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Why You Should Swap To Solar Power

18 Feb 2022

With our nation’s average power bill on the rise, more Australians than ever before are weighing up whether investing in solar power is a good idea or not.

Why-You-Should-Swap-To-Solar-Power

If you’ve often thought that your power bill might be more expensive than it used to be, you’re not imagining things. Utility residential electricity prices have risen steadily in the last decade. According to a recent report conducted by the Federal Government, the average household energy debt for gas and electricity has increased 12% from $897 in 2019 to 2020, to $1,000 in 2020 to 2021. 

Even more concerning is the fact that the average electricity debt for a customer upon entry into their retailer’s “hardship” program grew 21% over the same period, from $1,304 to $1,584. While the figure will vary depending on how many people are in your household and the type of electricity consumption you chew through, it’s no secret that the cost of living in our great nation has long been steadily on the rise. 

Despite even the most conscious efforts by households to reduce their electricity consumption, a growing number have opted to bite the bullet and switch to a viable alternative: solar power. However, many Australians shy away from the up front costs associated with the installation process, while renters aren’t in the position to have such a choice – so is investing in solar power really a good idea or not?

Shining A Light On Solar Power In 2022 

It wasn’t so long ago that solar power was viewed as a radical source of electricity, that was exclusive to the wealthy who also fancied themselves as somewhat environmentally conscious. As a renewable energy source, the power of the sun wasn’t going to run out anytime soon, so consumers flocked to solar despite being charged anywhere between $5 to $10 per watt circa 2010.

However, even with building supply shortages affecting access to solar panels, the overall cost of installing this form of electrical in commercial and residential settings has significantly decreased, arguably thanks to Federal Government initiatives like the STC rebate scheme. In 2020 alone, small-scale solar – or systems up to 100 kW – was responsible for 23.5% of Australia’s clean energy generation and produced 6.5% of the country’s total electricity. 

With the panels themselves getting cheaper, installation methods more streamlined, and the rising cost of standard electricity bills, it’s no surprise that solar power is on the rise in the Land Down Under, with homeowners in Queensland coming first as the state with the most installations. 

Depending on the size of your system and where you live in Australia, installing solar power can cost anywhere between $3,000 and $6,000 before rebates apply. This is arguably the biggest barrier for those pondering whether this form of investment is worth it or not, but the good news is that there’s several alternatives to paying upfront, such as the option of entering a purchase power agreement

While the availability of purchase agreements in certain areas is dependent on the offerings of authorised providers, an authorised provider installs, owns, operates and maintains the solar system at your home. In return, you agree to pay for the electricity produced – usually kilowatt hours – by the system.

If the solar power system is generating energy at the time when you need access to the electricity, the power is directed to your house and home owners can save money on the electricity usage that they would have otherwise had to purchase from the grid. If your house doesn’t need the electricity generated, then the solar power is sold back to the electricity grid. 

While it may not provide the same yield as buying a solar power system outright, it enables home owners to have the best of both worlds – lower power bills, without paying for the upfront costs and doing their bit to help save the planet. Either way, investing in solar power should be approached as a long game, but it will all but guarantee lower bills for your household in the years to come. 

How To Save Money On Your Monthly Bills

Kyco is a member based buying group that ultimately aims to save Australians money on their energy, health and insurance bills. The more members we have, the more negotiating power we have to arrange low, long-term deals with service providers.

Kyco doesn’t play one provider off against another taking commissions of up to 30% like most comparison sites. Instead, we’re leveling the playing field with a low 3% capped commission. It’s free to become a member, and with no lock in contracts or unexpected price hikes, spending less on your annual bills has never been easier.