Solar: Is it worth it? Need advice + feedback.

Okay, let me begin by saying that solar power salespeople (and companies) are some of the most unscrupulous operators going round…

Feel free to read my brief gripe below, but basically - keen to hear everyone's thoughts, experiences and feedback on solar power at home.

Is it worth 'investing' the money in solar for your home
What has it saved you on your regular electricity bill?
Does it add value to a house?
Have you had a good/bad/ugly experience with Solar?

Also, wondering if the populous can help us decide via the poll whether we should fork out the cash for a solar system.

My gripe

We've gotten several quotes for a 5kW hybrid (battery-ready) system in QLD and prices have ranged from $3k to $14k. Literally every salesperson believes that their product/s are superior and every quote that we've been delivered is accompanied by oodles of varying fine print. Obviously products, brands and service vary, but I would have thought that an industry which has been around for 10+ years now would be much more commoditised. Clearly, there are plenty of operators making good money off the back of the limited consumer understanding.

Most providers are unhappy to hear that you've been shopping around and pressure you into making a deal 'on-the-spot' on the grounds that their offer is "today only" (or similar). Some even refused to follow up with a professional written quote when I challenged them about how they were able to pay a $0.48/kWh feed-in tariff with their 'green energy partner', telling me that it was a special 'deal' they had negotiated based on the volume of systems they were installing. Knowing that the QLD average feed-in is closer to $0.08/kWh, I was able to eventually weasel them into a corner to indirectly admit that the increased buyback (feed-in) rate was built into the system price and, when the salesperson realised where things were going, she promptly departed unceremoniously.

I find it hard to believe that these companies can continue to exist, but there's obviously enough mis/un-informed people out there for these salespeople, full of bravado, self-assurance and conviction, to take advantage of.

Anyway, all that aside - I'm interested in everyone's thoughts, particularly those either shopping for solar or who already have a system themselves.

Should We Get Solar?

Guiding inputs for poll responses:

  • 2 person household, rarely anyone home
  • Soon to be a 3 person household, with new stay-at-home mum
  • Wanting to install A/C to overcome the QLD summer heat, especially in time for new bub
  • Pool pump which needs to run 4hrs+ per day (very low voltage though, already on off-peak tariff)
  • Current electricity bill is higher than what our electricity company expects for a 2 person household, likely because of our expensive downlights (no, they won't take energy-saving bulbs…), a large fridge + pool pump.
  • Based on our current usage, electricity prices and some rough calculations, if we spent $6k on a 5kW system, it would take 12+ years for us to recoup the cost via savings
  • Current mortgage rate is 4.00%pa with full offset facility

Poll Options

  • 22
    Yes, you should get solar.
  • 62
    No, better to park the cost of a system in your mortgage offset.

Comments

  • depends on your feed in tariff rates and your cost of usage, how long you plan to live there and current installation prices.

    also how easily you can move your usage to the most beneficial periods.

    I bought a house with a 1kw system with the WA 40c feedin tariff, I upgraded it to a 2kw system which was the maximum size of the inverter. I calculated to payback the upgrade would take 1.5 years. (you can estimate yearly power production give a lat/lng position).

    It is now past that and everything else is a bonus. Most likely when the 40c tariff ends in 2019 I'll upgrade to a 5kw system.

  • personally i would go solar in your scenario. i would think in the scheme of mortgage loan, a few grand isnt really gonna break the piggy bank with an offset. i went solar in 4 seasons victoria, even though not much sun here, i can use the elect without giving much thought on power consumption (though I do have quite a few PC stuff plugged in 24/7).

    u will always hear solar tech will gain more efficiency, battery storage will go even cheaper, and prices will be driven down blah blah blah, thing is as an end consumer, the cost savings wont be flying into your pocket with the advancement in the near reality. often see solar efficiency on reports, but do u really want to pay top dollar for first to market honours? and besides, when sustainable energy gets cheaper, do u think rebates will go higher? market entry in the short term wont make a huge difference financially for a small system, it boils down to personal preference on whether do u want it or not.

    do your missus and the new bub a favour, (imo) get it.

    gd luck

  • i heard you just need a bunch of car batteries, is this true?

    • +1

      And some jumper cables and a 20m extension lead from Bunnings.

  • +1

    Doing anything ON THE GRID is not worth it, in my opinion.

    The government has seen to it that the Network Operators (and themselves) will be paid (by us) well into the future. We have the highest electricity costs on the planet & they pay you a pittance for you power - power which can and should be stored in your own off-grid setup, in my opinion.

    Every country with high solar uptake has super high electricity prices. This is no coincidence.

    Look at what's happened to sunny Spain for an extreme example of what happens when the Powers That Be want you to pay them instead of generating power for yourself. Basically a Sun Tax. Or just look at Australia, with the highest electricity costs on the planet (plus well over a dollar a day just to be connected to a service…so about 500 bucks per year not counting usage). Or look at Germany's power prices. All of them have high solar uptake rates and all of them pay for it.

    The on-grid solar scam is to generate power for the Network for a pittance. You basically allow them to profit off you. I would make the best of insulation, go all LED and moderate my power needs. I'd also monitor and isolate energy-suckers well before looking at spending a cent on new infrastructure.

    After that, I'd seriously start to look at my own 'camping' set-up…a small off-grid set-up to learn on. You can start as low as $500ish for a half-decent little system that will run basic lighting, laptops, small TV & charge gadgets. This, along with online videos and webpages can teach you heaps & help form the basis of future off-grid plans. All on-grid solar plans are designed to have the Network win. Yes, you may pay no bills for a while but you're just paying off your on-grid ssytem and you are subject to their price hikes now and in the future. As taxpayers, we all pay for the solar scam rebates to keep us on the grid. The plan should be to get off, in my opinion. If you don't see that now, you'll see it more and more in the future as the prices keep rising. The time to learn about your power usage and learn about off-grid is now.

    Personally, I wouldn't pay a cent to remain on-grid or sign up to any plan with a power company (which only strengthens the network on your back). In my estimation we will see more and more 'off-grid' type setups right in suburbia as the costs continue to escalate & people start to get wise about their power usage.

    • All very valid points.
      I agree - getting off grid is the ideal. Apparently in QLD though (and I don't know if this is just the dodgy salespeople lying me) it's physically not allowed to go "off grid" if electricity has already previously run to your property.

      Ie > even if you ask Energex to disconnect you, they cannot legally do so.

      :(

    • It sounds like you haven't put your money where your mouth is. Why not?

      • It sounds like you haven't put your money where your mouth is. Why not?

        Have generated all my own electricity coming on the past year. Easy to do with decent insulation & modest needs. No heating or air conditioner, for example. Still use gas but that will go too in time. A good 50% of the Australian population could do this easily if push came to shove. At the very minimum, lighting, refrigeration & basic low-energy gadgets all taken care of by relatively modest systems.

        • Then you should have stated as such. Your whole post is written as "I would" not "I have"

        • @Euphemistic:

          Your whole post is written as "I would" not "I have"

          Down to interpretation I guess. I don't feel the need to brag about my own set-up when answering except to say that it can be quite easy if you have modest needs and are willing to learn the basics.

        • @cheepwun: Fair enough, but it is really easy for me to say you should spend $30k on solar panels and batteries to 'bereak free' of the cost of maintaining the grid, knowing full well that I'm not going to do it because it isn't cost effective.

          I do have solar panels, I do have energy efficient lighting, I do use electricity while the sun shines (but recognise it isn't always practical) but I also think that going off grid in town, for most people, isn't a cost effective option…yet.

          Offering advice without experience is less useful.

        • Fair enough, but it is really easy for me to say you should spend $30k on solar panels and batteries to 'bereak free' of the cost of maintaining the grid, knowing full well that I'm not going to do it because it isn't cost effective.

          Modest needs are the key; they can make for a really cheap system without gong totally caveman. I think it's cost-effective right now if you are willing to DIY (and you have the roofspace).

  • You seem pretty savvy so you may have already thought about this. A lot of the providers are coming with a "cap" plan. ie - the most you will pay for the next year will be $xx no matter how much you use. Depending on how long you've been with them they will probably base it on your exisiting patterns of relatively low usage and may not have full appreciation of an expected jump given your soon to be changing circumstances which will result in greater consumption.

    They maybe have broadly factored in based on your age and other details that they have. But something worth considering as well! K haven't looked at it in great detail myself and their may be a lot of fine print with these offers.

    Unless you're a hippy, it may be worth it. :)

    • Don't do it. The plan I had a look and it bases your 'usage' cost on the previous year. Sure you'll be locked in for the first year, but their cunning plan is to get you used to using more e then charge you for it next time round.

      "I wont be charged any extra for my electricity, might as well run the AC 24/7" will come back to bite you next year when they look at your usage for this year and then up the price.

  • Got Solar installed in 2011. Cost $4,750 for a 1.9kW system installed in NSW with the 20c feed in tariff that expires end 2016. It's been my worst investment and here's why:

    1. Was installed by a cowboy company that was gone when my inverter died after two years (more on this below). Fortunately the Chinese manufacturer had an office in Melbourne and replaced the unit free of charge. However, I still needed a sparky to reinstall it at a cost of $180.

    2. The inverter died from overheating on a hot 40 degree day in January 2013. The bright spark installed it on the western side of the house where there is no shade for the unit and where the sun is at its most powerful in the afternoon. These things will die from overheating if you read the manual (which I did after it happened). They did it this way because it was on the same side as the power board (ie to save time and therefore money). To prevent this from happening again I simply switch off the inverter on days where the temperature gets into the high 30s because I will have to pay for the inverter to be replaced if it fails again.

    3. The panels were installed on my tin roof. It eventually led to leaks which were expensive to repair (plenty of shonky roof repairmen will rip you off).

    So if you haven't already been scared off, my advice if you really want to do it is to only buy from a large company (eg AGL, Origin) that will back up the warranty and resolve any installation issues. Make sure the inverter is installed out of the sun (usually on the eastern side of your house).

      1. Build a shade structure over it? All you would need is a panel (preferably timber or fibre cement), slightly larger and spaced out 30-50mm and the temp would drop dramatically. Just because it's turned off doesn't mean the electrics inside aren't getting toasted by the sun on hot days and shortening it's lifespan.
    • my inverter spoilt in 2 and half years, company gone under as well.

      Inverter company ask me to send it to their main office in Queensland, and they send me a picture by picture instruction to install myself…..

      heard too many failures on the inverter and panels…… good for environment? who knows……

    • There is a horror story of an AGL install on Whirlpool so the subcontracted installer might not be any better, however you are right that at least AGL is still in business and doing something about it. Mind you to get AGL to fix the PV, it took an audit initially paid for by the owner.

  • got mine installed by cowboys too. luckily i fixed the hot water element myself. getting 44 cents /kw back . hardest part is trying to get wife not to turn on oven or washing machine during the the day time and turn on appliances at night lol.

  • +2

    From the horses mouth - someone in the industry: it doesn't make financial sense to get a battery grid connect system now.

  • It depends on your usage. If you have 60-80% of the power going to your water heater, then installing a roof solar heater will save you more.
    Personally I think buying a solar pack with battery like Tesla power wall is an investment in the future. I'll explain why. Cost of the package is not too big and paying off period is extremely long. Average is 10-12 years. But you do reduce the amount of coal electricity companies are burning. If you think 1 house doesn't count, you wrong. Making an example will change minds of people seeing your panels, spreading the calculations (true once, not marketing :)) between friends and relatives.
    Eventually a lot of householders will have solar+battery in their houses and reduced amount of CO2 will be released in the atmosphere.
    I consider this as an investment in your future and future of your kids.
    Also you sponsor green technology, which gets money and more and more other companies will shift their production to green tech as they see more demand. On top of it the development will be sponsored by demand and more advanced panels and batteries will emerge.

    So my answers are:
    - Is it profitable in dollars value?
    - No

    • Is it a good idea?
    • 100%

    • Should I buy it?

    • Most probably yes, but check your usage and sun availability (like trees and angle of the roof, house positioning , etc.)

    As soon as I buy my own house I am installing it. And I am putting it on mortgage.
    Paying 4% interest on say 15K is half of the savings on electricity (roughly). So you paying off package slower, but at no cost to you.

  • Very educational thread. Without batteries storage for peak usage, I think having solar installed would not benefits the 9-5ers. From the look - having solar installed provides maximum benefit only during weekend where you would spend the most time at home. hmmm…

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