It can be overwhelming working out where to start and how to navigate the various products and requirements.

We’ve put together a quick guide to answer the common questions about solar power – making the transition to a cleaner, greener home energy system, a little easier.

How does solar power work?

Sunlight is converted into direct current (DC) electricity through the photovoltaic (PV) solar panels on your roof. 

The solar inverter, installed inside your home, usually in the garage or outside in a shaded area, converts the DC electricity into alternating current (AC) power which can be used in your home. 

Your home appliances (fridge, dishwasher, pool pumps etc.) run off any AC power generated from your solar panels during the day, instead of drawing electricity from the energy grid. 

Who can get residential rooftop solar?

Most homeowners in Queensland can have solar installed on their roof. However, it’s worth being mindful that larger systems may need planning approvals while townhouses could require consent from the body corporate. Also, depending on the age of your roof, composition and structural integrity it might need some modifications made to it first.

To get the most out of your system you will your solar panels designed and installed in the right locations on your roof and facing optimal directions for sunlight.

Your chosen consultant should come to your property to inspect the roof profile, identify any shaded areas, and discuss your household power usage. 

At this stage, solar systems on unit and apartment complexes are still largely unviable due to minimal roof space to service the number of apartments, installation difficulties, and limited cost-benefit for the unit owner, particularly if it is an investment property. 

How much does the average home solar system cost?

An average 6.6kW quality solar power system can cost between $6,000-$9,000 to be installed. The costs are based on many factors, including quality of the products, quality of installation, meter box being up to standard, as well as fluctuations in government subsidies. 

Be mindful to select good quality products to ensure the longevity and reliability of your panels. 

Installing a solar battery system will allow excess energy generated by the rooftop solar panels to be stored and used at night or in the home at a later time when solar power is not available. The average cost of a home solar battery is around $1,000–$2,000 per kilowatt hour (kwh). Home battery sizes can vary from 6kwh up to 60kwh, or more. 

How long do solar panels last?

According to the Australian Department of Energy there is a standard 10-year product warranty for solar panels in Australia, as well as a 25-year performance warranty. 

Selecting a manufacturer with a longstanding record is recommended to ensure you have support for the life of your warranty. 

What you need to check before deciding what solar company to choose?

The Clean Energy Council (CEC), which is funded by the industry, lists thousands of accredited solar installers and accredited solar retailers on its website. Off-grid systems need separate CEC accreditation.

The key considerations when choosing your solar installer and retailer include: 
• CEC approved retailer and installer
• The company has been in business for at least five years or more
• The company has future work in the pipeline

The Federal Government’s Small-scale Technology Certificate (STC), which is the only solar rebate currently available to Queenslanders, can only be passed on to a consumer if a CEC approved installer has conducted the installation and signed off on the project to confirm it has been completed to the correct standard.

How do I know what size solar system or how many panels I need on my home?

In your previous power bill, you should be able to see how much power you use and when, which will help to give you a good indication of what size solar package you’ll need.

A knowledgeable consultant will be able to design a system that is suitable to your consumption and potential goals for your household moving forward.

Your energy consumption may vary throughout the year, so make sure you consider the peak times as well as the low-use times of the year. The average four-person household can use between 20-30 kWh per day. 

What are feed-in tariffs? 

The feed-in tariff is the amount of money your electricity retailer pays you for any energy you export back to the grid from your solar system. This occurs when your solar system is producing excess energy that your home doesn’t use.

While tariffs aren’t as high as they used to be, this has been offset by the significant drop in the cost of solar systems.

Tariff rates can vary between retailers, so it pays to shop around to make sure you’re getting the best deal. 

You can find out what feed-in tariffs retailers are offering by visiting the Australian Energy Regulator’s Energy Made Easy website or the WATTever comparison site. 

In regional Queensland (outside of south east Queensland), eligible Ergon Energy Retail customers receive a flat-rate tariff. The rate is set by the Queensland Competition Authority and for 2022/23 is 9.3 cents per kwh.

On average, how long does it take to get a return on my investment?

The time it takes for your solar power system to pay for itself is dependent on several factors including how efficiently you use the energy you produce, when you can use your power, feed-in tariff rates, and how much power you are looking to offset based on your household usage.

Without solar power you would be paying for every unit of energy you consume (kWH). However, with solar and battery storage you are able to produce and potentially store your own energy. Producing and storing your own energy means your need to pull from the grid is reduced, as well as the cost of power for your household. 

While the payback period can vary, the Australian Department of Energy estimates a typical solar system pays for itself between three to five years. 

Will I still get electricity bills?

This depends on your solar system setup and how much electricity it generates as well as how much energy you use and when you use it. 

If you only have solar panels and no battery system, you will only be able to use solar power during daylight hours and will still require electricity from the grid during the night, however you can still experience significant savings on your power bills. 
 
If you have solar panels and a home battery to store the power your system generates then you should see a significant reduction in your power bills. However, electricity retailers charge approximately $1 per day as a general connection fee, therefore a quarterly electricity bill could have $90 in fees that aren’t associated with energy use at all. That means in order to get a ‘$0’ electricity bill there would need to be enough power exported to offset night usage and the additional charges. You would need to sell enough power back to the grid to generate a large enough credit to get a $0 bill. 

Keep in mind changes in your electricity usage and weather conditions can also impact your solar power generation.

What are the environmental benefits?

From reducing carbon emissions, improving air quality and conserving water, solar energy can help to reduce our reliance on fossil fuels and lower energy prices for years to come. 

Solar energy is one of the cleanest sources of energy – it doesn’t produce emissions.

Each quote or proposal you receive should include emission offset information, including the estimated environmental benefits generated across the life of your solar system.

Are there any rebates available for home solar?

The Federal Government has a rebate for those who install a home solar system, called the Small-scale Technology Certificate (STC).  The rebate runs until 2030 and gradually reduces each calendar year. In 2022 for a 6.6kW system the rebate is around $3,200, however the bigger the system, the larger the rebate based on the PV array. 

Each state and territory have separate rebates on top of this, however Queensland does not have any state rebates currently available. Most solar retailers and/or installers will include the rebate in their advertised product price. 

Paying for a solar system?

Installing a solar power system comes with an up-front cost of several thousands of dollars, but it is an investment that pays for itself in time. 

If you’re concerned about funding the upfront payment, you could take out a loan to pay for the system depending on your ability to obtain finance and pay the interest charges. 

RACQ Bank* offers two options, if you hold an existing home loan with us, or if you refinance your current home loan to us, we can provide you with the Green Home loan*. If you cannot move your home loan to RACQ Bank, we have a Green Personal Loan* to help you in your sustainability journey. 

You can view RACQ Bank’s loan rates and access more information on our website. You can also use our calculator to work out your repayments.

Be sure to read the fine print on any finance deals when purchasing, as 0% interest offers may come with a catch, including an increase in the actual sale price. 

*Refer to important information below. 

Can I charge an electric vehicle (EV) from a home solar system?

Yes. EV’s typically come with their own EV charger, which can use the power your home solar generates during the day to charge your car. 

If you don’t have a home battery system, you will only be able to charge your EV with solar power during the day, before it switches to the grid at night. 

If you have a home solar battery system, then you can charge your vehicle overnight from the battery, however you may only be able to top up your vehicle, rather than give it a full charge, as an EV battery (average 65kWh) is far larger than a standard home battery system (between 6kWh and 20+ kWh). On average you get 5km per kilowatt hour of charge, so you may or may not be able to top up an EV completely with a home battery if you’re taking long trips during the day. For most commuters an average sized home battery may be enough to top up an EV nightly. 

Are solar panels covered in my home insurance?

You will need to check with your current home insurance provider. 

RACQ Home Insurance covers solar panels as standard. RACQ Home Insurance provides cover for solar panels under Outdoor Items^. This is outlined in RACQ’s Household Insurance PDS.

Why choose RACQ Solar?

RACQ Solar provides reliable and quality products and service. RACQ has been a trusted brand in Queensland for more than 100 years, and our solar offering provides the same high level of service and experience Queenslanders expect from the RACQ brand.

Our team provides ongoing customer service through from the initial enquiry, system design, installation, and aftermarket service. You can install solar with confidence, knowing we use quality parts and panels and ensure the installation is completed safely and effectively – and our solar panels come with a 25-year performance warranty. 

Our commercial clientele includes Australia Zoo, Queensland Government, Australian Maritime, Brisbane Technology Park, Cairns DFO, CSIRO, KFC, Uniting Care Queensland and many more. 

GEM Energy trades as RACQ Solar. RACQ became the majority owner of GEM Energy in March 2022.

*Disclaimer: Banking and loan products issued by Members Banking Group Limited ABN 83 087 651 054 AFSL/Australian credit licence 241195 trading as RACQ Bank. Terms, conditions, fees, charges and lending policies apply. This is general advice only and may not be right for you.

Except for RACQ Bank, any RACQ entity referred to on this page is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth). That entity’s obligations do not represent deposits or other liabilities of RACQ Bank. RACQ Bank does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise.

This information does not take your personal objectives, circumstances or needs into account. Read the disclosure documents for your selected product or service, including the Financial Services Guide and the Terms and Conditions, and consider if appropriate for you before deciding.

Green Home Loan is available with existing, refinanced and new RACQ Bank home loans. Conditions apply.

The Green Personal Loan is available for new lending only to purchase eligible items. Conditions apply.

^Disclaimer: Insurance products issued by RACQ Insurance Limited ABN 50 009 704 152. Conditions, limits and exclusions apply. This is general advice only and may not be right for you. Consider the PDS, SPDS and TMD available at racq.com