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A Guide to Buying a Solar System

Looking to go green, cut energy costs, or enhance your property’s value? Solar power could be the answer! But before you make the leap to a home solar power system, it’s crucial to be well-prepared. Our guide to buying home solar systems has you covered. We look at everything from exploring product varieties to savvy quote comparisons. Get all the info you need to confidently choose the perfect solar solution for your home and start enjoying the benefits of sustainable energy savings!

Source: Clean Energy Council: Buying Solar Guide

Choosing the right solar power system for your home is crucial to ensure optimal energy production, efficiency, and long-term savings.

Here’s a step-by-step guide to help you make an informed decision:

How does Solar work?

Solar panels generate electricity when the sun shines on them and they produce DC electricity. This is converted into 240 V AC power by an inverter so it can be used in your home.

At night time, when the sun goes down, you use power from the grid as per usual.

When you generate more solar power than you are consuming, the excess power is fed back to the grid and you are paid for that power.

How much does a Solar System cost?

A 6kW solar system has around 20 solar panels.

The cost of a 6kW system can vary from $3,000 (low quality – not recommended) to $7,000 (high quality).

With solar, it’s the case that you get what you pay for. It is so important to go with a company you can trust to do a top-quality installation and offer after-sales service for the life of your solar system.

Make sure you get a site inspection and multiple quotes before signing up for a solar system.

Solar Rebates for homeowners

The solar rebate refers to the Federal Government’s Small Technology Certificates scheme that comes under the Renewable Energy Target legislation. This is known in the industry as STCs.

Put simply, it is a point-of-sale discount.

The bigger the solar system you install, the bigger the rebate you receive.

Companies generally advertise the price of a solar system after the solar rebate amount has been taken off the price.

The amount of the solar rebate is calculated based on:

  • The size of the solar system in kW
  • The geographical location in Australia

Here are the main criteria to be eligible for an STC rebate:

  • System size must be less than 100kW (that’s a very big solar system)
  • The solar panels and inverter must be accredited by the Clean Energy Council
  • The installer must be accredited by the Clean Energy Council

The STC rebate is being slowly phased out and will end in 2030.

Assess your energy needs

Begin by evaluating your household’s energy consumption patterns. Review your electricity bills to understand your average usage and identify peak demand times. The Australian government has a great calculator for understanding your energy usage. This information will help determine the size and capacity of the solar power system you need.

Evaluate your roof

Assess the orientation, angle, and available space on your roof for solar panel installation. A north-facing roof with minimal shading is ideal for maximising sunlight exposure. Consider any obstructions such as chimneys, vents, or nearby trees that could affect solar panel placement.

Understand System types

Familiarise yourself with the different types of solar power systems available, including grid-tied, off-grid, and hybrid systems. Determine which type aligns best with your energy needs, budget, and local regulations.

What size Solar System should I buy?

Unfortunately sizing a solar system does not have a simple answer.

It’s complicated!

You can take the simple approach of installing as many panels as you can fit. Down the track, you will likely need solar panels for charging an electric car or a battery bank.

The average system out there is around 6.6kW so that’s also a good guide to use.

It is highly recommended to get a solar professional to come to your home and analyse your power bill, roof pitch, orientation and shading so you can have a professionally sized solar system.

How to choose a Solar System?

Choose a solar panel brand you trust.

Solar panels have a big range of quality and price. At the top end, you have your super space-efficient panels from long-term trusted industry players such as SunPower and LG.

At the bottom end, you have brands you have never heard of that are here today and gone tomorrow.

“Quality is remembered long after price is forgotten.”

Choose an inverter brand you trust.

This mirrors choosing solar panels in many ways. There is a massive range of quality and pricing for inverters.

Top industry players are SMA, Fronius, ABB, Enphase and SolarEdge.

Choose the inverter type (regular, micro or maximisers).

If you have an unshaded roof with no obstructions such as trees, chimneys and smell pipes, then you may go with confidence for a regular inverter.

Don’t buy over the phone from a pushy salesperson.

Go with someone who:

  • provides confidence that they won’t ruin your house
  • will install your solar panels safely and delicately
  • provides excellent after-sales service and maintenance.

Research Solar Panel options

Research various solar panel brands, technologies, and efficiency ratings. Look for reputable manufacturers with reliable warranties and high-quality products. Consider factors such as panel efficiency, durability, and aesthetics when comparing options.

The type of solar panels used in a grid-connected solar system are called photovoltaic solar panels. It is generally abbreviated to solar PV panels.

Solar PV panels vary enormously in quality. Some are cheap and inferior quality and others are premium.

It is difficult to keep track of all the cheap panels out in the market as they come and go daily. So it’s best to go with a company and brand that you have heard of and can trust.

Some of the better-known quality manufacturers out there are:

  • LG
  • REC
  • SunPower
  • Tindo (Australian made)

Look out for both the product and performance warranties on solar panels.

Choose an Inverter

Select the appropriate inverter for your solar power system. Inverters are essential for converting the direct current (DC) generated by solar panels into usable alternating current (AC) for your home’s electrical appliances. Options include string inverters, microinverters, and power optimizers, each with its advantages and limitations.

Like solar panels, inverters vary enormously in quality. The cheap stuff comes and goes daily but some good long-term players have been in the market for a long time.

Some of the better-known quality inverters out there are:

  • Fronius
  • SMA
  • Enphase (micro-inverter)
  • ABB
  • Solar Edge (inverter with maximisers)

Inverters come in three distinct types:

  • Normal inverter – usually has 20 panels grouped together and connected to it.
  • Micro-inverter – each solar panel has its own individual micro-inverter so each solar panel can be managed and monitored.
  • Inverter with maximiser – usually has 20 panels grouped together and connected to a single inverter, however, each solar panel gets its own maximiser so each solar panel can be individually managed and monitored.

Mounting Frames

The mounting frame mounts to the roof of your house, and then the solar panels are fastened to the frame.

The industry standard is to use two aluminium and stainless steel parts.

Mounting systems usually come with a 10-year warranty but it’s always good to check on that with your solar installer.

Some of the better known solar mounting systems available are:

  • Clenergy
  • Grasol
  • Radiant
  • Sunlock (Australian made)

Consider Battery Storage

Decide whether you want to incorporate battery storage into your solar power system. A grid-connected battery is designed to store solar electricity generated during the day to be later used at night time in your home.

Batteries are popular for two main reasons:

Financial Reasons. When you feed electricity into the electricity grid, you sell the surplus electricity to your retailer and get paid for it. The amount that your energy retailer will pay you is usually much less than the amount they charge you when you buy electricity from the grid. So instead of selling at a low price during the day and buying back at night for a high price, you can store the electricity in a battery during the day and use it at night.

Blackout Protection. Some battery systems are able to be used during a blackout. So you can have some level of electricity available when your neighbours are left in the dark. Generally, the blackout mode is for essential appliances only. You probably wouldn’t run a three-phase reverse cycle air conditioner but you can run lights, fridge, TV, microwave and computers.

There are several solar battery types on the Australian market. The two most common types are the lithium-ion battery and the lead acid battery. Different battery types might differ from one another when it comes to lifespan, efficiency, price and maintenance level.

Be sure to evaluate battery technologies, capacity and compatibility with your chosen system.

Get multiple quotes

Obtain 3 quotes from solar installation companies to compare pricing, system designs, warranties, and installation services. Consider factors such as reputation, experience, and customer reviews when selecting a provider.

Is $0 Solar really a thing?

Installing solar panels on your home can be a great way to save money on electricity bills and reduce your carbon footprint. However, the cost of installation can be a barrier for some homeowners. There are ways to get solar panels installed on your home for zero dollars down in Australia.

Explore financing options available for solar installations, including solar loans, leases, power purchase agreements (PPAs), and incentives such as rebates. Determine the most cost-effective and feasible financing solution for your budget and financial goals.

PPA

One way to get a solar system at zero upfront cost is through a solar power purchase agreement (PPA).

Under a PPA, a solar company installs and maintains the panels on your roof in exchange for you purchasing the electricity they generate at a discounted rate.

This can be a great option for homeowners who want to switch to solar power but don’t have the upfront capital to pay for the installation. With a PPA, you can save money on your electricity bills immediately without paying anything out of pocket.

Solar Finance (Green Loan) can be zero dollars down

Another way to get solar installed for zero dollars upfront is with solar finance or a green loan.

With solar finance, you pay a monthly fee to finance the panels and use the electricity they generate. Often, the amount saved on your electricity bill will be greater than the cost of the finance. The best outcome is making the system cash flow positive. This can be a great option for homeowners — especially those who don’t want to take on the responsibility of maintaining the panels themselves.

In some cases, the solar company takes care of all maintenance and repairs. This is ideal and allows you to simply pay a monthly fee in addition to the solar finance.

Finally, some state and local governments offer solar rebates and incentives for homeowners who install solar panels.

It’s important to do your research and compare options before deciding which option is best for you. The cost of installation, the size of your property, and your electricity usage will all play a role. All of these will determine which option is most cost-effective for you.

If you decide to go for a PPA or solar finance, make sure to read the contract carefully. Take time to understand the terms and conditions. You’ll want to pay attention to the length of the contract and the cost of electricity. Also, study carefully the terms of maintenance and repairs. It’s also a good idea to get quotes from multiple solar companies. This way you can compare prices and get the best deal.

Ensure proper installation

Choose a reputable and experienced solar installation company to ensure proper design, permitting, and installation of your solar power system. Verify that installers are certified and licensed and that they comply with local building codes and regulations.

Monitor performance

After installation, monitor the performance of your solar power system regularly to ensure optimal efficiency and output. Track energy production, consumption, and savings using monitoring tools provided by your system or through third-party software.

Finally, be sure to read customer reviews when comparing prices from different solar panel providers before making your final decision.

By following these steps and conducting thorough research, you can select the right solar power system for your home that meets your energy needs, budget, and sustainability goals.