Why is Solar Power Our Future?

Want to make the switch to solar energy but not sure whether it’s worth it?

Fossil energy is rapidly dwindling and the rise of sustainable initiatives to stop and reverse global warming inexorably calls for the use of efficient renewable energies. The great news is, Australia has one of the highest solar radiation levels in the world. In Victoria alone, homes receive about 4.8 kilowatt-hours of sunshine per square meter each day, uncovering the tremendous potential for the solar industry. In fact, 20% of Australian homeowners have already made the decision to go solar and harness the power of the sun’s energy. As of June 2020, the country counted over 2.4 million rooftop solar panel systems.

The appeal for solar energy is partly due to sustainability concerns and a shift in society’s mindset. However, it’s also majorly driven by the significant cost reduction that has happened over the past decade making it one of the cheapest ways to power your house.

In this article, we’ll explain how solar energy works before diving into its powerful benefits. We’ll also highlight some government incentives to encourage homeowners to make the switch.

How does solar energy work?

Solar energy can be used to heat your water and/or to create electricity.

• Heating your water: To heat up your water, you’ll need to install thermal panels. Thermal panels absorb sun rays which, in turn, heats the water contained in your tank.
• Creating electricity: To create electricity for your home, you’ll need to install solar panels. Solar panels are made up of photovoltaic cells which capture the sun’s rays throughout the day and release photons. As photons move around the solar cell, they produce energy which is then turned into electricity.

The benefits of solar energy

Save money

Solar energy is one of the least expensive ways to power your home if you live in Australia. Indeed, once you’ve installed your solar panels, the energy stemming from your installation is completely free, meaning you’ll save thousands on your electricity bills.

Even better, if you don’t use all your electricity, you can feed it back to the grid and be paid for doing so. You can compare the feed-in-tariffs (FITs) by retailers based on your state here. To make the most out of your solar panels, you’ll need to ensure you’re using your appliances mostly during the day (solar window). This way, you’ll be able to use your own electricity rather than paying for access to electricity from the grid.

Electricity purchased from the grid costs a minimum of 21c per kilowatt-hour in Victoria. Consuming your own solar energy can save you up to $2190 a year with a 5kW system and up to $4380 with a 10kW system.

Further, as technology evolves and helps to improve the efficiency of solar cells, the World Economic Forum estimates solar panel costs will be halved by 2030. This will make this sustainable alternative even more affordable to implement.

Sustainability

• Inexhaustive and clean energy:

Solar power is one of the most sustainable energy sources as it comes directly from the sun, is widely available, inexhaustive and doesn’t emit CO². The sun should keep shining for about 5 billion more years which means this free source of power is unlimited. To produce energy, solar panels don’t require any water and best of all, they don’t emit any greenhouse or toxic gases. By installing solar panels on your roof, not only do you offset your carbon footprint, but you also contribute to helping Australia reach its Renewable Energy Target (RET).

• Solar panel recycling

Solar panels are mostly crafted with recycled materials to limit the environmental footprint. The Victorian Government recently banned PV from landfills for environmental purposes sparking some clever actions from companies such as Reclaim PV. Indeed, the company is currently developing initiatives to recycle used or damaged solar panels to increase their lifespan and minimise their impact on the environment.

Increase your property value

The huge cost savings solar power provides combined with environmental sustainability explains the increasing appeal for homeowners to switch to solar energy with 20% of Australian homes now using solar energy.

The main cost relating to solar energy is the installation. Therefore, adding solar panels to your home will likely increase the value of your property. In fact, an Australian study has even shown that not only can you sell your property 20% faster, but that your property value can also increase by $29,000 if you invest in a 5kW solar panel system.

Energy Independence

The great thing about powering your house with solar energy is that in the event of a natural disaster such as bush fire or a blackout that could potentially interrupt the network, you won’t be affected. Having your own little power plant can, therefore, come in handy in case of external events affecting the general electricity network.

Note that to be completely self-sufficient you’ll need to invest in battery storage. You’ll find the average cost for battery storage based on battery sizes here.

Government schemes

As international greenhouse emissions targets emerged and the voice of citizens rose, Australia managed to overachieve its target in 2019, with 24% of its energy coming from renewables. A number of projects are under construction promising a bright outlook for renewable energy with some experts predicting Australia will be 100% powered by renewable energy in the 2030’s.

All federal states have introduced schemes to help reduce the cost of solar panel installation, thereby incentivising homeowners to make the switch. In Victoria, where the renewable energy target is 40% in 2025, there are a few different types of rebate available to homeowners, under both the federal government renewable energy target and the Victorian government Solar Home Programs:

• Incentives for small-scale solar: Once an accredited solar installation company has been commissioned by a household, a small business or a community group, the owner of the property can benefit from a rebate for their eligible solar installation called a Small-scale Technology Certificates (STCs).
• Solar PV Rebate: Up to $1850 off solar panel system installation. This rebate is available to eligible Victorian households who can also apply for an interest-free
• Solar Hot Water Rebate: If you already have solar panels installed or can’t have solar panels but would still like to use solar power to heat your water, this could be a great option as the government offers up to $1000 rebate for your solar hot water system installation.

We hope this article sheds some light on why solar energy is the future and how you can benefit from installing a solar panel system.

Ready to make the switch? Get in touch with us as we’d love to assist you!