Less than a decade ago Australia had the lowest electricity costs of any developed country. Today they are amongst the highest. Household electricity prices have increased by more than 110% in the past five years and are expected to continue to rise.

As a result, many Aussies are looking for ways to save on those dreaded bills.

One answer is to ‘go solar’.

In 2001, only 118 Australian households were powered by solar energy. By 2012 this had increased dramatically to 640,000.1 Today over one million Australian households have solar panels installed.

So what is solar energy?
Solar PV (photovoltaic) panels are installed on the roof of household in order to capture the sun’s radiation and convert that free energy into electricity that can then be used in your home. This saves you from purchasing your electricity from an electricity retailer.

The average Australian household currently uses $4.50 of electricity per day. Depending on your location, installing a 3kw (Mid range) solar system can save up to $2.93 a day3, which off sets your electricity bill by 65%!

The financial benefits are well documented. But what are the other benefits of solar?

Take advantage of government incentives

Depending on the state you live in you may be eligible for government incentives supporting renewable energy, making going solar even more affordable.

Depending on your energy retailer and the state you live in, you may receive a feed in tariff (i.e. when you sell your solar energy back to your energy retailer). This not only provides extra savings but also means you won’t waste any of the extra energy you produce.

Reduce your carbon footprint

Replacing your energy usage with clean energy reduces your family’s ‘carbon footprint’ (CO2 emissions). As more households install solar, the amount of harmful fossil fuels used by electricity retailers is reduced.

The average Australian household produces 14 tones ofCO2 emissions per year. A 3kw solar system reduces carbon emissions by 112.5 tonnes of CO2 over its lifetime – the equivalent of planting 420 trees and replacing 25passenger cars on the road.

Contribute to Australia’s Renewable Energy Target

The Renewable Energy Target (RET) is an Australian government scheme to reduce harmful emissions produced in the electricity sector. It encourages renewable energies through education and financial incentives.

The goal of RET is to have at least 20% of Australia’s electricity supply come from renewable sources including solar, hydro and wind by the year 2020.

In 2013, 14.76% of Australia’s electricity came from renewable sources, enough to power the equivalent of almost five million homes.

Invest in the future

The future of solar is growing. Globally, solar PV panels are the fastest growing renewable energy market with over 60%annual growth per year.

Reducing our carbon footprint and contributing to the RET will build a more sustainable future. As a result we will reduce the effects of global warming.

Countries such as Germany and America are years ahead of Australia in terms of renewable energy production. It is time to put Australia on the map and start investing in our future and a cleaner world for generations to come.

*Disclaimer: This article is generic in nature. All investment decisions should be considered wisely and based on your personal and financial circumstances. Seek proper advice before committing to any course of investment action. This is not deemed as advice.