How Much Is Solar Really Going To Cost Me
Going solar is a great option for people who want to live sustainably, while also saving money in the long run. For some, the upfront cost of solar power may be a deterrent, but that’s often because they don’t yet realise the long-term gain of swapping your typical system for a self-sufficient solar panel energy source. If you’re wondering “How much is solar really going to cost me?”, you’re not alone – read on to learn everything you need to know!
What is the real cost of going solar?
To calculate the real cost of going solar, you’ll have to take several different things into consideration: solar panels, installation costs, maintenance fees, a warranty if you choose to opt for one, and whether or not the panel system you choose is covering all your energy needs (or just some of them). There are also government rebates that may help to offset the cost, so this should be factored in as well.
First things first: the cost of solar panels varies. This is because there are different watt types available, and because each person has different energy needs. If you plan on powering your entire home, you aren’t going to purchase one solar panel – you’ll need to get an entire system. In Australia, the average household uses roughly 20kWh of energy per day. That means you will need to have a system that can meet those energy needs. A 5kw system made up of 250 watt solar panels will likely meet those needs.
The cost of a 5kW system will vary significantly but averages out at around $4,500 with installation. If you are looking for something more high-end and high-efficiency, those costs could rise to as much as $8,000.
Maintenance costs also need to be factored in. These cover cleaning and inspection of your solar system so that it continues to work as it should long after you’ve bought it. Average costs for maintenance range from $150 to $300 per year for a 5kW system.
Warranties on your solar system are one of the lowest costs, and can come in at roughly $350 to $500. Add in the money you could get back with government rebates, which ranges from about $1,850 to $2,900, and you’ll be looking at a total cost of around $4,000 with a lower end system and around $7,000 with a higher-end setup.
Is the cost of solar energy worth it?
Even with the rebates, many people may see those hefty numbers and think that it’s just not financially feasible to utilise solar power as their main source of energy. However, the cost is in line with the benefits.
The most obvious benefit is that you’ll be lowering your carbon footprint by using a renewable energy resource for your daily electricity needs. Being able to be part of an environmental solution is one benefit that can’t be measured in dollars and cents. Other benefits include saving money on energy bills, tax rebates, and eventually, saving enough so that the panels will have paid for themselves.
How much money do you save with solar panels in Australia?
While many people are aware that you can save money by using solar panels in Australia, the exact figure isn’t as clear. Factors such as whether or not you’re eliminating your power bills altogether will determine how much you actually save. For example, if you’re simply adding a solar system to supplement your power and reduce your bills, you can expect to save anywhere from 30% to 60% of your typical total charge for electricity. If you plan on eliminating the need for any grid-powered electricity, those numbers jump right up to 100%!
Depending on where you live, the average electricity bill in Australia can range from anywhere between $1,000 to $2,000 per year. In the event that you’re supplementing with solar power, you could reduce those costs to as little as about $500 if you fall under the low-cost scale and $750 if you live in a high-cost area. While you will still be paying for power, the costs will be significantly decreased.
Of course, if you’re eliminating all of your electricity bills and going completely solar, you will save the entirety of what you would have paid if you had kept using the same power source that you’ve always had.
How long does it take for solar panels to pay for themselves in Australia?
Something that many people forget to take into account is that solar power systems always end up saving you money in the long run because eventually, they end up paying for themselves. Considering the aforementioned numbers of what a household can save if they go either part or full solar, it’s easy to calculate the length of time it would take for you to save enough money to cover the costs of your solar panel system and then eliminate further costs down the road.
Using an inexpensive solar system in a low-cost area as an example: people who spend around $4,000 upfront are saving roughly $1,100–$1,200 per year. In just three to five years, the amount saved would cover the entire cost of the panels. That same timeframe applies to people who purchase a higher-end system and live in a high-cost power area. So essentially, no matter how much you pay for your power or which system you choose, you’ll be likely to have paid for your solar power in savings before five years have passed.
The upfront costs may still intimidate some people – which is understandable, as it can be difficult to justify such a large purchase. However, when it comes to solar panel power systems, it’s not simply a purchase. It’s an investment in your future, your bank account, and the planet as a whole.