Solar Power Systems: A Basic Guide

Thinking of going solar? Listed below is some basic information about solar power systems, including the different types of systems you can install in Australia.

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Australia is a Good Place to Install Solar

With its abundant sunlight Australia is a prime candidate for solar power. Here are some of the key benefits of installing solar:

  • Lower electricity bills through self-generated energy.
  • Contribute to environmental protection by reducing greenhouse gas emissions and reliance on fossil fuels.
  • Enhance energy independence, take control of your energy generation.
  • Government incentives and solar rebates to offset the installation costs.

Understanding Solar Power Systems

A solar power system is a setup that captures sunlight and converts it into usable electricity. It consists of several components that work together to generate and distribute electrical power:

Solar Panels

Solar panels, or photovoltaic (PV) panels, are the heart of a solar power system. They capture sunlight and convert it into direct current (DC) electricity. Solar panels are made up of individual solar cells, which are typically made from silicon.

Solar Inverter

The solar inverter converts the DC electricity generated by the solar panels into alternating current (AC) electricity, the type of electricity used by most household appliances and the power grid.

Mounting Equipment

Mounting equipment securely attaches the solar panels to the roof or ground. The mounting system must be sturdy and correctly installed to ensure the panels are safe, secure, and positioned to maximise sunlight exposure.

Battery Storage (Optional)

While not necessary for all solar power systems, battery storage can be a valuable addition. Batteries store excess electricity generated by the solar panels for use when the panels aren't producing electricity, such as during the night or on cloudy days. Battery storage will likely become a standard feature of most solar power systems in the future as the price continues to decrease and the technology advances and becomes more efficient and financially viable.

Solar Charge Controller (For Off Grid and Some Hybrid Systems)

A solar charge controller is used in off grid and some hybrid solar power systems to manage the charging and discharging of the battery bank. It ensures the batteries are charged efficiently and prevents them from being overcharged or overly discharged, which can damage the batteries and shorten their lifespan.

Electrical Disconnects and Safety Equipment

Electrical disconnects allow the system to be safely disconnected from the grid and other electrical equipment for maintenance or in an emergency. Other safety equipment includes grounding equipment and surge protection devices.

Metering Equipment

Metering equipment measures the amount of electricity your solar power system produces and the amount of electricity you consume. In grid connected systems, a bi-directional power meter is often used to measure the electricity consumed from the grid and the excess electricity fed back into the grid. This measure is then used to calculate any credits offered through the feed-in tariff system.

Types of Solar Power Systems

Grid Connect

A grid connect solar power system, also known as a grid-tied system, connects to the local electrical grid. It allows you to generate electricity using solar panels while remaining connected to the traditional power grid.

How Grid Connect Solar Systems Work:

In a grid connect system, solar panels installed on your property capture sunlight and convert it into electricity. The panels are connected to an inverter, which converts the DC electricity into AC electricity that matches the grid's voltage and frequency.

The AC electricity generated by the solar panels powers your home's electrical appliances. Any excess electricity produced is fed back into the grid, earning you credits through net metering or feed-in tariffs. When your panels are not producing enough electricity, you can draw power from the grid as usual, ensuring a constant and reliable power supply.

Basic Grid Connect Solar Power System Layout
Basic Grid Connect Solar Power System Layout

Hybrid Solar

A hybrid solar power system is an advanced energy generation and storage solution. It combines solar panels and battery storage with a connection to the grid, providing a balance between self-sufficiency and reliability. This system maximises the self-consumption of solar energy, reduces reliance on the grid, and ensures a consistent power supply, even when the sun isn't shining.

How Hybrid Solar Systems Work:

In a hybrid system, solar panels capture sunlight and convert it into direct current (DC) electricity. This DC electricity is then sent to an inverter, which converts it into alternating current (AC) electricity for immediate use in your home.

One of the defining features of a hybrid system is the integration of battery storage. When the solar panels produce more electricity than your home needs, the surplus is stored in the batteries instead of being sent back to the grid. This stored energy can be used during periods of low solar generation, such as at night or on cloudy days, ensuring a continuous and stable power supply.

However, a hybrid system also maintains a connection to the grid. This connection provides a backup power supply when your energy demand exceeds what your solar panels and batteries can provide, such as during extended periods of poor weather. Conversely, suppose your batteries are fully charged, and your solar panels generate excess electricity. This surplus can be exported to the grid, potentially earning you credits on your electricity bill.

By intelligently managing energy production, storage, and grid interaction, a hybrid solar power system can provide a flexible and efficient solution for domestic energy needs.

Basic Hybrid Solar Power System Layout
Basic Hybrid Solar Power System Layout

Off Grid Solar

An off-grid solar power system operates independently of the traditional power grid. This system is ideal for areas without grid electricity or for those who want to be completely independent of power companies. There are two basic types of off-grid systems: AC Coupled and DC Coupled.

AC Coupled Off Grid Systems

In an AC-coupled off-grid system, the solar panels and the battery bank are connected to the inverter. The solar panels generate DC electricity, which Is converted to AC by the inverter for immediate use in your home or business. Any excess AC electricity is then converted back to DC by a battery inverter to be stored in the battery bank for later use. This system is typically more efficient when most of the load is AC, allowing for easy integration of other AC power sources like wind turbines or generators.

DC Coupled Off Grid Systems

A charge controller directly connects the solar panels to the battery bank in a DC-coupled off-grid system. The solar panels generate DC electricity, which charges the batteries. An inverter then converts the DC electricity stored in the batteries into AC electricity for use in your home or business. This system is typically more efficient when most of the load is DC, allowing for easy integration of other DC power sources.

How off Grid Solar Works:

In both off-grid systems, solar panels capture sunlight and convert it into DC electricity. The electricity is stored in batteries, and an inverter converts it into AC electricity for use in your home or business.

Charge controllers play a crucial role in these systems. They regulate the charging of the batteries, ensuring optimal performance and longevity. The stored electricity can then power your appliances and devices. Careful energy management is necessary to ensure stored energy lasts during periods of low sunlight or high energy demands.

Choosing between an AC-coupled and a DC-coupled system depends on your specific energy needs, the types of appliances and devices you use, and the other power sources you plan to integrate into your system.

Basic Off Grid Solar Power System Layout
Basic Off Grid Solar Power System Layout (DC-coupled)

Comparing Solar Power Systems

Choosing the right solar power system depends on several factors, including your energy needs, battery capacity, availability of backup power sources, average energy consumption, roof space for solar panels, and local regulations. The type of inverter suitable for your needs is also crucial, especially for hybrid systems. Here's a quick comparison of the three types of systems:

  • Grid Connect Systems: Ideal for those who want to generate their own electricity but still have the security of grid connection. Excess power can be fed back into the grid for credits.
  • Hybrid Systems: Perfect for those seeking a balance between self-sufficiency and grid reliance. The integration of battery storage allows for greater energy independence.
  • off Grid Systems: Best suited for areas without grid electricity or for those who want complete independence from power companies. Requires careful energy management and may integrate other power sources.

Government Incentives and Financing

Australia offers government financial incentives and solar rebates to promote solar energy uptake. Research available schemes in your state or territory, such as Solar Credits, Small-scale Technology Certificates (STCs), or Feed-in Tariffs (FiTs), to maximise financial benefits.

Financing options like purchasing, leasing, or power purchase agreements (PPAs) can make solar power systems more affordable and manageable for homeowners and businesses.

System Installation

Professional installation is essential for the system's optimal performance, safety, and longevity. Choosing a reputable installer with experience in solar energy projects ensures that the installation adheres to industry standards and guidelines. One way to identify a qualified solar installer is to look for the Clean Energy Council (CEC) solar accreditation.

The Clean Energy Council is Australia's peak body for the clean energy industry. They play a vital role in promoting renewable energy technologies, including solar power systems. The CEC operates an accreditation program specifically for solar installers called the "CEC Solar Accreditation."

Solar installers who hold CEC Solar Accreditation have undergone rigorous training and assessment to demonstrate their competence and expertise in solar PV system design and installation. They must adhere to the Clean Energy Council's high professional and safety standards.

Key Points About CEC Solar Accreditation

  1. Quality Assurance: CEC Solar Accreditation assures customers that the installer possesses the necessary skills and knowledge to design and install solar power systems correctly. This minimises the risk of errors or improper installations that could compromise system performance or safety.
  2. Code of Conduct: Accredited installers are bound by the Clean Energy Council's Code of Conduct, which outlines ethical practices and customer service standards. This ensures that customers are treated fairly and transparently throughout the installation process.
  3. Compliance: Accredited installers are well-versed in local regulations and standards related to solar installations. They ensure your system complies with all relevant building codes, safety requirements, and grid connection guidelines.
  4. Product Warranty Eligibility: Some solar panel and inverter manufacturers require installations to be carried out by CEC-accredited installers to maintain warranty coverage. Choosing an accredited installer helps you retain the full benefits of your product warranties.
  5. Access to Incentives: For customers looking to claim government incentives or feed-in tariffs, working with a CEC-accredited installer is often a requirement to qualify for these programs.
  6. Ongoing Training: CEC accredited installers are committed to staying up-to-date with advancements in solar technology and installation best practices. They undergo ongoing training and professional development to maintain their accreditation.

Before engaging an installer for your solar power system, check their CEC Solar Accreditation status. You can verify an installer's accreditation on the Clean Energy Council's website. Additionally, consider reading reviews and asking for recommendations to ensure that the installer has a positive track record in the industry.

By selecting a CEC-accredited installer, you can have confidence in the quality and safety of your solar power system installation. This will allow you to enjoy the full benefits of solar energy, reduce your electricity bills, and contribute to a sustainable energy future for Australia.

Regular Maintenance

Regular maintenance, including cleaning the solar panels and checking connections, is essential to keep your system performing optimally. Check if your installer offers maintenance services or inquire about local solar maintenance companies.

Solar Power System Payback Times

The payback time of a solar power system refers to the period it takes for the savings from the system to equal the initial investment cost. This period can vary significantly depending on the type of solar power system, the cost of the system, the amount of sunlight your location receives, the cost of electricity in your area, and any government incentives or rebates available.

Solar Payback Calculator

The best way to optimise system payback time is to use as much of the solar power you generate while exporting as little as possible; this can take a bit of outside-the-box thinking; for example, most people's homes are empty during the middle of the day when the most solar power is being generated so you could set things like pool pumps, washing machines, dryers and dishwashers to come on automatically at peak solar generation time.

Grid Connect Solar Payback Times

Grid connect systems typically have the shortest payback periods of all solar power systems. This is due to their lower upfront costs and the ability to sell excess electricity back to the grid. The payback period for a grid connect system can be as short as 3-6 years, depending on the factors mentioned above.

Hybrid Solar Payback Times

The payback period for hybrid systems is generally longer than for grid connect systems due to the additional cost of the battery storage system. However, the ability to store and use more of the electricity generated by solar panels can lead to greater savings in the long term. The payback period for a hybrid system can be around 6-10 years, depending on the factors mentioned above.

Off Grid Solar Payback Times

Off grid systems typically have the longest payback periods due to their higher upfront costs and the lack of ability to sell excess electricity back to the grid. However, they can provide significant savings in areas where the cost of connecting to the grid is high or where grid electricity is unreliable or unavailable. The payback period for an off-grid system can be around 10-15 years, depending on the factors mentioned above.


Investing in a solar power system is a significant decision that can provide numerous benefits, including lower electricity bills, increased energy independence, and a reduced environmental footprint. Understanding the different types of solar power systems and their components can help you make an informed decision that best suits your energy needs and budget.

Consider factors such as your energy consumption, the amount of sunlight your location receives, the available roof space for solar panels, and any local regulations or incentives. Always choose a reputable, CEC-accredited installer to ensure a safe and efficient installation.

With the correct planning and decision-making, a solar power system can be a valuable addition to your home or business, contributing to a sustainable and renewable energy future for Australia.

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