How much can I save by going Solar?
Heaps!
Maybe that was a little too simplistic?
Sometimes the best place to start is the middle. By that I mean we are right in the middle of the Governments wind down of the Small scale Technology renewable energy Certificate scheme or STC scheme, or as we are not allow to say, the solar rebate.
I won't bore you with the details of the trials and tribulations we have had with the scheme over the preceding years, suffice to say, if the rebate runs it's promised course, it will be slowly phased out at 1/15th each year over the next 15 years. Today the rebate for a 5kW system is between $3000 and $4200, depending on where you intend to install the system and the price your installer can sell your STC's for.
So back to the original question.
How much can you save by going solar?
Well ,during sunlight hours, your solar system produces power that is first supplied to your household appliances then any excess solar is exported to the grid.
The average Australian home uses around 18 to 20 kWh per day. Generally, depending on where you live, you'll be paying roughly 30 cents for every kWh you use in your home.
Your electricity retailer will pay you a small amount (around 4 to 6 cents) for each kWh that you export to the grid. This is known as the "feed in tariff" or FiT.
Because the amount you're paid for exporting solar is so small, it is better to use the solar in your home than export it.
This is because every time you use a kWh of generated solar in your home, you don't have to buy that kWh from the grid, which in turn saves you around 30 cents per kWh.
Because feed in tariffs are so low, self-consumed solar power is around 5 times more valuable than exported solar electricity. This means households that use a lot of electricity during the day, or can set their appliances to run on timers, are a great fit for solar, and can achieve very short paybacks of 4-5 years or 20% to 25% return on their investment (ROI).
If you are at home during the day or have pool pumps which run all day, your self-consumption is likely to be very high (65 to 70%), and so for you, installing solar is a great investment.
If you are not at home during the day, this self consumption will drop to around 30% increasing your payback to 8+ years or a 12.5% ROI.
Can I consume 100% of the power I generate?
This is not likely as your load will no doubt be variable, as will your solar generation. I'd avoid anyone that works out your pay back or ROI on premise of a 100% consumption.
What about battery storage?
Battery storage is a brilliant solution for the nine to fivers and those looking for energy security. There are quiet a few complexities around the type of battery and your system sizing, but if I can break it down to it's simplest form, rather than exporting to the grid, you use your excess power to charge a battery bank. You can then use that power when it suits you, usually at night. Many systems are grid interactive so you can still remained connected to the grid, however some will, in the event of a power outage, disconnect from the grid and run your home or business.
Is battery Storage affordable?
Yes and no. For a very basic system it may increase your pay back by as little as 2 to 3 years, but for most storage solutions, this could increase your purchase price from 2 to 3 times, and therefore push out your return on investment to 7 to 10 years.
So, there you have it. There are clear benefits and an excellent pay back for almost any home in Australia when they install solar.