That solar power systems save homeowners money is not in question, but how much money can you realistically expect to save by installing a solar solution at home? To accurately answer that question, take the following factors into consideration:
Your Household’s Average Energy Consumption
Look at the back page of your most recent power bill where the amount of energy consumed is shown in kilowatt hours (kWh) to determine how much electricity your household currently uses. A household with large energy demands usually requires a solar power system in the 5KW range (or higher) which generates between 18kW/h – 25kW/h. Contact us to learn whether there are any regional limitations to the size of the solar power system that you can install in your area.
Your Usage Patterns
Solar power systems use the clean, natural energy they produce during the day before drawing power from the grid, with any excess energy produced directed back into the grid. This helps to offset your energy bills as your energy provider will credit you for the energy fed back into the grid by your system.
The Size Of the Solar System Installed
Choosing a solar power system that’s ideal for the size of the property and your household’s consumption behaviour is essential if you are to maximise the amount of money you save on your power bills.
Consequently, you need to select a solar power system that is large enough to maximise your ROI by covering your household’s energy needs and reducing your payback period, without exporting an excessive amount of surplus energy back to the grid. Now that feed-in tariffs have dropped, you could find yourself selling the excess power your system produces to your energy provider for significantly less than they charge you for the electricity you use.
Your Feed-In Tariff Rate
If you have the option of shopping around to secure the best feed-in tariff rates on offer be sure to do so, as rates vary between energy providers as well as state-to-state. Most homeowners who sign an agreement with their energy provider are offered a feed-in rate of 8c/kWh, but it may be possible to secure a better tariff by comparing the rates on offer.
Before you start calculating how much money you stand to save by installing a solar power system, ensure you have confirmed exactly how much you will be paid for the power your system feeds back into the grid.
Your Geographic Location
Although Australia has a higher solar radiation rate than any other continent, some regions enjoy a higher radiation rate than others, so there’s a greater opportunity to harness more of the sun’s power in some areas than there is in others. This means your geographic location influences how much energy your solar power system can produce, which in turn determines how much money you stand to save on your power bills.
For example, as Queensland has a higher solar radiation rate per square meter than Victoria, a solar power system installed in a Brisbane home will yield more solar energy than the same unit installed in a home in Melbourne. This means a 3kW unit installed in an area with strong solar radiation may produce as much solar energy as a 4kW unit in an area with less solar radiation.
To get an idea of how much a 3kW system saves on average annually, take a look at the table below. The two values listed illustrate the average savings homeowners received based on the export of 5% and 25% of electricity.
Annual FIT & offset value based on a 3kW system |
||
| Location | Based on 5% electricity feed-in |
Based on 25% electricity feed-in |
| Victoria | $866 | $750 |
| South Australia | $1226 | $1162 |
| Queensland | $1146 | $1060 |
| Western Australia | $1128 | $1030 |
| New South Wales | $1126 | $934 |
| ACT | $950 | $788 |
| Tasmania | $866 | $750 |
| Northern Territory | $1046 | $938 |
The annual FIT & Offset values estimations listed above are provided by the Clean Energy Council of Australia.
Maximising Your Solar Savings in Perth and Western Australia
To truly understand your solar savings in Perth, you need to look at how Western Australia handles energy exports. Synergy charges 32.3719 cents per unit for electricity bought from the grid on the standard A1 residential tariff. However, what they pay you for excess solar energy depends heavily on the time of day. Under the Distributed Energy Buyback Scheme, exported electricity earns 10 cents per unit between 3pm and 9pm, but drops to just 2 cents per unit before 3pm or after 9pm.
This large gap between buying and selling power means Perth households get the best return by shifting their power use into the daylight hours. Running heavy appliances like pool pumps and washing machines before 3pm prevents you from buying expensive grid power later. It also leaves your late afternoon solar generation free to flow back to Synergy during the more profitable afternoon and evening window. Customers still on the older Renewable Energy Buyback Scheme receive a flat 7.1350 cents per unit for their exports.
Local weather and building materials also play a part in how well your system performs over time. Perth summers subject inland rooftop setups to intense heat and UV, while homes near the Indian Ocean deal with salt building up on mounting rails, brackets and fixings. Whether your panels are fixed to traditional terracotta tiles or modern Colorbond roofing, keeping the hardware in top condition ensures your system continues generating enough power to earn those valuable buyback credits.
- Run heavy appliances during the day to avoid paying 32.3719 cents per unit from the grid.
- Export your excess solar power between 3pm and 9pm to earn the higher 10 cents per unit rate.
- Check your brackets and fixings regularly for salt corrosion if you live near the coast.
