Electricity is the lifeblood of modern civilization. From making the internet accessible to powering our public transportation, the various necessities of modern life rely on electric power to operate. But with electricity comes a price – the cost of providing power is exorbitant, not to mention the environmental effects of burning fossil fuels. Fortunately, there are ways to mitigate these costs and reduce our dependence on fossil fuels, with a whole new energy industry focused on renewable sources of power – home solar systems.
However, despite the appealing idea of ‘going green,’ many people are still hesitant to make the jump to solar energy. Why? Well, for one, the disinformation that has been passed around about the expenses of switching to solar energy often leads to a lack of trust. And for two, switching to solar energy always involves an initial cost that often makes it difficult to decide whether the investment is worthwhile.
This can be discouraging for those who want to contribute to the greater good of the environment while still providing for their family. But don’t fret! Government subsidies combined with advanced manufacturing techniques are making this the ideal time to invest in solar energy. And if you are still not convinced, here are six ways how your home solar system will pay for itself!
What Is the Average Cost of Solar in Australia?
Before we delve into the many ways in which your home solar system will pay for itself, let’s first take a look at the average cost of solar power in Australia.
The average cost of solar panels and installations in Australia is dependent on a number of factors – including the system size, the quality of the solar panels, and the efficiency of the solar inverter. Further government subsidies and rebates are also available for certain types of solar systems, further lowering the overall cost of a solar system. You should also know that in the past six years, the average cost of solar power has actually decreased by 58%, which is a testament to growing confidence in the power of solar energy.
Overall, for a small-scale solar system (about 5kW), the average cost of solar panels and installation is $5000 to $7000. It might sound expensive, but after the initial investment, you are looking at an average annual saving of $400 per kW (will vary depending on the sunlight, efficiency of panels, and its installation).
6 Ways How Home Solar Systems Pay for Themselves
Still not sure about home solar systems? No problem! Here are six ways your home solar system will pay for itself!
1. Reduce Your Electricity Bill:
The most obvious and most immediate benefit of solar power is a reduction in your electricity bill. The reason is quite simple: the majority of electricity bills are related to the production, transportation, and usage of fossil fuels. But when you switch to solar power, you will no longer be paying for this production and usage of fossil fuels. This will not only reduce your electricity bill but will also reduce the environmental impact of fossil fuels and contribute to a cleaner environment. In fact, even if you are a heavy power user, solar panels, when implemented in tandem with more efficient power consumption habits, can decrease your power bill by well over 50%.
2. Create Tax Savings:
You have probably noticed that there are a lot of tax credits available for those who go solar. This is no surprise as the government is trying to get people to adopt a greener lifestyle. But what you may not know is that these tax credits can actually pay for up to 50% of the cost of your solar installation! According to the Australian Energy Foundation, ACT Government is providing all eligible households with a 50% rebate on all their home solar system installations. In addition, the Federal Government is also offering STCs for every KW of solar panels installed, which on average can offer you up to a $2250 discounted rate for a 5kW system. All these make solar installations a viable and affordable option for your home.
3. Improve Your Property Value:
While you may not be able to receive a 50% tax credit on your solar system installation (as it depends on your state, etc.), you certainly can increase your property’s curb appeal. Adding solar panels to your home not only significantly reduces your carbon footprint but also adds a sense of luxury to your home. Apart from adding a sense of luxury, consciousness, and a competitive edge to your property, solar panels bring much-needed aesthetic value to your home. All these aspects combined with the overall reduction in energy costs make homes with solar systems a compelling choice for buyers.
4. Less Maintenance:
You do not have to add more to your maintenance schedule as solar panels can be maintained just as you would your other appliances. In fact, the panel’s lifespan is much longer than that of your oven or refrigerator! So instead of hiring an expensive mechanic every two years, you just need to call the electrician once every year or two for preventive maintenance. Besides, there is no maintenance cost associated with using solar panels, and with most companies offering over 25 years of warranty, you are sure to enjoy the long-term benefits of your investment.
5. Energy Independence:
When you switch to solar energy, you are essentially saying goodbye to having to depend on the power grid. This alone is a very appealing proposition for many, especially if the alternative is the instability and unpredictability of fossil fuels. With solar energy, there is no need to purchase expensive and polluting power; instead, you will be able to tap into the power of the sun. This also means that you will be able to completely control your energy consumption; the panels themselves will be able to tell you when you need to charge your phone and other electrical devices and just when to shut down.
6. Feed-in Tariff:
If your energy consumption is lower than what your solar panels are capable of generating, you can get paid for feeding your surplus power into the grid. Every state has a different policy on feed-in tariff rates, but on average, you will always get lower rates for the electricity you sell to the grid than what you would have paid for power produced by a commercial power supply. So, feed-in tariff actually makes a solar home installation an investment as well, which will help you offset the total cost of the installation in coming years.
How Long Before Solar Home Systems Pay for Themselves?
As we have seen, there are several factors that contribute to the cost of solar panels and their installation. When your home solar system starts to pay for itself will depend on these and other factors, including how well your home solar system works, weather, local feed-in tariffs, etc. But on average, the payback period for installed solar systems in Australia is 3.2 years, assuming you use 50% of the solar energy generated and the rest is fed into the grid. The highest payback period is in Darwin with almost 5.1 years, followed by Brisbane with 4.7 years and Hobart with 4.4 years.
Final Verdict – Will my Home Solar Pay for Itself?
Conclusively, there are several benefits to switching to solar energy that offset the initial investment. Not only will you be able to reduce your electric bill, but you will also reduce the environmental impact of burning fossil fuels and be more aware of your carbon footprint. Home solar energy systems, when implemented with other forms of energy conservation, can reduce your electricity bill by up to 50%, and the incentives and feed-in tariff will help offset the total cost of your installation sooner than you might expect.
The sky’s the limit with Home Solar Systems in New South Wales, so don’t be discouraged by the initial cost – your home solar system will pay for itself!