Solar Energy is heating up

So you’ve more than likely seen a neighbour or two installing solar panels on their roof recently. But have you ever wondered why?

As more and more Australians take up solar power as a resource to power their homes, there a few key facts you should know – like how much it costs and what the benefits are – before heading down the environmentally friendly path of the future.  

Back in 2007, as part of the Renewable Energy Bonus Scheme, the Australian Government introduced rebates for households that installed solar panels in a bid to reduce their carbon emissions.

Through installing the solar panels, households would not only be doing their bit for the environment but, under the government’s solar credits scheme, excess energy collected from solar panels can be sold back to utility companies, reducing the cost of a household utility bill.

How is excess energy collected?

When solar panels produce more electricity than a household is currently using, that electricity flows backwards through the electricity meter and into the electricity grid. When your metre spins backwards, your bill is reduced.

Just how much your bill can be reduced by will depend on laws in your state; each state in Australia has different laws and rates under the government’s tariff scheme. Installation rebates can also vary depending on the size of the solar panels a household purchases. To give you a guide;

If you install a 1kW system, you’ll get approximately $3,500 off the cost of installation.

If you install a 1.5kW or higher system you can get approx $5,500 off the cost of installation.

A Watt is a basic measure of electrical power and Kilo means there are 1000 of them. i.e. 1 kW = 1000Watts. To put this in perspective, a small electric heater with one heating element will use around 1.0 kW of energy.

How much does it cost to get solar panels?

A 1kW system will cost approximately $7,500 less your rebate = $4000

A 1.5kW system will cost approximately $10,000 less your rebate = $4,500

Remember, as every house is different prices may vary. Some solar panels may need to be specifically made for your home.

For more information on which solar panel would best suit your home and the renewable energy scheme, visit the government website http://www.climatechange.gov.au/en/what-you-need-to-know/renewable-energy.aspx.

Image source: www.solarswitchaustralia.com.au 

June 2010