Solar panels convert sunlight into electricity, providing a renewable energy source to power your home. However, understanding the balance between generation and consumption is crucial. Solar panels typically generate electricity during daylight hours and in sunny conditions. Thus, if your energy consumption exceeds the amount produced, particularly during nighttime or overcast days, you'll still rely on the grid. This consumption often leads to higher electricity bills than expected.
Self-consumption plays a pivotal role in maximising the benefits of your solar installation. This means utilising the electricity generated by your panels during the day rather than exporting it to the grid. By aligning your energy usage with peak solar production times, such as running appliances or charging devices during daylight, you can reduce reliance on grid electricity.
It's essential to recognise that while solar panels can significantly reduce your electricity bills, they may not eliminate them entirely. Factors like insufficient panel coverage, incorrect system sizing, or higher-than-anticipated energy usage can lead to residual costs. Additionally, most solar systems are designed with the expectation of a certain level of grid interaction, especially in regions with less consistent sunlight. Understanding these dynamics helps set realistic expectations and can guide adjustments in habits or system specifications to optimise cost savings.
Your Energy Usage May Have Increased
Even with solar panels, changes in your energy consumption habits can result in higher electricity bills. It could be helpful to cross reference your current bill with a previous bill (that was cheaper) to assess whether your usage has increased.
- Psychological Factors: When homeowners install solar panels, there can be a subconscious shift in mindset: "I have solar, so I can use more power." This perception may lead to less vigilant energy-saving behaviours, inadvertently increasing overall consumption.
- Impact of Shading, Dirt, or Faults on Efficiency: Shading from nearby trees or buildings, as well as dirt accumulation or mechanical faults in panels and inverters, can significantly reduce the efficiency of your solar system, leading to reduced energy production and higher electricity bills.
- Impact of Seasonal Changes: Seasonal variations significantly affect energy usage. For instance, during hot summer months, you might run air conditioning units more frequently, whereas winter may necessitate increased heating. These changes can cause your energy usage to spike and subsequently increase your reliance on the grid, particularly in times when solar production is not at its peak.
- New Appliances or More Occupants: If you've added new appliances or if there have been additional occupants in your home, your overall energy demand will naturally rise. Appliances like refrigerators, washing machines, or even electronic devices, if used more frequently or for longer periods, can contribute to a higher consumption rate, leading to increased electricity bills.
- Nighttime Usage Without a Battery: An important consideration for solar panel users is the absence of a battery storage system. Solar panels generate electricity primarily during daylight hours, and without a battery, this energy cannot be stored for nighttime use.
- Nighttime Energy Needs: If your household consumes most of its energy during nighttime (e.g., lighting, heating, electrical appliances), you will inevitably depend on the grid for electricity. This is especially true for individuals who are away during the day and return home after sunset when solar production ceases, resulting in higher nighttime usage and increased electricity expenses.
- Peak Period Dependence: Electricity rates may also be higher during peak periods, often occurring in the evening when most return from work. Without a battery, you'll be purchasing electricity at these higher rates, offsetting the savings achieved by solar energy generated during the day.By analysing these factors, you can better understand why your electricity bills might still be elevated even with a solar installation and explore strategies, such as shifting daytime activities or investing in a battery storage system, to optimise your solar savings.
Your Solar System May Not Be Performing Optimally
- Impact of Shading, Dirt, or Faults on Efficiency: Shading from nearby trees or buildings, as well as dirt accumulation or mechanical faults in panels and inverters, can significantly reduce the efficiency of your solar system, leading to reduced energy production and higher electricity bills.
- Importance of Regular Maintenance and Cleaning: Regular maintenance and cleaning are essential to ensure that your solar panels operate at their peak efficiency, as a well-maintained system is less likely to experience energy production issues that could increase your reliance on the grid.
- Monitoring System Performance: Using apps or portals like Solis cloud, SEMS, Fronius Solar Web, or Sungrow's isolar cloud, allows you to monitor your solar system's performance, making it easier to identify and address any discrepancies in energy output before they result in unexpectedly high electricity bills.
Retailer billing structures: Your Feed-in Tariff Isn’t as High as You Think
Over the past two years, wholesale electricity prices in New South Wales (NSW) have experienced significant fluctuations. In 2022, daily prices for wholesale electricity futures contracts exceeded $200 per megawatt-hour (MWh), marking a 350% increase from January 2021 levels. Therefore, understanding your feed-in tariff rates is crucial as they determine how much you earn for surplus energy sent back to the grid, impacting your overall savings.
Non-bypassable or Fixed Charges on Your Bill
Fixed charges and non-bypassable fees, such as service and connection fees, remain on your bill regardless of solar production and cannot be offset by the energy your solar panels generate. These costs can add up monthly, maintaining a baseline expense even when your solar panels are producing efficiently, thereby contributing to the overall electricity bill. For example, we had a customer who's fixed supply charge accounted for 39% of his electricity bill. It all adds up.
Circuit Breaker Trips & Damage to Wiring
Solar power systems are designed to be robust, but like any electrical system, they are susceptible to external factors that can lead to disruptions. One common issue faced by solar system owners is tripped circuit breakers, often a sign of underlying problems that need immediate attention to prevent further damage.
Tripped Circuit Breakers
Circuit breakers are safety devices that protect your solar power system from electrical overloads or short circuits. When a breaker trips, it cuts off the electrical flow to prevent damage to the system or even a potential fire hazard. Frequent tripping of a circuit breaker is often a sign of underlying problems, indicating issues such as:
- Overloading: This occurs when the electrical load exceeds the breaker's capacity. It may happen if additional appliances are added to the circuit without upgrading the breaker's capacity.
- Short Circuits: These occur when a live wire comes into contact with a neutral wire, causing an excessive flow of electricity that trips the breaker.
- Ground Faults: Similar to short circuits, ground faults occur when a live wire touches the ground or a grounded part of the system.
Damage Done to Wiring by Possums and Storms
Another concerning source of solar system malfunctions is physical damage to the wiring, often caused by wildlife or environmental factors. Two common culprits are possums and storms.
- Possums and Other Wildlife: In some regions, possums are notorious for damaging solar panel wiring. These animals may chew through cables, leading to short circuits or complete disconnections. Wildlife damage can be prevented by using protective conduits and ensuring that wiring is secured and out of reach.
- Storm-Related Damage: Severe weather conditions, such as storms, can also wreak havoc on solar system wiring. High winds, hail, and lightning can lead to physical damage or displace wiring connections. Post-storm inspections are essential to identify and repair any damage promptly. This not only prevents energy inefficiencies but also ensures the safety of the entire system.
Is a Solar Battery Worth it in 2025?
Solar batteries have come a long way and are perfect to complement your solar system, especially if the majority of your energy usage is in the evening.
- Maximise Self-Consumption and Reduce Grid Reliance: By storing excess solar energy generated during the day, a solar battery allows you to use this power during the evening or at night, significantly reducing your reliance on the grid. This not only leads to a lower electricity bill but also maximises the utilisation of your solar panels, as excess solar energy is not wasted.
- Evaluation of Costs, Rebates, and ROI for Solar Batteries: When considering a solar battery, it’s important to evaluate the upfront costs, available rebates, and the potential return on investment (ROI). While the initial investment can be substantial, many regions offer incentives or rebates that offset the cost. Also, considering the long-term savings on electricity bills, the ROI can justify the expense for many homeowners.
- Future Considerations: As technology continues to advance and the cost of solar batteries decreases, their viability is expected to improve. By 2025, not only will batteries likely be more affordable, but they will also have longer lifespans and improved efficiency. With increasing grid electricity prices, a solar battery could become an even more attractive option for homeowners looking to enhance their energy independence and reduce future costs.
Your Solar System May Be Too Small for Your Current Energy Needs
When households invest in solar panels, they often anticipate a significant reduction in their electricity bills. However, if you find that your bills remain stubbornly high despite having solar panels installed, it might be due to the size of your solar system being insufficient for your current energy needs.
Understanding Solar System Sizing
The size of a solar system is typically measured in kilowatts (kW) and determines the system's capacity to generate electricity. Ideally, your solar system should be sized to match or exceed your household's energy consumption to optimise savings. However, mismatched sizing often occurs due to several reasons:
- Initial Miscalculation: At the time of installation, the energy needs of the household may not have been accurately assessed. This could happen if projections were based on past electricity usage without considering future changes.
- Increased Energy Consumption: Over time, your household may naturally start using more electricity. This can be due to the addition of new appliances, lifestyle changes such as more time spent at home, or an increase in family size. If your solar system was initially sized for a lower level of consumption, it may now be inadequate.
- Seasonal Variations: Energy consumption can vary throughout the year. For instance, heating during winter or cooling during summer can cause spikes in electricity usage that a small solar system cannot fully accommodate.
Assessing Your Current Energy Needs
To determine if your solar system is too small, consider conducting a thorough energy audit of your home. This involves:
- Reviewing Past Bills: Examine your electricity bills over several months or years to understand your consumption patterns. Look for any significant changes in usage.
- Identifying Major Energy Consumers: Take note of appliances and systems that consume a lot of energy, such as HVAC systems, refrigerators, and water heaters. Consider whether their usage has increased since the solar system was installed.
- Evaluating Usage Habits: Reflect on any lifestyle changes, such as remote work or new household members, that have increased your electricity demand.
Potential Solutions:
If you determine that your solar system is undersized, there are several strategies to address this issue:
- System Expansion: Consider adding more panels to increase your system’s capacity. This may involve additional costs but can lead to greater long-term savings.
- Battery Storage: Installing a battery storage system can help store excess energy generated during peak sunlight hours for use during high-demand periods or at night, thereby reducing reliance on grid electricity.
- Energy Efficiency Improvements: Invest in energy-efficient appliances, LED lighting, and smart home systems to reduce overall energy consumption. Implementing energy-saving practices like turning off unused lights and appliances can also make a significant difference.
Understanding and Resolving High Solar Bills
Though solar panels are intended to lower electricity costs, they don't always eliminate bills entirely, especially as systems age or if usage habits change. Issues like underperforming inverters, outdated system sizes, tripped circuit breakers, or damaged wiring can diminish savings.
The upside? These problems are often fixable with a comprehensive system check-up.
At Solar Water Wind, we assist NSW homeowners in optimising their solar systems. If your system hasn't been inspected recently or your bill remains high despite sunny days, a solar health check might be necessary. Contact Solar Water Wind today to arrange a system inspection today. We offer services to:
- Diagnose and fix faults or performance issues
- Evaluate if your system size still meets your needs
- Recommend upgrades, battery options, and savings strategies
