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Some Pros and Cons of Solar Energy
Some Pros and Cons of Solar Energy
Written by
Rachel Gregg
Edited by
Ellie Garran
Reviewed by
Julia PaszkaCompare Electricity & Gas Plans
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Long story short
Solar is a low‑emission and renewable source of energy
Solar panels can convert sunlight into electricity for your home without producing carbon emissions. This can help reduce your home’s carbon footprint.
Solar panels could help lower bills and boost your home’s value
Using the solar power generated by your panels reduces your reliance on the grid and can boost your home’s value when it comes time to move.
Solar panel efficiency and costs can vary
The weather, roof orientation, shading, and up-front installation costs can affect how much energy your panels produce and how long it takes to pay them back.
Benefits of solar energy systems
A source of renewable energy
We all know that solar energy comes from the heat and light of the sun’s rays, but the big win is that it’s a renewable energy source. Solar power is a form of energy generation that’s constantly replaced and won’t run out, unlike fossil fuels such as coal and gas, which rely on limited underground reserves. It’s harvested without creating carbon or greenhouse gas emissions, which contribute to climate change. It also involves little to no water use and minimal environmental impacts. That means whatever power your panels produce won’t harm the planet, and can also significantly lower your home’s carbon footprint.
Reduces reliance on the grid
Using residential solar power can help you slowly step back from the main electricity grid, and that often means lower electricity bills. Most solar homes practise self-consumption, which means they use up their solar first before getting power from the grid. That means paying for less electricity. And if you have a solar battery, your energy storage could protect you from blackouts, too.
Increases property value
Solar panels are a big tick for many house hunters (and honestly, it’s easy to see why). The average solar panel has a lifespan of around 20 years, so they’re a smart investment that’ll benefit your home for years to come. In today’s housing market, four in five Aussies are ready and willing to pay more for a home with energy-saving technology. For solar-powered homes on the market, that could add an estimated $23,100 to the property’s value. Not bad for something that also helps lower your bills.
Offers incentives to lighten your installation bill
Back when solar was still new in the field, its price tag was pretty high, making it a deterrent for most homes. While its costs haven’t changed too much, rebates and incentives have made switching way more cost-effective. The Small-scale Renewable Energy Scheme (SRES) offers rebates based on where you live, the size of your panels, and their expected output until 2030 (when the SRES ends). There’s also the Cheaper Home Batteries Program, which takes about 30% off the up-front price of solar batteries. This can be stacked up with the SRES or used to upgrade an existing setup to harness that excess energy.
Disadvantages of solar energy systems
Panel power is weather dependent
Solar panels can still pull in some power on cloudy days, but much less. Australia’s varied climate means that not all homes will generate the same amount of power. This also means that you might need to shift your energy usage habits across the seasons, since the sun won’t be out and working at 100% of the day in winter, like it might in summer. In Victoria, for example, the best times to use solar are from 10 am to 4 pm in summer and from 11 am to 2 pm in winter, which is quite a difference. Solar technology also doesn’t work at night, which means that without battery storage, you won’t be able to rely on your solar power system around the clock. Just another thing to factor into the equation.
Not every roof or home is ideal for panels
Sometimes the biggest solar challenge isn’t the sun, it’s your roof. In Australia, north-facing panels often perform best, bumping up your generation power by 10–20%. So if your panels don’t face north, you could really be missing out on maximising your solar panel power. Trees and shading from neighbouring buildings can also reduce the amount of power that your solar PV panels can create. The actual angle of the panels on your roof matters too. Ideally, your solar panels should be installed at an angle close to your home’s latitude (the distance of your home from the equator). If your roof doesn’t tick these boxes, that could mean a drop in your panels’ efficiency.
Pressure on the grid
Australia’s love of rooftop solar is great for clean energy, but it does create a few challenges behind the scenes. Feed-in tariffs encourage solar-powered homes to export excess power back into the grid. This can mean that on sunny days with low energy demand (like if it’s cool enough to keep the aircon off), there can be an oversupply of power that makes the main grid unstable. Think of it like filling a bath: everything’s fine until too much water goes in and it spills over. For most households, this isn’t a downside you’ll notice day‑to‑day, but it does mean the grid needs ongoing advancements and smarter tech to keep our energy production running smoothly as solar continues to grow.
Expensive up-front costs
While government incentives and rebates can reduce the initial cost of solar installations, many of these programs aren’t as generous as they once were. This means homeowners could face higher initial investment costs and longer payback periods. Homes that rely heavily on feed-in tariffs may also see smaller electricity bill savings unless they shift their energy use to take advantage of daytime hours, which isn’t always practical for people who aren’t home during the day. On top of that, you also need to factor in the high costs of solar batteries. These storage systems aren’t essential for solar setups, but they can reduce reliance on the grid and even give you energy independence.
Helpful tip
Solar panels have pretty low maintenance costs once they’re installed, but it’s still worth checking in on them from time to time to make sure they’re clean and working well. If they’ve been installed correctly (at an angle of 10° or less), then they should self-clean when it rains. But skipping regular services could impact the efficiency of your panels over time, and that could mean less solar helping your home out. Most solar panel warranties only last about 10 to 15 years, so if something goes wrong outside of this period, it’s all up to you to cover the costs.
Julia Paszka
General Manager – Utilities & Credit Cards
Thinking solar? Make sure to find an energy plan to match
Solar can be a great move if it aligns with your household habits and lifestyle, but the real impact on cost-effectiveness can also come from an appropriate energy plan. Whether your home is already soaking up the sun or you’re still weighing up your options, iSelect can help you compare from a range of plans and policies online that suit how your home uses its power. Head online to compare or call our team of energy comparison experts on 1800 664 532 to get the most out of Australia’s sunny days.
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