Many of those that enter retirement believe that it’s the big expenses that generally eat away at their savings over the long-term. And while there’s no doubt that the larger costs, such as having a car maintained or spending money on healthcare can have a big impact on a retirees’ savings, it’s worth noting that perhaps the biggest overall expense will be the month-to-month costs.
This can include water, internet and, of course, electricity. In fact, with the rate in which electricity costs are increasing, it can quickly become one of the biggest expenses in retirement once it’s all been added up. This is why more and more retirees are opting to install solar systems to save money over the long-term. Let’s take a look at why a solar system can be a cost-effective method of saving money.
The Cost Of Installation
There’s no denying that there’s a big upfront cost when it comes to installing a solar system. If we take the country of Australia, for example, where solar systems are becoming more popular and are installed in more than 3 million homes, it can cost around $8000 to $9000 in total to install a system to cover a household’s usage. A system like this can produce around 30 kWh per day, which is more than enough to keep everything running as well as having extra to fill up the batteries if they are also installed.
If we add up the overall costs, it’s estimated that a person can save around $3000 per year on electricity alone when having a full solar system installed in their home.
The average cost of electricity within Australia can be up to 52 cents per kWh during the peak parts of the day, while the cost of a decent solar system can drop that cost to around 5 to 6 cents per kWh.
Is It Worth The Cost?
Not only is it worth the cost of installation, but in terms of years, it can be a huge money saver. For instance, it’s believed that the above-mentioned solar system can eventually pay itself off in 3 to 5 years depending on usage, and around $850 per quarter when compared to being connected to the grid. The more advanced the system is, the more batteries that are connected, and the ability to be completely disconnected from the grid means that a person not only saves money but can even be paid for their excess power.
Even smaller systems are worth the initial installation cost; a system that produces around 8kWh a day can ultimately save a retiree up to $500 per quarter, and if there are batteries installed, this saving can be extended by switching over to the batteries during the evening and the night once the sun has gone down, so it’s easy to watch TV or enjoy playing at online casino sites in India.
Looking at the estimated savings, not only is solar worth it, but it can mean significant long-term savings for a retiree.