Solar Power - How Panels Can Help You Reduce Your Electricity Bill

Solar panels can reduce your energy bill. Electricity bills can be very expensive in Australia. Not only can solar panels can help mitigate that cost, they can provide other functional benefits in the house and even passively earn you income. In this guide, we’ll take you through how solar panels work and how you can get the most out of them to reduce your energy bill.

Average Electricity Bill Australia

Average Australian household currently spends approximately $345-$411.80 per quarter on electricity bills. In our home state of Victoria, the quarterly electricity bill is $409.10, according to Compare the Market. Electricity costs fluctuate by state, with factors like energy tariffs and usage habits influencing the overall price.

Electricity prices in Australia were indicated to trend upward in the middle of 2023, suggesting that costs may continue to rise in 2024. ACCC Commissioner Anna Brakey said in an official media release on June 30 2023, “Wholesale electricity prices have eased since their peak in the middle of 2022, but we expect electricity bills to increase further this year due to the lag in wholesale costs flowing through to customers.”

How Do Solar Panels Produce Electricity

Sunlight turns to Energy:

This part of solar energy generation is interesting. Don’t worry, we won’t make it complicated. Solar panels are made of photovoltaic cells that convert sunlight into direct current (DC) electricity. When photons (particles of light) from sunlight hit the silicon in the photovoltaic cell, they dislodge electrons from their atoms.

DC to AC Conversion:

The design of the photovoltaic cell, with its charged layers, creates an internal electric field. This field encourages the dislodged electrons to move in a specific direction, creating a flow of electricity – this is direct current (DC) electricity. A solar inverter then transforms DC electricity into usable alternating current (AC) electricity for your home. Pretty cool isn't it?

Energy Storage/Distribution:

Excess solar energy can be stored in batteries for later use or fed back into the grid for potential credits. Turns out you can have too much of a good thing.

How Does Battery Storage Reduce Your Bill

Excess solar electricity generated during the day can be diverted to a home battery system. This stored energy becomes your power supply for later use.

Creating Your Own Source of Reliable Energy:

Energy that has been captured by your solar panels allows you to minimise your consumption of energy from Australian energy retailers. You’re able to coordinate how much solar you use and directly reduce the costs of using other energy sources.

Nighttime Usage:

Power your home after the sun goes down without drawing from the grid. This means you can get a sufficient amount of energy during the day and use it proportionately to your energy requirements.

Energy Independence:

How good is it to take what you need naturally from the sun and not from an energy retailer? Solar can give you a sense of energy independence and self-sustainability by reducing your reliance on traditional electricity providers, especially during peak pricing hours.

Backup Power:

Batteries can offer power during outages or blackouts, adding a greater level of self-sustainability when the steady supply of power is affected.

The Economical Benefits of Putting Energy Back Into The Grid

Your at-home solar can be connected to the main electricity grid. When your panels generate more energy than your home needs, that excess is exported back into the grid. The benefits include:

Accrue Potential Credits:

Many utility companies offer feed-in tariffs, which means you may receive credits or payments for the electricity you send back to the grid.

Offsets Future Costs:

Credits earned can potentially lower your future electricity bills by offsetting the costs. Solar energy can even earn you money passively.

Supports Greener Grid:

Feeding renewable solar energy back into the grid helps reduce overall reliance on fossil fuels. This is particularly important as we transition into a greener society and make it more a sustainable energy source for the future.

How to Get the Most Out of Solar Panels

Sunlight Access:

It sounds more than reasonable that your solar panels get a sufficient amount of sunlight. Install panels in unshaded areas and consider pruning trees that might obstruct light throughout the day.

Optimal Positioning:

The ideal angle and orientation of panels maximise solar energy intake. In Australia, we generally angle the solar panels north.

Cleanliness:

Dirt, dust, and debris can lower efficiency. Clean your panels regularly as a matter of upkeep.

Strategic Usage:

Run appliances like dishwashers and washing machines during peak solar generation hours. Helps to get those chores out of the way too.

The Modern Home

We build modern homes. With that comes recognising homes of the future. Solar panels are becoming part of modern home design. Much like JG King’s 7-Star Energy rating, we’re committed to a more functional and economical home. Installing solar energy in your home can help you reduce your bill, use energy more efficiently, and even contribute to a greener future. The future of energy is here. Welcome to modern living.