Buyers Guide For 5KW Solar Systems – How To Get The Best Value for Money.

Buying a 5kw Solar System

Looking for a solar panel system in 2018 and don’t know where to begin? There is a steep learning curve when it comes to understanding what system is right for you and what system you need. You will see things like battery storage size, energy usage and how much roof space you will need.  

This article will help you understand how to get the best value for money and what you need to look out for.

Regrettably, a great deal of solar systems that you see advertised online are too inexpensive! This sounds strange but it will make sense. You get what you pay for with solar systems this is due to their efficiencies — cheap solar systems utilize no name panels, and we hear stories of individuals being left without help by contractors that just won’t return phone calls. How frustrating!

The other problem you need to look out for is that many quotations will be overpriced.  Sadly, some solar installers think that confusion = profit, which may make finding the right price for a fantastic quality solar system a little bit difficult.

The first thing most individuals do when they look for a 5kW solar system would be to find out how much it costs.

If you are newbie to solar energy, your first online search may have you thinking a good excellent 5kW solar system costs around $4000, possibly even less.  The advertisements use words such as “premium” and “tier 1”.

Everything sounds great… except it’s not.  $4000 is much too cheap for a good quality 5kW solar system!

What is the Price of a 5kW Solar System?

First things first, follow a good rule of thumb and get 3 estimates for a 5kW solar system from a well-known solar installers in Sydney, you’d discover that rates are all within a few hundred dollars of one another.  Yes, there can be slim differences, however for the most part, the estimates are going to be around the same cost, or at least they should be!

If the quotes are coming in all around $4000, and you’re happy to get what you pay for, you will not get quality.

Even when you’re very happy for your installer to cut a few corners, you simply can’t find top quality brands for that type of cash.

To assist you cut through the confusion, you need to have all the info you need to make an informed choice, including pricing.

So here it is:

Australia is home to a number of the cheapest solar PV system costs in the world, as a result of a wide consolidation of international and local considerations. According to some gathered data, the ordinary 5kW solar system cost in Australia on April 2017 is roughly $1.26 per watt — roughly $6,800, with a low of below $1/W ($3,500) and a high of approximately $2.10/W ($10,500).

So for a fantastic excellent 5kW solar system, the average solar price in Sydney starts at $5,500, entirely installed.  If you want panel-level output, expect to pay around $7,000. High-efficiency panels together with all of the bells and whistles will probably put you back around $8,500.  This 18-panel system will generate around 20kWh per day, and will save you up to $500 every quarterly electricity bill!

So your next question must be. How do I know if I’m getting a Return On Investment from my Solar Panels? To understand that we need to look at output!

How much output does my 5kw solar system provide?

5kW Solar Systems are becoming the most well-known sizes in Australia, this is the result of the combo of high energy yields and fantastic value-for-money they provide. What will be the price ranges, power yields and monetary returns a family can count on from a 5kW solar PV system?

How many panels & how much roof area is needed for a 5kW solar system?

A modern-day 5kW solar system will be comprised between approximately 15-20 panels also will need approximately 25-35 m2 of roof area, based on the wattage of these panels and the way they are leaned.

What is the Power output 5kW solar system?

Depending on quite a few variables, the true power output of a 5kW solar energy system will be different. These variables include:

  • Geographical area of the machine as well as the anticipated yearly and daily solar irradiation and cloud cover levels.
  • The orientation and tilt angle of the solar panel array
  • The operating temperature of the solar panels
  • Lastly, the performance of the individual parts (e.g. the panels along with the inverter)

As stated above, different regions receive different levels of sun. The quantity of sunlight hitting a solar panel array has an immediate effect on the output of the system. As a rough figure, a rooftop in Australia may expect to get around an yearly average of 4.5 hours ‘peak sunlight’ (peak sunlight hours, or even PSH) daily, although this amount may range as large as 5.8 PSH every day in areas like Darwin or as low as 4.2 PSH per day at Tasmania. This is merely the yearly average day, and it’s necessary to remember that there’ll be more sunlight in the summer and less in the wintertime.

Example: A correctly tilted, 85% effective, north-facing 5kW solar system in Sydney, for instance, would generate about (3.5 PSH x 5kW x 85 percent) ~15kWh of electricity on a day at the peak of winter, whereas in the summertime output from precisely the exact same 5kW solar system could be around (6.2 PSH x 5kW x 85 percent ) ~26kWh.

How many solar panels will I need?

To create a 5kW solar system, you will need 20 solar panels, assuming you utilize 250W panels.

Every panel will be approximately 1.6m x 1m, which means you’re going to want at least 32m² of roof area.

What are the financial returns on a 5kw solar system?

The financial returns from a 5kW solar setup are a little more difficult to work out, and largely determined by whether a solar feed-in tariff is available to the owner/operator of this system. Solar Feed-in Tariff schemes cover solar system owners with a predetermined sum for every unit of solar energy they don’t use themselves and instead export into the electricity grid. Returns depend not just on the output of the solar system, but also on how it’s utilised by people whose home or company it’s connected to in light of the existence or lack of feed-in incentives.

There are essentially 3 situations that owners of all grid-connected systems may find themselves with respect to this.

  1. You’ve got access to some generous solar feed-in tariff, which incentivises solar system users to export power to the grid at rates that differ from state to state, but are usually over the retail energy rate. In case your feed-in tariff rate is greater than the rate you pay for your power from the grid, then exporting a lot of your solar power as possible will net you the best returns.
  2. You’ve got access to some 1-for-1 ‘Solar Buyback’ scheme where you’re paid a sum equal to your retail energy rate for every unit of solar energy you feed into the grid. Individuals in this class should only attempt to reduce their energy consumption as much as possible, since they may neither benefit nor lose by exporting or self-consuming their solar energy.
  3. No generous solar feed-in incentive scheme ever existed. In this scenario you need to do your very best to refrain from exporting your solar energy to the grid, and rather time your energy use to make certain you are  self-consuming your solar energy –i.e. use more power once the sun is shining, and less when it isn’t.


Just how much money will a 5kW solar system save?

You might be thinking: “When the 5kW system offsets my electricity use, then surely it is going to wipe out my power bill?”

Regrettably, it isn’t so easy! The amount the electricity companies pay you to your solar power is, in the majority of states, way lower than the cost they charge you to buy the exact same electricity from grid! Additionally, there is other prices on a bill like supply fees, aka service fees. But a 5kW solar energy system remains a superb investment.

Let us say you get paid approximately 8c per kWh for energy in compared to 30c a kWh to purchase electricity back from the mains grid. Here is 3 situations to show how the 5kW system payback works:

  1. Use all of the solar power in your house. That is unlikely unless you’ve got a miniature aluminum smelter on your backyard — or you run a small business from your house.

If that were the scenario, you could save roughly $2100 at the very first year, and about $67,000 over 20 years; Taking power inflation of 5 percent into consideration.

  1. Export half of the power then you would have save approximately $1400 from the very first year.
  2. Export all of the energy You would save approximately $700 in the first year using a 5kW system.

How long will it take before a 5kW solar power system pays for itself?

If you’re not exporting the energy and supposing you have paid a fair price for a 5kW solar system, then you need to visit a payback period of less than 5 decades – so a quick payback period. It’s extremely simple to fund the purchase in order for your monthly energy savings are worth more the price of repaying the loan. The solar calculators show you with easy green or red bars if the investment is cash flow negative or positive; i.e. if it’s cost-effective.

It can be a laborious process to locate a trusted solar installer to supply you with a top notch 5kW solar energy system at a reasonable price. This is the reason why I’ve done the hard work for you, and curated a listing PV installers whom I trust to do the work properly.