It is definitely helpful to be aware of the cost of the solar panels, but it is more important to know how much money solar panels can save for you.
Solar Systems Adelaide recommend that you set up a solar power generating unit either through zero down payment loans or via a third party ownership model.
The renewable and eco-friendly solar energy helps you to save money in a variety of ways.
How Solar Panels Help You To Save Money
Basically, solar panels help you to save money in three ways:
1. Reduced Energy Costs
Installation of a solar power generating unit in your home helps you to cut down your dependence on energy from conventional sources. This offsets a part of the ever increasing electricity bills.
2. Tax Credits
Governments in countries around the world are willingly offering monetary incentives in order to motivate people to use solar energy. These incentives are often offered as tax credits. This results in the reduction of taxes to be paid by you.
3. Improved Home Value
The installation of solar panels in your home contributes a great deal to increasing its value.
How Much Money Can You Save By Using Solar Energy
Solar power helps you to dramatically cut down the cost of running your property. However, the factors that determine the amount of money you can save include the average energy consumption, usage pattern, feed-in tariff rate, the size of the system and where you live.
Average Energy Consumption
You can find out your average energy consumption per day in kWh by looking at your energy bills. Typically, a 5kW solar power system generates on average 18 kWh to 25 kWh per day based on its location. From this you can determine as to how much of your conventional energy consumption can be replaced with solar energy. Of course, you need to take into account the size of the system that you can install in your area.
The solar power system installed in your home will generate electricity during the daylight hours. You can feed the excess electricity that you generate back into the grid and you will earn credits for the same from your energy provider. This credit helps you to offset your energy bills.
Feed-in Tariff Rate
Typically, energy providers offer around 8 cents per kWh of solar energy that you supply to the grid. If it is possible, it is a good idea to shop around so that you get the best rates. The feed-in tariff can vary from one state to another.
Size Of Solar Power Generator
Larger systems generate more power than the smaller ones. As such, the size of the unit installed has an impact on the amount of money you can save.
Therefore, you must choose a sufficiently large system so as to cover not only your power usage, but also to maximize the return on investment and lessen the payback period.
The amount of power generated by the solar energy system is dependent on geographic location of your home. This in turn impacts the amount of money you can save. This is to say that a location where strong solar radiation is available a 2 kW system may be sufficient to generate as much power as a 3 kW system installed in place where the solar radiation received is less.
To summarise, the savings on energy charges are tremendous if you install a suitable solar power generating system in your home.
In addition, you will also benefit from the tax credits that you receive. As such, the annual savings can be in the range of thousands of dollars.