Is Solar Power Installation Worth It?
As of December 21, 2020, New South Wales has recorded more than 630,000 small-scale solar power installations. It does not matter how much electricity you consume; solar power installation will be sure to be a long-term investment for you or your business.
What Is the Benefit of Installing Solar Power
Apart from self-sufficiency and efficiency, solar power installation adds value and benefits in the long run. Here is the best way to help you figure out how solar energy will benefit you.
Typically, installing a solar energy system could reduce your quarterly electricity bill by as much as $400 to $500. For instance, a 5kW solar system generates roughly 20 kWh a day. Depending upon your electricity usage, you may save up to $1200 to $1500 a year. A good quality solar system can pay for itself within 3 to 6 years.
An effective solar power system has a lifespan of around 25 years, and some can survive even beyond 25 years. Firstly, most solar power systems give a payback or return on investment within 5 to 6 years. It depends upon the quality of your solar system and the size of the system you choose. If you go for a bigger solar power system size, you can start seeing returns within 3 to 4 years. However, your payback hugely depends on the cost of your solar energy system and the government rebates. In addition, weather, direction, tilt, and electricity usage patterns also affect your payback.
How Does Solar Power Benefit You?
There are two ways by which you can start saving and benefit from your solar power installation.
Typically, you may be paying your electricity retailer about 30 to 40c per kWh. While, on the other hand, when you start consuming the energy generated from your solar panels, you can significantly save or cut down on that cost, which is called self-consumption. When your self-consumption rate is higher, you’ll reap higher rewards.
Secondly, you will start getting feed-in tariffs or credits from your retailer for the excess energy generated from your solar panels. In other words, every time you start feeding the surplus solar power to the grid, you start receiving credits. The rates of feed-in tariffs may vary between the states and the retailers. In NSW, you get a minimum rate of 6 to 7.3c per kWh, indeed much lower than the rates you pay for buying electricity.
Even though the feed-in tariff rates are lower, given the savings you make from self-consumption and the extra you receive for selling solar power, solar installation is beneficial and economical.
So, if you want to invest in a good quality solar system, this is the time as solar panels are more affordable and efficient now than ever before. Also, keep in mind that the solar rebates are reducing every year. So, make sure you invest in a good quality solar system from a CEC accredited solar installer for better performance.
Contact our expert solar installers located around Port Macquarie, Coffs Harbour, Newcastle, and the surrounding areas in New South Wales. Call Always Energy today!