Frequently asked questions
Here are the answers to some of the more frequently asked questions by consumers exploring solar energy options for the first time, or keen to have a better understanding of solar energy, how it works and what this means for them. If we haven't answered one of YOUR frequently asked questions, please contact us via the contact form.
- How does solar energy work?
- What are the cost savings with solar compared to normal grid electricity?
- What’s the energy payback on my solar panel?
- Does solar help me save money on my electricity bills?
- What does ‘Feed-In Tariff’ mean?
- By installing solar, can I reduce my home or my business’s carbon footprint?
- Will solar panels increase the value of my property?
- What does grid parity mean?
- What do I need to consider when buying solar panels for my home?
- Which brand? What should I look out for when comparing PV systems?
- What type of system should I get?
- Who should I get to install the system?
- What maintenance is required on my solar panels once they are installed?
- What is the government’s Green Loans Scheme?
How does solar energy work?
- Electrical energy comes from the movement of electrons.
- Photovoltaic technology uses a proven method to absorb energy from sunlight and convert it into electrical energy that we can use. Photovoltaic modules (solar panels) work anywhere - at sea, in space, on cars, on calculators and on large and small power stations.
- Producing electricity with solar panels emits no pollution, produces no greenhouse gases and uses no finite fossil fuel resources.
- Solar panels have been in use around the world for more than 50 years.
- Solar panels don't have moving parts, don't require maintenance, consume no fuel and last a lifetime longer than mechanical generators.
- The amount of sunlight, rather than temperature, is the most important factor in determining the output of a solar electricity system. All factors being equal, solar panels generate more power at lower temps. Whilst solar cells are electronic devices and generate electricity from light, not heat, they operate more efficiently at cooler temperatures. In temperate climates, solar modules will generate less energy in the winter than in the summer but this is due to the shorter days, lower sun angles and greater cloud cover, not the cooler temperatures.
What are the cost savings with solar compared to normal grid electricity?
- Solar energy from photovoltaic panels has a levelised cost of energy of $0.20 to $0.30 per kWh, resulting in a simple payback of 5 to 10 years for a grid-connected system.
- In many regions, the cost of energy from the utility is approaching or exceeds $0.20 per kWh, meaning solar energy is already cost competitive compared to the grid. With an operational life of 20 to 30 years, solar energy is a smart investment, providing up to 20 years of free electricity once the initial capital investment is paid back.
What’s the energy payback on my solar panel?
- Energy payback is the term used to describe the length of time it takes for your solar panels to recover the energy that went into making the system in the first place.
- Energy payback estimates for rooftop PV systems are now around 18 months to two years, and this value is decreasing due to new technologies and higher efficiencies of solar cells.
- With energy paybacks of one to four years and assumed life expectancies of 30 years, 87-97% of the energy that PV systems generate won't be plagued by pollution, greenhouse gases and depletion of natural resources.
NOTE: Based on data research and current models, the idea that solar cannot pay back its energy investment is simply a myth. Indeed, researchers Dones and Frischknecht found that PV-systems fabrication and fossil fuel energy production have similar energy payback periods (including costs for mining, transportation, refining, and construction).
Does solar help me save money on my electricity bills?
- Yes, solar will save you money. Once you have installed a solar energy system you will be generating FREE electricity to supply your home. When you produce more electricity than your household needs this surplus electricity will be fed back into the grid. At night when the sun isn't shining you can draw back on the electricity through the grid.
- If you use less electricity than you are producing through your solar panels, your electricity retailer will give you a refund or credit based on your areas net-metering regulations or 'feed-in tariff' - the amount of money per watt you receive for putting electricity back into the grid. Contact your electricity retailer for more details.
What does ‘Feed-In Tariff’ mean?
The State Government's 'feed-in tariffs' (FITs) reimburse consumers for any power their solar electricity system feeds back into the grid. They're designed to encourage more Australians to generate their own electricity. For more information contact your State Government to find out what your local feed-in tariff is.
By installing solar, can I reduce my home or my business’s carbon footprint?
Yes.
Every kilowatt-hour of energy generated by a photovoltaic system reduces the amount of energy generated from carbon-intensive sources like coal, oil, gas, or diesel. The exact amount of carbon reduction will depend on the energy mix of your local grid, but on average each kilowatt of PV will reduce carbon emissions by 1500 kg per year.
Will solar panels increase the value of my property?
Yes.
Research from Europe and the United States has shown that homes with PV systems sell for $10,000 to $20,000 more than comparable homes without. This is often more than the initial investment to install the system.
What does grid parity mean?
Grid parity is the point at which the cost of electricity from a PV system is equal to or cheaper than electricity from the grid. This tends to be achieved first in areas with abundant sunlight and high electricity costs (such as in California, Japan and remote areas being supplied by high cost energy sources such as diesel generators, such as Norfolk Island and much of regional Australia).
What do I need to consider when buying solar panels for my home?
- Solar panels will work successfully on most roof spaces. However, roof aspect and roof angle are important factors to consider. For optimum performance (and thus quicker payback), solar panels should face due North at an angle equal to the latitude of your location (eg. 32 deg Celcius in Perth, WA).
- Another consideration is roof area. Do you have sufficient North facing roof space for the panels and is there sufficient space to add additional solar panels down the track if you decide you want more? Solar panels have an average power density of 140W/m2, so a 1kW system requires about 7m2 of roof area.
- If you decide you want more solar panels, make sure that the solar panels already installed on your roof are compatible with the solar panels that you are adding. Additional solar panels must be of the same type and voltage - adding panels with a different voltage to those already installed is not recommended.
- Check that your existing inverter has the extra capacity to cope with the additional panels - you may need to upgrade your inverter.
Which brand? What should I look out for when comparing PV systems?
- There are a number of variables involved in comparing PV systems, namely:
- Price
- Output
- Warranty
- Quality
- Component selection
- As with any product, there are a range of options available to the consumer. Generally a consumer will make their decision based on personal preference, budget and perceived or real differences in the products.
- In real terms there are very few differences between the various manufacturers of solar panels. However, the important things to note are the effective area conversion efficiency and warranty terms.
- The difference in the efficiency of solar panels is based on the use of different technologies however, unless there is a significant restriction in roof space, this need not be a primary consideration for consumers.
- Efficiency tends to be a focus for PV researchers not consumers since a more efficient panel does not necessarily translate into a better panel.
- The warranty on a solar product is a more real concern for consumers, since a longer replacement warranty projects more confidence in the product on behalf of the manufacturer, and less risk on behalf of the consumer.
- When comparing products of similar price and specification look for the one with the longer warranty or better warranty conditions.
- At the end of the day it is the "price per watt" ($/W) of solar panels that is the most important factor in a PV system. At Sungrid we call this the economic efficiency of solar energy. Of equal consideration is the "per per unit energy" ($/kWh) of the system, which is a function of the $/W and the long term performance of the system. Systems must be designed and installed for optimal performance in order to ensure a reasonable payback period.
- A more economically efficient solar power system will result in a quicker energy payback period (see Energy Payback question above) and a more substantial return on your investment.
- Assuming certifications and warranties between different products are similar, the main point of comparison will be the $/W value of the system.
- A Sungrid system produces the same amount of energy and thus the same annual savings as any equivalent output system, but Sungrid offers significantly better value for money as well as a 'performance plus' warranty.
- In fact, due to our power tolerance policy on solar panels (+5%, -0%), a Sungrid system is likely to outperform most other systems of equivalent power rating because all of our panels meet or exceed their rated power by up to 5%.
What type of system should I get?
Every home is unique and every homeowner has their own reasons for wanting solar energy. Talk to your local Sungrid Approved Installer about designing a system that will meet your needs.
Who should I get to install the system?
Your panels MUST be installed by a qualified/licensed Electrician who is CEC (Clean Energy Council) accredited. The DC voltage of grid connected system is dangerous can cause serious injury or death if they are not installed correctly.
Sungrid panels are available through our qualified installers. To find out your local options, contact us at info@sungrid.com.au for more information.
What maintenance is required on my solar panels once they are installed?
In general, PV systems do not require any maintenance. However it is recommended to have the system inspected annually to make sure it is working correctly. The buildup of dust or debris on the panels will reduce the performance of the system, so periodic cleaning is often a good idea.
What is the government’s Green Loans Scheme?
- Green Loans is a new Australian Government initiative to help Australians tackle climate change.
- The Green Loans Program assists Australian families to install solar, water saving, and energy efficient products.
- The Green Loans Program provides:
- detailed, quality Home Sustainability Assessments; and
- access to Green Loans of up to $10,000, that are interest free for up to a maximum of four years, to make the changes recommended in the assessment.