Sean Harrold

National Manager of Nexus Distribution Group

Its 4.6 billion years old, 1.36 million kilometres across, it moves at 220 kilometres per second and it sends us enough sunlight in a day to power the entire planet for a whole year. It is the Sun, and it can power your home too. The clever people of Australia are using it not just to power their own home, but to pay it off years earlier and save tens of thousands of dollars in interest.

How does solar work in your home?

Installing a solar system on the roof of your home turns your home into your own private power plant. Your solar system will generate clean and free electricity for you from the sun during the day. This electricity from your solar system will be used in your home first and reduce the electricity you use from the grid (which is the electricity you pay for). If you have a gross metering system in NSW all generated electricity will be fed into the grid and will appear as a credit on your bill.

Any unused pure electricity from your solar system, will be fed into your local grid. Depending on your retailer you will be paid you for this excess electricity and it is called a feed-in credit. You will continue to receive an electricity bill. A solar system will reduce your electricity bill but won’t necessarily eliminate it.

Having your own solar system allows you to have more energy independence and enable you to reduce your bill and your impact on the environment. You can feel good about that.

Get an Energy Audit

Your particular circumstances and the way you use electricity will impact what size solar system is best for you. Get a professional energy audit done to help you when making a decision.

Research

When do you use your electricity? If you use a large amount of electricity during the day when the sun is shining, a larger solar system can help you offset the electricity you buy from the grid. However, if you only use a small amount of electricity during the day, a smaller system might be better. Are you able to change your electricity usage habits to benefit from the electricity generated by your solar system?

Consider your electricity usage now and in the future. If your electricity usage is likely to increase due to factors such as; a larger home, additional appliances, a new swimming pool, renovations or new household members, then you may want to consider a system that is a little larger.

Space

How much unshaded roof space do you have? You need the sun to shine on your solar system for optimal performance.

Orientation

Which direction will the solar panels on your roof be facing? North or west facing will generate more electricity as they have the most sun exposure.

From our experience, the most common method of sizing a solar system for a typical home is to aim for about 30% of the electricity you generate to be fed into the grid. This allows for increased electricity usage in the future.

How do I select a solar system?

Your new solar system will comprise of solar panels and an inverter. There are many brands of solar panels and inverters, with a large amount of information available throughout the internet. Some of the key things to consider in choosing both solar panels and inverters include;

Warranty: What is actually covered in the warranty? Who supports the warranty? How long does the warranty last for? Do you have to pay anything if you have a warranty claim? How long will you have to wait to get your problem fixed? (Australia’s average solar warranty claim takes about 8 months)

Efficiency: How efficient are the panels? Higher efficiency panels take up less physical space on your roof compared to lower efficiency panels. If you are tight for roof space, you may consider opting for higher efficiency solar panels.

Degradation: This is a measure of loss of efficiency over time.

Funding: How will you afford your solar? Without a doubt the best way to fund a solar system is by including it in your mortgage.

How does solar affect my finances?

When you install a solar system, you will continue to receive an electricity bill. The more your solar panels generate, the less electricity you need to buy from the grid, and the lower your electricity bills will be. What you choose to do with the savings is up to you although here is a suggestion. Instead of just saving a few hundred dollars a quarter, ask your mortgage broker to increase your repayments by the average amount you save monthly off of your new power bill. An extra $100 a month paid on to your mortgage could save you over $35,000 in repayments.

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