Tech Talk with Dr Al: Solar Panels – An Illuminating Idea
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Note from the Editor:
This article was kindly written for the SDC by member Alan G.
Considering solar panels for your home? We have just the article for you!
When we lived in Gingin in Western Australia, we decided to invest in a solar hot water system and a number of solar panels.
The WA Government at the time was offering a financial incentive for installation and a generous (for Australia) ‘feed-in tariff’ of 40c a unit (kWh). Before they offered this incentive, the ‘feed-in tariff’ was around 18c/unit, and electricity was costing around 21c/unit. The 18c was apparently 21c less GST.
As soon as the government offered the 40c/unit incentive, the electricity company, Western Power, dropped its feed-in tariff to 7c/unit. The reason I mention these figures is to let you know how unreliable the altruistic motives of various government bodies are.
I will talk about feed-in tariffs and what they mean later in this article.
What size solar power system is right for you?
An important question.
It depends upon your actual consumption, the efficiency of the panels (including how close the panels can be mounted to their optimum position to catch the most sun) and how much you are prepared to spend. On this last point, while you may plan to stay in your home for (maximum) 20 years, it could be that solar panels would add value to your home and be a good selling point.
Alternatively, you may want to make sure you have paid off your investment as quickly as possible to take advantage of the savings.
I tend to keep spreadsheets for a number of household expenses, including electricity. We use (on average) 510kWh per month and pay around $70 per month. There are charts from the Bureau of Meteorology (BOM) that show that the daily average sunlight hours for the east coast of Australia from Sydney to Brisbane is about 7 hours. The efficiency of modern and affordable solar panels is about 20% currently; this means that a 5kW system would produce around 28kWh per day, or 840kWh of electricity per month – more than enough to cover the 510 kWh we apparently use.
Some companies are now offering 6.6kW systems for around the $3000 mark, so that might be a more than adequate size to consider.
Government Incentives and Feed-In Tariffs:
The Federal Government has a Small-Scale Renewable Energy Scheme (SRES) that pays over $3000 to eligible homeowners by way of ‘Energy Certificates’, bringing the cost of a 6.6kW system down to around $3000. This scheme expires in 2030. There is no longer any feed-in tariff incentive given to the homeowner by either the State or the Federal Government.
Although we pay around 25c/unit for electricity, we will only receive between 5c and 7c per unit from most suppliers. AGL offers the highest feed-in tariff, at 15c/unit.
A search on the OECD website indicates that most countries no longer offer feed-in tariffs, but while it appears that Australia is unusual in that regard, there is an indication that a ‘metered system’ is used overseas. (Despite my efforts, though, it has been almost impossible to find information on overseas systems and prices.) But gone are the days of 40c/unit (WA) or 44c/unit (QLD).
Like LPG rebates for cars, it’s gone.
Retailers publish charts of how long it takes to recover the expense of a solar power system, and with a 7c/unit feed-in tariff, it’s about five years.
Off-Grid?
There is always the possibility that you live in an area in which it might appear to be a very good idea to have a solar PV system and a battery bank.
In QLD, there is no problem about this – it is certainly not illegal. However, in some areas, you will need permits. Also, be aware that it will take considerably longer to recoup the cost of the system with batteries, since the costly batteries attract no government financial incentives.
We lived in country WA where we had a very large water tank and a septic sewerage system. This meant we didn’t pay water rates, of course, saving over $600 a year.
I had a diesel 3-phase generator for the quite frequent times when there was a power cut. The generator would automatically cut in when necessary.
Conclusion
It could be a very wise economic decision to install a solar PV system, especially if the company installing it is able to give you some assurance, within reason, that you can pay off your investment in around five years, after which you will be a lot better off.
I contacted Zip Solar and was pleasantly surprised about the professionalism of the paperwork they emailed. They had an aerial view of our home with proposed solar panels installed, and all options were clearly shown! I’m sure there are other companies that would do a really good job, but for under $3000 for a 6.6kW system from Zip Solar, I was quite impressed.
About the author: Having spent three years living in Australia in his youth, Alan returned to Australia in 1969 with his wife and young child. Holding a Bachelor of Engineering degree and a Doctor of Science Education degree, Alan has experience in flight simulations, Einsteinian physics, and inventing an ‘eye blink’ device that allows cerebral palsy patients to communicate. He even took a turn at acting, starring in a TV advert and landing supporting and lead roles in his local dramatic society plays. His short stories have been published in WA’s The Gingin Buzz for ten years, and his novel The Magic Hourglass is a work in progress. He and his wife have a lovely life in Brisbane and regularly visit their two children in Sydney’s West. You can read Alan’s full-length bio here.
From the Editor:
We were only able to create this content because of the financial support of SDC Rewards members. If you'd like to see more of this (and a lot fewer ads!), please consider supporting us and signing up for SDC Rewards today—it starts at just 14 cents per day.
This article was kindly written for the SDC by member Alan G.
Considering solar panels for your home? We have just the article for you!
When we lived in Gingin in Western Australia, we decided to invest in a solar hot water system and a number of solar panels.
The WA Government at the time was offering a financial incentive for installation and a generous (for Australia) ‘feed-in tariff’ of 40c a unit (kWh). Before they offered this incentive, the ‘feed-in tariff’ was around 18c/unit, and electricity was costing around 21c/unit. The 18c was apparently 21c less GST.
As soon as the government offered the 40c/unit incentive, the electricity company, Western Power, dropped its feed-in tariff to 7c/unit. The reason I mention these figures is to let you know how unreliable the altruistic motives of various government bodies are.
I will talk about feed-in tariffs and what they mean later in this article.
What size solar power system is right for you?
An important question.
It depends upon your actual consumption, the efficiency of the panels (including how close the panels can be mounted to their optimum position to catch the most sun) and how much you are prepared to spend. On this last point, while you may plan to stay in your home for (maximum) 20 years, it could be that solar panels would add value to your home and be a good selling point.
Alternatively, you may want to make sure you have paid off your investment as quickly as possible to take advantage of the savings.
I tend to keep spreadsheets for a number of household expenses, including electricity. We use (on average) 510kWh per month and pay around $70 per month. There are charts from the Bureau of Meteorology (BOM) that show that the daily average sunlight hours for the east coast of Australia from Sydney to Brisbane is about 7 hours. The efficiency of modern and affordable solar panels is about 20% currently; this means that a 5kW system would produce around 28kWh per day, or 840kWh of electricity per month – more than enough to cover the 510 kWh we apparently use.
Some companies are now offering 6.6kW systems for around the $3000 mark, so that might be a more than adequate size to consider.
Government Incentives and Feed-In Tariffs:
The Federal Government has a Small-Scale Renewable Energy Scheme (SRES) that pays over $3000 to eligible homeowners by way of ‘Energy Certificates’, bringing the cost of a 6.6kW system down to around $3000. This scheme expires in 2030. There is no longer any feed-in tariff incentive given to the homeowner by either the State or the Federal Government.
Although we pay around 25c/unit for electricity, we will only receive between 5c and 7c per unit from most suppliers. AGL offers the highest feed-in tariff, at 15c/unit.
Do you have solar panels? Image Credit: Shutterstock
A search on the OECD website indicates that most countries no longer offer feed-in tariffs, but while it appears that Australia is unusual in that regard, there is an indication that a ‘metered system’ is used overseas. (Despite my efforts, though, it has been almost impossible to find information on overseas systems and prices.) But gone are the days of 40c/unit (WA) or 44c/unit (QLD).
Like LPG rebates for cars, it’s gone.
Retailers publish charts of how long it takes to recover the expense of a solar power system, and with a 7c/unit feed-in tariff, it’s about five years.
Off-Grid?
There is always the possibility that you live in an area in which it might appear to be a very good idea to have a solar PV system and a battery bank.
In QLD, there is no problem about this – it is certainly not illegal. However, in some areas, you will need permits. Also, be aware that it will take considerably longer to recoup the cost of the system with batteries, since the costly batteries attract no government financial incentives.
We lived in country WA where we had a very large water tank and a septic sewerage system. This meant we didn’t pay water rates, of course, saving over $600 a year.
I had a diesel 3-phase generator for the quite frequent times when there was a power cut. The generator would automatically cut in when necessary.
Conclusion
It could be a very wise economic decision to install a solar PV system, especially if the company installing it is able to give you some assurance, within reason, that you can pay off your investment in around five years, after which you will be a lot better off.
I contacted Zip Solar and was pleasantly surprised about the professionalism of the paperwork they emailed. They had an aerial view of our home with proposed solar panels installed, and all options were clearly shown! I’m sure there are other companies that would do a really good job, but for under $3000 for a 6.6kW system from Zip Solar, I was quite impressed.
About the author: Having spent three years living in Australia in his youth, Alan returned to Australia in 1969 with his wife and young child. Holding a Bachelor of Engineering degree and a Doctor of Science Education degree, Alan has experience in flight simulations, Einsteinian physics, and inventing an ‘eye blink’ device that allows cerebral palsy patients to communicate. He even took a turn at acting, starring in a TV advert and landing supporting and lead roles in his local dramatic society plays. His short stories have been published in WA’s The Gingin Buzz for ten years, and his novel The Magic Hourglass is a work in progress. He and his wife have a lovely life in Brisbane and regularly visit their two children in Sydney’s West. You can read Alan’s full-length bio here.
From the Editor:
We were only able to create this content because of the financial support of SDC Rewards members. If you'd like to see more of this (and a lot fewer ads!), please consider supporting us and signing up for SDC Rewards today—it starts at just 14 cents per day.
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