Is it worth installing solar in Nelson?
In our experience, people have three main reasons for installing solar:
- Saving money
- Reducing environmental impact
- Increasing self-sufficiency
So, how well does installing solar in Nelson stack up against these three motivations?
Will installing solar in Nelson save me money?
Electricity prices continue to rise; in Nelson, we currently pay an average of $0.31 per kWh. By installing solar panels, you can protect yourself against these rising prices, essentially locking in your electricity rate for the next 25+ years.
A solar system produces power from the sun, and the amount of power it produces depends on the sun’s strength. Nelson is one of the sunniest spots in New Zealand, with around 2,500 sunshine hours. This means your solar system will produce more than most in New Zealand.
So how much money will this save you?
When solar power is being produced, it will supply your home appliances requiring electricity. If the solar power amount is less than what your appliances require, the rest will be pulled from the grid. If more solar power is being produced than your appliances need, the excess will be sold to the grid.
This means when you don’t have enough solar power, you will buy power from the grid, and when you have more than you need, you will sell it to the grid. You buy and sell electricity in units (shown on your power bill as kWh). Each unit costs on average $0.31, and you can sell it for about $0.12. The more solar energy you can use yourself, the better it will be financially. Using solar directly is more valuable than exporting solar.
Let’s look at a Nelson example…
System size: 5.5 kW (14 panels)
Cost: $15,000 inc GST
Energy produced/Year: 7,791 units (kWh)
60% of the energy used directly, valued at $0.31 > 4675 x $0.31 = $1,449
40% of the energy is sold to the grid, valued at $0.12 > 3116 x $0.12 = $374
Total yearly savings of $1,823.
The system pays for itself in 8 years and will go on producing energy for 25+ years.
The calculation above doesn’t take into account rising electricity prices. As these go up, your system will pay for itself even quicker. Once your system has paid for itself, you will be enjoying the remaining 17+ years of free electricity.
Will I be more self-sufficient?
When you make your own electricity, you’re more self-sufficient. The more power you generate, the less you rely on the grid. A bigger solar setup means you cover more of your electricity needs, making you more self-sufficient.
To be completely self-sufficient, you’ll need a battery. A battery acts as a reliable backup power source during outages, ensuring your solar system continues to power your home. A battery adds extra cost, but it’s the ultimate way to be self-sufficient. If you want to be ready for natural disasters, storms, and power outages, a battery could be the right choice for you.
Will installing solar reduce my environmental impact?
We are lucky in New Zealand that a huge proportion of our energy is made up of renewable energy. However, we still emit 4 billion kgs of CO2 per year producing electricity. Electrification is also touted as one of the key ways New Zealand is going to reach net carbon zero, which means our demand for electricity will only increase from here.
By installing solar, you can play your part and have certainty that your power comes from a renewable source. Using conservative figures, having your own solar system will save 630 kg of CO2 every year.
So, is it worth installing solar panels in Nelson?
We think absolutely yes, and the data supports this. It is a great way to produce clean, low-carbon electricity and is great for your wallet.
Ready to get solar? Fill out the form below and one of our team will get in touch with you to see how we can help. We provide a free proposal so you can see how solar will work for you.