How to Reduce your Expenses Using Solar Panels
Finance . Investment . SavingsThis is for home owners who are looking to reduce their electricity bill and offset their carbon emissions by going solar. The assumptions below calculate a return on investment of just over 3 years by taking advantage of government rebates.
There are many solar systems however the typical plan is a 6.6KW system which due to panel efficiency and the inverter will at max produce 5KW per hour. Other factors will be at play here including roof space and position of panels however below is a scenario which tables the benefits so you can save more and reduce your expenses.
Medium Usage 10KW Per Day Using Energy Australia No Frills Plan
| Type | Feed in Tariff Per KW | Grid Usage Per KW | Daily Access Charge | Total |
|---|---|---|---|---|
| Energy Australia | 16c | 23c | 92.4c | |
| Medium Usage 10KW per 30 Days | $69 | $27.72 | $96.72 | |
| Medium Usage 10KW per 90 Days | $207 | $83.16 | $290.16 |
Medium Usage 10KW Per Day Using Energy Australia No Frills Plan With 6.6KW Solar System Installed
| Type | Feed in Tariff per KW | Grid Usage per KW | Daily Access Charge | Total |
|---|---|---|---|---|
| Energy Australia | 16c | 23c | 92.4c | |
| Medium Usage 10KW per 30 Days | -$120 | $69 | $27.27 | -$23.28 |
| Medium Usage 10KW per 90 Days | -$360 | $207 | $83.16 | -$69.84 |
Calculating the Return on Investment
Solar Installation Cost $4,500 (with QLD government rebates)
30 Day Electricity Bill Turnaround $120 (Previous bill paid plus the savings generated by solar)
Return on Investment is 37.5 Months or Just over 3 years
*The above assumes all months are 30 days and although some months are 31 days the calculation will get close to the figure. In addition 25KW solar produced per day is assumed and is a conservative figure dependent on the month, solar panel position and brand however in September on a sunny day my system produces 35KW. If you are using more than 10KW per day then the investment will be longer.
