5kW Solar System Information And Pricing

A 5kW solar power system is a size that should easily offset a typical home's electricity usage. If it doesn't, then you've got one pressing energy guzzler of a home and should really consider an energy audit before going solar!

5kW solar systems are also the smallest system size you should be considering if you're looking to add batteries to your system in the future. Here's what you need to know approximately 5kW systems, including price information.

How many solar panels will you need?

To make up a 5kW solar system, you require 20 solar panels, assuming you use 250W panels. Each panel will be about 1.6m x 1m, so you'll need at least 32m² of roof space.  That's not a small area.     

How much power will a 5kW solar system generate?

A 5kW solar system will produce approximately 20kWh per day, depending on your location and a variation of other factors. The common home uses about 16kWh per day. Note that this does not suggest installing a 5kW solar power system will automatically give you a $0 electricity bill, as most households use the preponderance of their electricity at night when the sun isn't shining, I talk about this in greater detail here.

How much money will a 5kW solar system protect?

You may be pondering: "If the 5kW system offsets my energy usage, then surely it's going to wipe out my electricity bill?" Unfortunately, it is not that simple! The amount the electricity companies will compensate you for your solar energy is, in most states, way lower than the price they charge you to buy the same electricity from the grid! Plus, there are other costs on a bill such as supply charges, aka service charges. However, a 5kW solar power system is still an excellent investment.

Let's say you get paid approximately 8c per kWh for exported energy compared to 30c per kWh to repurchase electricity from the mains grid. Here are 3 scenarios to show how the 5kW system payback works:

1) Use all the solar power in your home. This is unlikely unless you have a mini aluminum smelter in your back garden, or you conduct a small business from your home.

If that were your situation, you would save approximately $2100 in the first year, and around $67,000 over 20 years; taking power inflation of 5% into account. Those are some earnest savings.

2) Export half the electricity: You would save approximately $1400 in the first year.

3) Export all the electricity: You would save roughly $700 in the first year with a 5kW system.

If you think that this seems very counterintuitive, then you can read about the relationship between exports and payback here.

You can see the amounts for yourself and change all the assumptions to see how they affect payback with my solar payback calculators.

Price of 5kW solar power system cost?

The cost of a 5kW solar system will be proximately $10,000 before STCs, then you should get about $3,500 subsidy from STCs (aka the solar rebate). Taking into account the discounts, demand to pay about $6,500 out of pocket costs for a 5kW system.

When will the 5kW solar power system pay for itself?

If you are not transporting the energy and assuming you've paid a reasonable price for a 5kW solar system, then you should see a payback period of fewer than 5 years – so a fairly rapid payback timeframe. But you can actually be cash flow positive from day one if you get cheap solar finance. It is very easy to finance the purchase so that your monthly energy savings are worth more than the cost of paying back the loan. Again, my solar calculators show you with simple red or green bars whether the investment is cash flow positive or negative; i.e. if it is cost-effective.

Since it can be a laborious process to find a trustworthy solar installer to provide you with a good-quality 5kW solar power system at a reasonable price, HahaSmart is here HahaSmart Blog - More Solar Tips and Guide
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