Do Solar Panels Really Save you Money?
The benefits of installing solar panels are widely touted by solar companies. They include that solar is a renewable source of energy, reduction of greenhouse gases, low maintenance costs, being at the forefront of energy technology development and, of course, lower energy bills. But is it really cheaper to install solar panels than pay for energy off the grid?
In this article we look into the Australian energy industry and compare the cost of installing solar panels to the cost of remaining on the grid. Of course, due to the long term nature of the investment, the data in this article is subject to change and may be affected by government policies and new technology development.
Cost of traditional energy
Power costs vary from state to state, with the average annual household power bill being highest in South Australia ($2,300) and lowest in Victoria ($1,100). However, there is a trend of rising costs across the whole country.
When you install solar panels, you are basically creating a mini power plant on your roof to generate electricity and replace that being drawn from the grid. This means that those with high energy usage will save the most if they install solar panels. A quick review of your power bills over the last year will show exactly how much you have spent and give a baseline figure to calculate whether solar panels will save you money.
How much does a solar energy system cost?
The cost of a solar power system really depends on the supplier and type of system being installed. Battery storage can increase the cost of installation, but enables the household to go completely off-grid or even sell power back to the market. A good quality system costs on average around $10,000, although it is possible to buy and install solar panels for a small home for as little as $3,500.
Whilst cheaper solar systems are available, a good quality system will last much longer (up to 20 years with today’s technology) and may save more cash over time. Ongoing maintenance costs for quality panels are generally very low, so you will only need to budget around $100 per year.
Depending on the state in which you live, you may be eligible for a rebate on solar usage that could save thousands of dollars. Rebates are available for households, small businesses, community groups and commercial entities, so contact a Lendfin Energy specialist to find out what is available in your state. Futhermore, each Australian state offers a feed-in tariff, whereby you can sell any excess energy back to the grid. This income can often offset the cost of solar panels or the interest on a solar loan over time.
What is solar financing?
Solar financing is a loan structure designed specifically to fund the purchase and installation of solar panels. It can be a sensible option to finance the up-front costs associated with going solar whilst enjoying the immediate benefits of a lower power bill. Solar financing is available for both individuals and businesses, so contact a Lendfin Energy specialist today to accelerate the installation of solar at your property.