For many years solar power was an expensive alternative to fossil fuels. While it was clean and green, the unaffordable cost associated with changing over to solar energy made it unfathomable to homeowners that this solution was a viable one.
But with an increased consciousness surrounding the importance of humans beginning to take better care of the planet, the need and excitement for environmentally friendly sources of energy have become more prevalent now than ever.
How does solar power work?
Wrapping your head around how solar works can sometimes be confusing, but in reality it’s quite simple. The most common form of solar power used in residential areas is solar panels, which convert light from the sun into electricity.
Cheap technology and an abundance of funding sources has helped to make solar power more affordable
Solar modules cost about a dollar per watt of capacity. Complementary equipment, construction and financing costs are all needed to run a functioning solar power plant, which can be costly. However the photovoltaic modules which conduct solar energy are much cheaper now than they were 5 years ago, making it still a more efficient option for power than any other fossil fuel.
It is also easier to get more funding to put towards solar power these days. Banks are selective when it comes to supplying businesses and corporations with finances. It took a while, but now that solar energy has built a distinguished reputation, capital is more abundant and interest rates have dropped significantly for those interested in switching to solar power.
It’s also important to recognise the long-term benefits of solar power. While the prices are currently at an all-time low, it will still likely cost more than anticipated up-front to source the technology to set up solar power, depending on the scale of your operation. However, in 20 years these costs will balance out due to the money saved on electricity and the kick-back benefits you may receive as a business or home owner.
What makes solar panels so affordable for homeowners?
There are multiple ways utilising solar power can help you save money on energy costs. You’ve probably noticed your utility rates seem to rise each year. Utilising solar panels means using less power from the grid and saving money on your electricity bill, or even eliminating it all together, each month. Solar energy can also be stored and utilised later, saving you money during peak periods when the electricity rate may be higher.
Did you know in Australia certain financial incentives and rebates apply when switching to solar power? This includes potential rebates for the initial installment of your system. The Australian government recognises and appreciates the value renewable energy brings by reducing the country’s reliance on fossil fuels. Feed-in tariffs may also apply in some states and territories in which any excess energy is fed back into the grid, off-setting your electrical bill. Some retailers can offer great deals from 12 cents to 16 cents per kWh.