The cost of installing solar panels has recently reduced, while electricity costs have increased. For many homes in Ngaio, investing in solar can be a smart financial investment. It may pay for itself in 4 years and provide free power for the following 20 years.
Several members of the Ngaio Climate crew have installed solar systems and are happy to share how they did it, what it cost, and what they save. Call Ross on 021 404089, email solar@ngaioclimatecrew.org.nz or call in at our next event. Our page, Solar Examples in Ngaio has reviews of some solar systems installed in Ngaio or Crofton Downs.
Check out the Frequently Asked Questions on solar below
How much will I save by installing solar PV?
- The returns are typically much better than investing in Kiwisaver. But they vary depending on the type of system you choose, your electricity retailer, your roof orientation and the time of day you use your electricity.
- Typically, systems recoup their entire cost in 5-8 years, and with batteries, can provide near-free electricity for a further 20 years.
What are the key components of a solar PV system?
- Solar panels on the roof (typically 12-20 panels generating 5-10kW)
- An Inverter that converts the DC power from the panels to 240V AC
- Optionally, a battery to store the power generated for when it’s needed.
How much will it cost?
- Typically $10-$30,000. 5kW of panels can be as little as $10,000. A bigger system with batteries and the ability to run during a power outage might be $20-$30,000.
- We recommend talking to people in this group about their experiences with costs and savings.
- Loans may be available at 1% interest.
How much power will a solar Photovoltaic system generate?
In Ngaio, a reasonable estimate might be 450kWh per panel per year of usable electricity. But this will depend on the orientation and angle of your roof and the configuration of your system.
My roof doesn’t face north. Is solar still worthwhile?
- The best returns come from north-facing roofs with a pitch of 30° or more. But flatter roofs and even East-West oriented roofs can provide good economic returns.
- Installers will calculate the estimated power by month for your roof as part of their free quote, and it is easy to check the accuracy of this.
- Add a quick table of solar estimates by roof orientation and pitch in Ngaio.
How do we find a trustworthy Installer?
- We recommend MySolarQuotes. They will ensure you get three free, no-obligation quotes from SEANZ members.
- You can also talk to our members about their experiences.
How long will it take?
- The slowest part is usually making the decision. You should get quotes within two weeks.
- Permits are required to be issued within 2 weeks.
- Installers may have a backlog of work (check when you are about to accept a quote).
- Installation normally takes 1-2 days, and you will generate electricity you can use as soon as it is inspected (within a week).
- Certification and the right to export (and get paid for) surplus power can take another month.
Will solar PV get cheaper if I wait?
- Solar panels are probably the cheapest they will be. Manufacturing efficiency has plateaued, and there are no new technologies imminent. The USA’s imposition of 150% tariffs on solar panels left a surplus of manufacturing capacity for the rest of the world. Capacity has equalised and prices are climbing.
- Inverters are nearing or have achieved similar cost minimisation.
- Batteries for home storage are likely to reduce in price. But only slowly.
Do solar systems work in a power cut?
Solar systems with batteries are often designed to work when the grid is down (they are called hybrid systems). Solar systems without batteries cannot work without the grid, even if the sun is shining.
Is the extra cost of a battery worth it?
- A battery lets you slide when you use your electricity during the day. Most particularly, it allows you to use your own electricity at peak times when prices are highest and the grid power used the most carbon.
- The grid can be used as your battery, but the price you sell electricity is typically half what you buy it back for.
- Batteries can have almost as good a financial return as solar panels only. They create more flexibility in when you use the solar power, and (if they are installed with a hybrid mode) they ensure your solar system works in a power outage.
What roofing materials are suitable for solar?
- It is a good idea for your roof to be ready for 25 years without further maintenance. Rusty roof may be better being replaced first. Otherwise, a fresh coat of paint on a steel roof will save money later.
- For other types of roof – tiles, flat roof etc, your prospective installers will advise on suitability and preparation.
What happens if I sell my house. Will I lose my investment?
Quality installations appear to at least recoup their cost at house sale time and decrease the time to sell. See our separate analysis for more details.
What about a 0% or 1% loan?
Most of the major banks are offering 0% or1% loans for solar systems, efficient heating, home insulation and EVs. Westpac and ASB are offering up to $150,000 at 0% for 5 years. ANZ and BNZ $80,000 at 1% for 3 years.
What about the hidden environmental costs of Solar?
- There is a lot of misinformation about Solar.
- The panels are made with materials that are abundant and are designed to last longer than a car. They are probably the least environmentally damaging form of power available to mankind.
- The modern, LiFePO4 batteries used in Solar systems are expected to last 14 years, are fully recyclable and use relatively abundant materials. They should not be confused with Li Cobalt batteries that require rare metals and are difficult to recycle.
- LiFePO4 batteries are not perfect, but they do far less damage to the environment, than our other energy alternatives.
- Sodium batteries are about to become available. These will in time, be cheaper and more environmentally friendly. But the initial pricing will not be much cheaper.
What happens when the sun doesn’t shine?
- Your system will seamlessly switch from using solar electricity to using the battery and/or the grid.
- In summer, most solar systems generate more power than the house can use. The surplus is sold to the power company and the credit used to buy extra winter power. Many households with solar can end up with a net credit for the year.
- Another way to use extra power is to heat hot water. Hot water is often a third of the total electricity usage. With a cylinder (as opposed to gas instant hot water), nearly all the hot water can be from the solar panels.
I got a quote for Solar four years ago. It wasn’t worth it.
It probably wasn’t then. Prices have dropped a lot in the last three years. It is well worth getting a new quote.