Curious about what solar energy is and how it works, or whether it could be a beneficial addition to your home? As utility bills continue to soar, many Australian householders are turning to solar energy as a way of reducing their dependence on grid electricity.
Not only can solar energy help you cut electricity costs, it also provides cleaner power for Aussies that are conscious of their environmental impact. But before investing in this renewable source of energy for your home, it’s important to know what you’re getting into.
In this guide, we’ll explore what solar energy means, explain how it works and what this technology is used for. So, if you’ve been thinking about making the switch away from fossil fuels for your power needs, keep reading.
On this page, you’ll find:
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The basics of solar energy
Solar energy is a renewable form of power that is harnessed from the sun. As one of the most abundant sources of energy, solar has become a go-to option for homes and businesses over the past two decades due to it being a more sustainable alternative to traditional sources of energy, such as coal-fired plants.
Solar panels, which are made up of a collection of photovoltaic (PV) cells, are the primary technology used to convert solar energy into usable electricity.
How does solar energy work?
Solar energy is produced through a process called fusion, which happens naturally within the sun’s core. The sun emits energy in the form of electromagnetic radiation, which travels through space and reaches Earth. This solar energy can be harnessed using PV cells, which are found inside solar panels, to generate electricity for homes, businesses and other applications.
PV cells are usually made from silicon, a semiconductor material that absorbs photons of light. When sunlight hits the surface of a PV cell, it knocks electrons in the silicon out of their normal positions, allowing them to flow freely. This flow of electrons creates a current, which can be used to power electrical devices.
What is solar energy used for?
Solar energy can be used for a range of applications, including powering homes, businesses, and even entire communities with what are called ‘solar gardens’. It can be used to heat water, generate electricity and provide lighting in areas where there is no access to the power grid. Solar energy can even be harnessed to power satellites that orbit the Earth, according to NASA.
In Australia, solar power is primarily used to produce electricity for households and businesses, but it is also utilised for large-scale solar farms. Solar is one of the most accessible forms of renewable energy to invest in no matter how big or small the project.
Compare solar electricity plans in your state
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Ausgrid network in Sydney but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 3911kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Citipower network in Melbourne but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Energex network in Brisbane but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4613kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on SA Power network in Adelaide but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4011kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Residential solar uptake in Australia
Australia has one of the highest rates of solar penetration in the world. In fact, the latest data from the Clean Energy Regulator showed that more than three million homes and businesses have a rooftop solar system installed.
This is likely due to the country’s largely sunny climate, favourable (at times) government solar rebates and the declining costs of solar technology. Furthermore, Australia is on track to have 50% of its electricity generated from renewable sources by 2025, according to a report by the Australian Academy of Technological Sciences and Engineering.
Is solar energy here to stay?
With the increasing demand for clean energy and the steady reduction in the cost of solar technology, it’s clear that solar energy is here to stay. Governments around the world are promoting renewable energy as a way to reduce greenhouse gas emissions and meet climate change commitments. In 2023, the Albanese government signed the Clean Energy Transition Partnership with 39 other countries, committing to drive down carbon emissions and increase clean energy sources in Australia.
The government has also expanded its Capacity Invested Scheme, which focuses on increasing the country’s renewable and clean energy supply through wind and solar power and increasing solar battery storage to support the energy grid.
With its many applications and increasing affordability, solar energy is set to play a central role in our energy mix for years to come.
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