How to buy the best solar panels for your home

Need to Know

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• Interested in a solar storage battery? See our solar battery guide to learn more about how they work and if they suit your home.

Solar panels are increasingly being installed by homeowners concerned about rising electricity costs and looking for systems that can cut their bills while generating greener energy. We explain what you need to know before installing a solar photovoltaic (PV) system on your roof.

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How Do Solar Panels Work?

Some materials, such as silicon, generate electricity when light falls on them. This is known as the photovoltaic effect. Solar panels utilize this effect to convert sunlight into direct current (DC) electrical power.

An inverter subsequently converts this DC power into alternating current (AC) for your home's electrical circuits. Any excess energy can be fed back to the electricity grid or stored in batteries.

What's in a Solar Panel?

Most solar cells are made from silicon. Solar panels, also called modules, consist of several solar cells (typically 60 or 72 cells) interconnected and sandwiched between protective glass and a backing plate. Usually, the entire panel is surrounded by an aluminum frame. A typical installation includes several panels connected together in an array.

Types of Solar Panels

The majority of panels used in home solar systems are either mono-crystalline or multi-crystalline. While there are technical differences between these types, it's more important to consider aspects such as price, rated power output, and warranties.

The rated power output of solar panels has increased over the years as manufacturers discover methods to enhance efficiency. Just a few years ago, 250W panels were common; nowadays, it’s not unusual to find panels delivering 400W, 500W, or more.

Types of Solar Panels

The main types of solar panels you'll observe on homes include monocrystalline and multicrystalline (or polycrystalline). Here's a summary of the primary solar panel types available today.

Most solar panels generate direct current (DC) which is sent to the inverter unit (commonly a string inverter) that converts it to alternating current (AC) for use in your home. Some panels, known as AC panels, are equipped with a pre-installed microinverter on each panel. While the panel produces DC power, it is converted to AC by the microinverter.

Monocrystalline panels are usually black and are reputed to have higher efficiency than multicrystalline models, which are generally dark blue. Multicrystalline panels are sometimes found to have better temperature tolerance. The differences arise from how the silicon cells are manufactured. Monocrystalline panels are increasingly becoming the common choice for home installations.

In reality, there is often no definitive advantage; solar panels are complex assemblies of various components, and overall performance depends on more than just cell type.

High-Efficiency Solar Cell Variants

Interdigitated back contact (IBC) solar cells, a variant of standard solar cells, achieve greater efficiency by placing all electrical contacts on the rear of the cell, allowing more light access.

PERC cells (Passivated Emitter and Rear Cell) are efficient solar cells that reflect light back through the cell for a second chance to produce electricity, outperforming non-PERC cells.

Heterojunction (HJT) panels combine conventional crystalline silicon cells with thin film solar cells, promising improved effectiveness as technology advances.

Thin film solar cells consist of a thin layer of photovoltaic material on a base plate and, although they are becoming more flexible, they typically offer lower efficiency and are rare in rooftop arrays. They are commonly used for various applications, including solar-powered calculators.

Bifacial panels are designed with solar cells on both sides, allowing them to capture scattered and reflected sunlight, potentially generating more power than single-faced panels.

How Much Do Solar Panels Cost?

According to SolarQuotes, the current price ranges for quality solar panel systems are as follows:

• 5kW: $'
• 6.6kW: $'
• 10kW: $'13,000

These prices consider typical rebates and incentives. Expect to pay more toward the higher end for top-quality components or unique installation requirements.

CHOICE Tip: Compare prices for entire systems rather than just individual panels.

How Many Solar Panels Do You Need?

The total power output of your solar system is more significant than the number of panels. The higher each panel's nominal power rating, the fewer panels you will need, or the more power you will generate.

If you have ample roof space, it might be more economical to purchase multiple lower-efficiency panels than fewer higher-efficiency ones. Solar panels generally occupy about 1.6 to 2 square meters, subject to variations in size and output.

CHOICE Tip: Fewer panels may result in quicker installation.

What Size Solar Panel System Do You Need?

To size your solar panel system, assess your electricity consumption. A typical household uses 20 kWh of energy daily. A 5 kW solar system would supply most of the daytime energy needs for such a home.

As solar panels are relatively inexpensive, consider installing the largest system your roof can accommodate, provided it’s affordable. Surplus electricity can feed back into the grid for compensation or charge a battery for evening use. Common new system sizes are 6.6kW, but installations of 9 to 10kW or more are increasing.

How Much Money Will You Save Using Solar Power?

The payback period for a solar system ranges from two to seven years, after which you begin to enjoy savings.

The payback duration varies based on your location in Australia. The following infographic demonstrates averages for major cities:

What Are the Environmental Benefits of Using Solar?

Your home solar panel setup offers multiple environmental benefits.

Reducing Pollution

Coal and gas-fired power stations produce significant air pollution, impacting the climate and public health. In contrast, solar panels do not contribute to pollution. Although some pollution occurs during solar panel production, it's minimal compared to coal’s environmental impact. As solar panel recycling expands, more facilities are available for handling old panels.

Reducing Water Usage

Traditional coal-fired power generation consumes vast amounts of water. In contrast, solar panels do not use water once installed, only requiring occasional cleaning.

Reducing Dependence on Fossil Fuel

Australia continues to rely heavily on coal and gas for electricity production. As fossil fuel supplies dwindle, solar power offers more renewable energy, benefitting the environment and promoting energy independence.

Rebates and Feed-in Tariffs

Two main incentives simplify acquiring your solar PV system: small-scale technology certificates (STCs) and feed-in tariffs (FiTs). Various state programs and incentives also exist.

Always check the terms for eligibility in rebate schemes; conditions including regional applicability, income limits, and needed approvals may apply.

What is an STC?

An STC serves as a currency for owners of small-scale renewable energy systems. Eligible households generate STCs through their PV systems, with the potential to receive immediate payments for these certificates.

How to Sell Your STCs

Let your installer handle the STCs: Usually the easiest option, wherein the installer sells the STCs and applies the proceeds as a reduction in your installation fee. However, expect somewhat diminished earnings per STC due to related fees.

Sell your own STCs: Alternatively, if you choose to sell the STCs yourself, you will encounter substantial paperwork and a longer wait for payment.

What is a FiT?

A FiT is the payment for supplying additional electricity to the grid from your solar system. Maximizing personal use of your solar power is preferable to relying on FiT income.

Do You Need a Solar Storage Battery?

A home storage battery retains power generated by your solar panels for use at night or during cloudy days. While storage solutions like the Tesla Powerwall are popular, they may not be economically justified for many households.

Can You Get Solar in an Apartment or Rented Home?

It is possible, though there are challenges. Apartment buildings may face installation difficulties, while renters might need to appeal to property owners for solar installation authorization.

The "Sun Tax" and Other Changes to the Electricity Market

As more homes contribute solar power to the grid, changes to tariffs and market regulations may become necessary. Ongoing modernization of the grid is essential to accommodate the influx of renewable energy.

What's the Problem with the Electricity Grid?

The traditional grid was designed for one-way electricity flow, necessitating upgrades to manage solar energy contributions effectively.

What's the Solution?

Proposals for implementing flexible tariffs allow homeowners to sell excess power back to the grid at varying rates based on demand. Enhanced smart electricity usage can also facilitate better integration of renewable sources.

Solar Panel Buying Guide Checklist

• Assess your current energy usage and required system capacity.
• Ensure your roof faces the correct direction for optimal panel performance.
• Check for shading from trees and structures.
• Understand local council requirements for solar installation.
• Establish your system's payback time.
• Inverters are essential; review our guide for details on purchasing.
• Consider battery options by consulting our solar storage batteries guide.
• Collect multiple quotes from certified installers for competitive pricing.
• Verify your panels meet required standards.
• Evaluate product and performance warranties of solar panels.

Installation, Standards, Warranties, and Maintenance

To qualify for STCs, your installation must be conducted by an accredited installer. Look for a company that adheres to the accreditation body's code of conduct and has a solid track record in the industry.

Ensure your solar panels, inverters, and batteries are included on the CEC's approved products list.

To maximize efficiency, solar panels should ideally face north, unobstructed by shading. Also, components like temperature coefficients can impact performance in high-temperature conditions.

It is crucial to ensure any system under consideration meets Australian standards to qualify for STCs. Warranties for solar panels typically include product warranty and performance warranty.

Product Warranty

This warranty covers manufacturing defects and typically ranges from 10 to as much as 40 years for certain brands.

Performance Warranty

The performance warranty assures minimum power yield over time, commonly guaranteed for about 80% after 25 years.

Home Insurance

Your solar installation is part of your property insurance. Notify your insurance provider to adjust your home's insured value to encompass replacement costs for your solar system.

Solar Panel Specifications Explained

When examining solar panel specifications, focus on key metrics: power rating, efficiency, power tolerance, temperature coefficient, and other relevant metrics to determine optimal fit for your home and energy needs.

These tips should guide you in purchasing the best solar panels for your home. Consider the various factors that contribute to cost-effectiveness, efficiency, and installation considerations to maximize your investment.