How Much Money Can I Save with Solar Panels?

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Solar panels are an excellent investment that can save you money on your electricity bills and also increase the value and the appeal of your home when you decide to sell. Nevertheless, installing a solar power or solar hot water system isn’t something that any homeowner should rush into, so it’s very important that you research the costs, the benefits and other important factors, like periodic servicing to keep your system working as it should and protect the investment that you’ve made.

How Much Do Solar Panels Cost?

Naturally, that depends on the size of the system you have installed and other factors, including battery storage, which although empowers homeowners to use the electricity the system generates around the clock, is still very expensive and could triple the price of a solar panel system. If storage is something that you’re interested in, experts advise holding off for another year or so until prices start dropping. And prices will drop significantly when battery storage technology improves.

Luckily, solar power system prices are dropping, as standard systems are about 10 percent cheaper than last year, with 5kwh systems with 20 panels costing a little over $5000. Moreover, homeowners can access government schemes that further reduce the financial outlay, so check the Department of Finance website for renewable energy system schemes and start exploring your options.

How Long Will It Take to Pay Itself Off?

The payback period, the time that it takes for the homeowner to recuperate the financial outlay in the form of electricity bill savings, will vary on a variety of factors such as:

  • Where and in which state you reside
  • The price of electricity in your area
  • The type and size of system

According to industry experts, based on the national average a typical system will take a little under five years to pay itself off and a system with storage about twice that. The concentration of solar radiation is an important factor, with states like Western Australia blessed with high concentration rates, moreover, as solar power systems are cheaper here ($4000 compared to a national average of $5000), as is electricity, Perth homeowners can expect to pay off their system in less than four years.

How Much Money Will Solar Save You?

Once again, a variety of factors will determine exactly how much you’ll save with solar, such as the amount of energy you use, when you use it, the location of your home in relation to the sun and the direction your roof faces, system size and advanced options, like intelligence software, that enable you to maximise savings.

As there are so many factors involved, homeowners are encouraged to gain a good understanding of solar and purchase their system from a leading solar energy installation company to ensure they make the right decisions about the system they have installed.

Serving the solar hot water needs of Perth homeowners for more than 20 years, Perth Solar Repairs is a leading provider of solar hot water solutions. For all your repair and servicing needs, contact us today.