What is the cost of installing solar panels and is it a good investment for your home improvement? Installing solar panels can seem costly, however you will save money on your power bills which will help you with paying for the cost of the system. The average estimate is that it will pay you back in saved power bills in under 7 years. Of course this depends on how much electricity costs in your area and how much you pay for the solar panel system installation. In many areas the time to get your money back is closer to five years. Something to think about is not only the pay back period, but also the time that comes after that, as you’ll be saving money going forward.
- Why should you consider solar power and what is it?
- What is the cost of installing solar power?
- What is the correct size system for you?
- Is it a good idea to invest in a solar battery storage system?
- Selecting the right solar panel installer & supplier
Why should you consider solar power and what is it?
Also called solar photovoltaic (PV) systems, solar power systems function by utilising the energy from the sun (solar energy) and collecting them within solar panels. These panels are usually mounted on a roof, but sometimes they can also be ground-mounted depending on the situation. The energy collected by these panels is transformed into AC (Alternate Current) with a piece of technology called an inverter. The solar panels will only function during the day, however battery storage systems are obtainable, these enable the extra power to be stored and then used at night time.
Over the years, two stages of solar power have been identified. Before the 2011, buying solar panels in Australia was very expensive and the time it took to claw back the cost in electricity savings was much longer. Since 2011, the prices of solar panel systems started to get lower and these days the cost has become more stabilised and is definitely affordable for most people, specially compared to the early days of the technology.
Along with the reduction in price, the reliability and efficacy of solar panels has improved considerably. This now allows home owners to purchase much larger systems for a lower price, meaning that their power needs are much more easily met, and with much higher quality systems too.
How Much Does Solar Power Cost?
These days typical price of a 5kW solar power system is between $6,000 and $7,000. However, some locations are more expensive. For example, people in the Northern Territory pay a lot more that those located in Adelaide. Perth and Sydney are even less expensive. SO for people who live in places like Mandurah in Western Australia, the cost is comparably pretty good.
If you are thinking of buying a 5kW solar panel system, you also need to consider the payback time. Typical payback times in various cities are around:
- 4.2 years in Adelaide
- 5.4 years in Brisbane
- 6.4 years in Canberra
- 7.4 years in Melbourne
- 8.2 years in Hobart
- 4.7 years in Darwin
- 4.8 years in Sydney and Perth & Mandurah
These numbers allow for the price of power in the various areas which is why places where power is more expensive (like Darwin) has the fastest payback time. The typical payback time in Australia is approximately 5.8 years. Regardless of the payback time, even the longest time still makes the investment into solar worth the price particularly as electricity prices are on the increase (which result in faster payback periods).
Estimations of families in Australia that already have solar power systems range from 1.5 million to 2.0 million. This quantity will undoubtedly rise in the future as the price of electricity power increases.
Numerous solar panels come with warranties of up to twenty-five years, this makes them an astute outlay seeing as their payback time is only an average of 5.8 years.
How To Get The Correct Size Solar Power System?
Solar power panel systems consist of several panels, and the extent of each system is based on the efficiency of the panels and how many you use. There is quite a variation for estimates due to the fact that solar panels may be fitted in locations where the sun shines less, and also in areas that get lots of sun. Solar panels can also be fitted onto rooftops that are partially shaded during the day time, which reduces their effectiveness.
Solar power is measured in “self-consumption” which is an indication of how much energy you use during the day. These are some estimates of how much energy you will save for different energy consumption levels with a 5kW to 10kW system measured in kilowatt hours (KWh):
- 5-10KWh will save 30 percent
- 11-15KWh will save 48 percent
- 21-25KWh will save 66 percent
- 31-40KWh will save up to 82 percent
It is possible to get a solar system that is too large for your household, but you don’t want to get a system that is too small for your household. Solar power retailers and installers can help you find the perfect system for your needs and a smaller system for a smaller household will cost less than a larger system.