When sunlight reaches the Earth, solar panels capture its energy using photovoltaic cells. These cells are made of semiconductor materials that generate electricity when exposed to sunlight.

This energy is direct current (DC) electricity. However, most of our appliances and devices run on alternating current (AC).

To make electricity usable in our homes, we need an inverter. The inverter converts the DC electricity produced by solar panels into AC electricity, which is what our appliances, lights, and gadgets rely on. So, the inverter ensures compatibility with our existing electrical systems.

Once the AC electricity is ready, it flows into your home’s electrical system. Your appliances, from the refrigerator to the dishwasher, draw power from this solar-generated electricity. If you produce more electricity than you use, the excess energy can be stored in batteries or sent back to the grid, and your electricity retailer pays you a feed-in tariff.

Installing solar panels helps you reduce your power bills.

For example, a 10kW system, on average, will produce around 40kW per day. Say a particular household uses 20kW of power per day. This translates to saving 30c per kW or $6 per day. Although this may not seem like a lot, even using half of the available solar energy throughout the day generates $550 of savings quarterly. Combining this with a feed-in tariff of 10c per kW, this translates to another $181 quarterly. These savings combined to reduce a quarterly electricity bill of $800 down to $68.

As electricity prices soar and become increasingly unpredictable across Australia, households are turning to solar energy to reduce their energy bills. The fact that solar panels are becoming more affordable makes them a worthwhile long-term investment.

Deciding on where your panels are installed is key to maximising your system's efficiency and performance.

As a general rule for installing solar panels in Australia, your system will generate the most electricity when facing north. This is especially important for winter months to ensure your solar panels get the maximum amount of daylight hours possible.

If you have a flat roof, installers will often tilt the panels north to match the direction of the sun. Angling them in this way changes their ideal season from summer to winter, which is beneficial as the hours of sunlight are decreased in winter. 

Despite the north being widely recognised as the ideal direction, panels can be installed in any direction that better suits your house and energy needs.

For example, if you have a family that uses the most energy in the afternoon after school, you may find that western-facing panels are ideal for you. Even more beneficial is installing Enphase microinverters, allowing you to have a split panel array covering multiple roof sides, making the most of multiple periods of sunlight throughout the day and better meeting your peak energy needs.

If you're in the solar market, you may be wondering why you’ve been quoted at so many different prices. It's important to understand that the price you pay depends on the brand of the products you choose and the quality of the installation.

With a great deal of cheap solar panels out there, it is important to understand that the cheapest option is not always the best option. But why pay more?

The quality of the product is so important to ensure that frequent maintenance and repairs are avoided, as well as decreased efficiency and possible threats to the safety of your home.

The first step is to research the manufacturer. Cheap manufacturers have been known to disappear, leaving you with little to no aftermarket support or servicing.

Workmanship quality is equally as important, if not more so, as even a good quality system installed poorly will have a decreased lifespan and develop the potential to experience a range of problems over time.

At the end of the day, how much should a system cost? There's no magic formula for determining the cost, as it is greatly dependent on many factors such as energy consumption, size, brand, and difficulty of installation, but a general rule is $750 - $1700 per kW of installed solar; anything lower than this is concerningly cheap.

Installing a solar system usually involves significant upfront costs, depending on its size and the products being installed. Many choose to finance their systems, and several different options are available. 

Some choose to borrow against their home loan, redrawing money from their mortgage as this typically has the lowest interest rate, but there are other options to consider as well.

One good example is a green loan, which is a specialised type of financing designed to promote environmentally friendly practices. These loans are used to purchase or install approved clean energy products such as solar systems and home battery storage. The definition of eligible products may vary between lenders, but they typically include items that enhance energy efficiency, reduce carbon emissions, and contribute to a greener planet.

At 1KOMMA5°, we often refer our customers to Community First or Plenti.

Need more information?

Head over to the 1KOMMA5° blog for more helpful tips and other important guides on everything solar, from inverters, panels and batteries to how to make the most of your investment for years to come.

Get all the right information before installing a solar power system for your home in NSW.

Learn about how you can reduce your power bills, government rebates, how to select the right system for you and of course how to get the most out of your solar.