Solar Electricity and Solar Panels FAQ's

1. What is a solar panel?

A solar panel converts light energy into electricity without causing pollution. Solar panels are also referred to as a photovoltaic or PV modules (photo = light, voltaic = electricity).

2. What is the difference between a solar power system and a solar hot water system?

A solar power system uses silicon cells and light to produce electricity. A solar hot water system uses black pipes and the sun’s heat to heat water.

3. How long have solar panels been around?

The first solar cells were made in the 1880s. Modern solar panels were developed during the 1950s.

4. What is a grid connected solar power system?

When the solar panels on your roof are connected to your existing commercial electricity supply, the solar system is said to be grid connected.

5. What size solar power system should I buy?

Any size Grid Connect solar power system will make an impact on reducing pollution and decreasing your electricity bill. However, for most people the maximum return on investment occurs with a 1050 watt system. This is because most of the cost is met by the federal government rebate scheme. No rebate applies after the first 1000 watts. The 1050W solar power system can be expanded at a later time subject to future incentives and personal finances.

6. How much will it cost?

For a simple 1050W system you take advantage of the Government rebate and involves the least amount of your own money.

This size solar system is a total bargain and will instantly add more value to your home than your initial investment.

Essentially, you end up with a $15,000 asset for approximately $3,000.

7. How much will a 1050W grid connected system save?

The average home uses about 20 kilowatt hours per day. The system will produce on average about 4 kilowatt hours per day. This will reduce your electricity bill by about $60 a quarter while reducing the amount of CO2 in the environment by about 1.65 tonnes each year. The solar system will also cushion the impact of future electricity price increases. If a feed-in tariff is introduced, your quarterly electricity bill could reduce by anything up to $180 a quarter in today’s dollars depending on what a future feed-in tariff is set at.

8. What is a feed-in tariff?

This is the price the government says must be paid to you for the power produced by your solar panels. Currently you are paid one for one. However, most state governments are planning to introduce a feed-in tariff that pays up to 3 times the retail price for your solar power. The net effect is a greatly reduced overall electricity bill. This is how it may work...

No Feed-in Tariff i.e. one to one

Currently, with no feed-in tariff you would pay approx $2.40 per day instead of $3.00 per day.

With Feed-in Tariff of say $0.30

With a future feed-in tariff of say $0.30 you pay approx $1.80 per day instead of $3.00 per day.

9. How does the electricity retailer know how much to bill me when I am producing some of my own power?

In most cases the electricity meter records the electricity your solar panels send to the grid as well as the energy consumed from the grid. However, in some cases it may instead record all the energy produced from the solar panels as well as all the energy consumed by the house. Your electricity distributor reads the meter and determines your balance. Your electricity retailer then bills for the energy consumed OR makes payment for the excess production.

10. Will my grid-connected solar panels continue to power my home during a blackout?

No. For safety reasons your solar PV system will automatically and immediately turn off.

11. How long before I get my rebate?

The Australian Greenhouse Office (AGO) can take up to six weeks to pay the rebate from the time it receives notification that the installation is completed. Currently, with no feed-in tariff you would pay approx $2.40 per day instead of $3.00 per day. With a future feed-in tariff of say $0.30 you would pay approx $1.80 per day instead of $3.00 per day