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Back to newsNSW families look to the sun to offset pain of soaring electricity costs
Big rebates and new feed in tariffs make going solar one of the smartest decisions
households can make.
Energy prices are tipped to rise by an overwhelming 80 per cent over the next four years according to the Australian Energy Regulator, the independent regulator for Australia’s electricity and gas networks. This is a frightening prospect for any householder, especially mums and dads with kids to support and mortgages to cover. But there is, quite literally, a beacon of light. It comes in the form of solar energy and the latest NSW Government scheme to encourage people to invest in roof-top solar energy systems. The NSW Government’s Solar Bonus Scheme offers householders the chance to win twice by putting solar panels on their roof and plugging them into the electricity grid. The first win is when you purchase solar panels and get the Federal Government’s up-front rebate. A Sydney household that installs a q.5kW solar panel system can cut the cost of installing a solar PV system by $3,200*.
The second win comes from the return you make by plugging your panels into the mains electricity grid. Since January, eligible NSW households and businesses have been able to receive up to 60 cents back for every kilowatt hour of electricity they produce through their solar energy system for the next seven years. This is what the government calls the ‘feed-in tariff’, a term easiest to understand if you think of the tariff as a credit. To put the scheme’s savings in real terms, it means cutting the annual electricity bills for an average NSW household by up to 60 per cent or more. Early adopters will reap the rewards and look forward to making even greater returns on their solar investment as the costs of conventional energy escalate. Leading solar solutions companies like Nu Energy are strongly behind the scheme, not in the least because it offers NSW households the chance to avoid the ballooning cost of energy. “Imagine being able to cut your quarterly electricity bill from $500 to less than $200,” says Nu Energy CEO, Simon Schauble. “This is now possible simply by installing a solar PV system in your home.” “The combination of rebates and the feed-in tariffs have made going solar more affordable than ever before. For a Nu Energy 1.5kw system, which is designed to suit most households, it is possible to recoup your investment in just over two years through feed-in tariffs and potentially earn up to $1,330 for each of the remaining five years.”
Mr Schauble said predicted big hikes in electricity costs over coming years made moving to solar more urgent, and encouraged NSW householders to take advantage of the both the federal and state government’s schemes while they are available. “The window of opportunity is closing fast and may end sooner due to stronger than anticipated demand. So we urge people to get informed about what is on offer and take action before the cap on the scheme is reached.” Independent industry organisation, the Clean Energy Council (CEC), supports the principle of the Solar Bonus Scheme. CEC Policy Director, Russell Marsh, said the NSW Solar Bonus Scheme currently offers the most generous feed-in tariff for solar users in the country. “It pays 60 cents per kilowatt hour for all electricity generated by solar panels, not just the electricity fed back into the grid,” Mr Marsh said. “The Federal Solar Credits scheme combined with the NSW Government initiative and the falling cost of solar panel systems make this a very favourable time for people to invest in solar energy. ‘The popularity of the Federal Government’s Solar Homes and Communities Program (SHCP) showed the appetite of Australian consumers for solar power. According to industry estimates, the NSW scheme could fill up rapidly and the inbuilt review of the scheme at 50MW is likely to occur in less than two years.”
Nonetheless, there is little doubt that immediate savings are there for families in NSW who take up the offer now. But before making your move to solar make sure you consider a number of factors, including getting the system properly installed.
The CEC advises householders to use an accredited installer from its website, which ensures they are a licensed electrician who has completed an additional 120 hours of training in solar panel installation. It also suggests people to talk to their electricity retailer about the terms and conditions of solar energy supply before signing an agreement.
How does solar power work?
Solar panels (photovoltaic panels) convert sunlight into electricity and can be placed on the roof of you house, nearby on an adjacent building or can be freestanding mounted to frames on the ground if need be, to gain the greatest access to the northern sun.
For the solar system to work most efficiently it doesn't have to be warm but the solar panels work best if positioned on a north facing roof to generate power and help you save money. The system relies on prolonged sunlight, not heat, to generate electricity.
When power is being generated by the solar panels, the inverter will convert the DC electricity made by the solar modules into 240V AC electricity; this AC electricity can then be used normally in your home.
Your solar system will feed any excess electricity generated back to the grid via a bi-directional meter (known as a ‘smart meter’). Your electricity provider will meter the excess electricity generated from your system and any credit gained will be recorded on your bill.
Top 10 solar power tips
- Make sure that the solar panel faces in the direction of the sun. In Australia, that means north.
- Most people in Australia have more roof space than they can fill with solar panels. Even so, make sure your north facing roof space is large enough to accommodate your system.
- Make sure the area you choose for your panels isn’t shaded.
- Allow approximately 8m² of roof area for each 1kw of solar panels.
- Get a few quotes. Prices may vary widely between providers but don’t be swayed by price alone because cheaper components can be used to reduce the up-front cost of a system.
- Before meeting a consultant regarding the installation of a solar power system, if possible have a list of all your electrical appliances with their wattage and the hours of use. This will help them determine the size of the system you’ll need.
- If you are calculating the number of panels yourself, use winter sunshine hours rather than summer hours. There are roughly twice as many hours of sunshine in summer and the wrong calculation could leave you needing to use backup power in winter more often than you’d like.
- Before committing to a particular system, check what government rebates are available. You can do this by visiting http://www.environment.gov.au/rebates.
- Ensure the installer you use is accredited by the Clean Energy Council (CEC). Likewise, make sure your new solar system is connected back to the grid by a licensed electrician.
- Once your system is in use, make sure you keep the solar panels clean – even if it means getting up on your roof once a year. A thin layer of dust or dirt on the glass cover will effectively block off some solar power and the system will operate below its maximum efficiency.
