If you own your home and you’re keen to be more sustainable with your household energy use, going solar is probably on your mind. But there are things to watch out for – and some top tips – to help you make the most of sustainable solar energy at home.
Some don’ts
Don’t automatically go for the cheapest quote you can find
When it comes to quality food, cars, the quest for soft, thick toilet paper and wine, we all know that the cheapest product on the market is rarely the best.
So when it comes to choosing a solar system to help generate more eco-friendly power, save money in the long-term and add value to a property, why do so many people look for the cheapest possible solar installation?
For professional installation of a quality solar system, expect a price range of between $5000 to $9000. This price is based on a 6kW system and reflects the savings from the solar subsidy.
Don’t wait for storage batteries to get cheaper
If you’re avoiding going solar because you’re waiting for batteries to come down in price, the truth is that battery prices are predicted to fall, but at the same time other costs connected to installing solar may go up.
Take the solar subsidy …
In 2023, the federal government solar subsidy scheme is worth about $396 per kW installed. So, for a 6.6kW system that might cost $9140, the financial incentive would reduce it by $2590, bringing your total cost down to $6550.
But although there is no announcement that the subsidy will end, it’s a fact that as demand for solar systems continues to increase, the value of this subsidy could be reduced at any time. In the past, the solar subsidy offered was less than $204 per kW installed, and if it hits that price again (or lower), it will make a significant difference to the cost of solar system installation.
Plus, for every year you put off installing solar, you are continuing to pay costly electricity bills – and they are on the rise.
Yes, great quality batteries to store solar power will result in a price drop in the future, but in the meantime your solar could already be working off its installation costs – and you can add the battery later.
Don’t buy an expensive battery unless you have solar energy to store
Paying for a top quality battery to store excess solar is pointless if your solar system is too small to produce excess solar in the first place.
The average family home needs a sizeable solar system to fill a typical home battery throughout the entire year. Think 10kW of solar or more, if possible.
But don’t buy a bad battery either …
Buying a shoddy battery can be a deadly mistake. When lithium-ion batteries charge and then discharge, the heat they generate is intense. Without professional installation of a good quality battery, fire can be a real risk.
Don’t avoid going solar just because your roof doesn’t face north
Peak time for solar power production is around midday. Yes, north-facing solar panels will provide the highest possible energy but with either east-facing panels that maximise energy in the morning, and west-facing panels that work well in the afternoon, you can still get electrifying results.
Don’t buy a solar system using ‘no interest’ finance offered by an installer
If you don’t have thousands of dollars saved, your only opportunity to get solar is with some form of credit.
Many solar installers offer ‘no interest’ finance. But there’s a reason that sounds too good to be true.
It is.
All finance comes at a cost. Sure, they may not call it interest but the end result is the same. To access this kind of credit, you can probably expect to pay 15-25 per cent extra on the solar system and installation.
Organise your own finance and avoid these ‘sign now and save’ kinds of deals.
Some dos
Do make sure you know the difference between the solar rebate and the feed-in tariff
First of all, that ‘rebate’ is more accurately a point-of-sale discount that reduces the cost of your solar system and is claimed by your solar installer, on your behalf.
What’s the ‘feed-in tariff’?
That’s what your chosen electricity retailer pays you, per kWh, when you feed excess solar into the grid. Retailers typically pay between 0-12 cents per kWh.
Get multiple quotes
Remember, when it comes to choosing something that can effectively power your home for years to come, quality is important. But by comparing solar systems – and the professionals who install them – you can save money.
Do install as much solar as your roof (and budget!) can manage
Depending on the size of your roof space, plus the rules of your electricity network, an experienced solar system installer can point you towards the largest system possible. Down the track, when top quality storage batteries are more competitively priced, you’ll be better off having a system that can produce excess energy to store, rather than a smaller system that barely meets your energy needs.
Do shop around for a great energy retailer
Going solar is one way to save on future power bills, but having the best possible energy plan to suit your household is another. Comparing energy retailers is easy. Being on the right plan could potentially save you hundreds of dollars per quarter.
The bottom line
With Australian scientists making incredible advances in the quest for more efficient, highly effective, low-cost solar power, it’s clear that renewable energy is the future.
For anyone building a new home, choosing solar is a no-brainer. People buying existing homes not yet connected to a solar system typically weigh up their potential return on investment based on a couple of key numbers.
The first is the cost of the initial outlay. The second is how much time may pass before they see the solar system installation making a positive difference to their power bills. But for a growing number of people, regardless of how the numbers crunch, the question about going solar is a case of ‘when’, rather than ‘if’.
This article originally appeared on Expert Analysis and is republished with permission. YourLifeChoices is owned by Compare Club.
Do you think solar is a no-brainer? Should there be more government assistance to install solar panels? Share your thoughts in the comments section below.
Also read: How the electricity bill relief payment works in your state
Disclaimer: All content on YourLifeChoices website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care but no guarantees are provided for the ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness in regard to your own circumstances. You should seek professional advice from a financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.
