In the typical Australian home, high-quality solar panels should save you money long-term. They could even eliminate using electricity from the grid. However, the average energy costs of an Australian home can vary. The variations of location and individual demands can drastically alter the money-saving potential of solar panels.
How Much Money Can You Save with Solar Panels?
The following calculation suggests the savings that an average Australian home can make through the installation of solar panels. It doesn’t include a feed-in tariff, where you sell surplus electricity to the grid.
Energy usage in different households varies enormously depending on individual requirements. But when you make a balanced estimation, the typical Aussie home might use 8,000 kW per annum. This could cost you around $3,200 for the year.
A standard solar panels installation could generate the 8,000 kW you need in its first year of use. But let’s assume it only provides three-quarters of your requirements, with the remainder supplied by the grid. You could still save $2,400.
Recouping Your Investment in Solar Panels
The cost of solar panels with an average 6.6 kW output could be approximately $6,500. A high-quality system should last at least twenty-five years. Based on the above savings, you could recover the installation costs in about three years.
It means that for the remaining twenty-two years, you could save a massive $52,000.
But what if your electricity consumption was so great, solar panels could only supply half your needs? You should still be able to pay off the initial cost after four years. You could then save around $33,000 over the lifetime of your solar panels’ system.
Of course, over twenty-five years, your household’s requirements could alter. Your kids might leave home, reducing your electricity usage even more. But then, this benefit could be offset when you switch to vehicles that require electrical recharging overnight.
Can Solar Panels Increase the Value of Your Home?
The threat of irreversible climate change is encouraging the use of renewable energy such as solar panels. Government data reveals there were 2,897,835 new installations by the end of July 2021.
Let’s assume these are high-quality installations of at least 5 kW. They’ll not only provide savings on electricity bills, but they could also increase the value of each home by an estimated $30,000.
What if you invest in high-quality solar panels worth approximately $6,000 immediately before selling your home? They could theoretically pay for the installation five times over. You’d make a profit even after investing in solar panels for your new home.
Effective Battery Storage
Self-sufficiency from the grid is only realistically achievable if you add battery storage. It maximises the energy produced from the sun’s rays during the day by storing it for use at night. It also compensates for days when the sun isn’t shining. That’s when your solar panels operate at around one-quarter of their usual efficiency.
Batteries can often cost more than solar panels. For instance, a superior battery might cost approximately $15,000. It means your total investment of solar panels plus battery could cost up to $21,500.
In return, your solar panels could free you from purchasing any electricity from the grid. It means you could save around $3,200 every year on your household bills. If your system generates more power than your battery can store, it can usually be sold to the grid.
Based on these figures, your solar panels and battery system could take around eight years to recoup the installation costs. With at least seventeen years left of its twenty-five-year lifespan, you could save an estimated $54,000. In the meantime, you gain independence from the grid’s future price increases.
Always pay for a professional battery installation. If it’s not correctly installed, it can be unsafe and invalidate your home insurance.
Improving Efficiency with Smart Technology
When you invest in solar panels, including Smart technology could help you save even more money. Fitting Smart plugs between your appliances and the power outlet sockets enables you to remotely operate the electrical items of your home. You simply use your smartphone from any location.
By using online tools or apps, you can also monitor your energy usage throughout the day. It helps you realise where you could be wasting money, such as leaving equipment on standby. Smart technology can even be integrated with home automation services like Alexa.
Solar Energy and Lighting
You can save money and make your stored solar energy go further if you install LED lighting. Compared to incandescent lighting, LED bulbs have an energy efficiency rating of up to 85%. LED bulbs also have an incredibly long lifespan of at least 50,000 hours.
It means that even with average daily use, your LED bulbs could last for many years. LED lighting is also versatile as it can be used both indoors and outdoors. When installing solar panels, it makes sense to save as much money and electrical power as possible. Then your savings could be significant.
Factors to Consider
When installing solar panels, you need to consider their location. North-facing roofs are the most efficient. But you can compensate for a less than ideal orientation by installing additional panels. Different territories can also make a difference. The heat and humidity of Queensland could compromise the efficiency of inexpensive solar panels.
Your lifestyle can increase or decrease the savings you make from your solar panels. Without battery storage, any electricity you use at night will have to be paid for from the grid. In this case, use appliances such as washing machines during the day using your solar-generated electricity.
Recharge vehicles in daylight hours. Cook meals in advance so they only use minimal electricity when reheating in the evening. Heating water is more cost-effective during the day, so ensure your water storage tanks are sufficiently insulated to conserve heat and energy.
Where you live is important, as the daily sunshine in Australian cities can vary. Melbourne is one of the lowest, with an average of 185 sunny days each year. The sun shines in Brisbane on 261 days. Western Australia enjoys plenty of sunshine, with 265 days in Perth and 286 in Rockingham.
Conclusion
Installing solar panels in your Australian home can save money. How much depends on your home’s size and location. Your lifestyle also determines how much electricity your solar panels need to generate.
You have the most potential for saving money by adding battery storage as it provides free electricity throughout the night. High-quality solar panels can be an effective way to save money in Australia.
