Solar Panels Quote - Is Bigger Better?

PTG Benny on 24/02/2022 - 11:41

I have obtained a couple quotes for my home (NSW) for solar panels.

Based on what I have been able to research, I am going to go with a micro inverter as I like the fundamentals behind this option and the fact that each panel works independently from each other.

My electricity bill is approx $1500 per year and with 3 daughters under 4 I am expecting this will only go up!

The quote for a 4.92kw system with an Enphase micro inverter and LG Neon H+ panels (x12) was $10,000 (after rebate). I also got a quote from the same company for 5.74kw system (14 panels) which was $11,100

My main concern is based on our current usage it would take 6-7 years approx to break even and that I would have to borrow to pay the amount upfront,

Any suggestions would be much appreciated.

Regards

Ben

Home & Garden Solar Energy System

Comments

  • Hybroid on 24/02/2022 - 11:43
    +1

    If you have to borrow money to install this with an ROI of 6-7+ years then it's not worth doing.

    • Xistn on 24/02/2022 - 11:51
      +4

      You forgot to adjust your calc to compensate for the 4 ladies in the house….

      RIP to the OP

      • Euphemistic on 24/02/2022 - 15:11

        Could also be 5 or 3 ladies in the house with 3 daughters depending on parental situation

  • lgacb08 on 24/02/2022 - 12:00
    +4

    Don't have money to pay upfront but want enphase and lg panel? That sounds like buying an amg on finance. Don't do this. Your payback period will be 10 years not 7 with such low usage and fit continues to fall, with that low uage you'll be lucky to get 50% usage out of the system and the remaining export will get close to 0 each year.
    just get a string system for half that price.

    • PTG Benny on 24/02/2022 - 12:08

      I have the funds available via redraw with my home loan but it would essentially be the same thing as borrowing.

      I also got a quote from Origin Energy which has the added benefit of paying it off each month interest free for 5 years.

      Advantage 6.24kW system 1-Phase including 16x390watt JA Panel & 1x5kW Goodwe 1-Phase inverter - $6,000

  • npc on 24/02/2022 - 12:09
    +4

    Have you considered buying a basic setup with no fancy micro-inverters and LG panels? It will be significantly cheaper with a negligible difference in efficiency. Just get a good installer and warranty.

    Edit: I see you have a quote from Origin in the comments. This is much more reasonable and fit for purpose and circumstances setup. IMO

  • Summoner on 24/02/2022 - 12:10
    +4

    Based on what I have been able to research, I am going to go with a micro inverter as I like the fundamentals behind this option and the fact that each panel works independently from each other.

    Do you have shading issue? Or is it just personal preference?

    • PTG Benny on 24/02/2022 - 12:16

      No shading issue, I just like the idea if one panel stops working the other panels will continue to produce power etc

      • Summoner on 24/02/2022 - 12:24
        +4

        Penels can have faults, which rarely happends by the way, but any issue with the penal should be fixed in a couple of weeks or even days.

        Your loss from few weeks would be lower than the additional cost with the micro inverter. You also have 12 to 14 micro inverter which could fail, instead of single string inverter.

        So not sure if going with the micro inverter is a good idea as you do not have shading issue.

        Also, it seems that you may be on a single phase power on your house, assuming from the system size and the inverter in your quote.

        There is usually a export limit of 5kw with single phase power. According to Solarquotes.com.au, two electricity distributer in NSW has 5kw limit, and one has 10kw limit.

        As the feed in tarriff is decreasing rapidly, this may not be an issue, but its something to consider when deciding your system size.

        • Nugs on 24/02/2022 - 12:59

          " any issue with the penal should be fixed in a couple of weeks"
          I would hate to have on ongoing penal issue.
          .

  • rooster on 24/02/2022 - 12:14
    +5

    Hey I have worked previously as a solar installer.

    I would look to purchase the cheapest system to reduce the ROI. I would choose the most simple solution to reduce the maintenence costs, the more complex the more likely that something will fail.

    I have seen and heard lots of stories about micro's failing or being out of action for long periods of time and prefer the model of a single inverter. The inverter as a consumable which will need to be replaced over the next 5- 10 years

    Just remember that any fee paid to an installer is their commission as the Government rebate covers that cost of the hardware. Really you are just paying them for the installation. So if you purchase a $3k system or a $10k system, your are only improving the quality of your hardware marginally, and you are not reducing the risk of component failure, which happens equally to expensive or cheap hardware.

  • resisting the urge on 24/02/2022 - 12:22

    A few tips:

    Micros are great, but just a luxury in some cases. However if your arrays are shaded, it could make them a requirement. I like them as they are safer than running 500V of DC through your roof and having a remote inverter on the side of the house- especially if you have no nice cool spot to mount it.

    Try to get lots of generation on your East and West side; esp. if your consumption is significant in the morning or evening. The tariffs are highest at these times, so your generation needs to be well underway to supply this. Otherwise you will be paying double the normal rate or worse whilst your system is just waking up, or tailing out, as the sun rises and sets each day. E.g. Each fridge door opening, or boiling a kettle costs 20c or so in the morning. This will be near zero when you have 3kw of panels facing the rising sun.

    Move your hot water to heat-pump powered storage unit, if you use electric this will use power and require you to pay for electricity you don't need to. Other kinds of solar water heaters are less efficient if sacrificing good solar roof space that would otherwise be used for PV panels. The Sanden ones are very good.

    • lgacb08 on 25/02/2022 - 08:33

      Where did you get the figures for 20c to run the kettle? Kettle consumes around 2kwh an hour, and only runs about 5 minutes each time, that's like 5 cent each.
      the fridge door thingy even less.

      • resisting the urge on 01/03/2022 - 11:44

        That's dead correct, thanks for clarifying.

        I didn't do the math, just remember someone telling me that once. Maybe that was the figure for old kettles that immersed the resistance wire. A modern kettle is 1700-2400W, and takes 2-3 mins to boil. I think mine should use about 80W to do it, so about 4.8c/boil at peak tariff. The coffee machine is the same, but typically stays on longer. The fridge door? No idea, but is is the one thing in our place that uses the most electricity. But a lot of cold air spills out each time according to my 'leg' thermometer.

        Anyhow, after another year of inflation, currency debasement, the need for so much new power generation during peak periods, I'm pretty sure $1 or $2 per boil will be cheap.

  • Bigboomboom on 24/02/2022 - 12:49

    Go with String Inverter and maybe a more reasonable priced panel and increase the capacity . I went with 10kW Q-Cells Q.Peaks (Korean made) and Fronius which is still very much quality but still cheaper ($9,300 after rebates, Sydney). String Inverter only makes sense if you don't care about ROI or have complex roof.

  • User2049 on 24/02/2022 - 12:53
    +4

    Well LG announced that they were ceasing solar panel production yesterday so I wouldn't go with them for the panels especially given the cost. I disagree with the others and recommend sticking with the Enphase Microinverters or an optimiser solution from SolarEdge/Huawei but pair it with cheaper panels from a company like Trina. Also try to get the largest system easily installable.

  • netjock on 24/02/2022 - 13:06
    +1

    5Kw inverter + 6kw panels with single (phase) inverter (China Brand) should cost $6k (gross) which will make your payback a lot sooner. If you have enough space for up to 20 panels (assuming 300kw).

    Fancy panels and inverters do make for good conversation topics.

  • JIMB0 on 24/02/2022 - 13:14

    Goodwe do an inverter with 3 mppt inputs if you have multiple panel aspects. Wish I went with this setup rather than Solaredge which needs careful design due to its intricacies.

  • Drakesy on 24/02/2022 - 13:59
    +2

    They are some ridiculous prices.

    We had a 6.6kw system fully installed for $2200 last July, payback is still roughly 4 years. Likely will be longer for you if your usage is all peak (once the sun has set).
    Par for a 6.6kw in this market is roughly $3-$4k, don't get caught up in the the whole name brand fearmongering. The chinese companies are churning out decent panels and inverters with good warranties to boot.

    IMHO keep it under $4k. The rebates will drop rapidly as they've done in WA further increasing your payback timeframe.

  • rektrading on 24/02/2022 - 14:50

    Installing solar panels as an investment to earn passive income is no longer profitable.

    The FiT nowadays are too low and will only go down over time.

  • Brick Tamland on 24/02/2022 - 15:47
    +1

    My solar installer said LG panels are great but you are paying a premium for the brand and there are other panels mostly just as good but far cheaper.

  • bloom on 24/02/2022 - 19:35

    P.S. LG just announced they are pulling out of solar

    https://www.lgnewsroom.com/2022/02/lg-to-close-solar-panel-b…

    • PTG Benny on 25/02/2022 - 14:42

      Thats interesting! I wonder if my initial quote for the LG panels will go down at all if they are stop making these. One of the selling points according to the salesperson was the long term support from LG if any panels fail etc.

  • all coolthings on 25/02/2022 - 14:38

    We had about 10 quotes! Do your research on good panels and inverter (otherwise warranty is pointless). We received the state and federal incentives; should make our money back within 2-3 yrs max. Now paying 60% less than before

    • PTG Benny on 25/02/2022 - 14:40

      Thank you! This is what I want, I just don't want to overspend on the setup costs.

      I think I will do what someone mentioned above, go with a string inverter with less premium panels (compared to LG).

  • Gros21 on 25/02/2022 - 15:04
    +1

    go at least 6.7kw

    a 5kw system will only produce 5kw in perfect condtions.

    i would not waste your money on lg panels or micro inverters.

    i have a 9.3kw system for less than your system

  • PTG Benny on 04/03/2022 - 20:19

    I just noticed that there are green loans available such as this one to help finance a solar panel system.

    This looks pretty good, are there any catches though?

    https://www.commbank.com.au/home-loans/commbank-green-loan.h…

  • ozbargainsam on 06/03/2022 - 18:40

    Let me guess, OP, you're not in a major metro area?

    I'm in the same boat at the moment, but I thought my quotes were high with very similar hardware. Your quotes $/W installed capacity is $1.90/W, and mine are $1.50.

    For example: 6.6kW @ $10.5k with Neon H and SMA. Solar Quotes told me to expect about a 20% uplift in prices from major metro prices, which is about right. I have another quote for 7.6kW @ $11.3k on Q.PEAK DUO and SolarEdge Genesis.

    Obviously consider the price of installation in general has gone up with the pandemic, so we both missed the boat. Pretty jealous of those that got solar for basically nothing (in comparison). It might come back down a little in the next year but it might be a wash given the benefit you'll see if you installed it now.

    To your titular question, I'm researching for my parents (quotes above). They would use about 1/3 to 1/2 of the power generated by a 6.6kW system with current patterns. To take full advantage, I'd basically ask them to leave the aircon on all day.

    I guess you could also consider going smaller with fewer panels but an inverter ready to take more panels later. Not that I've done the research on two installation costs vs just doing it upfront. That CBA Green Loan seems interesting, though. I guess the catch is you need to be a customer and you're locked in with them?

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