3 reasons You Shouldn't Get A 5kw Solar System In Brisbane.
Also includes prices, savings & ROI
What You Need To Know - Table Of Contents
Every year, Brisbane homeowners spend thousands of dollars on the most typical solar system size, a 5Kw. It’s no surprise, given that they’re a mid-sized system for residential houses that may cover expenditures ranging from $250 to $400 every quarter.
Solar panels with a 370-watt output are standard on most 5kW solar systems, and they are pre-approved for grid connections in Australia.
Is it, however, the best match for your home?
And what should you expect to pay for one? Continue reading to learn more.
Note: Looking for a 5kw solar system quote? you can request a 5kw solar proposal from one of our consultants or call us directly at +61 7 3067 0649
So why Shouldn't you Purchase a 5kw Solar System?
1 – You have a lot of roof space available
Roof space allows you to install more panels, therefore, allowing you to generate more electricity and save more dollars. If you have extra available roof space it would be wise to make use of it now rather than wishing that you had done so later.
This is a concept called oversizing which essentially means you are getting a bigger solar system than necessary to cover your current electricity bills. So that you can be in credit each quarter, future proof your home against rising energy costs & see a better savings outcome 5, 10 and 15+ years into the future.
To iterate the point further lets compare a smaller system vs a larger system in savings for a 6.6kw against a 5kw solar system.
This was calculated with the assumption that.
- Your feed in tariff is 0.08 cents ( you can get between 0.06-0.12 )
- You use 50% of your energy during the daytime
- You buy electricity at $0.25 cents per kWh
- The peak sun hours is 4.2 hours ( This can range in Brisbane from 4.2-5 Using the worst case scenario)
- You solar panels degrade at 0.55% per year in efficiency ( most solar panels degrade from 0.5-0.6 per year )
- There is no electricity price rise rate % included ( why because worse case scenario is the best way to calculate your solar savings just to note the annual electricity price has increased between 3-5% per year in Brisbane on average )
- The average solar system price for a 6.6kw is $5400 in Brisbane
- The average solar system price for a 5kw is $4700 in Brisbane
Note: In this case, you invested an extra $700 into a 6.6kw solar system and earned an ROI of $3957 more in total savings. That is 5.7x your extra investment.
2 – You are a high daytime user of electricity
In our experience, if you are a medium to high daytime energy consumer, going larger than a 5kw will save you more if your roof can accommodate the extra panels. These are often people who work from home, manage a business from home, own an electric vehicle, have a larger family etc.
Most homeowners fall into three buckets when it comes to their daytime usage.
- Low 30-40%
- Medium 50%-70%
- High 70%+
How does this work?
Most of the energy your solar system generates is in a certain window of the day this is called your peak sun hours. In Brisbane, you get between 4.2-5 every day on average throughout the year and this will vary during the time of year winter vs summer.
A simple rule to follow is that the more energy you use the more you will be able to save. Why is that?
3 – Your future Energy usage will increase
We find that a lot of homeowners forget to take into account their future energy usage when looking at a solar system size. A few questions that you might want to consider are..
- Do you plan on getting a pool or spa?
- Do you think your family size will increase?
- Are you planning on adding additional AC Units?
- Will you start to work from home more in the future?
- Are you planning on getting floor heating?
- Are you currently on gas hot water but planning to switch to electric hot water?
Is a 5kw Solar System suitable for your home?
A 5kw solar system is appropriate for homes that use 15-20kWh per day and have a daytime consumption of at least 30-50%. We discovered that a larger 6.6kWh system is more useful above 20kWh.
Each home is unique, so determining if a certain solar system size would be a suitable fit for your home and energy usage requires a review of your bills, consumption habits, budget & available roof space these are all factors that need to be considered.
Orange represents the maximum solar system size for the amount of kwh your home consumes. Black represents the smallest solar system size recommended.
How many Panels In A 5Kw Solar System
A 370w solar panel multiplied by 13.5 = 5Kw, but because you can’t have half a panel, you’d have to either add 1 to achieve 5.1Kw or go lower to get a 4.8Kw system. dependent on the manufacturer and wattage size of the solar panel The higher the wattage of each individual panel, the fewer solar panels you’ll need.
The benefits of having less panels means that you can fit a bigger system on your roof with the same amount of space. A bigger panel will generally give you slightly better watts per meters squared due to less aluminium framing.
However, getting a larger solar panel has certain drawbacks, such as limiting your system design in terms of how it will fit. Because they output so many more volts than a smaller panel, they might limit your wiring arrangement. When considering the numerous aspects that go into effectively sizing a solar system, choosing the suitable sized solar system for your home is critical.
How much does It Cost ?
A typical price range for a 5kw solar installation ranges from $4000-$7000 for a quality warranty backed system this includes the QLD Government rebate incentive. The average cost in Australia is $1.32 per watt or $5160 after the federal incentive.
However with over 6,000 firms registered with the Clean Energy Council to install solar, the solar business is one of Australia’s most competitive markets. As a result, market margins have been compelled to be razor-thin. Unfortunately, some installers have been forced to forsake product and service quality in order to provide ‘crazy pricing’ and back them with big marketing budgets in order to generate high volumes. These strategies have pushed down prices, but they haven’t improved the situation for consumers in most circumstances.
Referenced from SolarChoice
How much Power Does A 5kW solar system produce per day ?
Your 5kW will have varied outputs depending on the state you live in. The peak number of sun hours generated each day on average in your state is used to compute the output of your solar system. For example, the usual peak sun hours in Brisbane are 4.5 hours per day throughout the year; to calculate how much your system will generate, multiply your peak solar hours by the system size. For example a 5kw x 4.5 = 22.5KwH of power production per day on average throughout the year.
A number of things can have an impact on your system’s output, including:
- Direction your panels are facing ( North is the most optimal direction )
- System efficiency rating ( This is usually around 80-90% of the solar system output total )
- Panel tilt angle
- Potential shading or physical impediments such as bird poo, dust etc
- Geographical location
How Long Does it take to Pay Off A 5Kw System ?
For an average Brisbane homeowner paying the average price for a 5kw solar system $4,700, it would take you 3.7 years to get your full return on investment.
If paying for a solar system in full is not possible, many solar installers provide a fixed-interest financing option. Small loan providers, such as Humm & Brighte, are among the most popular solutions.
The length of time it takes to pay off a solar system varies on whether you finance it yourself or use one of the providers mentioned.
The advantages of using a finance option allow you to get solar installed sooner rather than later and, in many circumstances, pay less, if not the same, as you did when you paid your electricity bill to your energy providers. In effect, you would be substituting your energy bill with a finance payback plan over a set length of time, often 2.5-4 years for a 5kw.
In many circumstances, most solar owners can pay the same, if not less, than their usual power bill, while the solar system pays for itself over time.
If you choose a self-financed solar system, you will have a quicker ROI period. For a 6.6kw system, you will have to wait 2-3 years to return your initial investment.
Other factors to consider while estimating your payback period include…
- How much of your time do you spend at home during the day versus at night?
- Do you intend to add more electricity-using gadgets in the future?
- Do you have to use gas or electric hot water ?
- The amount of sunlight hours your geographical area gets
- How many people live in your house?
When done correctly, solar can be a simple procedure, and accurately determining your payback period is critical to knowing how much you will save over the years you have solar.
What STC's & Rebates Do I Get For A 5Kw In 2022
Rebates, also known as STC certificates, are a mechanism for the government to financially incentivize Australians to go solar. Each state has its own rebate structure in place, and in Queensland, STCs are awarded according to the size of the solar system installed. The larger the solar system, the greater the refund to offset the cost of that system.
The refund decreases year after year, and you will receive less and less compensation from the government. In March 2022, you would acquire 62 STC certificates for a 5kw at a cost of $39.25 each, resulting in a rebate of $2,433.5 that you would be paid for.
However, if you wait one year, you will only earn 55 STC certificates worth $2158 this is because the solar incentive program for Brisbane ends in 2030 and therefore the number of STC’s available drops each year.
You can Calculate your STC’s At https://www.rec-registry.gov.au/rec-registry/app/calculators/sgu-stc-calculator.
Request a Solar Audit
Request a solar audit from a knowledgeable solar specialist. All you have to do is enter your contact information and best available time, and we will call you to see whether solar is a realistic option for your home.
After your call, we will send you a proposal outlining the potential solar savings and costs sent straight to your email.
