How to avoid falling for the 6 biggest myths in going solar

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Previously we explained {the #1 thing to consider when choosing a solar system in Australia}.

Today we will tell you about the 6 biggest myths in solar, and how you can steer clear of them.

The 6 biggest myths in going solar

  1. Eliminate your electricity bill entirely
  2. Payback in 2 years
  3. Solar panels produce energy when shaded
  4. Some government rebate is ending
  5. Clean Energy Council products / installers
  6. Tier 1 panels

1. Eliminate your electricity bill entirely

If your solar salesperson has fed you the line that you won’t ever have to pay an electricity bill again, then impolitely show them the door.

Your solar system can massively reduce your electricity bill, and pay for itself really quickly. But most solar customers still have to pay their electricity company something. Just something far less than they would have had to.

The reason is: your electricity retailer has got you in their grips and doesn’t really like it when solar power reduces their profit margin. Essentially they’re only willing to pay you the wholesale price of the solar electricity you send to the grid, but they charge you more for the electricity you consume at night. On top of that, they also charge you a daily supply charge, regardless of how much energy you consume or generate.

This means even if you produce more energy than you consume each year, you’ll still have to pay something on your electricity bill. Your bill could likely be cut in half, or perhaps reduced by 60%.

But if anyone tells you you won’t pay for electricity again, then they’re misleading you. And you should show them to the door immediately!

2. Payback in 2 years

One of the biggest tricks salespeople use to get a quick sale is to show customers an absurdly quick payback on their solar investment. They put their thumb in the air, write some figures down on a napkin, and hey presto you’ve got a 2 year payback. Then, the bill savings you get are far lower than the bill savings they calculate, which leaves you feeling disappointed. The problem is, companies who mislead you like this at the point of sale, ultimately those companies don’t last long.

The truth is, a payback period of four-to-five years is now really commonplace. And there aren’t many low-risk places you can make back 20+% of your money each and every year for 25 years.

And as the same amount of sunlight falls on a cheap solar system as falls on a decent solar system, the only way to get a 2 year payback is to buy a cheap-and-nasty system that won’t last much longer than 2 years.

If you want something that will pay for itself multiple times over then buy a decent solar system.

And if a solar salesman says it will pay for itself in 2 years, then drive them to the nearest primary school to get a lesson in mathematics.

3. Solar panels produce energy when shaded

Some solar salespeople are so keen to get a big sale that they’ll put solar panels in the shade.

But just like a chain is only as strong as its weakest link, a solar system only produces as much energy as its least-shaded panel. Some approaches are more tolerant of shade, but if you put a solar panel behind a chimney or under an overhanging tree it simply will under perform, and be a waste of money.

4. Some government rebate / special offer is ending

Some companies pressure their customers into a sale by claiming a government subsidy is about to end / under threat / winding back.

The truth is:

  • The federal government subsidy reduces ever so slightly on January 1 each year. And by an amount that only affects the system price by a few percent. Solar companies are so glad to have work in January that they’ll typically offer sharp pricing in that month anyway.
  • The Victorian government is the only other government subsidy around, and it does reduce every six months or so.

They may also have a ‘sign up today’ offer, which will probably be used again tomorrow and day after on other gullible customers.

When it comes to solar, its a 25-year product. Making a well-considered choice is wiser than making a rash decision.

5. Clean Energy Council products / installers

About the only way dodgy solar companies can claim any semblance of quality is by stating they use Clean Energy Council approved products and Clean Energy Council accredited installers.

Everyone, bar none, in the solar industry uses CEC approved products and CEC accredited installers. The electricity network operators won’t let you connect anything less to the grid. And to collect the hefty government rebate, you have to use CEC products and installers. If that’s all your solar company relies upon to show their credibility, then they’ve cleared the minimum bar required to do business.

Ask for other demonstrations of the company’s credibility. These may include CEC Approved Solar Retailer status, Master Electricians, memberships with the CEC / ASC / NECA, etc.

6. Tier 1 panels

Practically every company in Australia refers to “Tier 1” solar panels. But it’s almost a meaningless term – it’s a measure of whether some banks have recently invested in solar farms that use those panels. The truth is ‘Tier 1’ status has been granted to some decidedly average solar panels and also to some exceptional solar panels. The ‘Tier 1’ list also changes with time. And there are some top quality panels that don’t make the list, because investment banks can’t justify their expense.

Again, if all a salesperson has is ‘Tier 1’, then they don’t know their product very well.

There really isn’t a simple single measure of how good a solar panel manufacturer is.


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