Installing solar panels could save you up to 80 per cent on your home energy bills, but experts warn you can also risk losing thousands and thousands.
With electricity bills skyrocketing over the past couple of years, more and more people are looking to the sun to power their homes, businesses and EVs. But when it comes to getting solar panel infrastructure installed, there are a lot of things to consider.
HOW MUCH TO INVEST
One of the risks homeowners face when installing solar is overcapitalising.
“With solar and battery it definitely needs to be ‘buy once, cry once’ as such,” says hipages solar expert Brittany Gardiner, general manager of MKG Electrical. “Overcapitalising is either getting a solar system that produces way too much solar that your house isn’t going to consume and that once your battery’s full, it’s just going to go back to the grid and you’ll only get a small tariff.
“Or, on the same token, getting a battery that your solar system’s never going to fill – it just really drags out that return on investment.”
With more homes installing it, solar is fast becoming the way of the future. Picture: Mario Tama / Getty Images North America / Getty Images via AFP
She says knowing how much to invest in solar really comes down to your household’s daily use, which can be estimated by doing an analysis of the last 12 months of energy bills.
Director of Stadium Real Estate Rachel Lawrie says it’s also important to consider your financial situation and goals before investing in solar.
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“Don’t put yourself under financial pressure just to get solar unless those numbers match up for you,” she says. “Speak to your financial adviser and your accountant.”
Batteries help you maximise your energy production. Picture: Solar Battery Group
RETURN ON INVESTMENT
Prices vary depending on the type of inverter you install, whether you get a battery and where the equipment has been manufactured as well as the size of the system you require.
Gardiner says small solar-only systems tend to have a starting price of about $4000 while small solar and battery systems start from about $8000-$10,000.
“For a solar-only system, you really could get a payback period of anywhere between 18 months to two years,” Gardiner says.
In terms of how much you are likely to save on your energy bills, this is where the importance of a battery comes into play. Those who don’t have a battery and aren’t home during the day won’t see much savings from having solar, as most of their energy use will be at night when they aren’t generating electricity.
There are different types of inverters depending on your position. Picture: Mario Tama/Getty Images/AFP
“Solar only, you definitely save at least 40 per cent of your bills,” Gardiner says. “If you’re talking solar and battery you could save anywhere up to 80 per cent.”
She says a battery is worth the extra investment because, without one, your excess electricity is sold to the grid for a “very low feed in tariff,” usually between 5-10 cents.
“And then you buy back at night anywhere from 38 to 45 (cents),” she says. “So you buy back basically four times what you actually sent back during the day.”
ADDING VALUE
Lawrie says adding solar power infrastructure can boost your home value in more ways than one.
Not only does it add to the list of features that appeal to buyers, but tenants are also likely to appreciate the savings potential – especially if the system includes a battery.
Stadium Real Estate’s Rachel Lawrie.
“What we’re finding now is that banks are now putting into place efficiency advisers,” Lawrie says. They’re starting to look at how much money they loan for houses based on features they have and solar is one of those ones that they consider.
“For future valuation of your property, it’s actually going to be quite important.”
DRAWBACKS AND ONGOING COSTS
Affordability is the only real drawback when it comes to installing solar, Lawrie says. While it will ultimately save you money and add value to your home, it requires an initial investment that may be hard to muster.
Gardiner says there are usually maintenance costs of about $200-$300 every two years to keep the system in good working order and the warranty valid.
Hipages tradie, Brittany Gardiner, General Manager of MKG Electrical. Picture: supplied
OTHER MEASURES
If you can’t afford to get solar panels right away, there are a range of other measures you can take to improve your property’s energy efficiency, Lawrie says. A good first step is to replace lights with LED globes and use powerboards that cut off when an appliance isn’t in use. You could also get an electrician to review switchboards.
Ceiling insulation and window shading are other things to consider, she says.
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References
- ^ www.realestate.com.au (www.realestate.com.au)
- ^ www.realestate.com.au (www.realestate.com.au)
- ^ www.realestate.com.au (www.realestate.com.au)
- ^ www.realestate.com.au (www.realestate.com.au)
- ^ www.realestate.com.au (www.realestate.com.au)