How Does Solar Energy Reduce Your Power Bill
The quarterly average electricity bill in Australia ranges from around $340 in Western Australia to more than $450 in South Australia. The electricity prices have been going up for several years and there is no respite in sight. Fortunately, you have the option of investing in solar energy to bring down your power bill substantially.
Australia is one of the leading countries across the globe when it comes to rooftop solar panel installations. There are close to 3 million installations in Australia and this number is fast increasing thanks to the historically low prices and ample incentives at the federal and state government levels.
What Is Solar Energy?
The sun is a massive nuclear reactor that continuously releases energy in the form of photons that travel around 150 million kilometres to reach Earth. These photons are captured and converted into electricity with the help of solar photovoltaic panels. Currently, the efficiency of these solar panels ranges from 15% to more than 21%.
When these photons strike the photovoltaic panels, the electrons in the panel move around and produce a direct current (DC). This direct current flows to the inverter which converts it into alternating current (AC). Alternating current is the type that is used in household appliances.
Average Energy Consumption in Australia
The average energy consumption in Australia varies a lot and depends on the climate in a particular region. For example, Tasmania residents have the highest average energy consumption, especially during the winter months whereas Melbourne and Sydney residents have one of the lowest rates.
In terms of numbers, Tasmania residents have the highest average annual electricity consumption at 8,619 kWh whereas residents of Victoria have the lowest annual average consumption at just 4,615 kWh.
How Much Do You Save with Solar Panels?
If you’re wondering how much money you can save with your solar panel investment, here is everything you need to know about solar panel savings:
First and foremost, you should know that savings vary with region and the pattern of electricity consumption. The savings will also depend on whether you invest in a solar battery or not. To better understand the expected savings, you need to know how the solar power system works.
Your solar panel system will produce electricity only during daylight hours. If you do not have a solar battery, all the electricity consumption in your house will be powered through the solar electricity generated by your solar power system. Any excess electricity will be exported back to the grid and you will make money through feed-in tariffs.
If you need any excess electricity (more than the power being produced by your system), that will be taken from the power grid and you will pay the regular retail electricity rate for the power. For power usage during the night, you will pay the retail electricity rate as all the power will be taken from the electricity retailer in your location.
If you have a solar battery, it will be charged directly by the solar electricity produced during the daytime and if there is enough battery capacity, it might be enough to power all the appliances in your home through solar energy. In short, you might not need any electricity from the power grid.
Residents in Queensland can expect to save more than $1,100 each year with a 5 kW solar power system. The average credit on quarterly electricity bills in Queensland is around $271 as per a Canstar Blue survey in November 2021.
Things to Check to Save Energy
There are several things you can do to save energy. Here’s a quick list of ways to save energy:
- Make sure your fridge and freezer are set at the right temperature. Recommended temperature setting for the fridge is between 3 to 5 degrees and for the freezer is -15 degrees.
- Keep your air conditioner temperature between 23 to 26 degrees and try to only cool the rooms that are used frequently.
- Insulate the roof to save up to 20% on your heating and cooling costs.
- Using cold water for washing has the potential to save up to $115 each year.
- Make sure you are using energy-efficient lighting in your home.
- Do not put all the appliances on standby power as it wastes a lot of energy.
- Invest in a solar power system along with a solar battery to maximise solar power potential.
Using energy-efficient appliances around your home and investing in a solar battery along with solar panels has the potential to save a lot of money on your electricity bills.
Due to the consistently falling prices and attractive government rebates, the payback period for an average 5 kW solar power system in Australia has come down to around 4 years. A good quality 5 kW solar power system is expected to last more than 20 years and over its lifetime, is expected to save more than $50,000.
Don’t worry about the cost of installing a solar power system. With attractive financing options and rebates, you will be able to make your money back in less than 4 years.
Contact GCR Electrical Systems for Your Solar Energy Needs
At GCR Electrical Systems, we have successfully installed more than 20,000 solar panels across the region and have been active for more than 10 years in the community. We are a Clean Energy Council approved and accredited solar panel installer. We have partnered with the top-rated solar panel manufacturers across the globe to provide the very best to our customers.
If you are looking for a trusted local solar company in Hervey Bay, please contact us today at GCR Electrical Systems on (07) 4120 7004 or leave an enquiry if you would like more information about our solar installation services.