Solar Panels Comparison: Which Type Is Best for Your Needs?
With the rising cost of living, both homeowners and businesses are constantly looking for ways to cut expenses. Energy consumption has become a key area of focus, with many looking for more efficient and cost-effective ways to power their homes and businesses.
While solar energy has been around for decades, recent advancements have made it more efficient, affordable, and accessible than ever before. But is making the switch to solar the right choice?
In this post, we’ll explore the advantages of solar energy, such as the long-term cost savings and environmental benefits, while also considering the challenges that come with making the switch. This ensures you have a clear understanding of both the rewards and the considerations involved.
The Rise Of Solar Energy In Australia
Australia is established as a global leader in rooftop solar energy adoption with over 3.7 million homes and small businesses now generating their own clean electricity, accounting for over 11% of the country’s electricity supply. In fact, Queensland made history in 2023 by becoming the first state to reach one million rooftop solar installations, and New South Wales followed suit in 2024.
This growth is driven by a simple but powerful truth: solar power makes practical sense for Australians. The country’s abundant sunshine means solar systems here generate roughly twice the power of those in countries like Germany or the UK.
Government support has played a crucial role in making solar energy more accessible and affordable for Australians. The Federal Government’s Small-scale Renewable Energy Scheme (SRES) helps reduce the upfront cost of solar panels through tradable Small-scale Technology Certificates (STCs).
On top of this, state and territory governments offer additional incentives, such as direct rebates, interest-free loans for homeowners without asset security, feed-in tariffs that pay for excess electricity sent to the grid, and even rebate swaps for concession card holders. These combined incentives significantly lower the initial cost of solar installations
Looking At The Solar Energy System
A complete solar energy system typically includes several key components, each playing a crucial role in harnessing and utilizing solar power. Here’s a breakdown of the most common products you’ll encounter when setting up a solar system for your home or business:
Solar Panels
When people think of solar energy, solar panels are usually the first thing that comes to mind. These panels capture sunlight and convert it into direct current (DC) electricity. There are three main types of solar panels, each suited for different needs and budgets:
- Monocrystalline Panels: Known for their high efficiency and sleek, dark appearance, monocrystalline panels are often the top choice for both residential and commercial installations. They perform well in low light and have a longer lifespan compared to other types.
- Polycrystalline Panels: Slightly less efficient than monocrystalline panels but are more affordable. They’re a great option for homeowners or businesses looking for a balance between cost and performance.
- Thin-film Panels: These panels are lightweight and flexible, making them ideal for unconventional installations. Though they require more space to generate the same amount of energy, but can be a good choice for larger commercial setups.
Solar Batteries
Solar batteries are an important addition to any solar energy system, allowing homeowners and businesses to store surplus solar energy generated during the day.
In regions where electricity rates vary throughout the day, especially with time-of-use pricing, using stored solar energy during peak times can lead to significant savings. Beyond cost savings, solar batteries offer a buffer against power outages and grid failures. This is especially beneficial for areas with reoccurring cloud cover, unreliable grid infrastructure or frequent power interruptions, ensuring a continuous and reliable power supply.
Solar Inverters
The primary job of a solar inverter is to convert the DC electricity generated by your solar panels into alternating current (AC) electricity, which is what your appliances and devices need to operate. Without a solar inverter, the power generated by your solar panels wouldn’t be usable.
There are several types of solar inverters to choose from, each offering different features and benefits:
- String Inverters: These are the most affordable and common type of inverters. They connect multiple solar panels together and convert their combined power into usable electricity. However, if one panel is shaded or underperforming, it can impact the whole system’s performance.
- Microinverters: Microinverters are attached to each individual panel. This means each panel operates independently, and its performance isn’t affected by the others. While it tends to be more expensive, this setup works particularly well for complex roofs or areas that experience shading.
- Hybrid Inverters: These versatile inverters do double duty by both converting solar power and managing battery storage. While they come with a higher upfront cost, hybrid inverters are good at maximising energy independence, as they allow you to store excess energy for later use.
The Advantages of Solar Energy
When it comes to solar panels, the first benefit that comes to mind is the environmental benefits it offer. But as more households and businesses adopt solar energy, the real-world advantages become clear:
Cost Savings and Financial Benefits
One of the most compelling reasons to switch to solar is the drop that can be seen in your energy bills. With a typical 6.6kW solar system, you can save between AUD$458.70 and AUD$764.50 each quarter. For most Australian households, the initial investment can be paid off in just 4 to 7 years, after which you’ll enjoy years of significantly reduced energy costs with minimal upkeep.
Solar also helps protect you from future electricity price hikes. By generating your own energy, you take control of your power needs and shield yourself from rising energy prices. This stability makes it easier to plan and manage your household budget, offering peace of mind for the long term.
Environmental Benefits
Solar energy cuts your carbon footprint drastically. A standard 6.6kW solar system can reduce greenhouse gas emissions by over 250 tonnes throughout its lifetime. Unlike fossil fuels, solar energy generates zero air pollution or greenhouse gases while in use, doesn’t require water to generate electricity and avoids the thermal pollution that can harm local water bodies. Advances in recycling technology and incentives have also made manufacturing more environmentally sustainable.
Energy Independence and Reliability
Solar power gives you greater control over your energy needs. By generating electricity directly at your home, you rely less on traditional power grids, making your energy consumption more self-sufficient.
For homes with solar batteries, the level of energy independence increases dramatically. Australian homes using solar in combination with battery storage can utilise 80-90% of their generated power, compared to just 30-50% without storage.
Government Incentives and Solar Rebates
In the move to make solar energy more accessible, the Australian government offers several incentives to reduce the upfront cost of installation.
The Small-scale Renewable Energy Scheme (SRES), provides mall-scale Technology Certificates (STCs) to eligible solar system installations. These tradable certificates help lower the overall installation cost, making it more affordable for homeowners to switch to solar.
State governments also offer additional support, including direct rebates, interest-free loans, and other financial incentives. In Queensland, the the QLD Feed-in Tariff allows eligible homeowners to receive credits for the surplus solar energy they feed back into the grid (between 6 and 10 cents per kWh)
Increased Property Value
Investing in solar panels doesn’t just save you money, it can also increase your home’s value. According to research, homes with solar panels are valued at an average of AUD$125,000 more than those without and homes with solar sell up to 20% faster than those without. As energy efficiency becomes a priority for buyers, having solar panels installed makes your property more attractive when it comes time to sell.
Versatility
Today, solar energy isn’t just limited to traditional rooftop panels in homes and businesses. The technology has evolved, allowing for greater versatility in its applications. Solar energy can now be integrated into windows, building facades, installed on the ground and more. It can power homes, heat water via solar thermal systems, run irrigation systems, and even charge portable devices.
Considerations of Solar Energy
While solar energy offers numerous benefits, there are some important considerations to keep in mind before making the switch.
High Initial Costs and Installation Expenses
Despite significant price drops in recent years, the upfront cost of installing a solar energy system remains substantial. A complete system typically costs between AUD$6,000 and AUD$ 20,000 depending on factors such as size, component quality, and the complexity of the installation. While many systems can pay for themselves within several years, the exact payback period varies based on location, energy consumption patterns, and electricity prices as well.
Weather Dependence and Efficiency Challenges
While Australia’s sunny climate is ideal for solar energy, weather conditions still play a role in performance. On cloudy days, energy production can drop by 10-25%, and completely overcast conditions may reduce output by up to 90%.
Additionally, temperature can affect solar panel efficiency. For every 1°C above the optimal operating temperature of 25°C, panel efficiency can decrease by 0.2-0.5%. So, on particularly hot summer days, your system might produce less power despite having more sunlight.
Space Requirements
The amount of available space is a crucial factor when installing solar panels. Most systems installed in Australian homes range between 6.6kW and 10kW, which requires approximately 30-50 square metres of unobstructed roof area.
For context, a typical 440-watt panel takes up about 2m². So, for a 6.6kW system with 15 panels, you’ll need around 30m² of space. If your roof space is limited, it might be challenging to install a large system that maximises energy production.
Solar Panel Lifespan and Maintenance Considerations
Solar panels are designed to last between 25-30 years, but over time, they naturally degrade. Most panels experience an annual efficiency reduction of 0.2-0.5%, leading to about 12-15% overall efficiency loss by the end of their lifespan.
While maintenance is generally minimal, regular cleaning (especially in dusty and windy areas) is essential to maintain optimal performance. It’s also recommended to schedule a professional inspection every two years to ensure your system is working efficiently.
Making the Right Decision: Is Solar Right for You?
There are several factors to consider when determining if solar power is the right move for your home or business:
- Energy Consumption and Electricity Needs: The first step in deciding if solar is right for you is to assess your energy consumption. How much electricity do you use on a daily or monthly basis? Solar systems are most effective for homes or businesses that consume a significant amount of energy. The more energy you consume, the more potential savings solar can provide!
- Installation Suitability and Orientation: Not all homes and businesses are suitable for solar panel installation. Factors such as your roof orientation, shade levels, and available space play a crucial role in determining the effectiveness of a solar system.
- Budget: While solar power can lead to significant long-term savings, there are upfront costs to consider. The initial investment for a solar system can vary widely depending on the size of the system and whether you choose to include additional features like battery storage. It’s important to assess your budget and determine if you can afford the upfront costs, taking the government rebates and incentives that can help lower these expenses into account.
- Ongoing Costs: Beyond the initial investment, consider the ongoing maintenance costs. Solar systems are relatively low-maintenance, but you’ll still need occasional cleaning and professional inspections to keep everything running smoothly.
- Brand & Reliability: Not all solar panels and equipment are created equal. Choosing a reliable brand and quality products is essential to ensuring that your solar system performs efficiently throughout its lifespan. Additionally, check that the products you choose are approved by the Clean Energy Council, which ensures they meet Australian standards for performance and safety.
Conclusion
Ultimately, solar energy is a smart investment for Australian home and business owners. It offers great financial returns and long-term savings on energy costs. government incentives, financial rebates, and improved solar technology make the switch more affordable and accessible, but factors like budget, orientation and space should be considered to ensure suitability and efficiency.
The Time for Solar is Now. Yes, solar technology continues advancing but waiting for ‘better technology’ could cost you more in missed savings than taking action now! SAE’s solar energy solutions can help you start your solar experience. Our expert team provides customised installation and maintenance services for residential, commercial, and industrial solar setups.
