Solar power is one of the best ways to save money on electricity. With nearly a quarter of Australian households equipped with solar on the roof, there’s no doubt it makes sense for most people.
When it comes to looking at the financial return of solar power, there are two ways to look at it:
- The energy savings you’ll see on your bill
- The overall savings
Energy bill savings
Solar panels will start saving you money on your power bill from the moment they’re connected. This is because solar panels allow you to use your own, free solar power during the day when the system is generating electricity. So you can use free solar power to run your home and reduce the amount of electricity you have to buy from your power company.
Plus, any excess solar power you’re not using when your panels are generating electricity will be exported to the energy grid and you’ll be paid a feed-in tariff for this electricity. It’s important to note though that this feed-in tariff will be less than your energy rate.
In other words, you’ll pay more to buy electricity from your power company than you’ll get for the solar power you export. This can sound a bit counterintuitive and comes down to, among other things, the costs associated with network infrastructure. You can read more about the value of solar power here.
So the best way to maximise solar savings is to use as much solar power in your home, rather than exporting it. The best way to do that is with a solar battery, which will store your solar power so you can use it day and night and boost the savings you’ll see on your energy bill.
Of course, there will be a cost associated with buying and installing your solar system initially. So the overall savings your solar system delivers can be measured against this.
This is known as payback and typically solar power systems in Australia will have a payback of between 3 – 7 years. That means that a system can pay itself off up to five or six times over the life of the system! That’s an outstanding return on investment.
Maximise your energy savings with solar and a battery
If you’re getting solar panels installed, now is the most cost effective time to add a solar battery. Our mid-sized solar and battery package (including installation) could pay for itself in less than 7 years*.
Designed specifically for households adding solar panels and a battery at the same time, our solar and battery package brings world-leading, tier 1 solar panels together with an Australian-designed battery solution in one streamlined, cost-effective package.
The package comes in a range of sizes depending on your energy needs, household set-up and budget. Plus there are financing options available so you can start saving with your solar and battery system now, and pay it off over time.
If you already have solar, but want to add a battery, check out the Redback Smart Battery.
*This scenario is the 6.6 kW system and a mid sized battery (7kWh). Assuming typical generation in Victoria and assuming battery gets cycled 90% of the time at 90% depth, solar savings are estimated at $1,734 ($0.20 average value of the solar generated, which could be 10c FiT and 30c usage rate at 50/50% as an example). Battery savings would be an additional $440 per annum, for total savings of $2,174.