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Australia’s abundance of natural sunshine makes it well-placed to harness solar energy, and many homeowners are eager to reduce soaring energy bills and switch to cleaner sources of energy.
According to the Australian Bureau of Statistics (ABS), electricity prices have increased 2% for the year to March, but without the federal government’s Energy Bill Relief, this figure would have been much higher at 17% for the same period. Gas ducted heating is common, especially in the southern states of Tasmania and Victoria, but it’s also expensive and many households are “de-gassing” in favour of split-system heating, which is a cleaner form of energy.
It is no surprise, too, that solar panels are becoming increasingly popular. Almost 15% of Australian households have installed solar panels on their roofs, according to the Australian Energy Council. In 2021, the energy generation from all renewable sources across Australia increased by 23% in a single year.
Making the switch to solar power will also help Australia meet more ambitious climate change targets. The federal Labor government remains committed to a reduction target of 43% from 2005 levels by 2030 and net zero emissions by 2050.
The cost of the upfront investment in a solar system can be significant, but it is recouped within two to seven years. Let’s take a look at what you should know before you buy.
How Do Solar Panels Work?
When sunshine hits a solar panel, the energy is absorbed and converted into direct current (DC) electricity. The solar inverter then converts this electricity into alternating current (AC) power for use in the home, instead of drawing on the electricity grid. This process is called the photovoltaic (PV) effect.
Five leading solar power brands in Australia are Longi, Jinko Solar, Seraphim Solar Panels, LG Solar and SunPower Australia.
What Are the Different Types of Solar Panels?
Most home solar panels are either monocrystalline or multicrystalline. The terms describe the different ways that the silicon cells in the solar panels are manufactured.
Monocrystalline panels are usually black and are considered more efficient. Multicrystalline (which are also known as ‘polycrystalline’), are generally dark blue. In some cases, they have a superior temperature tolerance.
There is no clear advantage or disadvantage to either, as performance depends on a variety of complex factors.
Solar panels are classified into three tiers. Tier 1 are built with higher standards, which means that they last longer and produce more solar power. However, they typically cost between 10% and 30% more than Tier 2 and Tier 3 solar panels.
How Many Panels Do I Need?
Solar panels vary in length, width and power output. What matters most is the power output. A higher nominal power rating means that more power is generated, and fewer panels are needed.
However, if the roof is large, it may be more economical to buy cheaper panels with lower efficiency and just install more panels.
How to Choose the Best Solar Panel System
There is a lot to consider when choosing the right system for your home, incluing:
Make sure the installer is a CEC-accredited: An incorrect installation can result in a solar power system being unreliable, inefficient, and even unsafe. The Clean Energy Council (CEC) is Australia’s peak body representing the clean energy sector, and it strives to improve standards in the solar industry. It runs an accreditation program that recognises installers and designers who adhere to best practice standards, including undertaking the requisite training. A solar power system is a significant investment: it pays to use an installer who will get it right the first time. Using a CEC-accredited installer is also required to be eligible for small-scale technology certificates (STCs), which is the term for the federal rebate scheme.
Look at (reputable) reviews online: Consumer advocacy group CHOICE publishes reputable product reviews of solar systems. Be wary of websites that may promote biased or paid reviews.
Does it meet the required standards? Purchase a solar system that meets Australian and international standards. This is a necessity in order to be eligible for small-scale technology certificates. Obtain proof of this from the manufacturer and the installer.
What is the payback time? The cost of the upfront investment is recouped between two to seven years, according to estimates by CHOICE, for a 5kW system. The average is around five years.
What is the cost: The estimated costs of a good quality solar panel systems are provided below by Solar Quotes. Prices are inclusive of rebates and incentive schemes, and costs may be higher if there are more complex installation requirements:
- 5kW: $4000–8000
- 6.6kW: $5500–9000
- 10kW: $8000–13,000
What is the company’s reputation? Source your solar panels from a reputable company. Look for a retailer that has signed up to the CEC’s voluntary code of conduct, because it indicates a commitment to best practices.
Check the warranty coverage: There are two types of warranties: product and performance. The product warranty is more important, because if something goes wrong it is the one to rely on for redress.Most product warranties are for 10 or 12 years. Some manufacturers offer up to 40 years. Most solar panels have 25-year performance warranties, however it is difficult to judge whether performance is still optimal as the years go by.
Solar Rebates In Your State or Territory
The two main incentives to make solar PV systems more affordable is the small-scale technology certificates (STCs), which is the solar rebate, and feed-in tariffs (FiTs). The schemes are subject to change, so check the government’s official energy website to see what’s available locally.
Check the terms carefully, as many schemes are limited to certain postcodes or locations, or depend on a certain level of income, or have limited spots. Others need to have the system approved by the scheme prior to installation.
Some states and territories run additional solar rebates and loans. These are listed below.
- New South Wales: Rebate Swap for Solar, which allows households on low-income rebate to swap their rebate for solar.
- Victoria: Solar Homes Program
- Australian Capital Territory: Sustainable Household Scheme
- Northern Territory: Home and Business Battery Scheme (this can apply to a new solar PV system which includes a battery).
How Much Does Solar Cost?
The estimated costs of a good quality solar panel systems are provided below by Solar Quotes. Prices are inclusive of rebates and incentive schemes, and costs may be higher if there are more complex installation requirements.
- 5kW: $4000–8000
- 6.6kW: $5500–9000
- 10kW: $8000–13,000
Before You Buy Solar Panels…
Solar is not the right choice for every home. Ask yourself the following questions and request a retailer to examine your roof to see whether solar power is possible.
- Is my roof facing in the right direction?
- Is the roof on the right angle, and is it big enough?
- Is there too much shade over the roof?
- Can I afford the upfront costs?
- Am I eligible for any rebates?
Frequently Asked Questions (FAQs)
What does giving back to the grid mean?
This is an arrangement whereby excess electricity from your solar power system goes back into the grid. The meter spins forward as you draw electricity, and spins backward as the excess is fed into the grid. It can also be spun backwards into your own battery system if you have one.
How much money will solar panels save me?
The savings are substantial over time – especially with our high levels of inflation. Within two to seven years, the upfront costs will have been recouped and there are often no more energy bills to pay.
What are the benefits of solar panels?
The biggest benefits are eliminating energy bills and using a cleaner source of energy than electricity, which relies on burning fossil fuels.
How long do solar panels last?
Most solar panels have a lifespan of around 25 to 30 years. This is conditional on keeping the panels clean and in good repair.
How do I clean solar panels?
Solar panels are deliberately installed on an angle so that they are self-cleaning from the rain. Nonetheless, during extended dry periods, there may be a buildup of dust or bird droppings. Air pollution can also cause issues, as can deciduous trees.
Professional services can be used for cleaning solar panels, and they will use a soft, non-abrasive sponge or cloth and a mild soap. If doing your own cleaning, make sure to follow safety precautions and do the cleaning on a cool day, as the panels can become hot.
What are the best portable solar panels for camping?
Forget the noisy and polluting generator: it is possible to charge gadgets and appliances using sunlight exposure from a portable solar panel system.
The main types of portable solar panels are mats, blankets or a smaller version of the roof tiles. Foldable panels are popular because they take up less space and make it easier for the purposes of packing the car or caravan.
Consider the number of appliances you wish to run while you’re away: a camping fridge, for example, will require a larger output.
Can you get solar in an apartment or rented home?
If you’re renting, it is up to the landlord to decide whether to install a solar panel system. It may be difficult to convince them to do so, because it is the tenant who will benefit from non-existent energy bills.
An alternative could include joining a ‘solar bank’, which is a collection of centrally-located, grid-connected solar panels that export power to members.
Solar panels can be used on the roof of apartment, although there is some complexity in determining a way to fairly divide energy use. This is an area ripe for technology innovations.
How many solar panels do you need to run a house?
The exact number depends on the size of your house, and whether you have battery storage, but as a general rule, a typical home uses 20kWh of energy a day, which, as CHOICE notes, could be serviced by a small 5kW solar system.
Do I need a solar storage battery as well as solar panels?
It depends on your usage and whether you are home during the day. If you find that you using most of your power at night, then a solar battery could store the power it generates during the day for your use after-hours. However, the solar battery storage market is still in its infancy and, for most families, it won’t be worth the cost of investment.