Rising electricity bills are the latest in a series of blows to family budgets and can cause people to overheat with the idea of solar power.
The Australian Energy Regulator (AER) on Thursday boosted its default market offering, which is essentially a safety net for customers who have not bought for a better deal on their energy costs.
The changes, which take effect on July 1, are expected to increase bills by $ 165 a year, or 11.3% in Southeast Queensland.
In the Queensland region, a report from the Queensland Competition Authority (QCA) found that electricity bills will increase by 9.2 per cent, or about $ 119 each year.
In response, Prime Minister Annastacia Palaszczuk announced last week a $ 175 discount on electricity bills, which will be automatically applied.
The AER has predicted that energy prices will continue to rise in Queensland and New South Wales for the next two years.
So could switching to solar power reduce energy costs? We asked a group of experts.
Is the plot worth it?
Solar power can reduce electricity costs by up to 60 percent. (ABC News: Chris Le Page)
Chris Barnes of the Choice Consumer Index, which focuses on solar energy and energy, said it was a no-brainer.
“For the most part, a modern house with a well-maintained roof that is not overshadowed by trees or anything; solar panels just make a lot of sense,” he said.
Andrew Reddaway, a senior consultant for the Australian Energy Foundation, whose purpose is to accelerate the absorption of green energy, said solar panels can drastically reduce energy costs.
“If you expect to stay in the house for several years and have a sunny roof, then solar panels are very economical, especially with grid electricity rates rising,” Reddaway said.
“By installing solar, you can expect to reduce your electricity bills by 30 to 60 percent.”
How long do I have to offset the initial costs?
Solar energy will take less time to pay for homes in the state of the sun compared to other states thanks to the hours of sunlight we receive. (ABC News: Billy Cooper)
Initial costs are often a major barrier for people considering solar.
These vary, but Mr. Barnes said most homes would opt for a typical system with a capacity of 6.6 kilowatts, which would cost between $ 5,500 and $ 9,000.
“The best value you get from a solar panel system is when you use as much solar power as possible,” Barnes said.
“A system in this type of price range will probably, in most cases, pay for itself in about four or five years.
“In Queensland, you would usually have a faster recovery because you just get more hours of sunlight in Queensland compared to, say, Melbourne or Hobart.”
Mr. Reddaway predicted a slightly longer period of time.
“Depending on the location, the direction of the roof, the time of day you use electricity, and so on, the recovery time can range from four to seven years,” he said.
“This compares very favorably with low-risk financial investments or paying off a mortgage.”
What to consider before installation?
Mr Reddaway said selecting a reputable solar retailer is vital.
“Retailers often outsource the work to a local installer, so check in advance how it will work,” he said.
“Installers must be individually qualified by the Clean Energy Corporation (CEC) and retailers can apply for CEC-accredited‘ Approved Solar Retailer ’status.
“As with other types of home improvement, word of mouth can be a great way to find a reliable local business.”
The cost of installing solar panels is often more expensive than the panels themselves. (ABC News)
Barnes urged households considering solar power to do everything.
“If you can afford to put more panels on the ceiling, do it,” he said.
“The panels themselves are relatively cheap, ranging from two hundred to three hundred dollars each.
“Much of the cost is in the actual work of the installation and it is very difficult technically to expand a solar panel system years later.”
Is battery storage worth it?
Barnes said he is not convinced that a battery is an economically viable option for the average suburban home.
“A lot of people think about adding a battery, the idea is, ‘Well, if I don’t use it during the day, I’ll keep it and use it at night,'” he said.
“It simply came to our notice then.
“They are still relatively expensive for what they offer and I suggest that many homes will not get them back for life, under the warranty of the battery.
“If you want to spend a little more, buy more panels instead of a battery.”
In Southeast Queensland, electricity bills are expected to increase by $ 165 a year or 11.3 per cent. (Unsplash: Diz Play)
Mr. Reddaway echoed his thoughts.
“Some households consider it important to maintain a power supply during a power outage. For these households, it may be worth investing in a solar battery,” he said.
“If you’re just worrying about saving on bills, then it might be best to wait until battery prices go down.
“Batteries can be added to a solar system later.”
What is a feed rate?
If your solar system produces electricity that you do not use, it is exported to the mains for use by other households.
You can receive payment for this through a feed rate.
Southeast Queensland electricity retailers offer different power rates, so people are advised to make a purchase.
The Queensland government recommends the Australian Energy Regulator comparison tool.
Ergon Energy and Origin Energy retail customers in the regional areas can access the regional solar power tariff, a tariff set by the QCA, which regulates the prices of the state’s monopoly infrastructure.
In 2022-23, Queensland’s regional power rate has been set at 9.3 cents per kilowatt-hour.
What discounts are available?
The Federal Small Scale Renewable Energy Program (SRES) offers a discount on solar panel installation costs.
However, this applies to your budget, and the installer will take care of it for you.
The value of the scheme decreases marginally each year until it expires at the end of 2030.
Posted 51 minutes ago 51 minutes ago Friday, June 3, 2022 at 9:06 PM, updated 48 minutes ago, 48 minutes ago, Friday, June 3, 2022 at 9:09 PM