We’ve seen the ads every time we get on Facebook, read the news or browsed our favorite website. Claims that are too good to be true – saving customers thousands of dollars every year with little or no risk.
How Does it work? Is it too good to be true?
The average Australian home will consume approximately 12 – 25 Kilowatts per day, depending on your hobbies and lifestyle (and how much juice that requires). A solar system can cost between $3,000 and $8,000 for most people in Queensland depending on the system size and a number of variables related to your home. This cost is the price the consumer pays after the Solar Installer they engage with, deducts the value of rebates off of the cost to purchase & install your system. This is a very significant value and can often reduce the system purchasing costs by up to 50%, which is why we’ve seen it become so affordable for people to choose solar power over a reasonably short time frame.
Summary: A solar power system purchased from an installer comes with a government supplied rebate for the cost of the system.
So you choose a system with a reputable CEC accredited provider and you’ve got the system installed on your roof. All the power that you generate and consume in real time is free, which is a significant saving from your power bill, but not the only source of savings by going solar. The solar power systems installed on homes all over Queensland benefit from something called a “feed-in tariff”. This feed-in tariff applies to any electricity produced over the value you that you consume yourself in the home.
For most people this might mean:
- Generating 6 Kilowatt hours per hour during the day
- Consuming 2 Kilowatt hours per hour during the day
- Collecting feed-in tariff on 4 Kilowatt hours per hour during the day
So you Produce Six, Use Two and Sell Four, every hour the sun shines. This feed-in tariff is actually where the bulk of your savings come from, significantly reducing or eliminating your power bill.
You can get a very comprehensive rundown of who the best electrical retailers are for providing great feed in rates from Canstar Blue, so once you’ve selected your system, ensure that you get the best price for your generated power.
Summary: A solar system saves money by producing power, which reduces how much power you take from the grid, and saves you more money through selling the excess power back to the grid for a fee, called a feed-in tarrif.
So what part about this is free?
You said it still costs $3000-$8000 for a system. Well, the interesting part is that for the vast majority of people, the value that the solar power system saves is considerable. If you add up the power bills paid throughout the year, you’ll quickly see the system pays for itself, with a payback period of 2-3 years for the average person.
Further to this, lenders are extremely confident in providing finance for this type of investment, because the Queensland sun isn’t going anywhere, unless it rains for 40 days and 40 nights.
So they offer extremely attractive terms on a finance agreement. This means, that for a period of 2-3 years, instead of paying a power bill, you pay off a finance agreement (our preferred partner is interest free, and zero deposit). For most of our customers it would mean instead of paying (as an example – your bill may be higher or lower) $500 for their power each quarter, they pay around $450 a quarter in repayments instead – so they are actually saving money while paying off the system. Cash Flow Positive.
Then after the 2-3 year period, they have nothing further to pay, and enjoy saving thousands per year. (If you were curious, the warrantee on Solar Power parts and installations is ten to twenty five years).
If you’ve been putting off getting a quote or it sounds like something you’d be interested in exploring , feel free to reach out to us here at Pedleys Solar or give us a call on 1800 270 963 for an obligation free quote.
Pedleys has been in business since 1978, and the team has a wealth of experience in solar systems of all sizes. Get in touch today!