Saving money on electricity is one of the main reasons why homeowners decide to get solar panels for their homes.
But not everyone has the same expectations about how much money they’ll save.
Some believe it will drastically cut their power bill immediately, while others are more conservative and see solar panels as a long-term investment.
So how much do solar panels really save you every year?
The best answer is: It depends.
The truth is, your savings from solar panels relies on several factors, and your expected savings will likely be different from your neighbour’s.
What You Need to Consider
To get a good estimate of how much you’ll save with solar panels, you’ll need to consider the following:
- Your average energy consumption – The more energy you use, the more generated power you’ll use from your solar power system. This can affect how much energy you need from the power grid and how much power you’re feeding into it (if any).
- The size of your solar power system – The bigger and more capable your solar PV system, the more power you can generate. This concerns not just the number of solar panels you have but also the type of inverter you have in your system.
- Your location – The more sun your area gets, the more sunlight your solar panels can absorb to produce power. Queenslanders, for example, are fortunate to receive some of the highest levels of solar radiation in Australia, so we can expect to generate more power here than in other parts of the country. Keep in mind that your building’s location and the amount of direct sunlight it gets will also play a factor.
- Usage patterns – When you typically use electricity and how often you use it can affect how much money you save from your solar PV system. The type of metering your property has can also affect your overall electricity bill and total savings.
- Feed-in tariff rate – Each state has their own feed-in tariff rate, and this will affect how much money you’ll get back from the generated power that you feed back into the power grid.
These are just some of the main factors you’ll need to consider if you want to estimate how much money you can save every year with a solar power system. (You can also use our Solar Calculator to get rough estimates of your potential annual savings.)
Consult Experts to Get a Better Idea
If you want a truly accurate estimate of how much you’ll save every year by using solar panels, consult our solar panel experts to get the help you need. We’ll help you consider these factors above as well as other factors that can affect your total costs and savings for your solar power system. And if you’re ready to have solar panels set up in your home, learn more about our solar installation services to get started.