6 reasons you should invest in a solar system for your home

Unless you’ve been living in a cave for the last few years, you would have noticed solar panels across many Australian homes and businesses.

The reason for this is because first and foremost solar cuts your electricity bills substantially and systems pay for themselves within 3-5 years through lower bills.

solar panel image

In case you need convincing that solar is a great idea, here are the 6 reasons you should invest in a solar system for your home:

  • Great return on investment and payback periodsAt the end of the day, a solar system is a financial investment because you invest an initial amount upfront and you then get a return over the coming decades through reduced power bills. The size of the system you install will determine how much you spend and also how much you save per year. You can expect systems installed today to cost you between $3,000 and $8,000 and pay for themselves in around 3-5 years which by any measure is a great investment.
  • Protect yourself against ever increasing power pricesAustralian power prices are amongst the highest in the world and prices are expected to keep rising pretty rapidly over the coming year. By installing solar, you’ll be substantially reducing the amount of electricity you buy from the grid and be less affected by future price rises.
  • System prices have never been lowerThe cost of solar panels and inverters have dropped substantially over the last 10 years and systems are cheaper and more accessible today. In 2010, a 5kW system would have set you back a cool $25,000. Today, you’ll spend around $5,000 – $7,000 for a decent quality 5kW system.
  • Generous Government rebates are still availableUnder the Federal Government’s Renewable Energy Target (RET), when you install a system you produce Small Technology Certificates (STCs), which are a form of rebate. This amount is taken off the price of the system by the installer. This amounts to around $4,000 for a 5kW system.
  • Feed in tariffs still pay you for the power you export to the gridA Feed in Tariff is a payment you receive from your retailer per kWh for the power your system produces that isn’t consumed in the house, and therefore sold back to the grid. Although this rate is substantially less than it was 5 or 6 years ago, system prices are also much less so payback periods are still about the same at around 3-5 years.
  • Systems last for decadesSolar panel and inverter technology has come a long way over the years and is extremely reliable. Because solar panels have no moving parts, most come with performance warranties 25 years, and inverters, which are the brain of the system typically have warranties around 10 years. With systems paying for themselves in between 3 and 5 years, your system will pay for itself long before its out of warranty.

If you’d like to get quotes to see how much exactly you can expect to spend on a system plus how much you can save on your bills over the coming years, Solar Market can help by organising quotes from Clean Energy Council certified installers in your local area plus we provide tools and guides to help you through the process.

Download Your FREE Beginner’s Guide To Solar Power!

Beginners Guide to Solar Power

If you’re considering solar for your property or just looking to maximise the savings for your solar system, download a FREE copy of our "Beginner’s Guide To Solar Power".

Become an expert and better understand the ins and outs of solar power and solar PV systems for your property.

Includes detailed explanations and diagrams of the various types of solar systems and their parts, solar battery storage systems, Government incentives, expected ROI periods, finance, energy saving tips and more!

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Understanding Batteries

Off-Grid Systems

For some households a battery system can be of great benefit and minimise a home’s reliance on the grid. However, it’s important to understand for a battery to be useful your solar system needs to be generating excess energy for the battery to store, which you can then use at night or when the sun is not out.

When selecting a battery, you’ll want to invest in a system that is most suited to your home and can drive the best return on investment (ROI). Despite a larger upfront cost, a higher quality battery may significantly increase your ROI.

    Battery systems start from $6,000 and costs can vary greatly based on the following factors:

  1. Cycle Life-Time

    The number of times a battery can fully charge and discharge.

  2. Battery Power (kW)

    How fast it can be charged or discharged.

  3. Storage Capacity (kWh)

    The maximum amount of energy a battery system can store.

  4. Battery Management System (BMS)

    An electronic ‘smart’ system that gathers data and manages the battery ensuring it does not overload or operate outside of its safe functioning zone..

  5. Inverter

    Battery systems require their own inverter if your solar system does not have a hybrid inverter.

  6. 'All-In-One Unit’

    A system which includes the battery, BMS and an inverter all in one unit.

  7. Warranty

    Length of time or cycles the battery system is under guarantee.

  8. Blackout Protection/Backup

    It’s important to note this is not a common feature of a battery system and could cost thousands of dollars to include. Blackout protection not only requires additional components but also a specialised installation and rewiring. For grid-connected homes, the cost for blackout protection can outweigh the benefit.

Additionally, if your purpose for adding battery is to go Off-Grid and become completely independent from the grid you will need to ensure your solar system can generate enough energy to power your home and your battery system is large enough to store this energy. For homes in metro areas going Off-grid is not cost effective and is only recommended for those in remote areas with limited access to the grid. Off-grid solar systems with battery start at approximately $30,000.