Month: February 2022

Will Solar Panels Increase The Value Of My Home?

Posted on by solarbright

When most people consider installing solar panels in Australia, they think of the immediate benefits. Of course, you can automatically slash plenty of dollars from your annual energy expenses with solar, and you can also contribute to improving the environment. But solar energy is also a long-term investment that can deliver benefits even when it’s time to sell your home.

Increased Selling Potential

The simplest answer to whether solar panels will increase the value of your home is ‘yes!’. Buyers know that a home with solar panels represents ongoing electricity savings for the life of the solar system. Basically, those annual energy savings can be put directly into a person’s mortgage, and buyers are aware of this. As such, they’re willing to pay a little extra for a home with a solar system installation.

Solar panels in Australia represent great value for you as a home seller, and for the home buyer. You can legitimately charge a bit more for your home, and the buyer is usually happy to pay because they receive the long-term benefit of reduced energy bills.

The Green Revolution

More and more Australians are joining the green revolution. Whether it’s installing solar panels, campaigning for less reliance on fossil fuels or simply making more eco-friendly choices around the house, Aussies are well and truly on board the green train. This means solar panels are an extremely attractive feature for people when they’re buying a home.

Ultimately, if a home buyer wants solar energy, they have two options. They can buy a house without solar and get it installed themselves – this might cost them $6,000, so they’ll likely want a reduction in the house price. Alternatively, they can buy a home that already has a solar panel installation and pay the full asking price. The latter is probably more appealing and less complicated for most people, so if you don’t have solar, you risk losing buyers or needing to reduce your asking price to satisfy them.

Don’t Get Left Behind The Market

Due to the enormous uptake of residential solar energy in Australia, homes with solar panels are becoming the norm. When you go to put your house on the market, you’re always competing with other similar homes in your area. If homes don’t have certain features, they can quickly be crossed off a buyer’s list, and one of those features is likely to be solar energy in the coming years.

Put yourself in a buyer’s shoes when considering 5 different homes in one suburb. All of those homes have a second bathroom except one. A second bathroom is a common requirement these days, and homes without this feature are left behind or sell at a reduced price. In the future, solar installations will be so widespread that they will become standard, expected features in homes. So, you can install now or risk longer sale times and decreased prices in the future.

Increased Rental Returns

Remember that not all home buyers intend to live in your home. Many are investors and plan to use it as a rental property. It’s a no-brainer that landlords can charge more rent for a house with solar panels because the tenants’ living expenses are already reduced. Depending on the house size and energy usage, many people can slash up to $2,000 off their annual electricity bill by going solar. Rental property owners know this and can effectively charge up to $40 more per week for their property.

As such, a home with solar panels becomes a much more attractive proposition for investors. If you’re selling a home, you can likely generate more interest and higher prices among investors because they know they can profit heavily in the long run.

Need Help With Solar Panel Installation?

If you’d like to increase the future value of your home while also enjoying the benefits of solar energy right now, we’d love to help you out. Solar Bright are the experts you can count on for honest, reliable advice and the best solar products in Australia. Book a free consultation today, and find out how much you can expect to save thanks to solar energy

Calculate Your Solar Panel Payback Period With These Simple Steps

Posted on by solarbright

Beyond contributing to increased sustainability and energy efficiency, solar power systems can create considerable savings for your household by reducing your energy bill. While the initial investment of installing solar can seem high, when you factor in the lifetime benefits of generating solar to help power your home, the costs are definitely worth the outlay.

When considering solar, it can be useful to understand when and how you will make your money back on your solar investment. Here we will discuss the components that contribute to the solar panel payback period and how to calculate your own return on investment.

What Is A Solar Payback Period?

Put simply, the solar payback period is the time in which it will take for you to save as much on your energy bill as you paid for your solar system.

Payback periods can range in length due to the many variables that come into play. On average, you can expect to wait anywhere between 3-6 years before your solar panels will have paid for themselves. This is a comparatively fast payback period when you consider the lifespan of your solar system is approximately 25-30 years.

What Factors Go Into Calculating My Solar Payback Period?

There are a number of aspects to consider when you want to work out your solar payback period. Most will be dependent on your location and energy provider. That’s why it’s a good idea to consult with a reputable solar provider – they can guide you through the process, and provide an accurate picture of the costs involved and how they will impact your payback time frame.

However, as a general guide, here are the main factors that will affect your calculation:

  1.   The cost of energy per kilowatt (kWh)
  2.   The size of your intended solar system
  3.   How much energy your solar system produces
  4.   The cost of your system
  5.   How much of the solar energy produced will your home consume (or more precisely, how much energy will be returned to the grid)

How Do I Calculate My Solar Payback Period?

As mentioned, when calculating your payback period, it’s important to use figures specific to your location. In doing so, you will end up with a more precise outcome and a better understanding of how long it will take to recoup your initial investment.

Review a few of your latest energy bills to gather the data you need. Here we will be using average figures based on current New South Wales prices:

  •         Cost of energy: 20 cents per kWh
  •         System size: 5kW
  •         Energy produced: 20kWh per day
  •         Feed-in tariff: 7 cents per kWh

Scenario 1: Using All 20kWh Of Solar Energy Per Day

This scenario assumes your home will use all 20kWh of energy your solar system can produce each day, with no unused energy returned to the grid.

The formula required to calculate your payback period will be:

  •         20 cents per kWh X 20kWh per day

= $4.00 SAVING PER DAY

= $1,460 SAVING PER YEAR

Payback Period

= $1,460 / 365 days

= just over 3 YEARS

Scenario 2: Using 70% Of The 20kWh Of Solar Energy Per Day

This alternate scenario assumes your home will only use 70% of the maximum 20kWh of energy your solar system produces each day, with the excess 30% returned to the grid.

In this situation, energy retailers offer a feed-in tariff, crediting your account for every unit of energy you contribute back to the grid. Therefore, the calculation to work out your payback period will be:

  •         20 cents per kWh X 20kWh per day

= $4.00

$4.00 X 70% energy used

= $2.80 SAVING PER DAY

PLUS

7 cents per kWh feed-in tariff X 20kWh per day

= $1.40

$1.40 X 30% energy returned to grid

= 30 cents CREDIT PER DAY

Payback Period

= $2.80 + 30 cents

= $3.10 SAVING PER DAY

= $1,131.50 SAVING PER YEAR

= $1,131.50 / 365 days

= just over 4 YEARS

Expert Solar Advice And Support With SolarBright

For more information about how to calculate your solar panel payback period, the highly skilled team at SolarBright is here to help. With close to 15 years of industry experience, we have the expertise to guide you through the ins and outs of the solar installation process, including providing advice regarding your home’s potential for energy generation and helping you determine your return on investment.

SolarBright consultants use a specialised satellite-based solar mapping software to design each solar system. This software takes into account the location of the house, panel model, panel size, and the orientation of the panels, to calculate the estimated annual production of the system. They then use this data to calculate the pay-back time.

So, contact SolarBright today to arrange a free consultation and find out more about how solar energy can benefit your home and save you money on your power bills.

The Top 5 Solar Myths Debunked

Posted on by solarbright

If you’ve heard some wild claims about solar energy and wondered if they’re true, you’re in the right place. Let’s look at some common solar energy myths and then analyse the facts.

1. Solar Panels Don’t Work When It’s Cloudy

The optimal weather conditions for solar panels are clear, sunny days. When your solar panels receive uninterrupted, direct sunlight, they will perform at their best. Clouds obviously reduce the amount of direct sunlight your panels receive, and therefore reduce solar energy production. However, it’s not quite true that solar panels don’t work in cloudy conditions.

You’ll experience a reduction in efficiency, but your panels will still produce some energy. In addition, some modern solar panels deliver good performance in low light conditions. Naturally, if the cloud cover is very thick and conditions are overcast, it will drastically reduce performance. But if clouds are moving quickly and still allowing bursts of sunlight, the efficiency reduction will be less.

2. Cheap Systems Are The Best Value

Like most things in life, cheap is rarely the best. Many people opt for super cheap solar package deals because they seem too good to be true. The idea is that a lower upfront cost means the system pays for itself faster.

In theory, this is true, however, cheap systems may not perform as well, meaning fewer savings on an ongoing basis. Therefore, an unreliable system may actually take longer to pay for itself than a more expensive, high-quality one.

Not to mention, if repairs and failures are frequent, it can turn into a nightmare. It’s always worth paying a little extra for quality and reliability.

To learn more on the dangers and pitfalls of cheap read our blog on this topic HERE.

3. Solar Panels Use More Energy To Make Than They Actually Save

While many of us focus on the time it takes for a system to pay for itself financially, there’s another payback that’s important: the energy payback. Here, we refer to how long it will take for solar panels to produce the same amount of energy that it takes to make the panels.

Best estimates put this period at around 2 years. So, in 2 years, your solar panel has already offset the energy cost of its manufacture. Assuming your system produces for around 30 years, that’s 28 years of clean, green energy gains for the planet.

4. The Hotter The Temperature, The Better The Solar Energy Production

This myth can definitely be debunked. Naturally, heat goes hand in hand with bright, sunny conditions, so when it’s hot, you can usually expect good solar production. With that being said, most solar panels used in Australia are rated to perform best at around 25 degrees Celsius. Once the mercury rises above 25, most solar panels will actually reduce productivity.

For each degree over 25, solar panels may lose between 0.20 – 0.50 percent of energy production. So, it’s completely untrue that hotter temperatures result in more solar energy generation.

5. Solar Panels Will Give Me Power In A Blackout

Unfortunately, this isn’t quite true. The solar inverter in the solar system is connected through your main electrical board to the electricity grid. If your system produces more solar energy than you use, the excess automatically goes to the main grid. In the case of a blackout, the inverter senses that the grid is no longer connected and automatically shuts down,

However, the best way to ensure you’re not at the mercy of the main grid’s blackouts is to buy solar battery storage. While more expensive, battery storage lets you store excess power and use it at night when your system isn’t producing. Many batteries can be configured with backup options to provide you with power during blackouts.

Want To Know More About Solar Energy?

The team at Solar Bright has the expertise to help you make the right choice. During our free consultation, we examine your existing energy consumption and costs, as well as your energy usage patterns. This allows us to recommend the right size of the solar system and the perfect products for your household’s needs.

To find out how much you can save and how to access government solar energy incentives, contact the team at Solar Bright today. We’ll help you join the green revolution and save plenty of money in the process.