Passive and Active Savings on Solar Panels

Indeed solar panels saves you money by using less electricity from the grid and through the feed in tariff scheme, home solar panels owner has the ability to export unused electricity generated by their system to the state grid at a fair market price boosting savings and catalyzing return of investments.

Today, Australia’s rooftops are being filled with solar panels and or solar hot water systems – they know the savings! However, little that we know, solar power also has passive benefits for households who have not made the switch to solar power. A recent study conducted by the University of Melbourne's energy research institute showed that through the merit order effect electricity generation from rooftop home solar panels in an average home is perfectly timed during heavy hours of energy use (normally at noon and afternoon) or peak demand hours that minimises high voltage import to the main grid which collectively regulates electricity price even for non solar powered homes.

A paper from The University of Melbourne also revealed that a feed in tariff price of 35¢ to 40¢ a kilowatt hour would lower electricity prices by more than it would cost to fund it – perfect backbone for this year’s IPART’s review of the feed in tariff scheme.

Every installed system will account for savings not only for the home solar panels owner but also for non users and if Australia’s solar power capacity would reach anywhere near 3000 megawatts through large scale projects and private investments either from households and small businesses the country will be looking at savings as much as $1 billion on energy bills reducing the overhead cost of energy from every sector.

The federal government formulated numerous programs and schemes that will encourage households and small business to install renewable energy systems not only to decrease carbon emissions but also to transform the country’s energy sector to a low carbon one and minimise dependence to expensive coal and other fossil fuels. Decentralised energy generation such as solar PV systems will also reduce transmission cost and expensive maintenance and upgrade of state grid grids needed to cope with our increasing demands.

This year the carbon tax is set to be implemented and the Gillard administration hopes that it will be the first step in an all out war against carbon through creating a strong sense of initiative in innovating approaches in manufacturing carbon intensive products and haltering the dependence in traditional energy sources. The clean energy future package of the federal government are subdivided into 4 parts, the carbon tax, renewable energy, energy efficiency and land use all of which are directed towards a more sustainable future.