Updated 11/04/2020

Would you fancy a zero dollar power bill? If the answer is yes and I am sure most people would like that, then read my latest blog on why you should get as many solar panels as you can right now. Not only is a zero dollar power bill possible, but you can also be in credit each bill.

The one thing that I love about the grid-tie solar is that it is easy to work out the financial benefit. There are only two economic benefits:

  1. Offset Savings = Indirect Savings
  2. Solar Feed-in Credit = Direct Savings

The first saving potential is your offset savings which are your INDIRECT SAVINGS. For each kWh of solar energy that your solar PV system generates which is used by your home or business, that is a saving against you buying that same kWh of energy from the grid. If you pay 30c per kWh for the power that you buy from the grid, then your offset saving for self-generated electricity is 30c per kWh. I call these indirect savings as you cant see the economic benefit quite as clearly as your direct savings below. The only way to see this benefit is by seeing your average energy draw (indicated on your power bill) reduced and your total power charges less – because you have purchased less power from the grid.

The second savings potential is a via feed-in credits for your exported Solar Energy. A feed-in tariff is your DIRECT SAVING. This is what you can see on your power bill, which is solar energy exported to the grid multiplied by the feed-in tariff rate offered by your energy retailer.

My blog ‘Fancy a zero dollar power bill?’  is based primarily on direct savings achieved through a high solar feed-in tariff.

I have crunched the numbers, and the return that can be achieved is phenomenal! In the current market with a corona virus pandemic, interest rates are at an all-time low. Nobody in their right mind will put money into stocks and shares and property is not looking like the usual safe haven. But a large grid-tie solar system can yield a minimum return of around 20-30% per annum with some systems achieving 30-40%.

Let’s get started – Let me show you how you can achieve a zero dollar power bill.

Update: Origin Energy has dropped its solar boost plan from 21c to 18c (capped) per kWh. See my blog here

AGL is the only energy retailer now offering an uncapped 21c solar feed-in tariff on its ‘Solar Savers’ plan. 

AGL has just one rule. The total system size cannot be greater than 10kW. That means the inverter size cannot be 10kW or greater nor can you have 10kW or greater of panels. For example. 30 x 330w panels = 9,900 watts (9.9kW) which is ok. 36 x 285w panels = 10,260 watts (10.26kW) which is NOT allowed.

For this financial return analysis, I am using a new residential housing estate in Sandy Beach. I am using our solar design software to determine the conservative output potential for a variety of system sizes to show you the economic Return for solar under these 21c solar feed-in plans and why you should get as many solar panels as you can.

5kW Solar

This is a solar system rated at 4.95kW.

  • Annual solar generation of 7,900 kWh*
  • Minimum annual savings of $1,659**
  • Based on a cost of $1.00 per watt, Return on investment of 2.98 years (longest period)***

 

6.6kW Solar

This is a solar system rated at 6.6kW

  • Annual solar generation of 10,318 kWh*
  • Minimum annual savings of $2,167**
  • Based on a $.95 per watt system cost, return on investment of 2.89 years (longest period)***

 

8.58kW Solar

This is a solar system rated at 8.58kW

  • Annual solar generation of 13,917 kWh*
  • Minimum annual savings of $2,923**
  • Based on a $.90 per watt system cost, return on investment of 2.64 years (longest period)***

 

9.9kW Solar

This is a solar system rated at 9.9kW

  • Annual solar generation of 15,680 kWh*
  • Minimum annual savings of $3,293**
  • Based on a $.85 per watt system cost, return on investment of 2.55 years (longest period)***

Notes

*Annual generation based on an 87% system efficiency for each design.

**Minimum savings as this assumes 100% export of Energy at a rate of 21c per kWh. This does not include offset savings (indirect) from self-consumption of solar energy at a higher cost – typically $0.25 – $0.30 per kWh.

***General price per watt for a performance range solar system, assuming no export limit. Payback period should be quicker if also factoring in the indirect savings.


Now it is imperative to add that all of the returns mentioned above do not factor in ANY export limit restrictions. Essential Energy facilitates power distribution on the Mid-North Coast and Northern Rivers of NSW. When we install a solar PV system, we have to apply to Essential Energy to connect a solar PV system at a specified address to their network. A general rule is that established properties on single-phase power supply in an urban area will be approved for 5kWh export. That means you can export 5kW of Energy per hour back to the grid. Rural areas may have a lower limit. Industrial estates will have a higher limit.

But here is the kicker. Essential Energy is very tolerant towards solar and rather than merely using a blanket approval of 5kWh per household like Ennergex in QLD; they will look at it on a case by case example. Generally, new residential estates will have a higher grade of electrical infrastructure setup than established estates. That means new transformers and underground transmission lines. The result is that it may be possible to be approved for a much larger solar system which does not have an export limit. Those returns shown above are achievable in some new residential estates. That is until Essential Energy changes the rules.


The critical observation here is that even if you are export limited to 5kWh – it makes so much economic sense to still install up to 9.9kW’s. Why? Your absolute minimum return on investment is $1659 per annum under the AGL solar plan.  If you have additional solar generation (over and above the 5kW limit) then what will happen is that your household will use the extra solar Energy to cover daytime power draw/baseload power needs.

  • If you are a small energy usage household (+/-12kWh day), I recommend that you have 6-7kW’s solar system installed. 1-2kW can take care of household energy needs while you export 100% of the 5kW generation back to the grid.
  • If you are a medium energy usage household (+/- 18kWh day), I recommend that you have 7-8kW’s of solar installed. 2-3kW’s can take care of household energy needs (think AC and hot water) while you export 100% of the 5kW generation back to the grid.
  • If you are a large energy usage household (+/- 24kWh day), I recommend that you have 9.9kW’s of solar installed. 3-4kW’s can take care of your general power needs like pool, pumps, AC (ducted or split) and hot water while you export 100% of the 5kW generation back to the grid.

The above rationale assumes a 5kW export limit, but you may be approved for 6 or 7kWh of export limit. At my house (I live in a new estate), I have a 7kW export limit.

See below minimum returns based on a 6kW export or 7kW export limit.

6kW Export

6kW min return

7kW Solar

7kW min return

  • If you are export limited to 6kWh – then your minimum return is $1968 per annum*
  • If you are export limited to 7kWh – then your minimum return is $2384 per annum*

*based on your receiving a 21c feed-in tariff and based on the layout design above, with no shade.

I hope that this blog has helped to illustrate my reasoning as to why people should get as many solar panels as they can now.

Written By Mark McClurg

Business Owner – Coffs Solar Energy


Notes:

  1. The AGL 21c FIT plan does not offer a discount on power draw. You may pay 3% more for your power under these plans.
  2. The AGL 21c feed-in tariff plan is a 12-month agreement.
  3. Typically, the benefit of moving from a significant discount to a high solar feed-in tariff kicks in with systems rated larger than 3kW. If you have a small solar system, you may better off having a big discount on power rates rather than a high feed-in tariff.
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Right from the start my experience was a pleasant one. The staff were both friendly and knowledgeable. With some existing knowledge and experience with solar myself, I appreciated the technical knowledge of the staff. The installation was done promptly and in an extremely neat manner. I was particularly impressed with the thoroughness & neatness of the electrical installation. All components of the system are top quality. All electrical components were labeled in a tidy & comprehensive manner. I would have no hesitation in recommending Coffs Solar Energy to anyone who is looking for a quality installation done by professional, knowledgeable & friendly staff.read more
John BATCHELOR
10:16 26 Apr 20
They were the only company that actually got on the roof before quoting & advising. Service and communication from the office staff to the installers on site was excellent. I'd thoroughly recommend them to anyone considering Solar.read more
Chris Thamm
01:25 13 Apr 20
Knowledgeable person came around to explain and look at the job and all possibilities. Trades people were punctual and did a great job as agreed. Didn't get any help setting up the app and account which would have been appreciated.read more
Jacco Philippo
09:19 14 Jan 20
Would definitely recommend, they whole process was very professional and seamless.
Simon Dobson
02:32 14 Jan 20
The whole team Coffs Solar Energy have been AMAZING! Helpful and friendly service from everyone. Very competitive pricing and super fast and professional installation! What more could anyone ask for? BRILLIANT! Thank you everyone at Coffs Solar Energy!read more
Black Khat
09:56 30 Sep 19
If you haven't got Solar you're throwing money away. Mark and his team from Coffs Solar installed our system a month ago and the return has been much higher than I expected. The online tracking of spending, saving and electricity we are using is awesome I didn't think I'd bother much with it but I check it everyday. The team were quick clean and very helpful. I highly recommend Coffs Solar go with a local and give them a call.read more
Beajay Wendt
20:53 29 Sep 19
We contacted Coffs Solar for a quote on a solar system and from then on everything went on plan until completion. For us this "no stress" operation was just what we wanted. All completed on time and our energy Company finished the project by installing the appropriate meter. That Coffs Solar Energy was a local Company influenced our ultimate decision.read more
Arthur Scarf
02:01 25 Sep 19
Great local company to deal with. The team made it very easy to get everything in place and operational. The appointments made were spot on. Their technical knowledge is very good and support is there if you need it. Very personalised service and highly recommended.read more
Jon Pushong
02:51 20 Sep 19
I can highly recommend Coffs Solar Energy. They were very professional to work with and provided us with a solar solution that best fitted our needs and backed that up with clear information on the performance and installation of the panels. They also configured the panels to provide the most efficient power output during late afternoon shade. If you are looking at installing a solar system, you will be very happy with Coffs Solar Energy.read more
Lynn Roder
22:59 18 Aug 19
Amazing service , advice, reliability and punctuality. Explained the systems clearly and great after Sales service thank you Mark snd his team
ANN CRANE
23:53 10 Aug 19
I have nothing but praise for Coffs Solar Energy, from my first enquiry until final handover. Adam was on site within hours to inspect our bills and roof to assess what we would and would not require. The installers were on site and without fuss or bother had the job done absolutely professionally. No mess left and no hassles for us. A job well done and at a price that We were most satisfied with. Congratulations Coffs Solar.read more
Ken Sipple
06:01 08 Aug 19
Coffs Solar energy have done a splendid job of installing my new solar system, the install team are all professionals at their job, cleaned up after them, one wouldn't know they have spent several hours on site. The admin staff the same as install crew, no complaints at all, in fact I have given my personal recommendation of this Company to a nearby neighbour who now plans on contacting them for a similar plan as mine once they return from a planned holiday in the next few days. I wish the Company all the best wishes for continuing success in their chosen field.read more
Kevin Jordan
06:31 18 Apr 19
From start to finish Adam and the wonderful team at Coffs Solar Energy couldn't have been more helpful. The whole system was explained to us in detail and I sincerely believe that we got the very best deal and system to suit us. The installation team was second to none. Everything went like clockwork with specialist in each field working for us. I would recommend Coffs Solar Energy to anyone. Thanks Adam and Karen for wonderful friendly and efficient service !read more
Wanda Fenner
04:56 04 Apr 19
The installation of our solar system was completed in a most workmanlike manner by the team from Coffs Solar Energy. The installation team arrived on the agreed day at the agreed time and cleaned up before they left. The consultant was knowledgeable and the advice he gave was most valuable in allowing us to decide the most appropriate system for our needs. My advice: Go with the experts and you will have no hassles.read more
Willie Millard
03:14 14 Mar 19
After deciding to install solar, which I really didn't know much about, the decision on who to use was easy. Coffs Solar Energy is a local business, who I trusted to advise me, correctly, on exactly what I need to install. I also know that they will be here for the long haul, so if I have issues or need help, they'll be here to look after us, unlike the out of town guys. Mark & his team have been awesome, & the installation isn't an eyesore on our home, being very discreetly placed, despite there being 16 panels! The install guys were very polite, & good at their job. Highly recommend Coffs Solar Energy!read more
Craig Budden
23:14 26 Feb 19
Great service They turned up on time and completed the job quickly and neatly. The workmanship is above average and the system is working very well. Nice bunch of blokes! I would definitely recommend them to anyone looking to install solarread more
Alan Wilcockson
04:17 21 Feb 19
Coffs Solar Energy has been great to deal with, there is no pressure when obtaining a quote, which i believe is important, Nick was fantastic. The installation team were awesome, and explained everything from start to finish, they were very professional, and did a perfect job. I am very happy with the finished product, and it is producing perfectly. Great locally based company! Thank you Coffs Solar Energy. Phil Skeoch.read more
phil skeoch
22:47 19 Feb 19
Coffs Solar energy installed a 6.05kW solar system for us earlier this week. I cannot recommend them highly enough, Adam came to our house initially and provided a detailed quote and he was a wealth of information. The installers arrived on time and they did an excellent job, they had great attention to detail and pride in their work. Chris the electrician ran through the operation of the inverter and maintenance of the system with me. The site was left clean and tidy following completion of the job. I have been extremely happy with our energy production so far from the system. Kind regards, Matthew.read more
Matthew Hoyle
06:19 09 Feb 19
Excellent service and reasonable price. Installed in a morning and saving power in the afternoon. Installers were very professional on a not to easy site. Thank you Paula Bowraville NSW
Paula Murray
01:13 22 Jan 19
The whole process was quick and trouble free. Adam and the whole team from the front office to the installation crew were professional and knowledgeable. Would highly recommend Coffs Solar.
Andrea Curran
09:32 17 Jan 19
We had Coffs Solar Energy install a 5kW system 15 months ago, Adam quoted competitively and I found him to be knowledgeable and honest. The install team were very professional and took pride in their work. It has proved to be a quality product with no compromise, it performs better than we expected. Their after sales support is immediately there if you need it. I would highly recommend this company to anyone.read more
Mike Maxwell
10:12 18 Dec 18
Very happy with the service and product provided. Received a few quotes from other businesses, but so happy we decided to go with a local business. Will definitely recommend Coffs Solar Energy to others.
Corey Witten
10:12 23 Nov 18
Very pleased with our solar installation. The system was explain and options provided. The trades were on time and did an excellent job. Nice to use locals rather than the other cowboys. Thanks Coffs Solar Robert Shackletonread more
Robert Shackleton
05:44 12 Nov 18
This is exactly the sort of competent, considerate, polite, and thorough organisation one needs in a field like solar energy. They know what they are doing, and go about it in a most professional manner. They have partnered with internationally recognised equipment manufacturers to give the very best value for money in this competitive field. Coffs Solar puts marginal and fly-by-night solar companies to shame by setting and living up to the highest standards.read more
Donald Kaiser
02:10 07 Nov 18
I found the staff at Coffs Solar Energy very professional, friendly and easy to communicate with. They helped us through the process of installing and switching to solar at an investment property we own and helped us navigate the process easily despite the fact we were not in-country at the time. I would highly recommend their services for anyone considering installing solar.read more
fiona o'meara
01:27 23 Oct 18
Recently Coffs Solar Energy offered to donate and instal a 4.95kw rooftop system, with 18 panels and a top quality inverter, to Pete's Place, a drop-in centre in Coffs Harbour run by St Vincent de Paul Society. The set-up took place like clockwork on Oct 2nd, and the system will save us around $2000 per year. Pete's Place gets around 30 visitors a day, and provides bathroom & laundry facilities, light meals and help in accessing govt services. We are immensely grateful to MD Mark McClurg (2nd from right in pic, with Chris Thompson and Pete's Place Manager Dave Tilson and Vinnies Special Works Manager Linda Williams) and his highly professional team at Coffs Solar Energy. This project has been a great community partnership involving Vinnies, Coffs Harbour City Council, Rotary and local tradies, and now this wonderful benefactor. Thanks to everyone.read more
Robin Osborne
02:48 03 Oct 18
We chose Coffs Solar primarily because they were local, the reviews were unwaveringly positive and because the MD chose to deal with us personally...we did not regret it. Our dealings with Coffs Solar Energy via the Managing Director Mr. Mark McClurg were always professional and pleasant. Mark made the choice easy for us, he made the process easy for us. He answered every email, phone call and contact promptly. His timelines were deadly, always....if there was to be a delay his ultra-efficient delightful PA, Suzanne would reach out to us with the relevant message. Mark and his team made the paperwork a breeze. If the information was not available, it was researched and delivered to us, quickly.The installation was frighteningly quick. The team led by the head solar electrician Chris, arrived promptly at the appointed hour and we had solar by 1400hrs. Nick the IT Guru, was another pleasant experience.....he arrived a few days later and connected us to the web with a remarkable app to monitor the performance of the Inverter. A word about the hardware...do not skimp on the inverter...get the "Fronius". Thank you Mark, Suzane, Nick, Adam, Chris, Karen and the rest of the team. More grateful, happy customers.read more
Andre Delfos
01:26 17 Sep 18
We found Mark and his team to be very efficient and effective. Solar panels were installed for our apartment, which is situated in a 60 plus complex. A project with a deal of complexity. From the start of receiving the competive quote up until the commissioning of the installation we were kept fully informed on the progress of the project. Mark suggested options for us when any issues did arise. The team at Coffs Solar showed an extremely high degree of knowledge in their products and were always a pleasure to deal with. Highly recommended.read more
Terry Gillespie
09:25 10 Sep 18
I have worked with Mark and his team for some time now on Commercial Solar projects and find Coffs Solar to be loyal, trustworthy, efficient providing an outstanding product and service.
Deanne Payze
05:57 29 Aug 18
Delighted with our solar panels and battery installed by Mark McClure and the great deals from Powershop. Winter just got a whole lot warmer for us
jean urquhart
09:30 03 Jul 18
Take my hat off to Mark from Coffs Solar, sent through an enquiry and they kindly advised that they did not service the Banora Point region but instead sent through recommended contacts within my area along with all the information necessary for me to get the proper quote and installation. What amazing service from a company that could not complete the install for me. I can only imagine the level of service they would provide to customers within their installation territory. Highly commendable and could not thank Mark enough for his time!read more
Ross McInnes
07:50 03 Jul 18
With the continuing rising cost of electricity i made the decision to install solar. I obtained quotes from a number of providers but also wanted to deal with a local company so that i had back up service in the future giving me piece of mind. Not only were Coffs Solar extremely competitive they were also excellent in there advise on what i needed. There was also no question on the quality. The install went smoothly and most importantly neatly. The installers even painted the conduit cable to match the external wall colour. (i had spare paint but appreciated that i didn't have to climb up a ladder later to do the job). The panels have been in place for a number of months now and working perfectly. i love the app which i can use which shows how much solar energy is being produced compared to the amount i am using. I am looking forward to a much different electricity bill. I would have no hesitation in recommending Coffs Solar to do your solar installation.read more
Michael Parry
04:30 18 Jun 18
Excellent customer service. Very informative, and follow up was reassuring. Highly recommend this company.
Tracey Kean
05:28 04 Jun 18
We can highly recommend Coffs Solar Energy from the sales through to the presentation of the warranty pack. The professional conduct and efficiency of this company takes us back to the 80 and 90s when a company took pride in its name and the people who worked with it . Thank you to Nick for the sale to Rod for the finalization and the crew who put it all togetherread more
Wayne Evans
04:02 29 May 18
For me the decision to go Solar was an easy one, but the solution was not. Over the nearly year long process Coffs Solar had all the answers and were always prompt, courteous and efficient. My experience as a Computer Engineer with experience in Battery Backup systems for large data centres gave me insight into the technical challenges to be faced. Coffs Solar was not the only company I talked with along the way, but when it came to the crunch with difficult questions, they made sure they had the technical aspects sorted. To begin with, the site suffered a LOT of shade intrusion from large trees. With advice from Coffs Solar the worst offenders were cut out. The next challenge was that the main house roof had limited North facing roof area which was already occupied by the Solar Collector for Hot Water. Coffs Solar proposed a solution consisting of East and West facing Panels on the main roof area. Along the way this was modified to a two inverter system with East-West facing panels on the house and North Facing panels on the shed. When it came time to do the installation, the Coffs Solar install teams were efficient, courteous and professional. The install took a day and a half and was all completed with a minimum of fuss and great attention to detail. Special thanks to Nick for bearing the brunt of all my questions along the way, and also to Mark for putting together a great team. I believe that the end product is something that Coffs Solar should be very proud of.read more
David Bruce
21:04 09 May 18
Great service, quick response to enquiry and excellent product. They were all very helpful, well presented and knowledgeable. All of the rebate stuff was handled by them and they even came back after install to help us understand how to get the best out of our system.read more
Peta Jardine
01:27 16 Apr 18
I can’t recommend Coffs Solar highly enough. Their sales, explanation, and follow up was fantastic. We were also very happy with the pricing with the reassurance that we were dealing with a local reputable company who would still be around for the life of the warranty. We were hounded by some of the lower cost companies.....don’t waste your time and money!! We are very internet savvy and did thorough research and background checks. We came across some very dodgy practices with virtual offices in Sydney with phone calls directed automatically to India. We heard tales of backpacker installers, demands for bank cheque payment on the day of install, company name changes which invalidates the warranty if you get one at all....and finally being taken to court for rebadging inferior panels. Is it really worth the risk?? It’s a serious investment and I’m sure ,like us, you will have plenty of questions as you go through the process. You can phone India every time or keep it simple and get immediate help every time from great office staff by calling Coffs Solar who are also fully accredited (not many are!) There.....we did the work, we got the stress, we got the headaches so now you don’t have to. Cheers Melread more
Mel Locking
23:43 09 Apr 18
We have had our solar panels for a year now & we are happy to share that they have most definitely made a difference with reducing our energy bill. Being very sceptical at first & cautious Mark explained the benefits these panels would have for us. He not only placed them with great precision but he also explained the what's, when's and where's to us. We are extremely HAPPY with the decision we have made & most importantly happy to have dealt with Coffs Solar Energy and what they stand for. We have had multiple questions and they have answered all with no complaints. We applaud you and are grateful for such an outstanding job that you have done.... Thank You Mark !read more
Janice Pietralunga
09:28 22 Mar 18
We recommend Coffs Solar Energy without reservations. We had solar panels erected. They went out of their way to carry out the job efficiently, and with as little fuss as possible. We encountered some problems with our electricity company - they took control and helped us out tremendously. They are just wonderful!read more
Angela Sattler
05:01 14 Mar 18
Beware! Turns out someone is running a scam using the company’s name and reputation to hold online interviews. Not sure if actual company is at fault or not. But their intentions for saying the are hiring in the U.S.A is to scam people out of their personal information. Please never send your personal information over the internet just because someone emails you a w-2 form. They promised over the top wage and once confronted stopped responding. Went under the name Karon Hurren in google hangouts. and another fake email usually you can tell the fraud emails with the generic make of the a first name and last name followed by numbers. Be careful and beware. However as for the legitimacy of the actual company it seems as if it is a real one with a reputation that it cares for. Which is why I shall not negatively review it and still warn others.read more
Cole Stalvey
01:47 13 Feb 18
Excellent firm to deal with. Very good pricing, on time with quotes, installation and commissioning. everything about the entire system clearly explained, and where necessary demonstrated. highly recommended.
Paul Boekenstein
05:05 27 Nov 17
We recently had Mark and this team from Coffs Harbour Solar Energy install additional panels on our roof. The install was complex due to moving of the original panels and installation of additional strings to optimise system performance. The team worked tirelessly to get the desired outcome. We would highly recommend Mark and his team to anyone wanting Solar. Great job - Thanks Paul & Louise Austinread more
Paul Austin
23:36 08 Oct 17
Coffs Solar Energy doesn't just provide good products and value for money, but also (very importantly when it comes to something that can be quite complex), their customer service goes above and beyond expectations. They patiently answered all our questions and explained all the different options in a way we could understand. We feel we made the right decision and I would happily recommend this company to anyone on the Coffs Coast looking for a solar PV system.read more
Micky Stuivenberg
06:13 04 Oct 17
Excellent advice prior to installation on which panels to use on my heavily treed block. Installers not only turned up on nominated day but were actually a few hours early. The professionalism of the install was amazing down to the smallest details and the whole system works well. Follow up was also good and provided advice on insurance and other matters. Very highly recommended.read more
David Lance
05:15 01 Sep 17
We have been planning this for years, so we spoke to many people in the trade. We had a lot of advice some ranging from wildly inaccurate to wholly accurate. The most reliable came from Coffs Solar Energy we think. So we did a multiple quote and Coffs Solar came in in the middle range. However, their advice, open honesty and recommendations from people we know, led us to believe cheapest wouldn't be best! We were proved right. We are very happy so far with every aspect from planning to installing and support. Coffs Solar Energy are definitely the goto for no BS, good quality advise, installation and workmanship.read more
Nigel Hiller-Garvey
01:03 13 Aug 17
Dealing with these guys was a really great experience. They designed a system for our house that would suit our needs. As far as workmanship goes they are the best. Timely, neat and professional Could not more highly recommend a solar supplier. I have to say thanks guys. Had a small issue with my inverter and Coffs Solar came to the rescue. No problems and job fixed in a very timely fashion.... Fantastic !!!!read more
Rod Hurren
22:38 03 Aug 17

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