No one likes paying energy bills. There is no doubt about that. From the fluctuations from season to season to seeing them grow with your family, it’s hard to stay on top sometimes. Bill stress is real and we want to help reduce that. On top of all of that, energy prices in Australia are some of the highest in the world so every kilowatt saved is money in your back pocket.
Services like Billsumo helped people manage their bills and control the influx and constant change. However, there is no better way to manage bills than to reduce them!
Solar can reduce your energy bills and give you some more predictability when it comes to your bills. Here is how.
Firstly, let’s understand your energy bill. It is made up of three key components.
The first two are charges, the third is a credit. To get the best possible outcome you need to consider all three elements.
Your usage is how much power you consume. This is measured in kWh. A kWh is a unit of measure of energy which you use as power. To put it into context your fridge probably uses around 1 – 2 kWh of power every single day. The less power you use, the lower your bill. Simple. When you use your energy can also be important if you are on a time of use energy plant however we won’t dive into that here. (TOU or time of use energy plans charge you different rates depending on when during the day you use power).
Daily supply charges and simply how much your electricity provider is charging you to be connected to the grid. They can vary significantly and depending on how much power you use, they can make up a big part of your bill.
Finally, feed in tariffs. Feed in tariffs are the rate your electricity provider will pay you for energy you send back to the grid. These are only really relevant when you have rooftop solar.
Recapping, your bill will be made up of how many kWh you have used from the gird plus your daily supply charges, minus your feed in tariff credits.
It’s that simple.
So, the question is how do you bring it down with solar?
Firstly, let’s cover off how solar works.
When the sun is shining during the day your solar panels will be generating power for your home to use. As it generates, your home will use all of the power required to run first. Then, if your home needs more power than your system is generating it will draw from the grid. If you are generating more power than your home needs, it will send it to the grid for other people to use and you will get a feed in tariff credited to your bill.
With advances in technology and the government rebates and incentives, installing solar panels on your roof has never been more affordable for a high quality, high output system.
The key way solar saves you money is by supplying your home with cheap, clean and green power to use during the day rather than buying expensive power from the grid.
Then, the bonus comes with feed in tariffs. For any energy you don’t use you will be credited a feed in tariff. That is that simple!
We have now ticked off savings from 2 of the 3 components of your bill, assuming you now have solar installed it is time to tackle the 3rd and final components, daily supply charges.
When solar has been installed and you are on the hunt for the best retailer to suit your needs it is a bit of a juggling act. You need to consider your home’s load profile. That is how much power you use and when you use it.
Then, you need to crunch the numbers to see how much power you will send to the grid and how much power you will use. At that stage you can begin to calculate what makes sense.
Sometimes, a higher supply charge isn’t a bad thing if you get a better feed in tariff and you send a lot of power back to the grid. However, if you use a lot of the energy you are making with your home solar, you really want to hunt down a plan with the absolute lowest daily supply charge and not worry much about anything else.
Installing your own solar system on your home will not only help the environment, reduce your carbon footprint and help leave a better world for generations to come, it will also save you money.
To get a full understanding of how solar can save you, reach out and get an obligation free quote from Teho today.