The payback of a 5kW solar system has become so good, many people are surprised to find out it is now possible to get a top of the range system to pay for itself in as quickly as 3 or 4 years, with a possible total profit of nearly $50,000 over the life of the system.
What’s more, you are taking $50,000 off the books of Australia’s coal industry, creating a huge impact on the future of Australia’s Renewable Energy Industry. This is why I tell people that buying 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.
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The life of a solar system is normally estimated to be 25 years due to the 25-year warranty provided by panel manufacturers. Typically, a panel will have a 25-year warranty on the output of power as per the image below:
Panels lose efficiency over time, and so we recommend you factor in a loss of 1% per year. In reality, it is closer to 3% in the first year and around 0.7% each year after that. It is important to note that solar panels degrade at different rates, which means if you go with a centralised inverter your system will degrade at the rate of the worst performing panel because each string of panels is hooked up in series. This is one of many reasons why more than 3 out of every 4 systems we install use either Enphase Micro Inverters or the SolarEdge Solution. In these systems each panel outputs power independently from the rest of the array, making sure you get maximum value from your investment over time.
The output of a system varies significantly depending on a number of factors including the orientation of your roof, the angle of your roof, shade, the quality of the brands you select and the standard of the installation. The Clean Energy Council Guidelines state that a 5kW solar system in Sydney will output around 19.5kW/h a day. Importantly, this is not distributed equally across the year:
For more information on how to size up a solar system please refer to our comprehensive guide on How To Size Up A Solar System.
This annual output figure of 7117kW/h from the CEC is considered to be a conservative estimate, and from our own data, it is common to see 5kW systems significantly outperform this. On average, our internet connected Enphase systems with 24/7 back to base monitoring do 110% percent of their estimated output, reinforcing the importance of buying quality brands.
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 around 30 cents per kW/h. If you have a flat rate it tends to be around 25 cents per kW/h.
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 for a 5kW solar system you can save up to an impressive $46,987 over 25 years off 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.
Not bad hey?
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It is now possible to get a top quality solar system to pay for itself in 3 to 5 years. Residential Solar Power can reduce your power bills for decades, provide greater energy independence and can significantly reduce your carbon footprint.
As one of the largest and most experienced independent Solar Companies in NSW, Solaray is the best choice to ensure a smooth and expertly configured installation.
All Solaray Installations come with the following features as standard:
- Fully installed price with no hidden charges
- Full replacement warranties and free technical support
- Solaray organise all of the paperwork including the government rebate
- Solaray has a full 10-year workmanship guarantee
- Industry-leading installation standards and customer support
- Expert System Design by our technicians – we are the Solar Experts