Should I Install Solar Power?
The financial benefit of a solar power system has become so good, many people are surprised to find out it is now possible to get a top of the range residential solar system to pay for itself in as quickly as 3 to 5 years, with a possible total profit of over $50,000 over the life of a 5kW system.
What’s more, you have the added advantage of taking $50,000 off the books of Australia’s coal industry, creating a huge impact on the future of Australia’s Energy Grid. This is why installing a solar power system is the single most effective action you can take to not only reduce your power bill but to vote for a clean energy future in Australia.
Solar power is the most affordable it has ever been with fantastic government rebates and record low prices on the top brands. In fact, a top quality 5kW solar system can reduce your power bill by over $2000 a year, saving you tens of thousands of dollars over the life of the system.
Jonathan Fisk, Solaray Director
The Financial Advantages of Solar Power
1. Significantly Reduce Your Power Bills
When you generate solar power it is fed directly into your home to help power everything that uses electricity. This means that every kW of solar power you use in the home is money you are not giving to your energy retailer.
With electricity prices sky-rocketing at a rate well above inflation, the benefit of a solar power system continues to increase to the point where you can now choose reliable products from the industry’s leading manufacturers and still see a return on your money in 3-5 years.
As an example, a 5kW solar system can make a serious dent in a $1000 quarterly power bill, even if you only use 70% of the solar power as it is generated:
*This example assumes a cost of electricity of 28 cents + GST, an average output in line with the guidelines from the Clean Energy Council, and a feed-in tariff of 12 cents per kWh.
2. Free Solar Power System (well, kind of).
Because the benefit of solar power continues to rise with ever-increasing electricity prices, you are now able to finance your solar system where you are cashflow positive from day one! This means the reduction in your power bill is actually larger than your monthly repayments*:
*Savings are based on 70% of solar power being used in the home, an average cost of electricity of $0.28, and a feed-in tariff of $0.12 per kWh. Prices assume a 3% rate of inflation. The system’s output is based on Clean Energy Council Guidelines for an unshaded north-facing roof. All figures are indicative only and are not specific to your system or household.
Finance is provided by RateSetters. All applications for credit are subject to RateSetter’s credit approval criteria. RateSetter Australia RE Limited (ABN 571 466 35) holds Australian financial services licence number 449176 and Australian credit licence number 449176. Terms and conditions apply.
3. How Much Money Will A Solar System Make Me?
Assuming you are able to use around 70% of the solar power in the home as it is generated across the day, you will be able to save over $50,000 over the 25-year life of a 5kW solar system, which is about the average-sized solar system for a home in Sydney.
Let’s dig into the numbers to see why millions of Australian households have made the decision to install solar power:
Total Value: $11,000
Government Incentive: Approx. $3000
Investment: $8000 for a top of the range system
Yearly Power Bill Savings: Around $2000
Payback Time: Around 4 years
System life: Panels have a 25-year warranty
Total Profit over 25 years: $54,000!!!
Stop worrying about sky-rocketing power prices
Have a look at your power bill to see how much you pay for your electricity. If you have time-of-use billing, the average benefit of a solar system is normally around 35 cents per kWh. If you have a flat rate it tends to be around 28 cents per kWh + GST.
Using this number and multiplying the estimated system output with how much you pay for your power, you can see that with an investment of around $6,000-$8,000 for a 5kW solar system you can save up to & over $500 a quarter, and an impressive profit of $54,300 over 25 years on your power bills! This number can be even greater if you are using most of your solar power during the peak billing period of 2 pm to 8 pm.
4. Stop worrying about sky-rocketing power prices
Energy prices in Sydney are amongst the most expensive in the world, even more so during the peak billing period of 2 pm to 8 pm on weekdays (if you are on time-of-use billing) where tariffs are typically over 50 cents per kWh.
Generating your own clean solar energy limits your exposure to inevitable price increases. Incredibly, energy prices have risen 3 times faster than everything else since the ’80s, and unfortunately, a political solution seems a long way off.
5. Increase Your Home’s Value With Solar Power
A solar power system that generates free, clean energy can positively affect the resale value of your home, although there’s a catch!
To increase the value of your home, studies have shown that your system must use quality components. There are so many issues with the cheaper end of the solar market that potential buyers will often not see a cheap solar system as an added benefit, in fact, it can actually have the opposite effect.
A good quality solar system will generally provide a reliable source of free electricity for the new owners for decades, backed up by warranties that are transferred to the new owner in case something goes wrong. A solar power system can also help the environmental rating of your property, and attract environmentally conscious buyers.
6. Generous Government Solar Incentives
Households can take advantage of the current government incentive that is in place as a part of the Federal Government’s Renewable Energy Target. The larger the system, the more STCs your system is entitled to, and this incentive comes directly off the purchase price of your new system (as long as your system is installed by Clean Energy Council accredited installer such as Solaray).
More information is available here: Current NSW Solar Power Government Incentive
7. Improve Your Lifestyle With Solar
Our summers are getting really hot! With record-high temperatures being recorded nearly every year, many households across Australia are looking to install air conditioning to help keep cool. Air conditioners use a lot of power, sometimes as much as the rest of the house combined.
Installing solar power can help you and your family improve your lifestyle without having to worry about huge power bills. Solar power works very well with air conditioners and pool pumps because they tend to be used over summer during the day-time.
With a little energy management, you can not only reduce your power bills but use your appliances more often to help increase your lifestyle. Our smart solar systems come with full consumption monitoring, allowing you to compare the output of your solar system with the amount of electricity being used in the home.
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The Environmental Benefits of Solar Power
8. Reduce Your Carbon Footprint
Despite the great inroads we have made with renewable energy, the power grid in Victoria, NSW and Queensland is still predominately powered by coal and gas:
Being a zero-emission electricity source, solar power is able to avoid one tonne of C02 for every 1MWh of solar power that is generated. Installing a solar power system is the best thing you can do when it comes to reducing your carbon emissions, it’s even better than swapping from your car to public transport when commuting to work!
9. Contribute to Australia’s Renewable Energy Target (RET).
In 2015, the Australian Government settled on reforms to the RET, with the target for large-scale generation of 33,000 GWh in 2020. This means that around 23.5 per cent of Australia’s electricity generation in 2020 will be from renewable sources. Installing solar power directly help Australia reach this target as we transition to an energy mix that features a high percentage of our power generated from renewable sources.
The Smallscale Renewable Energy Scheme creates a financial incentive for households, small businesses and community groups to install solar power systems. It does this by legislating demand for Small-scale Technology Certificates (STCs). STCs are created for these systems at the time of installation, according to the amount of electricity they are expected to produce or displace in the future. For example, the SRES allows eligible solar PV systems to create, at the time of installation, STCs equivalent to the expected system output between the time of installation and the end of the RET scheme in 2030.