Is it time to go solar?

Did you know that if all the roof space in Australia was used for solar panels, we wouldn't need any power stations? Even though solar cell technology - the technology that generates electricity from sunlight - has been around since the late 1800s, it is clearly yet to be used to its full potential. And that potential is huge - particularly here in Australia.

The Australian Federal Government, aware of the fact that the country is the world's third largest emitter of CO2 per person, introduced the Solar Credits Program in June this year to encourage homeowners to install solar power systems on their roofs. The program offers up to $9,000 in rebates, depending on the size and location of the installation. It's important to note that there is sometimes some confusion about what 'solar power' is - here's the difference:

Grid connect and solar hot water - what's the difference?

It's important to understand the difference between solar hot water and grid connect systems.

A solar hot water system simply uses the heat generated by sunlight to heat up the water that you need for your hot water supply in the house. When there is no sunlight for extended periods, solar hot water systems can be boosted using the standard gas or electricity supply. As around 20% of domestic greenhouse gas emissions are generated by electric and gas hot water systems, installing a solar power system dramatically cuts these. Not only that, but installing a system can also save up to 75% of your water heating costs.

A grid connect solar power installation, on the other hand, produces electricity for use in your home. This means you have to buy less electricity from your electricity provider - in fact if you generate more electricity than you need, you in effect sell your excess electricity back to the grid because you are 'grid connected'. In terms of installation cost, a grid connect system is more expensive than a solar hot water system.

Both types of installation attract rebates at either Federal or State level, or both, to encourage you to install. And the Federal Government has also recently introduced a "Green Loans" program (more info here www.environment.gov.au/greenloans) to help householders access loans up to $10,000 to install energy efficient systems and products such as solar power and water systems.

With consumer electricity bills set to rise over the coming years (one study predicts a doubling by 2015), installing a solar power or hot water system may be a good decision for the household budget as well as for the planet.