Archive for July, 2008

We have just arrived at the Noosa Civic to talk to more people and find out what they know about solar hot water. Or whether they know of other solutions to global warming.

So if you want to find out more or share with us, come along. We are here all week (Monday, 21 July to Sunday 28 July).

With me is Carolyn Ride and Hugh Butler. We’ve got our laptops here, so can show you how to use this site and produce instant quotes.
(We also have some sweets, as we are not allowed to actually approach anyone)

Looking forward to seeing you in person.

Find Out Whether You Can Benefit From Solar Hot Water.

You can get an instant quote right now. There are 23 simple questions that lets our online calculator work out the best solution for your situation. That way you know exactly whether you can benefit from solar hot water.

Start with 1. Find System.

No upfront cost always means financing in some way. That is true for an interest-free deal, for a bank loan or using a credit card.

However, as a solar hot water heater reduces your energy bills, the sun can effectively pay for the system and the interest. The average household in Australia spends $300 to $700 per year on hot water. Most solar hot water heaters cost between $1,800 and $2,500 (after all possible rebates).

Option 1: Pay Solar Hot Water Heater Outright

This is always the cheapest option.

As you can see in the graph, you start out in the negative. Then there is a steady improvement of your cash position until you are far better off than without a solar hot water heater.

The sharp rise represents the $1,000 federal rebate.

If you currently have a line of credit or a loan with a good interest rate, you might want to look into a redraw. Check for the best interest and cheapest fees.

Option 2: Finance with a Credit Card or Loan

Financing with a credit card or loan, you may be able to better manage your cash flow.

Apart from the first two months (before you receive the federal rebate), you actually have more cash than without financing the system. The overall return is lower than paying outright. But it is still substantial.

The Choice

If you can, pay upfront. It will always be the cheaper option. However if you do not have the cash to cover the initial cost, Option 2 might be beneficial. When money becomes available (e.g. from tax rebates) it is good to use it to repay the loan to minimise your costs and increase year benefits.

Assumptions

Please note that this is not financial advice. Speak to your financial adviser if you are unsure which approach is appropriate for your situation. For the graphs, we have assumed:

• purchase price of $3,000 (before getting the $1,000 federal rebate)
• minimum repayments of 2.5% of loan or $40, whatever is higher
• fees of $49 per year and interest rate of 12.8%
• not using the $1,000 federal rebate for repayments
• electricity savings of $40 per month (or $480 per year)

Financing the system in this way would cost approximately $1,770. By using the $1,000 federal rebate for repayments when it comes in, costs can be reduced to $880. To further reduce the total costs, just repay more than the minimum monthly repayments. If you can afford slightly higher payments, the Bendigo Bank Green Loan might also be useful for you.

There are so many inspiring people on the Sunshine Coast. One of them is Piet Croes of Better Business Networks.

Piet has developed a business networking group where it is possible to get to know people, rather than just meeting salespeople who want to sell you something.

Between 15 and 20 people get together for breakfast or lunch at different locations on the Sunshine Coast. Everyone shares a 30 second introduction with the group and then a speaker talks about their journey into running a successful business.

Recently business partner Ray Lansom launched a website that allows BBN members to stay up to date. Social membership is free. You just pay for food and drinks. If you want to catch up with me, you find me at most of the Noosa lunch meetings.

Piet and Ray have started to help Solarpay get the word out about the benefits of solar hot water. Thanks so much for that!

When it comes to saving money, saving the planet, and saving time, going solar with SolarPay is the best option for your residential hot water heater.

Saving Money

Hot water heating can eat up to a third of your total electricity bill, and the average Australian family uses between 90-120 litres of hot water every day (Queensland Environmental Protection Agency). If you’re like most of us, you’ll find that the cost of hot water is THE biggest portion of your electricity bill. Switching your residential electric hot water heater to solar will save you an average of between $300 to $700 every year (Department of The Environment, Water, Heritage and the Arts).  This average is based on current electricity prices, so as the cost of electricity goes up (electricity savings) so will the difference in your pocket between electric and solar hot water.

Installing a solar residential hot water heater can also qualify you for a $1,000 rebate from the Federal Government (Department of The Environment, Water, Heritage and the Arts). You could also qualify for Renewable Energy Certificates of up to $2,205 (renewable energy certificates). Best of all? With SolarPay, you can order a system now and get it installed without paying upfront costs. You still qualify for the rebate - which you can keep or use to help pay off the system - and it takes only 10 minutes to do!

Saving the Planet

Imagine the difference to Australia’s greenhouse gas emissions if you took one small car off the road each year. That’s cutting at least 3,000 kg of carbon emissions, and that’s what you’ll do every year if you install a solar residential hot water system (Queensland Environmental Protection Agency).

Solar hot water systems use a natural resource we have in abundance on the Sunshine Coast - the sun - instead of non-renewable fossil fuels like coal. Sometimes it may seem like environmental issues are too big to tackle, but installing a residential solar hot water system is one of the most planet-friendly actions you can take (Climate Smart Qld).

At SolarPay, we want to introduce as many Sunshine Coast homes as possible to the sustainable solution - solar hot water. That’s why we set up a system where you can get a residential solar hot water system now, online, without paying upfront costs.

Saving Time

It takes only four steps to find the best and most efficient system for your house. The whole process takes 10 minutes or less. Get your instant solar hot water quote at the top of the page by following the button to “Find System”. 

Queensland consumers are bracing themselves for another electricity price hike in July, but those who want to make the switch to solar have more cost-effective ways to save electricity than ever before.

Electricity bills will increase by 5.4% this month in this state, following last year’s rise of up to 11.37%.

Meanwhile, entrepreneurial Queenslanders are finding new ways to help consumers beat the biggest contributor to the cost of electricity - hot water.

In 2007, Sustainable Maleny conducted a successful drive to get 100 households in Maleny on the Sunshine Coast to replace their electric hot water systems with solar hot water at a discounted price.

Solar Hot Water Without Upfront Fees

On June 21st, Alexander Kohl of Sunshine Beach launched SolarPay, which allows customers to order a solar hot water system online and pay the costs over time without any upfront fees.

SolarPay’s goal is to help 1000 households on the Sunshine Coast switch from electric hot water to solar and then to expand the scheme throughout Queensland.

The Department of Environment, Water, Heritage and the Arts estimated that a household who switches from electric hot water to solar hot water will save electricity of between $300 and $700 a year, which can then be used to pay for the solar hot water system.

At the same time, the price of Renewable Energy Certificates (RECs) has increased due to demand, which means owners of solar hot water systems currently receive up to $2,205 on top of the Federal Rebate of $1,000.

Save Electricity By Up To A Third

Even if they are not swayed by the environmental benefits, the prospect of cutting the huge hot water share of their electricity bill - up to a third of the cost - should convince the 80% of Queenslanders who have an electric hot water system that changing to solar is the only way to go.