Is solar still worth it? How can I future-proof my system?
Lately I have been hearing a lot of confusion and concern around the reduction in feed-in tariffs here in Queensland and consequently the question is, is it still worth going solar?
Well, let me help clear that up for you.
Currently we have a nation-wide issue where our electrical grid is so outdated it does not cater to the ever increasing solar systems and therefore the increase in surplus power being fed back into the grid. This increase in power being fed back into the grid creates a voltage rise in a network that was only designed to have power flowing towards the house and not back to the power plant.
Rather than updating the grid, our current anti-Green government’s solution is to either charge us (the consumer) for exporting surplus power back to the grid or they are putting the responsibility back onto us and pushing for us to spend additional $ in installing battery back-up systems.
Last July this government passed the mandate to allow energy billers ORIGIN/ALINTA/AGL etc. to charge their solar customers for what they export back to the grid for surplus produced, solar not consumed in the house. These new rules will take effect on 1st July 2022 but the retailers will be prohibited from enforcing existing solar households onto the new plans before July 2025.
There will basically be two available plans. One will allow the customer to export small amounts of solar back to the grid for a minimum/small fee/solar tax. The other will allow customers to export larger amounts back to the grid but pay larger charge/tax for the privilege.
So what does this mean for you and your new or existing solar system and is it still worth it?
As home owners we need to use as much power during the day, when the solar is working optimally, to get the most out of our systems. Tumble drying, dishwashing, laundry, pool pumps and hot water systems should be run during the day. You are nearly 18 cents better off consuming your power rather than exporting it back to the grid. At this moment in time the retailers are giving around 6-10 cents per kwh for feed-in and if you use a KWH of power it will cost you anything from around 23 cents to 28 cents.
If someone is at home during the day then it is more beneficial for you to do your tumble drying, dishwashing and laundry etc. throughout the day, making solar without a battery system still very feasible.
On the other hand, households that are not at home during the day have two options. You can easily set your appliances up with timers to come on during the day when you are not home, or the alternative is to install a battery back-up system. A battery back-up system will allow you to charge the batteries up during the day from the solar panels and enable you to utilise this stored power in the household from dusk until dawn.
If you are considering a new build home, then it would be wise to also look at installing electric hot water and electric cooking appliances over gas. This will allow you to use the cooking appliances during the morning and early evening hours. We can also put the hot water system on a timer so it heats the water during the peak sun hours between 10 am and 3pm. Should you have a pool, it is also highly efficient and beneficial to run the pump during the daylight hours to utilise the solar production.
While battery systems may not be so affordable right now, I recommend my customers spend a little bit more money now to future-proof their systems and investment. This can be done by installing a Hybrid (battery-ready) Inverter which will allow them to reap the benefits of their solar system now and providing them the option to add a battery in the future once they become more affordable and the efficiency increases.
As an example, adding a 10 kwh DC coupled battery (a hybrid inverter) at today’s prices would cost around $6.5 k installed. However, adding an AC coupled battery (Tesla) down the track to an existing Inverter can cost up to around $12.5k installed. There is also a lot more restriction on permittable battery sizes with AC coupled systems especially if you have a single-phase supply to your house.
In summary, solar and battery back-up systems are definitely still worth the initial cost with a return on investment of 3.5 and 6 years respectively. Forward planning can save you thousands of dollars and increase your return by up to 30 %.
To ensure your solar system is working to its optimum or if you would like to future-proof your household’s energy requirements or you are building a new home, please contact me for a no obligation discussion. My passion is ensuring my customers are reaping the benefits of solar and I would love to help you.
Richard Adams
Director
Live Green Solar
0450 309 341
info@livegreensolar.org