Installing a solar power system can result in a significant reduction of overall bill amounts.
A solar system harnesses energy from the sun via solar panels and runs it through an inverter, converting it into usable electricity. The electricity generated by these solar systems has no direct greenhouse emissions.
With a net-metered solar system, generated electricity is first used within the home or business, and any excess power is then fed back into the electricity grid. Net-metering is the most common metering arrangement in Australia.
With a gross-metered solar system, all the electricity generated is fed back into the electricity grid.
Customers with either a net or gross-metered solar system are often paid for the excess electricity that is fed back into the grid in the form of solar feed-in credit on their electricity bills.
So, a net-metered solar system reduces the amount of electricity that homes and businesses need to buy from the grid for use during the day. This avoided cost of buying energy, plus the feed-in credits for any excess solar power exported to the grid, can help customers significantly reduce their energy bills.
In a gross-metered solar arrangement, all the solar electricity generated is fed straight into the grid, for which the home or business may receive feed-in credits. However, all the electricity used within the home or business is purchased from the grid and paid for under the customer's energy plan.
Solar feed-in tariffs, which are used to calculate solar feed-in bill credits, differ from state to state and may depend on when a solar feed-in agreement was entered into and the type of metering that is set up.
The amount of solar feed-in credits received will depend on geographical location, the size of the solar power system installed and, in the case of net metered systems, the energy usage of the home or business at the time the solar power system is generating electricity.
Installing a solar system can significantly reduce the size of electricity bills, depending on the size of the system and the consumption habits of the owner.
For more information about solar systems, please visit AGL Solar or call 1300 274 165.