How much money can I actually save with solar panels in New Zealand

How much money can I actually save with solar panels in New Zealand?

Solar panels have steadily grown in popularity over the years as more and more countries have started fielding them.  This popularity is such that even households are beginning to make use of solar energy systems, but such applications leave room for speculation about efficiency.

So, to help you make up your mind about these solar-cell generators, we’ll be exploring the amount of money and energy one can save with solar panels.  Aside from this, we’ll also cover some helpful resources pertaining to solar panels, energy systems, and the like.

Saving with Solar Panels

Saving with Solar Panels

The savings one can derive from solar panels is dependent on factors such as solar panel area and system usage.  It’s also important to take into account a solar energy system’s initial cost as this can be quite large depending on the system.

To provide an accurate estimate, we’ll be going over these factors.

The initial cost of a solar panel system

As stated earlier, installing a solar panel system can be quite expensive since the initial cost of a system is directly proportional to its size.  Larger systems will usually cost more due to the higher number of work hours and materials involved with the installation.  

To make estimates easier, we’ve compiled an overview of initial installation costs according to system size:

System SizeNumber of PanelsCost
2 kWSeven 290W panels$6,000
3 kWTen 300W panels$8,000
4 kWFourteen 290W panels$10,000
5 kWSeventeen 290W panels$11,000
6 kWTwenty 300W panels$13,000
10 kWTwenty Eight 355W panels$20,000

It’s important to keep in mind that these estimates may change based on your specific needs as some projects will require additional renovations and help from an electrician or even a building company.

Daily Savings

The amount of savings derived from solar panels is based on the amount of solar energy your household generates and uses.  For reference, the average cost of energy in New Zealand is 8 cents per kilowatt hour (kWh).

On average most households pay around $2,300 per year for energy. Taking this into account, a home using 20% of its generated solar power could save as much as $460 every year on electricity.

This is significantly higher than the savings offered by energy-efficient appliances like air conditioners, refrigerators, freezers, and the like, which only offer a combined savings of $100 to $200 per year.  

If the amount of generated solar energy utilized is raised to 60% the total annual savings on electricity can rise as high as $1,300.

It’s important to note that depending on the initial costs of your solar panel system, the first few years of savings may instead go towards paying off the cost of your system.  But, after this cost has been covered, your savings can be put to good use wherever you see fit.

That wraps up our quick guide to solar panel savings in New Zealand.  If you intend to purchase a solar panel system, we’d recommend keeping this article in your back pocket as a reference