Whether or not you live in an area with a very sunny climate, solar power can help you save money on your electricity bills. You can also read this comparison of Texas Electricity Power To Choose to learn more about your alternative energy options.
How? Let’s find out why solar panels are no longer just for environmental enthusiasts.
- Solar systems in Brisbane prices are becoming more affordable. In fact, the cost of solar has dropped 90% in 10 years.
- You can get tax credits if you install solar panels on your home or business.
- You get net metering credits for generating excess energy that you sell back to the utility company.
Are solar panels worth it?
Here are some guidelines to help you estimate the savings you will have after installing a solar system.
1. Get an estimate of your upfront costs.
It is important to get the estimated cost of installing solar panels. To get an estimate to consult a solar panel installer or use an online solar calculator tool. You’ll get to know how much power you can generate and how much money you’d save over 20 years with a solar installation.
2. There is a lot of value in tax incentives.
The government has introduced many tax incentives for installing solar panels to promote the adoption of solar energy. Over the years, many people have taken advantage of these incentives and saved a big amount. The tax incentives are a great opportunity to save on the high installation costs for you.
3. How long will it take you to repay your solar panels cost?
Knowing the tax credit available to you for installing the solar panel, you can understand the time it will take to pay it off. Just subtract the tax credit amount from the original investment value of solar panels. Now, divide this amount by the price you pay on electricity bills every year. You will get an estimate of the time it will take to pay off your solar panels’ worth.
4. Size of the solar energy system you install.
Your potential to save money is greatly influenced by the size of the solar energy system you install. To reduce your payback period, maximise ROI, and cover your power demand, it’s critical to select a sufficiently huge system.
Larger solar energy systems, like a 5kW one, will generate more electricity than 2kW systems.
5. Know about your Premium Feed-In Tariffs
As per the Australian Energy council, “a feed-in tariff (FiT) is a payment from either a government or an energy retailer for electricity that you generate, either at home or in a business. The payment is made to recognise the value of energy that you feed back into the electricity grid.”
States with higher power rates (like Queensland or Tasmania) will pay you more, whereas states with lower electricity prices will pay you less (like Western Australia).
On average solar feed-in tariff is 11 cents per kWh in Australia. A typical 6 kW solar system will produce roughly 22 kWh per day on average and normally export 10 kWh per day. Consequently, you would anticipate getting credit from their energy provider of about $1.10 each day, saving them $400 a year.
6. Condition of your rooftop
If your roof is in bad shape or has already been damaged by weather or other factors, it could cause problems for you down the line. Your solar panels may not be able to operate as effectively, meaning they’ll produce less energy.
To ensure this isn’t an issue, take some time to assess your roof before installing solar panels. The easiest way to do this is by doing an inspection from ground level. Look for areas where there are holes or cracks in the roofing material, areas where there is discolouration or mould growth around vents and gutter lines.
Solar Savings When Adding A Battery
There are many benefits to installing a battery with your solar power panel. Say your electricity from the grid costs around 27 cents per kWh and has additional charges added depending on how much electricity you use each month. Then by installing a battery with your solar panel system, you can store excess energy from when it’s sunny and use it later when it’s cloudy or at night. You’ll save money on your power bill because you won’t need to buy as much from the grid if you’re storing up some of what you’ve generated during bright days!
Solar power is a great way to go green and save money, but it’s not without its challenges. The initial investment in solar panels can be quite high, but the long-term savings and efficiency they provide can more than offset the initial investment. With the right incentives, it can be a very affordable option for anyone who wants to make a difference in their community.