How Much Money Can I Save With Solar?
Updated: Feb 11
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 the following 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 use averages in this scenario
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.
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).
Using the information above, the Estimated Daily Output per month is recommended in the graph below.
Solar produces more energy in the long days of summer, which is great because that’s when we use air conditioners and have our pool pumps running longer.
The average solar utilisation for the Sunshine Coast region is 40% but please take into consideration, every home is different.
What Is An Average Sized Electricity Bill Before Solar?
Note: Energy prices quoted and feed-in tariffs are based on Energy Australia, Oct 2019.
Let’s imagine this home uses on average 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 of $613.34 x 4 = Costs $2,453.36 per year
How Much Will A Solar Power System Produce?
The average home will use 40% of the solar produced and will sell the remainder back to the energy 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 sold back to the grid, at 16.1c kWh, Energy Australia, Oct 2019.
16.2kWh x 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 = Saves $1,965.60 per year
How Much Would My Electricity Bill Be With Solar?
Using the current electricity price (Energy Australia, 2019).
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 My Solar System To 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.
In addition, the greater the output and the lower degradation makes LG panels an ideal long term decision.
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.
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 email@example.com
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 (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)