How Much Can I Save With Solar?

How much can I save with Solar?

Why Do People Install Solar Power?

Solar power is great for cutting emissions and therefore a great contribution to combating climate change but the key driver for people considering solar are the financial benefits that solar can bring and the compelling returns.

How Much Power Will A System Make On A Daily Basis?

The most popular residential system is 6.6kW of panels, therefore my calculations are based on this scenario.

The power created will depend on several things such as direction, angle of the roof, shade and geographical location.

We will go by averages here:

The Clean Energy Council have been monitoring systems for years and so have SolarWide.

We agree that a system in this area (Brisbane, Sunshine Coast and Gympie) will be expected to produce 4.2kWh per day, per kW of solar power installed.

i.e. For a 6.6kW system it would be 4.2 x 6.6kW = 27kWh per day

(Note: LG Neon 2 Solar panels systems have a greater average output of 4.59 kWh Per kW of Solar i.e. 4.59 x 6.6kW = 30.2kWh daily output).

You can use the following solar calculators to get a better idea for yourself:

We are working on annual averages here, but the output varies month on month as shown below.

Solar produces more in the long days of summer, which is great because that’s when we use air conditioners and have our pool pumps running longer.

Average solar utilisation for our area is 40% but every home is different.

What Is An Average Sized Electricity Bill Before Solar?

(Energy prices quoted and feed-in tariffs are based on Energy Australia offering 1st October 2019)

What Is Your Current Bill?

Let’s imagine this home uses 22kWh per day @ 26c kWh $5.72 per day
plus the daily supply charge 1.02c per day
Total daily cost $6.74 per day

Total quarterly cost $6.74 x 91 days $613.34 per quarter
Total annual cost $2,453.36 per year

How Much Will The Solar Produce?

The average home will use 40% of the solar produced and feed/sell the remainder back to the grid.

  • 40% of 27 kWh consumed in a day
  • 60% sold to the grid

The average buying price is 26c kWh.

Therefore, you will save paying 10.8 x 26 cents = $2.80 per day

The remainder will feed to the grid:

@16.1c kWh Energy Australia price) 16.2kWh 16.1cents = $2.60 per day

Estimated daily savings = $5.40 per day

This equates to a quarterly saving of $5.40 x 91 days = $491.40 per quarter

Or annual savings of $491.40 X 4 = $1,965.60 per year

How Much Would My Electricity Bill Be With Solar?

Current electricity:

Total quarterly electricity bill before solar $6.74 x 91 days $613.34

Total quarterly saving with solar of $5.07 x 91 days $491.40

Expected quarterly bill with solar approximately $121.94

How Long Will It Take To Get My Return On Investment?

If you pay $5,590 for a quality Q cells panels with a Fronius Primo inverter the Return on investment will be:

Payback time (cost/savings ) $5,590 /$1,965 = 2.84 years
Return on investment 100 / 2.84 years = 35% ROI

If you opt for the high-quality LG system the payback will be just a year longer at 3.86 years ROI or 26% but you are assured of a long life with a full 25 years product warranty by LG, a long-established and respected conglomerate. Also, the greater output and lower degradation helps make LG panels a really good long term decision.

What If I Take Out A Brighte Green Loan For The Panels?

If we use the same cost and figures as above and you use the Brighte Green Loans your costs and savings look like this:

Over a 60-month term:

Saving of $5.40 per day = $37.80 per week

The cost of the above Quality system is = $26.18 per week through Brighte Green Loans

Saving per week by going Solar = $11.62

Therefore, by going solar you are $11.62 per week better off than continuing to pay your electricity company or $151 per quarter and that will pay off your $121.94 electricity bill. Great result!!

That’s why people say Solar is free. It can easily be cheaper than paying your electricity provider.

So what are you going to do with the extra savings of $1,964 every year after its paid off? Family holiday?

In many instances the self-consumption of the solar power is higher than 40 per cent, therefore, the savings will be greater. The more power you use that the solar supplies, the more you save as the price you pay these days for power are always higher than the amount you get for feed in.

There are few things in life that are a win, win situation but solar is one of them, a win financially for you, and a win for the environment.

“Solar power just makes sense”

If you have any questions please call or enter your details and we would love to give you an accurate quote and personal estimate of your output and savings. Contact SolarWide on
07 5309 5871 or enter your details on our website.

The Disclaimer
These calculations are based on information quoted publicly by recognized bodies and are based on Nick’s personal view and findings it is not meant to be considered as financial advice. Readers are recommended to do their own research. (This is not to be construed as Financial advice and Nick Spence is not a registered Financial Advisor.)

If you have any questions please reply below, call or enter your details and we would love to quote you on solar or email sales@solarwide.com.au

These are estimates only based on information from the clean energy council and LG Solar calculators and the expected output for our main operating area (generally between Brisbane and Gympie) We have collaborated this information by monitoring lots of our systems over many years. The calculations are based on current electricity charges and feed-in tariffs on 1st October 2019 (Energy Australia). Shade direction and angle of the roof will affect solar output some properties will exceed this other will be slightly less
(All quoted prices are inclusive of GST and after the solar incentive has been utilised)

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