Here in Queensland we are heading towards a very hot summer. Hot summers equal more electricity use and increasing costs. So why install solar panels on your home? In this blog we will discuss the costs and the pay back time for your solar investment.
What Is A Solar Break Even Point?
What Do STC’s Have To Do With The Best Time To Install Solar?
STC’s are a time sensitive rebate as the government is in the process of phasing them out. With the value dropping every calendar year, the longer you wait to install your solar system the less rebate you will receive. Right now, in 2019, your eligible rooftop solar system would receive one STC for every estimated 1,000 kilowatt-hours of electricity it would generate until 2030.
With a reduction to the rebate coming into effect every January, the earlier you take up the rebate, the more money you could save. The scheme is planned to be in place until the end of 2030.
How do Feed In Tariffs Factor into the cost?
FiTs, or feed-in tariffs are the rate your electricity company will pay you for your solar power. In a nutshell, when solar panels produce electricity and no one uses it, this power is transferred to the shared energy grid. For every kWh of electricity that your solar panels export, your energy distributor will rebate a few cents off your electricity bill. The feed-in tariff rate has been reduced in recent years due to ongoing cuts in government subsidies.
The minimum flat-rate feed-in tariff in regional Queensland is 9.369c/kWh, while South-East Queenslanders (on the Energex network in the Brisbane area) receive a voluntary FiT that’s usually around 10c/kWh. Some energy retailers may offer even higher FiTs – AGL and Click Energy both have solar deals with FiTs of 20c/kWh and 16c/kWh respectively.
How To Save Money When You Install Solar Panels?
The cost and saving of your solar energy installation is influenced by both your household electricity use as well as the size of the solar power system you install. Most qualified solar installers take into account your solar panel configuration, the type of inverter as well as issues like shading and spikes in electricity use.
Unless you also install a battery, solar panels only provide electricity when the sun is shining. Therefore, using your appliances a lot during the day if you are at home, means you will get more out of your panels.
Likewise, without a solar storage battery (like the Tesla Powerwall 2 or the sonnenBatterie), if you are at work all day you will still need to access the grid at night for your energy needs, costing you more money.
Some people run their washing machines or other appliances during the day to maximise their use of solar electricity, but to get the most out of the system, it’s a good idea to also run water heating, or space heating and cooling during the day.
The Alternative Technology Association found it was important to switch away from gas-powered hot water if households wanted to get the best value for money from solar. In a recent report the Association analysed the impact of the changes to feed-in tariffs in NSW, Victoria and South Australia.
“With space heating and hot water generally comprising somewhere between 50 per cent and 70 per cent of a home’s stationery energy needs, it is difficult to maximise the use of solar PV without using it to power one of both of these major loads,” the report said.
The latest figures show that around half a million (or 1 in 3 Queensland homes) have a solar panels installed on their rooftops, with the Queensland Government projecting this figure to rise to approximately one million homes by 2020. Getting your solar system installed before 2020 will also mean you are benefiting from a higher STC rebate.
Also with our Omega Care, you also get maintenance and annual servicing to ensure your solar system will operate at peak performance for many years. All designed to give you the best value for your investment.
Ready for the next step?
If you’re ready to join the “We Care” solar family, Contact us today and have a chat with our team! We’re always on-hand to answer any questions you might have or book a site inspection for your property.