Switching to solar power isn’t just a step toward sustainability, it’s also a super smart financial move. While the upfront cost of a solar system may seem significant, the long-term savings can be huge. In this article, we’ll break down the real cost of going solar, clear up some common misconceptions, and explain why it’s worth every cent.
What are the Cost Considerations?
Equipment Overview
The cost of solar equipment varies based on the quality and durability of the components. Solar panels, inverters and solar batteries each play a crucial role in system performance. Batteries, although optional, provide energy storage, which is especially useful in areas with less sunlight or higher energy usage. Investing in quality upfront ensures long-term savings and optimal performance, minimising the need for replacements.
The amount of panels and inverters you need, as well as your need for a battery, will depend on your home’s size and energy needs. Bigger systems will cost you more short-term, but they also open up huge opportunities for savings in the long-term. That being said, it’s important to find the system that’s right for you. That’s why we have a team of dedicated solar designers to help design a system that will suit your lifestyle. At Bare Energy we offer three main packages to choose from along with a number of add-ons to suit your energy goals.
Installation Costs
Installation costs are another factor to consider. These typically include labour and necessary permits and approvals. While standard installations are relatively straightforward, homes with unique roof structures or challenging access points may incur additional expenses. The team at Bare Energy factors the cost of installation and permits into your solar package. Our pricing is completely transparent, including a breakdown of all expenses and inclusions and no hidden fees.
How Do You Financially Benefit from Solar?
Many Aussies wonder, “Will I really save money with solar panels?”. The answer is a resounding yes. As surely as the sun rises and sets each day, electricity prices are steadily increasing. Solar energy provides a sustainable, future-proof solution to combat the rising cost of living.
Reduce Your Reliance on the Grid
The biggest financial benefit of solar comes from cutting down the amount of electricity you need to buy from your utility company. Typically, grid electricity costs anywhere between 20 to 40 cents per kWh, but with solar, your system is designed to use the energy it generates first. This means your appliances are powered by the sun before they ever pull electricity from the grid—this is known as ‘self-consuming’ solar energy. By relying less on your electricity provider, you can significantly lower your monthly bills and protect yourself from rising electricity prices.
If you add a solar battery to your system, you can take things a step further. Batteries store the excess energy generated during the day, allowing you to use it when the sun isn’t shining, like at night. With enough battery capacity, you could dramatically reduce your dependence on the grid—or even operate entirely off the grid—maximising your savings and providing extra peace of mind in case of power outages.
Earn Money from Excess Energy
If your system generates more power than your home needs, the surplus can be sold back to your energy retailer through something called a feed-in tariff. This is essentially a credit you receive for the extra energy your system sends to the grid. The exact rate varies state by state; for example, in Victoria, the minimum feed-in tariff is 10.2 cents per kWh. While feed-in tariffs are typically lower than what you pay to buy energy, they still offer a nice way to make the most out of your solar system, especially if your home doesn’t use a lot of energy during the day.
Again by adding a solar battery, you can store any excess power that you generate for later use, rather than energy back to the grid for a small return. This way, when your solar panels aren’t producing energy (like at night or on cloudy days), you can draw from your battery instead of paying for electricity from the grid.
Receive a Great Return on Investment
For most homeowners, the return on investment (ROI) is tangible within a few years. On average, solar systems pay for themselves in 2-5 years, depending on energy usage and system size. For an average home using 25 kWh per day and a 6.6 kW system, the savings start rolling in within just a few years.
What Are My Financing Options?
Government Incentives
Despite what you may have seen or heard, the federal Small-scale Renewable Energy Scheme (SRES) isn’t limited to certain postcodes or regions. If you own your own home in Australia you’re eligible for solar. Better yet, the rebates available through the federal program, apply to any new solar system with a new inverter and panels. So even if you already have a setup, you can still gain access to rebates to upgrade your current system or add extra panels to enhance your energy efficiency. Find out more about available solar rebates here.
Flexible Financing
For those concerned about the upfront cost, Bare Energy offers a variety of flexible financing options. Choose from a range of Green Loans which can be used to finance energy-efficient products such as solar panels, batteries, solar hot water and solar heating and cooling. You can also select from Brighte’s monthly payment plans or take advantage of ZIP Money’s interest-free payment option, making it easier to pay for energy-efficient upgrades like solar panels and batteries.
Ready to Make the Switch to Solar?
Between reducing your energy bills, earning money from excess energy and protecting yourself from rising electricity prices, solar offers a wealth of benefits. While the initial price tag might seem high, if you factor in government rebates, flexible financing options and the long-term savings, investing in solar is definitely worth every cent.
Ready to make the switch? Contact the team at Bare Energy to learn more about how solar can transform your energy bills and contribute to a cleaner, greener future.
