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TO SOLAR POWER
Last edited: 7/1/2019
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About Solar Market
Founded in 2010, Solar Market is dedicated to educating households and businesses on the benefits gained
through switching to solar. We connect customers with solar providers and installers in their local area to
provide obligation free quotes.
Our team has experience working in all areas of the solar industry and have brought this knowledge togeth-
er for this Beginners Guide. You can receive additional information on our Solar Market website, to assist in
making an informed decision when switching to solar.
At Solar Market we aim to take the hassle away from seeking quotes and do so by condensing what would
have been hours of research and sifting through solar companies, into 3 quick and easy steps.
Fill in a quick online form with Receive 3 Obligation Free Compare Quotes and choose
some simple questions about Quotes from solar companies the most suitable installer for
your property and energy with CEC accredited installers your needs
needs on our website
solarmarket.com.au
Whilst you wait to hear from solar companies, we encourage you to read this guide or familiarise yourself with
our website to assist you in asking the right questions to installers and to better understand the process and
benefits of switching to solar.
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Table of Contents
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Introduction
So, you’re thinking about switching to solar, but don’t quite know where to start?
Solar Market are here, not only to get you in touch with suitable providers, but to help you understand the ins
and outs of Solar Power and Solar PV Systems for your home. In this beginner’s guide we will break down
the process for you and give you some handy tips to maximise your solar savings!
Before we get started on everything Solar, let’s check out some of the benefits you could gain through
switching!
Solar systems & installation prices start from $2,000 * and finance options are available
Generous Government rebates are still available and worth between $2,000-$5,000! *
Properties with solar systems sell faster than the remainder of properties on the market
Solar is great for the environment- sleep easy knowing you’ve reduced your homes emissions
or work out your expected return on investment using our Solar Savings Calculator here.
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Solar PV System Explained
A Solar PV System is a system that converts sunlight directly into electricity using its different components.
PV stands for the word ‘photovoltaic’, meaning; to convert light into electricity.
Switch-
board
Solar Panels
Solar Panels are panels that are typically placed on a roof to receive sunlight. The panels generate this sun-
light into Direct Current electricity (DC electricity). The quantity of panels needed may change depending on
your energy needs. You can also add extra panels in the future, should you require to generate more energy.
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Inverter
The Inverter is the part of the system that converts the electricity generated from the solar panels; Direct
Current electricity (DC electricity) to Alternating Current electricity (AC electricity).
AC electricity is the type of electricity our home appliances’ use to run. The size and type of inverter needed
can change depending on your energy needs.
Switchboard
The Switchboard receives the AC electricity from the inverter and feeds it in to your home for use by your
appliances.
Electricity Meter
The Electricity Meter calculates whether you have any excess electricity or if you require any extra electricity
that your system has not been able to generate.
This will determine whether you need to export or import any energy/power. Additional energy needed, or
excess energy is either fed into the electricity grid or stored in a battery system depending on your system.
You will receive reimbursement from the grid for your excess energy. This is called a ‘Feed-in Tariff’ and will
appear on your power bill. If you require energy from the grid you will be charged for this on your power bill.
You need to have approval from your electricity distributor to connect your system to the grid, however your
solar installer/provider should arrange this.
Battery System
A battery system is an optional component of your solar system. A battery system will charge a battery with
your excess power and store the power for you to use when your solar panels are not generating energy.
It’s important to note that whilst batteries are gradually coming down in price, adding a battery won’t neces-
sarily benefit your current financial situation like a solar system will. Today’s current prices (if your State does
not offer subsidies or incentives for battery) could have you looking at an expected return on investment
in 15 years. As technology advances and batteries become more accessible it is expected prices will drop,
similar to how they have for solar systems.
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There are 3 main types of solar systems that people can opt for when venturing into the solar market.
Let’s break these 3 systems down so you can understand which system may be better suited for you.
CONNECTED TO THE
MAIN GRID SYSTEM
AC
AC
Grid Connected Solar PV Systems are the most commonly installed systems. These systems are connected
to the grid and do not require a battery system, which we touched base on earlier.
It is possible to add a battery system to your Grid Connected System, post purchase.
TIP: In the past your Solar PV System would have had to be battery-ready, however, now batteries such as
Sonnen, Tesla Powerwall 2, Senec and Enphase can be added to any existing system regardless of the
existing solar inverter.
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BATTERY BACK-UP
CONNECTED TO THE
MAIN GRID SYSTEM
AC
AC
This system stores the excess energy generated by a Solar PV System for the home to use when the solar
panels are no longer generating electricity from the sun. The added benefit here is if the system has not
generated enough energy to use during this time, it can use energy from the grid as well.
Whilst going Off-Grid sounds appealing, it’s important to note a few obstacles that come with deciding to go
Off-Grid:
• Off-Grid systems and setups are substantially more expensive than Grid Connected systems.
The system, batteries and back-up generator can set you back over $30,000
• To be able to go Off-Grid you’ll need to go rural or have a large block of land to accommodate
for the system
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• Your local council and Distribution Network Service Provider (DNSP) may need to provide permission
dependent on your location
Sizes of Solar PV Systems for homes can vary. The average household would be looking at a 3.5kW – 10kW
system, based on what their annual electricity needs are and whether they want to store excess energy or
use some energy from the grid.
The larger the inverter, the more solar panels it can handle, which means the more electricity it can gener-
ate. You can get a larger sized inverter with less solar panels and then add more solar panels in the future,
should you require more electricity.
However, increasing your systems capacity could affect the terms and conditions within the contract you’ve
signed with your Energy Retailer. This may impact your current Feed-in Tariff rate, so make sure to contact your
Energy Retailer when deciding to increase the size of your system.
Prior to installing a solar system, you will need to also check the solar system size restrictions in your area. The
grid your solar system will be connected to will determine the maximum size system your property can install. If
you’re receiving quotes from local installers they will be familiar with the restrictions in your area. You can also
contact your Distribution Network Service Provider (DNSP) here.
You’re going to see the abbreviations ‘kW’ and ‘kWh’ a lot when determining what size Solar PV System to
choose. So, we best tell you what they stand for!
kW - is an abbreviation of ‘Kilowatt’, which is 1000 watts or watts of power. So, a 6Kw system is 6000 watts of power.
kWh - is an abbreviation of ‘Kilowatt hour’ meaning the measure of energy per hour. For example, a 1500W portable
heater will use 1.5kW per hour or 1500 watts per hour.
Here is a table highlighting the typical system sizes, quantity of panels and estimated energy production for
a residential home (example based on the location of Perth, W.A.).
3.6kW 12 5,780
6.6kW 22 10,600
10kW 34 16,380
TIP: Each kW of solar you install will produce around 4.4 kWh per day
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As mentioned earlier inverters are the part of the system that converts the electricity generated from the
solar panels; Direct Current electricity (DC electricity) to Alternating Current electricity (AC electricity). Here
is the different type of inverters you’ll expect to hear of when selecting a Solar PV System;
Micro Inverter
Micro Inverters are small inverters that are installed on the back of each solar panel and converts the energy from the
panel it is connected to. The number of solar panels you have, will determine how many micro inverters you require.
These are in place of the one standard inverter you’d usually have. Having several microinverters will make your Solar
PV System perform better than it would with one standard inverter, however the initial costs are substantially more
expensive.
Micro-inverters are a good option for properties where the roof and panels may be partially affected by shade. This
is because with each panel having its own inverter if one panel is not working at its usual capacity due to shade the
other panels will still function as normal.
Battery Inverter
A Battery Inverter is usually installed alongside a Standard String Inverter, if your Solar PV System has upgraded to
include a battery system. The battery inverter’s purpose is to charge and discharge the electricity stored in a solar
battery.
Hybrid Inverter
A Hybrid Inverter performs the same functions as a Standard String Inverter and a Battery Inverter combined. It is a
good option when you are installing a solar system and think you may add battery storage in the future.
However, these days there are batteries that can be added to any existing system regardless of the solar inverter.
These batteries are often called retrofit batteries and will be more expensive than the average solar battery. It’s best to
do a price comparison between a hybrid inverter with a compatible battery and a retrofit battery to see which is going
to benefit you more in the long term.
Grid-Tie Inverter
Grid-Tie Inverters are simply inverters which are connected to the grid. Grid-Tie Inverters allow you to send any un-
used, surplus solar electricity that your system has generated back into the grid.
However, unlike standard string inverters, they do not have the ability to export excess solar electricity to the grid. Off-
grid inverters are used in either remote areas, or when the homeowner wants to separate entirely from the grid.
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Solar Panels
Quality/Value - The best way to determine quality of any product is hearing the experience of past and cur-
rent customers and their feedback on the product. You can do this by searching online on forums and websites
like; Product Review, Facebook, Google, TrustPilot, Clean Energy Reviews.
After determining which are your best quality options you can price compare to determine which is going to be
the best overall value to you. If you can’t find any information on a brand or product, then its performance isn’t
well known. In that case it may be best to steer clear.
Warranty - Make sure they can provide a warranty! You’ll want a warranty where the company will take on the
entire cost for removing, transporting, replacing and reinstalling any defective panels within a defined amount
of time. Companies that aren’t willing to make this commitment probably aren’t confident enough in their own
product, so you shouldn’t be either.
Presence in Australia - Ideally, you want a representative or a contact to be based in Australia, so should you
have any issues or questions they are easily contactable and there is a quick turnaround.
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What Happens When There Is No Sun?
It’s a common misconception that solar panels will only generate electricity on a perfect summer’s day. Solar
panels can generate electricity during cloudy and overcast weather. Although the amount of electricity gen-
erated might be less, depending on the thickness and height of clouds.
Solar Panels won’t generate energy when there is no sunlight – i.e. during the night.
The amount of STC’s you receive for your solar system and the worth of STC’s at the time will determine the
subsidy for your system. For example, with an STC rate of $35 an average homeowner looking to install a
6kW could be entitled to as high as $4,250 in subsidies for their chosen system.
To check the current STC rate visit the Australian Government Clean Energy Regulator.
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The Rebate is usually organised through the solar provider that is installing the system at the property, so it’s
best to enquire about this when being quoted.
For more information, view current rebates here!
Why even mention the Solar Government Rebate if it’s included in advertised pricing?
Well $6,000 sure looks more attainable and appealing to potential buyers than $10,000 minus the Solar
Government Rebate, doesn’t it? But the main reasoning, is that the Federal Government Solar Rebate isn’t
going to last forever! That’s right, it may get reduce or be eliminated. This means, for people looking to
switch to solar, that prices could shoot up should they wait until the Federal Government Solar Rebate is
scrapped.
Northern Territory
Smart Energy Grant for up to $1000 Queensland
Affordable Energy Plan
Solar Bonus Scheme 44c Feed-in Tariff*
Victoria
Solar Homes Package
Tasmania
South Australia Tasmanian Energy Efficiency Loan Scheme
Home Battery Scheme & Low Rate Loans for Solar Systems
* Solar Bonus Scheme 44c Feed-in Tariff is not available to new customers and will expire to current customers
in 2028. Read more about the State based incentives here.
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What Are The Costs And What Available Assistance Is There?
Finance Options
If you want to make the switch to Solar now but don’t have the upfront payment ready, Solar Market can
assist and get you in touch with Solar Providers that can arrange finance options, such as a ‘Green Loan’.
A ‘Green Loan’ provides low-interest rates (as low as 6.9% pa), specifically for green projects or energy ef-
ficient products. A Green Loan low-interest rate means the savings you have accumulated from using your
solar system, could potentially cover your loan repayments!
Just let us know that you’re looking for a finance option when submitting your quote request from Solar
Market!
How Much Can A Solar System Impact Your Bills & Expected ROI Time?
Assumptions:
- A family of 4 members
- Average Quarterly Bill in SA
- Installed a 6kW system
- 66% reduction in bill size
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Considering the average household energy usage, sunlight hours in Australia, current rates for electricity
and Feed in Tariffs. A home with a 6kW system would be looking to have an annual savings on energy bills
of up to 80%. This would make a typical Solar PV System’s ROI 4-5 years.
Government Rebate
If the Federal Government Solar Rebate was eliminated, the cost of Solar PV Systems will rise and
therefore the ROI timeframe will increase.
Finance
If you’re paying for the Solar PV System on finance, the interest of this finance could increase the ROI
timeframe. You’ll want to work out how much extra time this is going to add, to ensure finance is the
best option.
TIP: Green Loans offer low-interest rates as low as 6.9% pa!
Click here to check out our Solar Savings Calculator! It’ll help you determine the payback and financial
returns from investing in solar, plus it will also estimate what your bills will be after installing your system.
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Things To Consider When Switching To Solar
Generate 5% less energy than North - NW NE - Generate 5% less energy than North
N
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Batteries
Energy Independence
If you are exceeding the amount of energy your solar panels are generating or tend to use a large
majority of power when the sun is not out, batteries will give you more energy independence.
The excess energy you generate during peak sun exposure hours, will be stored for your use as op-
posed to being sold back to the grid at a lower rate.
For a battery to be useful and store excess power your current solar system must be generating more
energy than you are consuming daily.
Do I Need Batteries?
Whether you need batteries can be determined by your situation and system;
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If you are exporting more energy than you use, due to your high energy consumption times occurring out-
side of sunlight hours, batteries are a good way to keep that energy stored for when you have your highest
energy consumption. Due to lowered Feed in Tariff rates, your energy exported is worth less when sold to
the grid, than it is when using it yourself.
The cost to then also receive energy from the grid, during the hours your solar panels are not generating
energy is high (especially during 4pm-10pm).
If you’re undecided whether you need batteries and aren’t prepared to fork out the extra cost incase it’s
unnecessary, you can install you Solar PV System and then add a battery at a later date.
A “true” battery ready Solar PV System is a system that is compatible to add battery storage should you re-
quire it in the future. This battery ready system usually comes with a hybrid inverter, instead of the standard
inverter, meaning it can convert both solar and battery power.
TIP: In the past your Solar PV System would have had to be battery-ready to add a battery
however, now batteries such as Sonnen, Tesla Powerwall 2, Senec and Enphase can be
added to any existing system regardless of the existing solar inverter.
INVERTER
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Feed in Tariffs (FIT)? Let’s call it what it is; the payment you receive from the excess power you don’t use,
generated by your solar system. This excess power gets sold back to the grid and appears on your bill as a
credit.
In the early days of solar energy FIT rates were much higher, meaning people were not only saving on their
power bills, but were making quite a substantial amount of $ on their excess power.
Just because this is no longer the case, does not mean solar is no longer worth it. In fact, solar systems cost
less now to install, then they have in the past. So, reliance on making some money on the side from excess
power is less of a priority.
FIT returns should be viewed as a bonus to your savings. You can see the current Feed-in Tariff Rates here:
https://www.solarmarket.com.au/learn/tariffs/
How To Read Your Power Bill Once You’ve Made The Switch
It’s important to note that your power bill doesn’t display the amount of the money you’ve saved by using
your Solar PV System. What it will show is the excess power and FIT return.
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Questions To Ask
Once you’ve decided to switch to solar, you’ll want to make sure you select the right solar provider and Solar
PV System, for your circumstances and property.
Are the providers/installers accredited? Make sure you go with a Clean Energy Council Accredited
Installer, for reliability, quality and to be sure to receive the Federal Government Solar Rebate!
If they are accredited what are their previous customers saying? Check their reviews on sites like
TrustPilot, Product Review, Google and Facebook.
Can the inverter take more panels if you’d like to increase the system size in the future?
What panel placement/direction will you be able to have with your roof?
What are your battery options should you want to add battery storage in the future?
What is the expected return on investment for the solar system that has been quoted?
We could go on and on all day, because no question is a bad question! So, here’s an extended list of ques-
tions to ask and FAQs on our Solar Market Website here!
https://www.solarmarket.com.au/tips/questions-to-ask/
https://www.solarmarket.com.au/faqs/
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Solar Saving Tips
You’ve made the switch to solar and you’re saving, let’s maximise those savings with these tips!
Using rechargeable appliances so you can charge during the day and use at night e.g. cordless vacuum
Setting timers on appliances, so that they run during the day e.g. washing machine
Having less appliances on at the same time e.g. run the dishwasher after the washing machine has finished
Turning appliances off at the wall when not in use, as the standby mode still uses energy
Lighting
Switch to LED lighting in your home, and sensor lights outside.
Cooking
Invest in a slow cooker! Not only will you make some delicious dishes, but you will be optimising the energy
during the day and avoiding the use of an electric stove, which is high energy consuming!
Check your windows and door seals- if they are faulty your homes air temperature will change, and you’ll find
yourself reaching for the aircon or heating remote again.
Do an energy audit to see where your high energy use is coming from, so you can better manage your
consumption
Click here to find a local accredited Energy Assessor for a home energy audit.
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Solar Glossary
AC (Alternating Current) - A type of electrical current, where the current repeatedly changes direction. The power
your house consumes is 240 volts AC. This is also what the inverter converts the electricity your panels generates to
so that it can be used in your house by your appliances
Battery Cycle Life – The total number of power cycles that a battery can withstand before it ceases to perform.
Converter – A facility that literally converts one direct current to another.
DC – Direct current is the resulting form of energy created from your solar panels.
Discharge – The extraction of a battery’s electrical energy.
Energy Audit – An assessment of the total energy used in each home, with the intention of providing solutions for
reducing energy use.
Federal Government Solar Rebate – An incentive scheme in place where the Federal Government provides sub-
sidies to the payment of your Solar PV System. It entitles subsidies of up to 54%, of the cost of a Solar PV System when
purchasing for a home or property. Dependent on the size of your system, this could be up to $4,688 towards the cost
of your system.
Feed-in Tarriff – If your home or business has solar panels that feed power back to the grid, then there is a payment
for that energy. This is also known as a Solar Buy Back Scheme or a Solar Bonus Scheme. The feed in tariff you’ll re-
ceive per unit of energy varies depending on the state you’re in and the retailer you’re with.
Grid – Is a public electricity source where your unused electricity can go, or you can receive additional energy from.
Hybrid Solar System – An energy storage system that incorporates both the energy power created from solar panels
along with a connection to the grid. This combination will ensure that you will still have power during a blackout.
Inverter – A key element of solar system that converts piece of equipment in a solar system that converts DC elec-
tricity to AC electricity.
kW (Kilowatt) – A base unit of electricity, which is equal to the total amount of energy consumed at a rate of 1000
joules per second or equal to 1000 units.
kWh (Kilowatt Hours) – A measure of energy that equates to 1000 watts energising over the course of an hour.
PPA – A Power Purchase Agreement (PPA) is an financial arrangement that allows for a solar installation company to
install a solar PV system, domestic or commercial, for free and then selling you back the power generated at a lower
price than you would pay from your energy provider.
PV – Photovoltaic is the creation of energy by the collection of direct sunlight.
Solar Energy – The energy that is collected from the sun’s heat and light that using new technologies like solar heat-
ing and artificial photosynthesis.
Solar Energy – The energy that is collected from the sun’s heat and light that using new technologies like solar heat-
ing and artificial photosynthesis.
Solar System – Also known as a Solar PV System, is a made of several devices, working together to convert energy
harnessed from the sun into electricity. The devices include solar panels, an inverter and various mounts and cables.
Solar Panel – A unit that has been created with the specific intention of harnessing the sun’s rays as an alternate
source of energy.
Watt – Refers to the unit of electricity consumed by an appliance.
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