HOW DOES SOLAR POWER WORK?
Solar energy works by capturing the sunlight energy and turning it into electricity for your home or business.
Our sunlight is a natural nuclear energy source. It releases tiny packets of energy called photons, which travel the 93 million miles from the sun to Earth in about 8.5 minutes. Every hour, enough photons impact our planet to generate enough solar energy to theoretically satisfy global energy needs for an entire year.
When photons hit a solar cell, they knock electrons loose from their atoms. If conductors are attached to the positive and negative sides of a cell, it forms an electrical circuit. When electrons flow through such a circuit, they generate electricity. Multiple cells make up a solar panel, and multiple panels (modules) can be wired together to form a solar array. The more panels you can deploy, the more energy you can expect to generate.
The benefits of solar is not only lower power bills but also cut carbon pollution.
Today, solar power is everywhere – collect sun energy from home roof to empower your air conditioner and many loads. And thank goodness. It’s a win-win solution to the climate crisis that creates jobs, saves money, and helps cut the carbon pollution changing our planet.
Plus, when it comes to energy, solar might be the closest thing to free money out there – and we haven’t even begun to touch its full potential.
If you can invest a small money to put a money machine on your roof top which will last decades, why not?
HOW LONG WILL SOLAR PANELS LAST?
Over 40 years, if it is good quality.
Many home array solar panels are guaranteed for decades, thanks to warranties that typically cover 25-30 years. But because their parts do not wear out easily, solar arrays are well-known to continue producing clean electricity even beyond these lengthy timeframes.
“Unlike many other consumer goods, solar panels don’t ‘give up the ghost’ at the end of their warranty period and need to be replaced, but continue to still produce clean electricity, although at a slightly less efficiency each year
“In fact, some decidedly old-school solar cells have been producing electricity daily for about 40 years or so and are expected to continue to power homes and businesses for decades more.”
Power Purchase Agreement – PPA
A Power Purchase Agreement is a finance option available to purchase a Solar PV System or Solar and Battery system, with no money upfront.
PPA can be used by both residential and business customers, paying a low regular rate for the power the Solar PV System installed under the PPA generates in $/kWh for a fixed period. After the period, the customer can usually take ownership of the Solar PV System or Solar and Battery system for a low token amount, in most cases $1.
With a PPA the benefit is immediate as the rate per kWh agreed upon is typically significantly lower than a retailer’s electricity rate. In cases savings can be 50% and more.
Businesses who want to go green and benefit from using renewable energy don’t need to outlay capital to purchase a depreciating asset, instead, with a PPA the business is incurring an expense for the electricity generated under the agreement. As PPA is similar to a Lease, we suggest discussing the accounting and tax benefits of using a PPA with your accountant.
The way a PPA works is that the client will engage the solar installer to install a Solar PV System or Solar and Battery system. The installer in turn arranges the finance via a third party, the financier, who effectively pays and owns the installed system for the period set out in the agreement.
A benefit using a PPA is that the financier will look after the insurance for the system and ensure it is working at it’s optimum as it is in the financiers best interest.
To find out more, get in touch with our friendly team 1300 588 580