The Pros and Cons of Installing a Solar Energy System | SolarEdge AUS
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The Advantages and Disadvantages of Installing A Solar Energy System

Thanks to significant technological advancements, price declines coupled with government subsidies, the installation of solar energy systems is on an upward trajectory worldwide. In fact, the world’s total PV installations has increased by nearly 150% in the past 5 years! While the solar energy industry is hitting new heights, it is important to know the pros and cons of installing a solar energy system to understand whether it is right for you.


1. A clean and green energy source

The sun’s energy is clean, green, and available to all. Solar energy harnesses the power of the sun and transforms it into a sustainable and renewable resource. By powering your home through solar energy, you can lower your carbon footprint by generating clean, renewable energy, while also reducing your energy bills.


2. Lower electricity costs

Producing your own renewable energy is not only good for the planet, it’s also good for your wallet. Whether fed into the electricity grid or self-consumed, powering your home with solar energy can help lower your electricity bills in two ways: self-consumption and selling it to the electric company.

If you self-consume the energy produced by your solar energy system, then this will reduce the amount of electricity you buy from the grid. If you feed in solar energy into the grid, you can get paid for the energy you produce or it can be deducted from your electricity bill – depending on the available subsidy program.


3. Energy independence

Installing a solar energy system allows you to use sunlight to power your home and increase your energy independence. By installing a solar energy system, you become an energy producer instead of just an energy consumer.

Storing solar energy in a battery or turning your house into a smart energy home allows you to use more self-produced energy instead of depending on the grid.


4. A profitable investment

Think of a solar energy system as a long-term investment. More than just reducing electricity bills, it enhances your property value and mitigates the effects of rising electricity costs. Moreover, the cost of solar energy is now reaching at or below the cost of purchasing energy from the grid.

The decreasing costs of solar also meant that the payback period on installing a solar energy system is getting shorter.


5. Be future-ready

Solar energy technology is constantly developing and improving, which means it’s important that your solar energy system can be expanded in the future. This can include adding battery storage, EV charging, and smart energy devices. Installing a solar energy system today is investing in your ability to run a smart energy home now and in years to come.


1. High start-up costs

Installing a solar energy system can seem expensive because of the upfront costs. However, if one takes a long-term perspective, it is a worthwhile investment. Think of it this way, most people are happy to pay upfront for a car that lasts 10 to 15 years and will almost certainly depreciate in value.

If you are willing to pay upfront for a car, why not for energy? Installing a solar energy system could even offer money-making opportunities like selling your energy back to the grid.


2. Solar energy is variable

Solar energy production does not necessarily line up with how homeowners use energy. Solar energy is produced during the daytime, and it does not have high production in the evenings or mornings, which is when most households have the highest energy consumption needs. So in order to meet the home’s energy needs during the nighttime, electricity is purchased from the grid despite the fact that excess solar energy might be available during the daytime.

This challenge can be met by storing excess solar energy in batteries for consumption during the nighttime, and using excess solar energy during the day to remotely power home appliances.


3. It makes the grid harder to manage

The main goal of the electric company is to supply energy based on demand. Up until now, the electric utility only had to adjust supply based on changing demand. With solar energy becoming a larger portion of the grid, the utility now needs to balance an ever-changing supply with a fluctuating demand.

This makes the goal of balancing energy supply with demand a lot more challenging. Adding batteries to increase self-consumption helps to overcome the energy fluctuations for the grid.