How do I calculate my potential savings with solar panels?
Estimating your potential savings with solar panels is a crucial step in understanding the financial benefits of solar energy. The calculation is based on four key factors:
Your energy usage: This is the most important factor. You need to know your average daily, monthly, and annual electricity consumption, which can be found on your power bills
Your current electricity rates: Understanding your current charge, in cents per kilowatt of electricity (c/kWh), will help determine how much money you save by avoiding purchasing power from your electricity retailer
The size and quality of your solar system: Larger, higher-efficiency solar systems generate more electricity, leading to greater savings
The solar feed-in tariff (FiT): This is the rate your electricity retailer pays you for any excess power you generate that feeds back into the to the electricity grid. While savings from the FiT are much lower than savings from self-consumption (using your own free solar power or stored battery power), it may still a consideration of the overall financial benefit depending on the plan you’re on with your electricity retailer.
