Many Australians are choosing to invest in solar energy to save money and do their bit for the environment. But is the investment actually worthwhile? How much money can you really save?
You’ll find all the answers you need in this article.
How much money do you save with solar panels in Australia?
| Size of System | Number of Panels | Average Annual Savings | Lifetime Savings |
|---|---|---|---|
|
2kW |
8 |
$986 |
$22,185 |
|
4kW |
16 |
$1,971 |
$44,437 |
|
6kW |
24 |
$2,981 |
$67,072 |
|
8kW |
32 |
$3,952 |
$88,920 |
When choosing a solar system for your home or business premises, it’s worth weighing up the initial investment costs against your annual and lifetime savings.
Keep in mind that if your state has a higher cost per kWh for solar, you’re likely to save more.
How do solar panels save you money?
Now, let’s discuss four key ways solar panels can help you save money.
1. Lower electricity bills
Of course, the first and most obvious way you’ll save money by installing solar panels is through lower electricity bills. While solar systems in Australia cost between $4,000 and $6,000 to install (for a 6kW system), you’ll save money in the long run thanks to the significant drop in energy costs.
During daylight hours, your solar system will produce electricity. Any excess energy the panels generate will feed back into the grid unless you’ve diverted the energy to a solar battery or another location.
Your property will always use clean energy generated by your solar system before it sources power from the grid. In turn, you’ll see a big drop in your electricity bills—around $1,500 a year for the average Aussie family.
2. Sell solar back to the grid
States across Australia run schemes where solar owners can sell excess energy back to the grid. These schemes have names such as solar feed-in tariff, solar bonus scheme, or solar buy-back scheme.
Under these scenes, you can receive payments for the electricity your solar panels feed back to the grid. For example, in South Australia, locals can enter into the retailer feed-in tariff scheme with an eligible solar PV system. The payments received by retailers are variable, based on market competition and wholesale prices.
3. Solar rebates
Some states also offer solar rebate schemes to encourage locals to install clean energy systems. For example, in Melbourne, rebates of up to $1,400 are available for eligible buyers.
4. Reduce energy consumption
Installing solar can also have the knock-on effect of reducing your energy consumption by making you more aware of your energy use. Generating your own electricity is a great way to learn about how much energy your household appliances use and where you could make changes.
Start saving money today
Installing a solar electricity system is one of the smartest investments you can make for your wallet and the environment. Learn more today by getting in touch with our helpful team.
