02 4760 0440 info@samssolar.com.au

Solar panels are fast becoming the standard for Australian homes, and you’re unlikely to see a new build or renovation without them. The benefits to our planet are undeniable, but the question of cost remains. Solar panels can come with a pretty hefty upfront price tag, but are they worth it in the long run?

The short answer to the question do solar panels save you money is yes, especially when you think about the 20+ year lifespan of most solar panel systems. They will pay themselves off within about 3 to 4 years, after which you are left with pure savings. Solar panels are also likely to increase the value of your home immediately, meaning you can sell or rent at a higher price.

Do Solar Panels Save You Money

How much money could I save?

How much money do solar panels save? The answer to this question depends on where in Australia you live. There are different policies affecting the price which vary state-to-state. The second factor which will impact your savings is how many panels you have since that determines how much energy your solar panel system produces.

If we average the savings out across the country, 6 panels will save you about $690 per year, 8 panels will save you $986 per year, and 12 panels could save you $1,478 per year. If you are investing in an even larger system, the savings continue to grow. At the largest end, 32 panels will save you an average of $3,952 per year, although of course that many panels is not realistic for most Australian homes.

The third factor that will impact your saving potential will be how much power you use in your home. If your home eats up a lot of energy, you are likely to save more than if your home is already energy efficient. Your home’s energy usage will also determine the size of the solar panel system that will work best for you.

How Does The Solar Saving Work

How does the solar saving work?

When we talk about saving money with solar panels, we are referring to paying less in utility costs, since you will be producing your electricity with your solar panel system. If you think about what you normally pay for electricity over the cost of a year and compare it with the savings outlined above.

What you are doing by using solar panels is cutting down on your home’s dependence on the power grid, creating your power either for direct use or by feeding power into the grid. There are a couple of different ways the savings could work in practice based on which of these options you go with.

If you are using the energy that you produce in your home then you will save money by not drawing from the power grid. Depending on how large your solar panel system is, you will likely not be able to cover all of your power using solar panels, but you should still see a significant saving.

If you are using feed-in tariffs, this means that you are selling the energy your home produces directly back to the grid, and your energy bill is reduced that way. Once again your bill is unlikely to be zero, depending on how good your home is at conserving energy, but you will still see significant savings.

When will I start to see savings?

Once your solar panel system is fully up and running, you will start to see savings right from your first power bill. It can be tricky to predict the exact saving that you should see, but a range of about 50 to 80% reduction is what you should be looking for.

The amount you save each month will fluctuate depending on environmental factors which impact your solar panel’s efficiency. During cloudy or rainy weather your solar panels won’t be able to absorb sunshine and will therefore produce far less power. This means that you can expect lower savings during winter or other overcast periods. Solar panels also struggle during high heat and are not able to work as efficiently. This means that your savings may also decrease during significant heatwaves.

Could I earn money with a solar panel system?

Using feed-in tariffs specifically could allow you to save money, but that would only happen if your home produces more power than you use, which is not the case for most homes with solar panels. It is also important to note that your contribution to the power grid won’t result in a cash payment. Instead, you will get a credit that is rolled over into your next month’s bill.

There is a more assured way to earn money through solar panels, and that is with the value bump your home is likely to see with solar panels. If you sell your home, your listing price will be higher, and if it is being rented, you will be able to charge more in rent because the savings will be passed on to your tenants.

Could I earn Money with a solar panel system3

How much does solar panel installation cost?

There are several factors to consider when trying to estimate the cost of a solar panel installation, including solar panel system size, type, and ease of installation. With all of those factors balanced out, you could be looking to pay anywhere from $2,500 for a 4-panel system, up to $13,000 for a 27-panel system. For a standard size home, the price is likely to sit around $3,500 – $6,000.

There are options for solar panel systems that sit below this price point, but with solar panels, it’s important to note that you do get what you pay for. Solar panel systems should run for around 20 – 25 years with proper maintenance, but that won’t be the case if the quality of your components is sub-par.

If $3,500 – $6,000 sounds like a lot of money to you, there are plenty of options to help you out. The first of these is the Solar Rebate Scheme, which allows you to get a subsidy for your installation.

For the rest of the outlay, there are several alternatives to paying out of pocket. You can add it to your mortgage at your current interest rates so you can pay it off over time. Depending on a few factors, you might even find that your solar panel system pays for itself immediately.

does the weather in my area impact my savings

Does the weather in my area impact my savings

We are lucky enough in Australia to live in a beautiful and sunny country, but some places certainly do get more sunlight than others. Solar panels only produce energy when they are exposed to direct, unobstructed sunlight.

If your area tends to be cloudier and rainier, then it may not produce energy every day of the year. The good news is that cloudier places tend to be cooler, and solar panels are more efficient in cooler weather. Above 25°C, solar panels become less efficient.

All types of weather in Australia have their pros and cons when it comes to solar panels. In a place like Queensland, where temperatures exceed 25°C most of the year, solar panels will still be a great investment because the consistent sunlight makes up for the loss of efficiency.

In the western states, where temperatures can be lower and weather can be more overcast, your solar panels may not capture as much sunlight but they will work more efficiently in the cooler weather.

If your solar panel system has a battery, you will also be able to store the energy produced for use during nighttime or overcast days. If you don’t have a battery you are likely to be utilising feed-in tariffs and because of that, you will still save money. The energy that you produce will be fed back into the power grid no matter the time of day. You will receive a larger discount when your solar panels produce energy during peak hours.

Regardless of the weather in your area, your solar panel system will pay for itself in the long run. It will just be a question of how long that takes.

Do Solar Panels Save You Money?

Without a doubt, solar panels will save you money in the long run. Your utility bill will immediately come down, and the initial outlay is likely to be repaid in around 3-4 years. Your solar panel system is likely to last up to 25 years, so after your investment is paid off, every utility bill from there will provide pure savings.

Not only will solar panels save you money, but they will also produce clean energy which has long-term positive impacts on the environment, and help make Australia a more eco-friendly place. Eco-friendly technologies are only becoming more popular, and it is likely that the value of your home will increase because of your investment.