Every year, more and more New Zealanders are choosing to install solar power systems into their homes and businesses. Some choose solar because they want to reduce their impact on the environment, others want to reduce their reliance on their utility company, and some just want to cut their electricity bills.
Regardless of your reasons, a solar power system provides a high return on investment, whether that’s in saved costs or increased value. These are just a few of the reasons why.
How much does solar power cost?
Once installed, solar power immediately starts providing you with cost-saving benefits, reducing your reliance on the power grid and cutting your utility bills. But it does come with some up front costs.
Depending on the size of the system installed, a ZEN energy solar power system can cost anywhere from $8,000 for a basic residential grid-tied system right up to $30,000 for an advanced system that can save even more money from solar.
How much can you save with solar power?
Solar panels can either generate electricity that a home or business uses directly, reducing utility costs, or it can export some (or all) of that energy back to the grid. This exported energy is then paid for, the exact amounts depending on the local solar buyback rates.
The amount of energy generated from solar power varies depends on several factors, including:
- The size of the system installed
- The roof angle that the panels are installed on
- How much sunlight the home receives
- How much shade the roof gets
Every kilowatt of power saved or sold reduces utility bills or offsets their costs. Research from 2016 has shown that the average household in New Zealand saved just shy of $640 a year by investing in solar power. Five years have passed since then, and solar panels have only become more efficient and less expensive in that time.
What are the other benefits of solar power?
The return on investment from solar isn’t just how much you save or how much you sell. Solar power has a host of other benefits that prove how huge a return on investment it can have.
- Property price increases. According to SEANZ, the solar energy authority in New Zealand, research from overseas has shown that solar power systems add real value to a home, creating an average house price increase greater than the actual cost of the PV system. As solar power continues to become more and more popular in New Zealand, you can expect that increase to get even more significant as home and business buyers prefer to have solar than not.
- Hedge against future costs. Changes in the season and simple high demand can result in sudden increased power prices. An investment in solar ensures that you don’t suffer from bill shock when the utility companies can’t keep up.
- Walk the talk and get ahead of the curve. The price of solar panels has been dropping rapidly over the last few years, and all expectations are that this will continue as technology improves. In fact, solar has now become so accessible that solar authorities think we may be “on the cusp of large PV uptake in New Zealand”. Investing now means getting ahead of the curve, and for business owners, proving that their green credentials aren’t just lip service.
- Power through blackouts. Blackouts are painful for homeowners, but for businesses, they can be deadly to the bottom line. A single day of closure can cost thousands or even tens of thousands of dollars of profit for a SME in New Zealand. Solar power ensures you can keep your business running even when the power isn’t.
Is solar power worth it?
Solar power offers huge benefits to homeowners and businesses who choose to invest. It lowers costs, improves value, provides social proof for businesses and ensures that your home and/or business can keep running no matter what is happening with the main power grid.
Are solar panels a good investment? We think the answer is clear.
For more information, get in touch with the ZEN Energy team to discover how much you can save with the right solar panel system.