If you plan to install a solar power system on your home, you should read this Residential Solar Power in Australia guide first to understand the basics.
In Australia, how do solar panels work?
Most Home solar power systems in Australia are grid-connected without solar batteries.
Grid-connected home solar power systems enable you to keep a connection to the grid so you can purchase power at night (or during cloudy weather).
A solar inverter will save you money by intelligently using solar power before consuming grid power. Additionally, grid-connected solar systems let you sell power back to the grid.
There is generally no way to completely disconnect from the grid due to economic and practical reasons.
#1. Off Grid Solar Power
Off-grid systems include solar and a battery to provide 24 hour power without requiring a grid connection. This is the basic difference between On Grid vs Off Grid Solar.
Often, this is more common in rural parts of Australia, where properties can be quoted over $50,000 to connect to the grid.
When these situations occur, it is better to build a Solar and Battery standalone power system for the new house to support it economically and environmentally.
Typically there will be a large upfront cost (usually min. $25,000), but power is free for the rest of its life.
#2. Hybrid Solar Power
In a hybrid solar power system, a solar battery stores solar energy, which can be used when there is no solar energy available (e.g. night time). Although solar batteries offer a good back-up power source, you can also use them to make better use of your solar power.
However, their current cost does not make them worth the investment. According to our recent analysis of 48 scenarios across all Australian states, none had a payback period under 8 years, and most had a period over 20 years.
Considering that the average battery lifespan in the 21st century is 10 years, it is easy to see why only 0.17% of households have batteries and solar on their roofs.
Get in touch with the best solar quotes provider in Australia,
What Are The Ways That Solar Energy Saves You Money?
If you’re considering solar panels for your home, it’s important to first understand how installation of solar panels can save you money.
For now, let’s not think about the environmental benefits!
#1. Reducing Your Energy Consumption
By reducing the amount of electricity you have to buy from your electricity provider, which typically costs between 15 and 40 cents per kWh. solar can help you reduce your energy costs significantly.
Using a grid-tied solar system, solar energy will be prioritized, while any remaining energy needs will be met by the grid.
Most households could offset 30% to 70% of their energy consumption with solar panels if they consume electricity during daylight hours. An installation of a battery storage system can bring the offset percentage closer to 100%.
#2. Feed-In Tariffs For Surplus Energy
There are times when your solar panel system will create surplus energy and be able to sell it back to the grid at a rate called a ‘feed in tariff’. As the amount of energy that you generate depends on the sun, not your energy consumption.
Feed-in tariffs vary depending on the state and which electricity retailer you work with (e.g. AGL, Origin). It’s not uncommon to find feed in tariffs between 3-12c per kWh. Solar systems with a maximum capacity cannot access feed-in tariffs.
Your electricity bill will show a reduction in the amount of energy you purchase after solar is install, and a line item for the Feed-in Credit.
The following are some ideas for increasing self-consumption. Reduce your energy bills by increasing your consumption of solar energy.
If you want better return on your investment, you can set timers on these household appliances:
- Electric hot water system
- Washing machine
- Dishwasher
- Swimming pool pump
- Underfloor heating system
A hardware store or an electrician can install a programmable wall-socket timer for under $50.
We can connect you with up to three installers in your area.
Is It Possible To Save Money On Electricity Bill?
The Best Solar System Size for your needs is the first step in calculating how much you will save on your energy bills.
By selling feed-in tariff electricity and offsetting your electricity purchase (self-consume energy), you will be able to save money.
When estimating your savings, it is important to understand how much solar energy you will be consuming on your own. Buying and selling energy have different rates.
How Much Does Home Solar Power Cost?
The Solar Power Systems Prices depends on where you live, what type of system and products you choose and which solar company you go with.
Our free compare the market service includes the collection of Solar Panel Cost data from 100s of solar installers around Australia and the publication of average prices by capital cities:
3kW | 4kW | 5kW | 6kW | 7kW | 10KW | |
| All | $3,980 | $4,600 | $5,170 | $5,830 | $6,770 | $9,430 |
| Adelaide, SA | $3,430 | $4,070 | $4,580 | $5,070 | $5,920 | $9,110 |
| Brisbane, QLD | $3,780 | $4,390 | $4,880 | $5,200 | $6,820 | $8,490 |
| Canberra, ACT | $3,580 | $4,240 | $4,910 | $5,620 | $6,500 | $8,730 |
| Darwin, NT | $5,810 | $7,130 | $7,950 | $8,970 | $10,090 | $13,670 |
| Hobart, TAS | $4,650 | $5,290 | $5,980 | $6,900 | $7,360 | $10,690 |
| Melbourne, VIC | $3,920 | $4,280 | $4,660 | $5,030 | $5,880 | $8,380 |
| Sydney, NSW | $3,820 | $4,210 | $4,620 | $5,290 | $5,970 | $7,860 |
| Perth, WA | $2,880 | $3,220 | $3,770 | $4,540 | $5,610 | $8,500 |
With the increase in manufacturing scale and improved product efficiency, solar costs have decreased dramatically over time.
In the end, if it looks too cheap, it probably is, and an inexpensive system will end up costing you more in the long run. It is always a good idea to research a solar installation company and its products.
Go through our five set of questions that you must ask your installer before hiring them for your solar installations at home.
Are there any additional costs you should be prepared for?
Home renovation projects can involve a variety of additional costs. As part of our online quote service, we ask installers to provide details of the extras they would charge for.
Are Solar Batteries A Problem?
Battery image with positive and negative anodes. Batteries cost about $1,000 per kilowatt-hour (kWh). That would mean a typical home battery would cost about $10,000.
Home Solar System With Battery Storage have yet to be economically viable, as we have shown in-depth. Batteries should be affordable for most consumers in the next two to five years, but manufacturers need to increase their production scale significantly.
Looking for some serious solar advice… Get your appointment right now!!
Understanding The Australian Solar Rebate
To support the uptake of renewable energy in Australia, the Small-scale Renewable Energy Scheme (SRES) was introduced in 2011.
A Small-scale Technology Certificate (STC) is issued to homes and businesses that install DC solar panels up to 100 kilowatts (kW) in size.
An accredited Solar Installer creates STCs when they commission a solar system. Solar Installers sell STCs directly on the market or through broker/aggregators, which means the customer has to pay only the difference.
STCs – How Do They Work?
In order to qualify for an STC, your system must generate enough renewable energy by 2030.
In other words, solar tax credits are calculated based on your postcode, the solar panel output of your system, and the remaining time before 2030.
Since 2019 and 2030 are different years, if you are installing your system after either of those dates, there will be a slight difference in rebate value. The rebate is typically equal to 30-35% of the total Solar Panel Cost.
How To Choose Good Quality Solar Equipment?
By now, you likely have a lot of questions about how to pick solar panels for your house. The same is true for the purchase of other products.
There are high quality products, cost-effective products, and cheap and nasty products that will cause more problems than they will benefit.
We advise sticking with the good brands since solar is a long term investment and needs certified electricians to repair issues and replace equipment.
The following are three easy tests to determine if a brand of solar panel is good or not.
- We can look at Bloomberg NEF’s tier 1 ranking first. According to this ranking, the most financially secure solar panel manufacturers are the ones that are more likely to handle warranty claims if the need arises.
- Additionally, you can view if the brand of solar panels is named as one of the top performers in annual PV Evolution Labs independent testing.
- And finally, you should be able to find out, through some internet research, whether the manufacturer has an office in Australia and its contact information. When your installer is no longer there, this will be vital if you need to claim a warranty.
How To Choose A ‘Good’ Solar Installer?
Selecting a good solar installer is more challenging. In the last few years, we have vetted over 1,000 solar installation companies.
TopSolar Quote Australia has been offering complete renewable solutions tailored to the needs of each customer. We provide recommendations based on our in-depth knowledge of the renewable energy market and our customers’ bottom line financial considerations.
Locally, our team of Engineers, Technicians, and Electricians can offer you reliable sustainable solutions to help you attain your renewable energy goals.
We’re very proud of our team, and they care about green living and renewable energy too! Our explanations of solar power don’t go into long-winded details, except for those who enjoy its technology.
We need our system to perform just as well as the previous system the customer has been using so that we can compete with mainstream electricity and other issues.
So that’s where we are today, as good as ever.