The cost of electricity in Brisbane or Australia in general is highly dependent on the number of people in a household, and how often each person uses electricity. Average household bills are around $140-150 a month. A typical bill for an Australian family with two children will be around $220 a month and for families with three children, the average bill is around $320 a month.
For most consumers, the primary motivation for solar is to reduce their energy costs. For most of us, solar is an investment. So, we want to see how solar helps in giving us a return on our investment. In this article, we are going to show you how you can save money on your energy bills with solar power.
How solar can reduce energy bills with an example:
Solar power is the source of power for your home, so as more solar energy is generated for your home, less money will be spent on electricity from the grid. This means that for every kWh of solar power you generate in your home, you are directly saving money on your electrical bill.
Let us help you understand how much you save with help of a simple example:
Let’s suppose you have a 5kw solar panel at your home. If you’re a household with 3,000 kWh of electricity use each quarter, you’re paying around 21 c per kWh for every kWh in Brisbane.
3,000 kWh x 21 c per kWh = A $630 quarterly bill for the non-solar owner (before fixed service charges and GST).
Now, let’s consider the benefits of incorporating solar into the equation
If you generate electricity from a solar photovoltaic (PV) system and don’t feed it back into the grid – because you’ve used it to power something in your home – the electricity is free. The sun isn’t out 24 hours a day, though – which means you can only take advantage of your solar system during the daytime.
Let’s assume that you consume 40% of electricity during the daytime.
This means 40% of 3,000 kWh= 1200 Kwh.
This is the actual self-consumption.
The rest of 1800 Kwh of power we need to procure from the grid for 21 cents.
So solar panel owner has used (1800 * 21 cents= $378) of grid electricity.
A 5kwh of solar panel system would probably export around 800 kWh of solar power to the grid. And if we assume that you get 10 cents per kWh exported to the grid then you will be credited
800* 10= $80.
$378 (bill with solar) – $80 (credit from exports) = $298 (net quarterly bill with solar).
So your new power bill with solar = $298
So you are saving $332 per quarter on your electricity bills. ($630- $298).
How much does it cost to install the solar panel?
The cost of installing a 5Kw solar panel including the basic price is somewhere around $8000 to $10,000. This cost varies if you want to install more solar panels.
There are a lot of players in the market who are ready to install solar panels at cheap prices as low as $4000. But this results in bad installations leading to less output and low savings.
NuWay solar only work for quality installations and this gets reflected in our satisfied customer reviews.
Factors affecting solar savings:
Several different factors determine how much you can save on your solar system. Let’s take a look at the most important ones.
● Your energy consumption:
When solar power systems are installed, it’s important to consider both your monthly consumption and the size of the solar system that will work best for your home. The higher your consumption, the more you’ll benefit from going solar. You also need to change your habit of using appliances that use power to run them off more often during the daytime. This will help you in saving more on energy bills.
● Location of your residence:
Some places are better for solar. For example, Southern Queensland is a good place to install solar panels. Solar panels are most effective when they face north. If you don’t have a north-facing roof or your roof is shaded, you’ll need more panels to compensate. You may also find that you are only able to receive a limited return on your investment. Similarly, the weather conditions at your place will help you in determining the importance of solar panels savings.
● Your solar system
The quality of the solar panel or system will affect the amount of savings on your system.
So you must seek professional advice before purchasing a solar system. Do thorough research on the available solar installers in your city or nearby areas.
Try to talk as much as possible to know how they are going to help reduce your energy bills.
Do a cost-benefit analysis to determine the quality vendor for solar installation.
The best advice ever, aside from insisting on a quality system, is to obtain the exact system you need for your current needs. If you make an underpowered purchase, you can be certain that you’ll be dissatisfied with your decision in the long run.
Don’t run for cheap solar panels looking at the short-term benefit of saving money now because that results in wasting money down the track.
Solar panels have been around for decades, but only in the past few years have they been affordable for most families. If installed properly, solar panels can save you thousands over your lifetime. Subsidies have made it accessible and given millions of Australians access to solar power.
The amount you save will be determined by how much energy you use and how much sunlight you get. Your circumstances and location play a big role, too. Solar technology is extremely efficient these days, which means even people with the most difficult solar conditions can find a solar solution that will allow them to benefit from significant savings.
Solar power is a wise investment for the average Australian home. You will save money over time, and you can start saving faster than you would if you used any other type of electricity supply. Renewable energy is also good for the environment. Many people who install solar panels on their roofs don’t even realize how much they have saved their household over time.
All you need is the right solar power installer who can help you save big bucks on your energy bills.
NuWay Solar has also helped in reducing energy bills by quality installation services at residential and commercial premises. If you want to know more about how our company helps in reducing energy bills visit nuwaysolar.com.au