Residential Solar system – All You Need To Know

Last updated on December 8, 2021

In a world that is greatly focused on clean and sustainable energy, the importance of solar panels for energy conservation can not be overemphasized.

This article will provide you with all the potential information regarding residential solar systems and will serve as a guide to assist you in making practical and catered choices.

But before that, what is a solar panel? Let’s begin with the basics.

What is a Solar Panel?

Solar panels, also known as Photovoltaic (PV) panels, absorb sunlight, which is made up of energy particles called photons, and transform this light into electricity that can be used to supply electrical loads.

Solar panels are used for a number of different purposes, like managing remote power systems for isolated spaces, remote sensing, operating telecommunication systems and more commonly producing electricity for commercial and residential electrical systems.

The term solar energy has been in use for hundreds of years but has recently become popular as countries look for better ways to produce clean and sustainable power.

If you live in Australia, you should definitely consider adopting solar energy and acquiring a solar panel.

The below section will breakdown the key benefits of solar panels for households

Why Residential Solar Panels are a great option for Australian Homes?

solar panel in australian homes

Australia offers great environmental conditions for the production of solar energy, which is produced and distributed properly, could cover more than 50% of the country’s energy demands. The Australian government has already set plans to make solar energy the country’s main source of power.

If this is done, greenhouse gas emissions will reduce significantly and the country will become less dependent on imported fossil fuels.

Residential solar energy production would increase energy independence, save on fuel imports and use fewer grids, providing substantial cost savings, in addition to fewer environmental and health problems

 Below are five key benefits of installing residential solar panels, specifically in Australia.

Key Benefits of Residential Solar Panels

Key benefit of residential solar system

Allow you to regulate your electricity:

Solar panels provide a certain degree of freedom from utility companies and their unpredictable power bills. Backup power stored from solar energy can help avoid high electricity rates and emergency situations when grids shut down or develop faults.

Increase the value of your home.

In most developed countries, installing a solar system with its battery components in a household increases the financial worth of the property. As the rooftop solar system is added to the resale price, the home value increases by an average of 4.1%.

Increase cash returns through tax incentives

Solar panels can be directly purchased or acquired through third-party ownership, which offers customers low monthly rates.

Depending on the home location, a significant amount of the upfront cost can be covered and paid back gradually, or covered with local and regional tax rebates or even through federal tax credits.

Are a source of clean, renewable energy

Solar energy is a clean, readily available and renewable energy source that doesn’t emit toxic chemicals nor does it produce harmful pollutants or greenhouse gases, as is the case with fuel-based resources.

Offer reduced costs of purchase and installation

Over the last decade, the cost of purchase and installation of solar panels has dropped by more than70%.

Now that we’ve covered major benefits, it’s worthwhile to check out how solar panels operate.

How do solar panels work?

When the solar panels are properly positioned facing the sun, sunlight is received at the top surface of the panel. The chemical composition of these panels reacts with the photons from the sunlight and creates an electric current.

The electricity produced flows to the edge of the panel and reaches the conductive wires. These wires transfer the electricity to an inverter, whose purpose is to transform DC power to AC power and make the electricity suitable for use within buildings.

Connections to the inverter transfer the AC power to the property’s electric panel, also known as the breaker box, which is responsible for distributing the power to the different loads in the building.

The electricity that is not used up by the building loads reverse-flows through the utility meter (provided the utility allows it) and sends the power back to the grid. This reverse flow causes the meter to move backwards and allows the owners to measure the electricity produced and their earned credits.

This does not mean the operation of solar panels is perfect, as there are several factors that come into play and affect their operational efficiency.

Factors that affect solar panel efficiency

Some of the factors that could affect solar panel efficiency are:


Solar panels are more efficient when operating in lower to medium temperatures and start dropping in efficiency at high temperatures since high temperatures cause the voltage in cells to drop.

Solar shadings

PV panels are highly sensitive to solar shadings. When there is total or partial shading, the ability of the panels to deliver energy is reduced resulting in power losses or low energy outputs

Energy conversion efficiency

Solar irradiance is the light energy received from the sun and different solar panels have different efficiencies of transforming the irradiance into usable energy.  Slight changes in solar irradiance can greatly affect panel efficiency and ultimately solar power production  Below is a guideline for matching solar panels with the specific needs of your household.

How many solar panels will your house require?

How many solar panels do you need for your home?

Before calculating the number of solar panels required, owners need to determine the goals intended from the system: is the goal reducing carbon footprint, or simply saving money?

Once the goals have been set, you will need to determine how much power you need, by calculating the household’s hourly energy requirement and the present watt-hour usage.

Consideration should also be given to the amount of sunlight that the area receives and to other major factors that might lower the efficiency of the solar panels, which will need to be accounted for.

Don’t forget to consider the solar panel size and your rooftop. Get a FREE Solar estimate from the Experts

How much do residential solar systems cost?

The ever-increasing cost of electricity makes solar panels the safest and most reliable solution. The cost of the system depends on several factors, mainly the size of the panels and supporting electrical products, the amount of power that the household consumes and whether there are solar incentives in the country/area where the house is located. 

On average, purchase and installation can cost between $15,000 to $25,000. To receive a more accurate evaluation of the cost of a solar system for your home, you can get a completely FREE solar panel assessment here

Are residential solar panels worth the investment?

residential solar system

Several issues come to play when assessing an investment in a solar system. The investment makes more sense when your conditions are a mix of the following:

  1. A large house with high energy demand
  2. An area with high exposure to sunlight
  3. an area with high electricity rates
  4. Financial status
  5. Local, Regional and Governmental Support

Some countries offer 26% tax breaks, making solar installations not only better for the environment but also good for your wallet.

If you want to buy solar panels, go for incentives. This is why it’s not recommended to lease solar panels as the value of your home won’t increase and you wouldn’t be eligible for incentives.

Can you get solar panels in Australia for free?

Although you can’t exactly get them for free, there are numerous incentives provided by the Australian government for the installation of solar panels, devised to encourage citizens to use clean and sustainable energy.

You can get your money back in three ways:

Feed-in tariffs:

These are small incentives gained from feeding unused energy back into the grid.

Small-scale technology certificates:

These are either offered by the government or sold through the open market or the STC clearinghouse.

Solar rebates and incentives:

Solar rebates subsidize the cost of installing a solar power system upfront, provided you hire an accredited professional and when the size of your PV system is smaller than 100KW.

Pros and cons of residential solar power

Pros of residential solar power:

  • It reduces your electricity bills:
  • Every homeowner wants to save money, and with the rising cost of electricity these days, solar panels provide a great solution and protect against increasing energy costs.
  • There are several rebates and tax incentives for those who install residential solar panels. You reap further benefits and enjoy the dividends of your investments.
  • Solar energy panels provide home-owners with a high degree of energy independence and freedom from price fluctuations
  • The panels protect the environment
  • Solar energy production doesn’t emit carbon or greenhouse gases. It’s a clean and renewable energy source.

Cons of residential solar power:

  • The initial costs can be quite high, especially if un-supported
  • The costs of purchasing and installing solar panels can be significant , but with the rebates and financial incentives you’d receive in the long run, it’s worth the investment
  • If you’re relocating, you can’t take the solar panels with you. However, your home value will increase if you resell it because of the added system
  • Solar panels may not be suitable  to install on certain roofing material, especially those used in old homes

Several solar panel options are available. Here is a guide to help you select the most suitable. How to find the best residential solar panel?

Here are some factors to consider

Consider the solar panel cost.

This is dependant on different factors such as the size, brand, warranty period, material quality, etc

Consider the energy efficiency.

Solar panel efficiency is the rate at which light is converted to electrical energy and the amount of power the system generates.

The more efficient it is, the better.

Look at the quality of the solar panels.

Consider the materials involved in producing the panels and the production process. All these affect its energy efficiency and output.

Consider the temperature coefficient.

This has a long-term impact on operational efficiency.

Residential solar power solutions in Sydney

Are you planning to install residential solar panels at affordable rates?

Look no further, as E-Green Electrical has you covered. As a top energy expert in Sydney, we provide a wide range of eco-electrical services.

We also offer FREE consultation services to our clients, providing a step-by-step guide to solar purchases and installations. Reach out today and you will be happy you did.

Ask for a FREE  Solar consultation today!

E-Green Electrical

E-Green Electrical are the pioneers in energy efficiency. We specialise in helping our customers reduce their carbon footprint and impact on the environment while saving money.

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