Are you over 50 and thinking about organising your retirement finances?
Downsizing to a smaller home and paying off debts can be a smart financial move as you prepare for the next chapter of life.
As part of this financial planning process, it’s important to consider ways to reduce ongoing living costs, and one effective strategy is to invest in solar energy for your new home. Installing solar panels can significantly lower your electricity bills, providing long-term savings and reducing reliance on energy providers.
To take it a step further, adding a home storage battery can increase the benefits of solar by storing excess energy generated during the day, which can be used at night or during peak demand periods. This combination of solar panels and a battery system can ensure that your energy needs are met more affordably and sustainably.
Soltek Energy – the Sydney solar installer favoured by retirees
When investing in a solar power system you need a dependable and experienced company that provides quality systems. Soltek Energy, based centrally in Silverwater, Sydney was established in 2007 and has installed over 12,000 systems across the wider Sydney basin, from St Ives to Bondi and Sutherland to Penrith.
At Soltek we pride ourselves in providing the best quality equipment together with technical support throughout the system lifetime.
Soltek has noticed an increasing demand among Retirees and those close to retirement age, who are investing in solar and battery systems for their homes. It’s a wise choice given many Retirees are on fixed incomes and wish to protect themselves against future power increases. Even better with a solar and battery system large power bills will be a thing of the past.
Not only is solar and battery good for the environment, ensuring your lights stay on in case of a blackout, but it also makes a lot of financial sense.
By investing in a solar system you can generate your own renewable power which can then offset a significant portion of your existing power bill. So each year you save money which reduces your overall living expenses, which can then assist in paying bills or even giving you the ability to save for a regular holiday.
Let’s look at a few examples of how owning your own solar and battery system is a smart option. Please note the three scenarios and based on a solar PV System without a battery. You can make your own calculations using this calculator.
Below are four scenarios which provide an overview of how a solar panel system can provide a great benefit and financial return for Retirees.
Let us first say that a cheap solar is not giving you a solid return, as such solar PV systems, despite claiming long warranties will not last long and are usually pulled off after a few short years. Many of those installation companies also come and go, therefore making after-sales service impossible.
Scenarios – All systems assumed to be located in Summer Hill, NSW 2130
Assumptions are kWh price for electricity $35 cents, export payment for electricity 4 cents, per kWh, self-consumption vs export 50%. The average use per day is 25 kWh. Annual inflation is 2%.
In the first scenario, a retiree invests $7,500 in a quality 6.6 kW solar system. The financial benefit over the system life of 25 years is $46,814 with a return on investment in under 4 years.
In the next scenario, a retiree invests $10,500 in a 10 kW solar system. The financial benefit over the system life of 25 years is $72,744 with a return on investment in just over 3 years
In this last scenario, a Retiree invests $15,000 in a 15 kW solar system. The financial benefit over the system life of 25 years is $84,777 with a return on investment in just under 4 years
In the final scenario, a Retiree invests $22,000 in a 10 kW solar system and a 13 kWh battery. This means that the self-consumption increases to 90% and exports only to 10%.
The calculations on the real savings are as follows:
| System Size | 6.6kW | 10kW | 15kW | 10kW + 13kWh Battery |
| System Price | $7,500 | $10,500 | $15,000 | $22,000 |
| Annual System Generation | 9,379 kWh | 14,211 kWh | 21,316 kWh | 14,211 kWh |
| Annual Savings | $1,641 | $2,486 | $3,730 | $4,476 |
| Annual Export Value | $187 | $284 | $426 | $511 |
| Total savings over 25 years* | $44,688 | $67,731 | $101,612 | $116,098 |
*assuming an inflation of 2%
As you can see in all three solar-only scenarios the ROI for a solar installation is quite fast. While the battery addition increases the ROI period, overall over the life of the system, allowing a battery lifespan of 12 years, there are still significant returns, plus one adds blackout protection to the benefits.
Energy prices will likely continue to climb over the long term which will see those ROI’s getting even shorter.
Your own solar system acts as a financial hedge locking in a fixed price for a portion of your power. So why not consider a solar and battery system that can help offset some of your power bill which then frees up cash for other purposes?
For more information on Soltek Energy solutions please contact us.
Phone 1300 844 445
