Let us look at a example home with a 2kW solar system, generating an average of 8kW of solar power per day.
Connected to a 20 cent gross feed tariff, this home can generate the following annual revenue.
- 8 X 20 cents X 365 days of the year equals $584.
What we mean by electricity offset is this, you use what you generate during the daytime and we mean the sunny hours. Importantly you use it at that same time. Therefore you're not purchasing electricity at this time!
The trick is to make sure a similar amount of energy is used, to the 8kW generated. The reason for this is simple, any excess power fed back into the grid currently has little financial gain, as the rate is only 8 cents per kW, in country NSW.
So you will want to match the electricity required under the roof, to that generated above the roof or vice versa. To big a solar system and your only getting paid 8 cents per kW for excess power. An option here would be to increase the electricity used during the day, for example by operating more appliances on timers, to equal the power generated.
To small a solar system and your purchasing electricity at cost, a cost that is forecast to rise dramatically over the next few years.
As we can see our example home using 8kW during daytime, is going to offset electricity costs of,
- 8 X 28.5 cents X 365 days of the year, equals $832.
Now that's almost $250 per year more, than the 20 cent gross feed system generates!
And as electricity costs rise, there is a considerable more financial gain, than the 20 cent gross feed tariff!
- At 35 cents per kilowatt hour, the total offset electricity costs per year are $1022. This is an increase of $438 per year, compared to the 20 cent gross feed system.
- At 40 cents per kilowatt hour, the total offset in electricity costs is $1168. An increase of $584 per year, compared to the 20 cent gross feed system.
- At 50 cents per kilowatt hour, the total offset is $1460. Increasing to $876 per year, more than the 20 cent gross feed tariff, can offer!
As your gross feed solar investment system is on a limited timeline, is it not the time now, to do your maths? You'll be able to work out, at what time any electricity offsetting system, may be the better solution of you. All based on the ACCURATE ANALYSIS OF DAYTIME ELECTRICITY USAGE and the size of your SOLAR PV SYSTEM.
If you are thinking of installing solar pv on your home, call the Aussie Home Energy team today.
Update March 2014 - Due to a increasing number of householders not being aware of solar inverter malfunctions, we now have easy online electricity and solar monitoring solutions. To learn more about the monitoring and analysis of your electricity usage and solar pv system's output, visit our ONLINE ELECTRICITY MONITORING page, where we make the task of getting your data online, very easy.
This blog post and podcast brought to you by Aussie Home Energy, a major player in the HOME ELECTRICITY REDUCTION SERVICE industry in Australia.