How Much Can You Save With Solar Panels In Perth?

How Much Can You Save With Solar Panels In Perth?

How Much Can You Save With Solar Panels In Perth?
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Perth is the sunshine capital of the world. It is, literally, the sunniest city in a country known for its sunshine. So it makes sense that it is perfectly suited to solar panels.

The fact is that you can certainly save money with solar panels and that it is one of the most practical actions you can undertake – saving on electricity bills, increasing home value, and helping the environment. All in one easy investment.

But you need to look at the price for each component to gauge exactly how much you can expect to save using the best estimates. This is precisely what this guide is going to do.

How Much Can You Save With Solar Panels In Perth

How Much Can You Save With Solar Panels In Perth

Factors Affecting Solar Panel Savings

First, let’s take some of the common factors affecting solar panels in Perth and wider Australia. Because there are so many variables associated with solar panels, it’s pretty much impossible to say how much each person will save. The amount you will save is dependent on:

  • Solar Panel Power –  A 5 kWh system will produce far more electricity than a 2 kWh system.
  • Location – In Perth, you are going to get more sunshine than nearly every other city on the planet. So this is a definite positive.
  • Feed-in-Tariff – Unfortunately, the feed in tariff rates for Perth have come down. The WA feed-in-tariff is 10c per kWh between 3 PM to 9 PM and 3c all other times. Before 2020 it was 0.7c for all hours, but it is still a reasonable rate.
  • Efficiency – Various factors affect the efficiency of the system, including the inverter, shade, gradient, direction, cleanliness of the panel, etc.
  • Quantity – The more surface area you cover with solar panels, the more electricity you will generate.
  • Initial Investment – The more you paid, the longer it will take to recoup investment (though the efficiency of the better system could easily mean you could also see a return more quickly).
  • Daily consumption – If you are a parent to 5 power hungry teenagers, all armed with multiple smartphones and appliances, then you probably won’t be sending much back to the grid for the feed in tariff. But you will still save on your electricity bill.
  • Price of Electricity – Australian energy is extremely competitive. But this could change at any time, upsetting your savings. At the same time, many online calculators will factor this in, at a 10% increase per year. And you still make significant savings even when this is accounted for.

In Perth, Synergy runs the feed-in-tariff program known as the Distributed Energy Buyback Scheme (‘DEBS’). There is an initial fee of about $100 to get started.

 

Feed-In-Tariff Savings Per State

The following table outlines the savings you could potentially make on a 3 kWh system per state. The data is taken from the Clean Energy Council, the foremost authority on solar panels in Australia. This is the cost you will save by sending energy back to the grid.

It’s notable that most of the savings from solar panels stem from the money you save by using the energy directly, and not from the feed-in-tariffs. This is something to keep in mind. You might pay 30c in electricity but only get 10c for feeding it back in.

Annual FIT + Offset  (3kWh System)
Location

5% of electricity

fed into the grid

25% of electricity

fed into the grid

Victoria $866 $750
South Australia $1,226 $1,162
Queensland $1,146 $1,060
Western Australia $1,128 $1,030
New South Wales $1,126 $934
ACT $950 $788
Tasmania $866 $750
Northern Territory $1,046 $1,046

 

Solar Panel Savings in Perth

But how much can you save in Perth, specifically? Well, let’s crunch some numbers. The table below will give you an idea of what the various systems would produce, assuming a 75% efficiency.

Solar system size (kilowatts) Avg daily system output (kilowatt-hours)
1.5kW 6-7 kWh
2kW 8-9 kWh
3kW 12-13 kWh
4kW 16-18 kWh
5kW 20-22 kWh
7kW 28-30 kWh
10kW 40-44 kWh

The feed-in-tariff is tricky to calculate because it has different rates for different times. Solar systems beyond 5 kWh are further ineligible for feed-in-tariffs.  But we can still calculate what you would save on base electricity costs, which are the prime concern anyway.

A typical residential household in Western Australia uses 5,200 kWh annually. A standard 5 kWh solar panel system will produce over 8,000 kWh annually.  At around 27c per kWh, you will save $1,404 on tariffs and another $400 or so on the excess in feed-in-tariffs.

To round it up, we’ll say you can save $1,800 annually on a 5 kWh solar panel system in Perth. The average price of a 5 kWh solar panel system is $5,500. In 3 years the panel will pay for itself. This is a rough calculation, but should serve to illustrate the potential ROI.

 

Solar Panels Perth – How Much You Will save

The general consensus is that solar panels will pay for themselves between 3 and 6 years in total for a 5 kWh system, depending on the efficiency. This will also depend on the state, but feed-in-tariffs are not as important as they are made out. In Perth, with a high quality 5 kWh system, you will make your money back in 3 years or so, and everything else from then on is a bonus. And don’t forget, it can also add to home value.

To make even better returns on solar panels in Perth, then work with Formula Sun. We use the best brands for maximum efficiency and offer a professional install that ensures your panels get the most sunshine possible.

Call now for the best solar panels at the best prices –  0491 288 808.

 

How does the feed-in-tariff work?

It is quite simple. Any electricity that you do not use is fed back to the main electrical grid at a fixed price per region. The fee is less than the price of electricity. It is typically between 20 – 30% of the price of electricity in a given area. You could also keep the stored energy in a battery instead of selling it back.

 

Will a more powerful solar panel system increase the return on investment?

This is certainly not always the case, for 2 reasons. First, is that you only make money by reducing the energy your household uses, not so much by selling it back. A bigger system with excess energy will be fed back to the grid at a reduced rate, around 20% – 30% of the normal rate. Second, is that systems above 5kWh cannot avail of the feed in tariff under the DEBS scheme. And, of course, there is the increased cost of the more powerful solar panel system.

 

Will a solar battery save me money in perth?

It depends. It’s a great idea if the grid limits how much money you can export. In Perth, you can only benefit from feed-in-tariffs if your system is 5 kWh or less. So it definitely makes sense if your system is above this. It also makes more financial sense to install a new battery when you are installing or about to install a new solar system.

Retrofitting a battery to an existing system makes less financial sense. Size is also important, and smaller batteries tend to pay for themselves more quickly than larger ones. However, Perth is one of the better cities to invest in solar batteries, and the price is going to continue to decline.

 

How does the government rebate work?

Technically, there is no such thing as a government rebate for solar panels, but those are the popular terms. What is transferred are small-scale technology certificates (‘STCs’). Essentially, all you have to do is work with a CEC-accredited installer and they trade in the STC and reduce the price of your solar panel installation. It reduces the prices, and this reduction is already factored into the advertised price of solar panels. This makes it easier for you to simply buy a discount solar panel system and let the provider take care of the bureaucratic details. In Perth, the discount is higher than most major cities.

 

How can I learn more about saving money with solar panels in Perth?

Experiment. Get your energy bill and see what you consume per year/month/week. Then use some of the online solar panel calculators to see what system would be a best match and how much you could save. All the jargon can seem confusing, but ultimately solar panels are a great investment. There’s a reason why so many people have them, and precious few drawbacks once you take the time to install them correctly.

To understand more about feed-in-tariffs, STCs, batteries, inverters, and all the things that will save you money, talk to Formula Sun. We started back in 2006 because we understood that solar power was a great investment and a wonderful way to help the environment. And things have only gotten better since.

Let us help you to reduce your footprint and electricity bill.

Call us now on 0491 288 808 for a free quote and a bigger bank balance.

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