy.
But are solar panels worth it? Let’s break it down and see.
The Cost of Going Solar
Purchasing and setting up solar panels can have surprising initial expenses. Generally, you can expect a $3,000 to $7,000 price for a 3kW to 6.6kW system for an average Australian home. This estimate includes government rebates.
These figures typically vary due to the panels’ quality and the system’s size. Your location also plays a part.
Government Rebates and Incentives
Luckily, the government in Australia provides incentives to decrease the cost of solar. The Small-scale Renewable Energy Scheme can significantly reduce initial expenses. This reduction occurs through STCs (Small-scale Technology Certificates), which you can give to your installer for a discount.
Some states also have extra schemes if you want to increase your savings. Ensure you look up what specifics your location offers like in power to choose galveston.
Solar Payback Period
This term refers to the time it takes for the savings to equal your solar panel system’s starting expense. For most Australians, this timeframe ranges from 3 to 7 years, but the exact length depends on various factors.
Most solar systems have a 20-year minimum lifespan. So, there’s enough time to gain financial benefits from your investment.
Consider Some Calculations
Suppose you have set up a 5kW system. Then, after including government rebates, your total cost comes to $5,000. Every day, your consumption is 20kWh. Your house utilises 70% of the solar energy made.
The usual electricity cost in Australia is around 25 cents per kWh. Your account will receive a conservative feed-in tariff credit of only 10 cents per kWh for any extra power produced from the system you send back to the grid. Now let us calculate its financial value:
- Per day, your system creates an average of 20kWh (although this can change depending on where you live and the weather).
- You use 14kWh of solar power directly (saving $3.50 per day).
- The remaining 6kWh is fed back into the grid, earning $0.60 daily.
Daily savings total roughly $4.10. Annually, this figure comes to about $1,500. Therefore, based on your initial expense, your system could pay for itself in approximately three years.
Energy Independence and Property Value
Beyond the raw numbers, solar panels offer a degree of energy independence. As electricity prices go up, it is anticipated that the saving potential will also rise with time. Moreover, installing solar panels can increase your property’s value as it becomes more appealing to certain buyers.
Is Solar Right for You?
While the numbers look promising, solar panel systems are not always a universal solution. Consider these factors:
- You need adequate, unshaded roof space that’s in good condition.
- Households that consume more power during the day see the most significant savings.
- If you plan to move soon, weigh the benefits of increased property value against not being there to reap the long-term savings.
Conclusion
The maths strongly supports going solar for most Australian households as a wise investment. Not only are the financials in favour of solar energy in terms of payback periods and ongoing savings, but the environmental benefits and independence are also significant.
Before you leap, do your research, get multiple quotes, and consider your unique circumstances. The sun over Australia is a powerful resource; tapping into it can benefit your wallet, property, and the planet.
