Will Solar Save Me Money?
The overall average use of energy every year per household has gone down in Australia. The total annual consumption of fuel between 2003-2020 decreased by about 500 units. But, black coal stocks are up by almost 8% as of 2020.
Black coal continues to be one of the most widely used resources in the nation. It is readily available and most industrial and residential areas are designed for it.
What about the option to switch to solar? Can your household experience solar savings over time? But, solar panels are not cheap nor are they for everyone. So, are they right for you?
Let’s jump in and find out!
What Is Net-Zero Emission, and Why Does It Matter?
Forst let’s establish the environmental benefits of switching to solar. Many of us are aware that there is an issue with our environment. But, is solar a better option?
The answer is, solar can seriously help to alleviate the environmental catastrophe. Scientists have already implemented advanced technology to aid in this crisis. By using the right tools, scientists at America’s NASA and around the globe can find the best solutions.
But, let’s take a step back and see what the goal is. The world needs a net-zero emissions system. Solar power systems are this type of system.
The world is in what is known as a “climate deficit“. This means we are producing more Co2 than the atmosphere can handle at one time. To fix this, we need to produce net-zero pollution.
Net-zero does not mean there won’t be any pollution whatsoever (that’d be nice!). What it means is the amount of pollution produced needs to equal zero after they are offset.
When pollutants are offset they do not count towards the total atmospheric pollution. They are balanced. This is usually accomplished through a fine on an industry that pollutes.
This fine is then used to reimburse an industry that accomplished total “zero” emissions.
Will a Household Make a Difference?
You may be asking yourself, “will making a switch make a difference? What can I do? And, will it affect me positively?”
There is a common misconception that solar panels are a rich luxury. The Sydney Morning Herald records a very different reality. The reality is, poorer and middle-class Australians have installed more solar panels than upper-class.
This was an alarming reality. But, one of the main reasons for the switch seems to be pressing monetary concerns. This backs up the claim that solar panels can make a difference.
If they save you money, then they save energy overall. Therefore, it may seem like a small thing, but it adds up.
Especially as more and more people install solar panels on their homes. You will be one of many leading a charge to change for the better.
Let’s not forget that this switch may positively impact you financially as well. Now we have established the environmental reasons to go solar. Let’s see if it can help you save too!
Can Solar Savings Benefit You Personally?
Solar power savings can be yours if you meet the criteria. Solar power is sort of like installing your power generator. For this reason, the installation of solar panels can potentially save you thousands over the years.
This is because solar panels convert energy from the sun to your home power supply. They have an immense grid that collects solar energy during the daylight hours.
This energy can be stored, if your grid produces enough.
Some places are so useful for solar power collection that the power is collected and resold. But, it is unlikely that your solar panels will produce sufficient energy to power your home exclusively.
For most, solar panels are more of a supplemental source of energy. Most estimates suggest that solar panels could supplement around 30% of your energy.
This means, do not assume you can replace your power supply. This is only possible for really large power grids. But, you can save some money every year with a few solar panels.
But, how many years will it take to save enough to justify installing them? And, how do you know if you’re in a good location for installing panels?
The sad reality is, not all areas are ideal for installing solar panels.
Are You in a Good Place to Install Solar Panels?
The physical requirements for installing solar panels are rather in-depth. Before you look into buying solar panels, ensure you are in a good location. A good location will have three primary features:
- Few trees (plenty of sunshine)
- More sunny days than rainy days
- Adequate space
Each of these factors is the first three questions to consider before buying solar panels. After all, you want to be able to offset the costs of installation with energy savings. Too Many Trees
If your property has a lot of trees the sun will be blocked out with their size and foliage. If the trees are near to your house the issues are even more pronounced.
If you are unable to give your solar panels several hours of sunlight it is not a good investment. Too Much Rain
Rainy regions do not get much sunlight at all. But, this does not mean that they do not get any solar power charge.
But, these grids are only sufficiently productive if the grids are very large. For a private individual, if you live in a region with heavy rainfall, the payoff won’t be great. Adequate Space
Sufficient surface area is important to consider when purchasing your solar panels. Examine your roof and how it is set up. Is it a flatter roof or a slated roof?
Based on tour surrounding environment, different types of rooves are better than others. But, the question of how many panels can fit on the roof is even more important.
If you are unable to fit 4-6 panels on your roof, it may not be financially wise. Otherwise, you will not get sufficient energy supplies for the cost of installation.
What Is the Cost of Installation and Purchase of Solar Panels?
The cost of installing solar panels can range rather wildly depending on several factors. But, the good news is the costs of these systems have dropped significantly already.
When solar panels first hit mainstream society, it could cost a household $10,000. This was before any government rebates and for a simple 1kw solar panel.
This means the costs versus the power generated didn’t make financial sense. This may be the cause for the confusion today that solar panels are a luxury of the rich.
But, the reality today is very different. Today, a solar panel of over 6 kilowatts of power costs about the same as a 1-kilowatt panel several years ago.
This means that today you can generate far more energy for the price of a weak unit. But, that is not the only financial benefit to consider. Yes, the costs and efficiency have improved.
But, will government subsidies be able to make this even more sensible? And, what about the question regarding how long it’ll take to offset the costs? We are getting there!
Government Benefits and Subsidies Available in Your State
Each state in Australia has a different incentive program for solar panel installation. You can use this interactive map to analyze this for yourself, but we will examine it here too.
For Queensland Australia, there are two benefits available to incentivise solar investments. The first is an incentive program for landlords to offset carbon with investment in solar farms. This is a great way to achieve net-zero emission.
And, they offer a program where they reimburse per kilowatt produced. This is a more direct reimbursement for households across Queensland.
Western Australia participates in small business initiatives (SERs). This is a national program that incentivises small businesses. The hope is to encourage small businesses to purchase solar power or install it.
Southern Australia has some of the highest rates in Australia. These regions include South Australia and Tasmania. The policies are similar for the southern regions, but these are two of the top policies available.
New South Wales does not have a private reimbursement program for its citizens. But, citizens can partake in the national reimbursement system available to every state.
Victoria has some of the highest rates for energy per kilowatt. They range close to $.25 per kilowatt of power. But, being one of the sunniest regions of Australia residents here can generate small scale technology certificates of $600.00.
How Much Can You Save Per Kilowatt?
The amount you will likely save per kilowatts varies based on your region. Evidently as described above, certain regions such as Victoria are worth the investment.
Based simply on the cost per kilowatt alone any subsidized solar energy is worth it. Some residents in this area claim solar panels save them close to 40% in their costs.
On average, Australians can hope to save about 30% of their costs of energy. This means if you’re paying close to $300 quarterly got your energy, you might be able to save 30%.
Again, meant going into this investment may be seeking to replace their energy supply. But, if you think of this as a substitution of energy costs, it makes more sense.
This is no small level of savings, especially if you have a subsidized installation.
Cost of Installation and Subsidies
Government subsidies definitely make this investment more feasible for everyone. For a $9,000.00 6 kilowatt system, most can expect a subsidy of close to $3,000.00.
Of course, $6,000 is quite a hefty cost for investment. But, consider also that you will be saving money every billing cycle. When you factor in these savings, you can expect to make back the initial investment you made.
On average, it takes a person 6 years to make back their investment. But, solar panels will likely outlast 6 years. Therefore, after the investment is remade in power generation you will be saving every billing cycle.
This is all dependent upon whether you live in an area good for solar panels. The PV panels need to get sufficient solar radiation to generate power. If you do not live in such a region, it will likely take much longer.
Is Solar Savings Sufficient for the Investment?
Most people do not know a person who has purchased a solar panel. This can make this investment choice more difficult. But, the perks largely outweigh the costs.
Even if you do not live in an ideal area, you will still be saving over time. Even if it takes a decade. Proper maintenance of your solar panels can help ensure you have them for most of your lifetime. This is the best part of a solar power system.
Additionally, with the energy climate the way it’s been, energy independence is important. This is true for you personally as well as nation-states. Currently, Australia is heavily dependent on the middle east for natural gas.
The middle east is not a stable society right now though and oil and gas prices can vary. This means that installing solar panels could help alleviate this issue.
Again, the more people who invest in solar the better long-term effects it will generate.
Solar Savings With the Experts at Instyle Solar
Solar savings with solar panels is a great way to get the hefty bill off of your back. Every quarter millions of people need to pay for basic necessities such as heat and power.
But, solar panels can really create an independent system. Of course, there are kinks to be worked out. But, solar power can help you achieve more financial freedom over time.
Our team at Instyle Solar has the resources you need to make this leap. Contact us today, and let us help you find energy independence!
Interested in solar? By clicking below you can use our smart solar calculator to find out just how much you could save with solar, what rebate you are eligible for, and the impact you will have on the environment.
Don’t wait until next quarter’s bloated bill, and get started today!
Join over 20,000 homeowners who have made the switch with Instyle Solar, or the 1000+ positive reviewers who have been more than happy with their solar install.