Solar Panels. Yay or Nay?
Let’s explore some commonly asked questions.
We’re often asked by clients about home improvements, and what will add the most value to their home.. Even in 2023, installing solar panels on your property will not make a measurable difference to how much people will pay for the home. Buyers do see them as an added benefit, but not necessarily a deal maker or breaker.
This may be the case in todays market, however moving forward we believe cost and energy saving building options such as solar panels will become more and more important to buyers. It is likely to add to their perception of the quality of the property which in turn increases the budget they may set to buy it!
Do we predict energy rating fact sheets at inspections in the future to help drive buyer perception of value up? Highly likely we think!
Are solar panels right for you?
If you’re thinking about installing solar panels, a great place to start is with your current electricity bill. This will help you determine your daily energy requirements.
For every 1kW of solar panels, you can generate 4kWh of electricity per day on average. So if your household is currently using 20kWh per day on the grid, as a rule of thumb, a 5kW solar system should keep things running nicely.
Once you know how much energy you are using, the next step is to understand when you are using it. Start by reflecting on your daily routine and cross-checking it against your electricity bill, focusing on these two pieces of information;
Average daily use: On your electricity bill you will see a bar graph representing your electricity usage in kilowatt hours (kWh). If you are on a time of use tariff, you can see your average energy usage during peak, shoulder and off-peak periods.
The usage charge: This will be shown as cents per kilowatt hour (c/kWh).
If you have a time of use tariff, you may observe that your 'peak' usage is high - this may include the use of your TV, air conditioner, dishwasher etc. In such cases, you may consider installing west-facing solar panels to maximise your solar energy production during busy afternoon periods. You could also consider installing a solar battery to ensure coverage into the evenings and to avoid expensive peak tariffs from your energy provider.
Is your property suitable for solar panels?
The following factors will need to be considered:
Roof Type: Every roof material is suitable for solar, except for slate. (Because slate is fragile, most installers aren’t willing to work on it).
Tiled roof: No tiles are broken, however they are removed for brackets to be inserted and then re-installed
Metal roofs: Existing screws will be removed in favour of strong, stainless steel screws, a single penetration to run the D.C cable to the inverter is required which is full waterproofed.
Roof Space: A 5kW system (a commonly installed residential system size in Australia) contains 15-20 panels and requires approximately 25-35 m2 of roof area.
Roof Slope: A moderate roof angle is best for solar electricity production. If your roof is either flat or very steep, your solar system may require tilt frames (and thus additional expense) for optimum sun exposure.
Roof Condition: Most roofs in good condition will support the typical solar panel’s 10-20 kg per square metre. 10 However, your roof does have to be in good condition
Roof Shade: Consider how much shade is cast onto your roof by trees and surrounding structures. Shade can drastically reduce your solar panel system’s efficiency, so it’s a good idea to remove or minimise it as much as possible. Don’t forget to consider shading at different times of the day, as well as when the sun is lower in winter. Your installer may also recommend the use of microinverters or optimisers to maximise the efficiency of your solar system where shading is an issue.
Roof orientation and sunlight hours: As Australia is south of the equator, it is optimal to install solar panels on a tilted, north-facing roof. In homes without a north-facing roof, solar installers can use a strategy called 'follow the sun', whereby panels are placed on the eastern and western sides of your roof to ensure a portion of your solar panels are always facing the sun and providing generation earlier in the morning and later into the evening. South-facing panels are generally not recommended as their efficiency will be significantly reduced, especially in winter.
How much can you save?
According to Solar Choice, a website which compares different solar deals, the average-sized system being installed across Australia – a 6.6kW set-up, costing somewhere between $5000 and $6000 – can save a typical household $1400 to $1800 each year.
A smaller, 3kW system can save the average home between $800 and $1200 per year.
For a property paying $500 per quarter for power, a 6kW-10kW system would be needed to totally offset day time costs.
The payback for most solar systems is between just three and seven years, but it all depends on available sunlight, the position of panels, electricity prices, the cost of the system and the amount of self-consumption. Saving between 30% and 60% off power bills is pretty standard.
And that’s before considering more sophisticated and expensive options, like batteries to store “self-generated” power, which can see households become almost self-sufficient. Without storage, all homes with solar still need to be connected to the grid for night-time power.
Do your solar panels produce power when the sun isn’t shining?
It’s not all about direct sunlight hitting the panels. Solar panels produce power based on UV light, so even during a cloudy day panels can still produce power.
However, since there is no UV light at night, after the sun has gone down, solar panels will not produce any energy.
Do you still get an electricity bill?
Yes, even if you have reduced your traditional electricity bill to nil, you may still incur some fees. Electricity bills typically contain service to property charges and you’ll likely still have charges for night-time usage
How long will your system last?
Panels usually last up to 25 years, although it’s likely your solar inverter will need replacing from anywhere between 5 and 15 years.
Do you get any government incentives to install solar panels?
Yes! The Victorian government is providing a rebate of up to $1,400 for solar panel (PV) system installation, for homeowners with existing homes, homes under construction and rental properties. Rebates are released each month according to the scheduled rebate release dates. To further reduce installation costs, eligible Victorians can apply for an interest-free loan, for an amount equivalent to their rebate amount. The loan is required to be repaid over four years or can be repaid sooner in one lump sum. Find more information here - https://www.solar.vic.gov.au/solar-panel-rebate
Food for thought!