How Residential Solar Panels Will Help You Save Money

by | Oct 3, 2022

Residential solar panels
With power bills rising, solar panels getting cheaper, and an abundance of renewable rebates, now is the perfect time to install a solar panel system for your home.

6.6kW solar systems

A 6.6kW system is one of the most commonly-installed solar systems for Australian homes, providing sufficient energy for general household needs. As a general rule, a solar system of this size can generate up to approximately 26.4kWh of electricity per day.

According to CHOICE, the average household uses between 15kW and 20kW per day, with actual usage varying between homes. In fact, as long as you install a high-quality solar system with enough capacity to cover your usage, you will see solar savings.

Renewable rebates

There are two primary ways you can save money with a solar panel system for the home: savings on your electricity bill and the feed-in tariff. While a bulk of solar savings will come in the form of reduced electricity costs, the feed-in tariff will add extra credit for your unused energy.

For every kWh of electricity sent back to the grid, you will receive a credit on your energy bill. The value of the feed-in tariff depends on your energy provider and the total amount of unused electricity.

Higher capacity systems can increase your total feed-in tariff, as well as your direct savings, but will require a larger initial investment. Ensure you speak with CEC-approved residential solar companies to determine the ideal capacity to maximise your savings.

Up to 25 years of solar savings

Most high-quality solar panels installed by experienced solar installers will come with a 25-year solar performance warranty. This guarantees that your solar panel will output a specific percentage of its maximum output up to the end of the 25th year. While all solar panels lose efficiency over time, the solar performance warranty ensures you’ll be generating energy and saving money on your bills for years to come.

However, it’s important to remember that most solar panels come with a separate product warranty which covers physical defects and issues. This warranty is generally between 10 and 15 years, depending on the brand.

Who benefits the most from solar panels?

Solar panels are a worthwhile investment for almost every household, from both an environmental and financial point of view. However, certain homes will see more significant savings in the short term, which often comes down to total energy consumption and the size of the solar system.

Households with higher energy consumption will see a marked difference relatively quickly, whether a solar system was installed to partially or completely cover costs.

However, homes with lower electricity usage will still benefit from residential solar panels, helping to save money in the short term and providing power for future energy requirements.

How to increase solar savings?

Every homeowner wants to maximise their savings, soaking up as much sun as possible with their new solar system. Here are some things to keep in mind:

  • The best solar yield comes from north-facing panels. Your solar installer can help you determine the best orientation and angle for your home.
  • Solar panels are more affordable than ever, allowing homes to install larger solar panels. This can result in a faster payback period and increased feed-in tariffs.
  • To use 100% of collected energy, you may wish to invest in solar storage. While a solar battery can be a significant extra expense, it may be ideal for households with higher nighttime energy use. Solar battery prices can even be offset by signing up for a Virtual Power Plant (VPP).
  • Solar System: Your local solar experts

    Solar System is one of the leading residential solar companies in Sydney, offering professional service, expert advice, and CEC-accredited installers. To book your free assessment, contact our friendly team at 1800 975 270.

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