The benefits of solar power for your household
The benefits of solar power for your household can no longer be overlooked. While politicians and media personalities will argue all day over the moral reasons, everyday Australians can’t ignore the direct financial and practical advantages that a solar PV system can bring. Rooftop solar panels are a long term investment that can pay for itself within 3 to 5 years and then produce free electricity for the lifetime of the system, on average around 25 years.
If a door-to-door salesman came offering you free electricity you would think they were selling you snake oil, and yet that is what solar technology has achieved. From reducing your power bills and your reliance on unstable grids, to lowering your carbon footprint and taking advantage of natural Australian resources, below we take you through the direct benefits that solar power can bring to your household.
Reduce your power bills
In terms of the direct benefits of solar power for your household, it’s hard to look past the immediate financial savings you can enjoy as a result of reducing your electricity bills. According to the NSW government, the average Sydney household can save around $900 per year by installing a 4-kilowatt solar system on their roof. This figure can be even higher with a larger solar system if it is appropriately matched to your household energy consumption, location, budget and needs.
How does a solar photovoltaic (PV) system work?
As your panels absorb sunlight, they stimulate the flow of electrons which creates a direct current (DC) of electricity. This DC flow is sent to your system’s solar inverter, which turns the electricity into an alternating current (AC). This AC electricity can be used to keep your lights on, power your appliances or even feedback into your local electrical grid.
So how does solar power reduce your power bills?
While a rooftop solar PV system won’t change the rates that you receive from your energy provider, it will reduce the bottom line on your power bills. This is a result of using less electricity from the grid and more of the power created by your solar panels. How much you can save is determined by how well-matched your system is for your needs. Some of the key factors to consider when assessing the right system for you is:
- The solar system’s size, quality and location
- How much electricity your home typically uses
- Whether you use electricity in peak or off-peak times
- Your local weather conditions
- Any solar incentives offered by your retailer
Help the environment
Solar panels are a smart, simple and effective way to reduce your carbon footprint and do your part to help the environment. Solar energy is a crucial part of the green revolution, a global movement to phase out our reliance on destructive sources of fuel that are running out and instead adopt clean, renewable energy sources. Solar PV systems produce electricity for your home without any air or water pollution. As a carbon-free source of power, solar energy can reduce the impact that your household has on the environment by reducing the amount of harmful emissions required to support your everyday electricity requirements.
While many people are oblivious to the impact that their actions have on the environment, each time you turn on a light or an appliance, you are using electricity that must be powered by a fuel source. Without solar panels or an alternative fuel source, you are relying on the local electrical grid, which is powered by finite resources which pollute the air and water.
How much do solar panels lower your carbon footprint?
A residential solar system can supply the energy needs of your entire home while emitting 80% less carbon into the atmosphere than standard fossil fuel sources. In practical terms, a standard 6.6kw rooftop system can reduce your household carbon footprint by 10.6 tonnes of CO2 emissions every year. Over the lifetime of your system, an average 6.6kw solar panel system can reduce your impact on the environment by 243 tonnes of CO2.
High return on investment
A home or commercial solar system provides high return on investment (ROI) through its capacity to pay for itself and continue to provide value and financial savings over its approximately 25-year lifespan. The Australian Government’s Department of Industry, Science, Energy and Resources calculated in November 2021 that a typical solar PV system has a payback period of 3 to 5 years. This figure indicates that the financial savings that solar panels provide in energy bills will outstip the initial cost of the system within 3 to 5 years and will continue to save its owner money by producing free electricity.
Once your solar system has completed its payback period it will become a lucrative investment that will offer positive ROI in the form of reduced energy bills, feed-in tariffs and even the potential to add value to the price of your property.
How do solar panels save you money through feed-in tariffs?
Solar panels provide financial benefits for your home or business through reductions in your energy bill. These savings occur in two distinct ways: using less of the electricity from the grid and feed-in tariffs (FITs). FITs are financial incentives given by energy providers to customers who send excess electricity produced by their solar system back into the grid. The exact rates will depend on the energy company, your location and the type of contract you have. In short, any excess electricity you generate provides the opportunity to increase the ROI of your solar system through FITs.
Can solar panels add value to your property?
Research conducted by realestate.com.au and Origin Energy found that 85% of people in Australia agree that a rooftop solar PV system adds value to a property. While the potential value will depend on the type of solar system as well as your location and the market, further studies suggest that solar energy can increase your home value by as much as $6,000 per kilowatt of solar installed, potentially boosting the value of a property by $29,000 for a 5kw system. There are no guarantees with the property market, but with Australia leading the world in home solar installation, clearly Australians are willing to put their money where their mouth is when it comes to renewable energy.
Get off the grid
Making the switch to solar power is a move towards energy independence. This not only reduces your reliance on coal sources, but also your dependence on expensive electricity providers and unreliable grids. Australian electricity prices are notorious for sudden increases and unstable rates. This issue has only magnified throughout the COVID-19 pandemic and resulting supply chain disruptions. These types of issues pose a threat to your wallet as energy providers seek to maintain their profits.
The other challenge for every day consumers is the rising rate of environmental disasters that cause blackouts and grid failures. With the global scientific community predicting more frequent and severe disasters as a result of climate change, the need to safeguard your home through energy independence is growing rapidly.
Using a rooftop solar PV system to power your home protects you from electrical price fluctuations and the whims of energy providers. Solar panels are an important step on the path to energy independence. For those seeking to truly get off the grid and reduce their dependence on for-profit electricity providers, solar batteries can ensure that the electricity produced by your solar system stays in your hands. Solar batteries allow you to store your excess energy and tap into it when it suits you. Instead of relying on the good will of energy companies, you can invest in your future by investing in the growing renewable energy market.
Take advantage of natural Aussie resources
There’s a simple reason why over 3 million Australian homes have solar panels on their roofs, we’ve got plenty of sun! Australia is one of the sunniest places on earth. We lead the world in solar PV capacity per capita, with a rate eight times higher than the global average. The result is that Australia also has the highest uptake of solar energy worldwide. When you start to take notice of our abundance of sunshine and its potential to power Australian homes and businesses, paying exorbitant prices for environmentally unsustainable coal can start to feel like a bit of a ripoff. Once a solar PV system has completed its 3 to 5 year payback period, it is an investment that can harness the natural Australian sunshine to provide you with free electricity over its roughly 25-year lifespan.
Start saving with solar
Australians are investing in solar power for their home at a faster rate than anywhere in the world. To find out how you can join the growing list of Aussies enjoying the benefits of home solar energy, get in touch with us today. Get in touch through our website or give us a call on 131546 today.