Solar panels in Australia allow you to save money by reducing the amount of electricity you have to buy from your utility company. When you install solar panels on your roof, they generate electricity, which is transferred from the solar panels to an inverter. It is then sent to your home to power your appliances. By using solar energy generated on your roof, you avoid consuming electricity from the grid, which reduces the total amount of your electricity bill.
If you live in an area that has net metering, solar panels in Australia can provide savings even when the sun isn't shining. Solar panels generate most of your electricity during the day, sometimes producing more electricity than your home needs. When this happens, the excess solar energy is fed back into the grid and used to power your neighbor's home.
With net metering, your utility will pay you for that excess energy sent to the grid, usually in the form of a credit on your bill. This credit covers the cost of the electricity your home uses from the grid during the later part of the day, when your solar panels aren't producing enough power to run all of your appliances. This means you can install enough solar panels to cover your entire energy usage and lower your electric bill even further. In some cases, net metering can get rid of your bill entirely!
Will you still receive an electricity bill when you install solar panels?
The truth is that you will probably still receive an electricity bill even if you have a solar power system, and this is due to a number of reasons. For example, you may end up using more energy than you had anticipated when planning the number of solar panels to install, such as during a heat wave. In these cases, the system may not produce enough electricity to cover all your consumption and you will have to use some electricity from your utility company.
Some utilities have minimum billing requirements that cannot be offset by solar energy production. These minimum amounts can range from $15 to $30, and no matter how much solar electricity your panels generate, you will not be able to get away with these charges. While this can be annoying, having a $30 electricity bill is still better than a $130 one. There may also be other additional taxes and fees that cannot be eliminated by going solar.
In general, you can get rid of most of your energy bill, as long as your utility company offers a decent net metering or solar surplus offset program.
How much do solar panels cost?
Installing solar panel Sydney typically costs between $18,000 and $20,000 before any incentives are applied. The largest incentive available to homeowners who install solar is the 30% federal solar PV tax credit , which reduces the average system cost to between $12,600 and $14,000. Your state, municipality, or utility may offer other rebates, solar incentives, and tax breaks to help lower your installation costs.
The total cost of installing solar panels varies based on the size of the system, measured in kilowatts (kW). Because of this, you'll typically see the price of solar power expressed as "cost per watt." Using cost per watt, you can easily compare the prices of different solar panel systems without having to worry about system size. The average cost per installed watt of solar power nationwide in the U.S. typically ranges from $2.75 to $3.35.
These prices are nearly 70% lower than what solar cost just 10 years ago, but don’t get us wrong, we know it’s still a considerable investment. The good news is that there are financing options available to help you with the upfront costs, such as no-money-down solar loans.
Can a solar battery mean greater savings on your bills?
Solar batteries store excess solar energy produced by your panels during the day for you to use later, rather than sending it to the grid. This can lead to bigger savings on your electricity bill if your utility uses time-of-use rates , where electricity is more expensive at times of peak demand. Instead of using grid power when it's most expensive, you'd use the stored solar energy and avoid paying peak rates.
Using stored energy can also save you some extra money if your utility company buys excess solar power at a very low rate. Batteries won't save you any extra money on your electricity bills if your utility company has net metering and uses fixed rates where the price stays the same throughout the day.
While batteries may save you money, they are very expensive to install. At a minimum, energy storage will cost about $12,000 more than the cost of solar panels. The small additional savings the battery offers by allowing you to use stored solar energy to avoid price spikes will not recoup the installation costs of the battery. So, while a battery can technically save you money, it won't be enough to help you recoup your investment.
Batteries are generally not a very good financial investment. However, since batteries act as a backup power source and keep the lights on during a power outage , they can be useful for homeowners who frequently experience power outages. They also maximize the amount of renewable energy your home uses, so if reducing your carbon footprint and your dependence on the power company is important to you, a battery may be something to consider.
Are solar panels profitable for everyone?
To be blunt, residential Solar companies in Australia aren't right for everyone . You probably won't want to install solar panels on your home if your energy costs are relatively low, your utility doesn't have a surplus offset program, or your roof isn't suitable for it. In these situations, the savings you'd get from solar panels wouldn't be high enough to recoup your initial investment.
Solar power systems are best suited for energy-intensive homes with south-facing, unshaded roofs, a utility that offers some form of net metering, and high electricity prices. That's a lot of conditions to meet, but oddly enough, many homes meet them (or at least most of them).
