Australia stands as the global leader in installed solar panels per capita. The nation’s enthusiasm for solar power is glaringly obvious, with more Australians leaping yearly. However, some may still question whether the investment is a bright idea. In this post, we will reveal the return on investment for a 6.6KW solar system, letting you decide whether solar for your home is worth it.
How do Solar Panels Work?
The solar panels on your roof generate D/C power which is converted to A/C power through your solar inverter. This power is used in your home directly from your solar system instead of you paying for power from the grid. The excess solar power that you do not use is fed back into the grid and your energy provider will pay you a solar feed in tariff as a credit on your energy bill.
How Much Can I Save With Solar?
Most Australian homes have installed a 6.6KW Solar System if they have single phase power supplied to their Switchboard. However, people are now increasing to 10KW Systems and above as they are transitioning to life with an Electric Vehicle. These savings below are based on a 6.6KW Solar System: For example, if your home is using 35kWh’s a day without solar. (Prices based on the 2023 Ergon Retail pricing) 35kWh x $0.33 c/kWh x 365 days = $4215.75 A typical 6.6KW Solar system will produce on average 30kWh a day. If you used 50% of this solar power and exported 50% to the grid you would save: 15 kWh x $0.33 kWh x 365 days = $1806.75 15 kWh x $0.134 kWh x 365 days = $733.65 (Solar Feed in Tariff Credit) Total Saving = $2540.4 Please note this is for example purposes only as every home usage pattern is different.
How do I Save More with Solar?
The goal is to use as much of your solar energy as possible. This is achieved by using your appliances during daylight hours, such as pool pumps, hot water systems, dishwashers and washing machines. Even full-time workers can benefit from solar power as appliances can operate through smart timers. This will only return better value for you if you use your solar system to charge up your Electric Vehicle or Home Battery System. This is what can be saved if you use all your 6.6KW Solar Systems. 30 kWh x $0.33 kWh x 365 days = $3613.5.
What is the Return on Investment with Solar?
Depending on which brands you use, a 6.6KW Solar system can cost between $7500 - $9500. When working with the above saving examples solar can be paid back in 3-4 years still today.
Pay off a Solar System Not an Energy Bill
So many of our customers are choosing to pay off a solar system through Green Loans or other Solar Finance options. They are using their savings on their energy bill to pay off their solar system loan which makes much more sense then just giving it to a energy company.
If you have any questions or would like a quote for solar you can contact us here.
Founder of Horan & Bird. Director of Master Electricians Australia and Board Member of Solar Accreditation Australia. John has played a key entrepreneurial role in the transformation of the Energy Landscape in Queensland.
