The financial benefits of solar self-consumption
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Significant reduction in electricity bills |
| One of the main financial benefits đź’¶ of solar self-consumption is the dramatic reduction in electricity bills . By producing your own electricity from solar panels installed on your roof, you significantly reduce your dependence on the traditional electricity grid. This means that you will no longer have to rely solely on electricity from the grid, it can become a supplement, which translates into substantial savings in the long term. |
The impact of solar self-production on electricity bills |
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Solar self-consumption allows you to use free, renewable solar energy to power your household appliances , heating and cooling systems , lighting , and more. Each kilowatt-hour (kWh) of self-consumed electricity is a kWh that you do not have to purchase from the energy supplier. As your solar system generates electricity throughout the day, you can significantly reduce your consumption of electricity from the grid, resulting in substantial savings on your electricity bill. The kWh produced by your solar installation and consumed directly in your home reflect your self-production and immediately translate into a reduction in your bill (20.62 cents per kWh at least for the first half of 2023, 22.68 cents per kWh from August 1 ). For illustration, if your house consumes 7500 kWh per year, you pay a bill of around €150 per month . With a solar system of 10 panels (i.e. 4200 Wc) you will produce on average 4620 kWh per year which could generate a saving on your bill of €1047 over the year, or €87 per month. This is 58% of your bill if you manage to consume everything yourself.
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Powering household appliances with solar energy and optimizing self-consumption |
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Solar self-consumption allows you to cover a large part, if not all, of your electricity needs ⚡️. You can use solar energy to power your household appliances such as refrigerators, washing machines, dishwashers, televisions, computers, etc. The heating, air conditioning and lighting systems in your home can also be powered by solar energy.
In order to optimize your self-consumption rate , that is to say to succeed in consuming yourself the largest part of the electricity generated by your panels, it is in your best interest to control the consumption of your household appliances so that they are triggered at the moment when your panels produce . For example, this will involve programming the washing machine to start around 10 a.m. and the water heater to start around 11:30 a.m.
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Integrating energy storage to maximize savings |
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Integrating energy storage, in the form of solar batteries 🪫 , into your system also helps maximize savings. Batteries store excess electricity generated during periods of low consumption and use it when demand is higher, such as in the evening or at night. By storing excess energy , you avoid losing it and can use it later, further reducing your reliance on the electricity grid. This increased autonomy allows you to further reduce your electricity bills and optimize the use of your solar energy.
For example, with a 5kWh battery and the 10-panel system described above, you can improve your self-consumption rate by 20 to 25% . However, investing in the battery tends to double the cost of your solar system, which leads to a lower profitability of the overall solution. But you maximize your self-production , and can even benefit from securing your supply in the event of a power outage.
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Sale of excess electricity |
| Solar self-consumption offers the possibility of selling the excess electricity that you produce. This opportunity allows you to become a real electricity producer and generate additional income. The self-consumption solution as a priority and sale of the surplus if there is any is the best economic compromise for your solar system. This choice is also highly supportive for the 50% of the population in collective housing who will not be able to install a large solar system. |
Mechanism for selling excess electricity to the grid |
| When your solar system produces more electricity than you consume , the excess can be fed into the electricity grid . This excess electricity is measured by your bidirectional meter (usually the Linky meter) which records both the electricity consumed from the grid and the electricity fed into the grid. By selling this excess electricity, you contribute to the supply of clean energy and you can benefit from advantageous purchase tariffs . (These solutions are generally available in mainland France and on the ENEDIS network only). |
Purchase rates for surplus solar electricity |
| The purchase rates for surplus solar electricity vary depending on your region and local energy policies (for example, it is not possible in Corsica or in areas not served by ENEDIS except under the purchase obligation and therefore installation by an RGE professional). Energy suppliers can offer attractive rates for surplus solar electricity, which allows you to benefit from additional income. Among the offers available, the administrative assistance with surplus sale “ Together ” offered by Oscaro Power is a complete solution that facilitates the sale of surplus electricity at an attractive rate. Other mechanisms such as virtual storage are entirely equivalent to a surplus sale. |
Generating additional income through the sale of surplus electricity |
| By opting for the Ensemble offer, you can generate additional income by selling your excess electricity at an advantageous rate of 17.21 euro cents per kilowatt-hour (kWh) injected into the network (for the year 2023). This all-in-one offer simplifies the administrative procedures related to the resale of excess electricity, thus offering a turnkey solution to solar panel owners. Thanks to our exclusive Oscaro Power offer, you can make your solar installation profitable more quickly and maximize the financial benefits of solar self-consumption. If we refer to our example, a house that consumes 7,500 kWh per year (bill of €150/month) that would install 18 panels (7.56 kWc) would produce on average 8,316 kWh. If we estimate that she manages to consume 50% of it directly (bill reduction of €943 per year), she therefore has 50% surplus valued at 17.21 cents, or €715.6 of income linked to her sale of surplus. |
Protection against electricity price increases |
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Solar self-consumption also provides protection against rising electricity prices , which are often seen over time. By producing your own electricity, you become less dependent on grid tariffs and have more control over your energy costs in the long term.
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Analysis of rising trends in electricity prices |
| Electricity prices tend to increase over time due to various factors , such as inflation, production costs, taxes, and energy policies. These increases can have a significant impact on your electricity bills and your overall budget. To learn more about the outlook for energy prices, we invite you to read our article on the subject! By opting for solar self-consumption, you protect yourself against these future increases by reducing your dependence on grid tariffs . In France, increases in the regulated sales tariff take place on February 1 and August 1 each year. In 2023, it was 15% on February 1 and 10% on August 1. |
Coping with rising energy costs through self-consumption |
| With solar self-consumption, you can stabilize your energy costs in the long term . By producing your own electricity from the sun, you are not subject to fluctuations in grid electricity prices on the self-produced portion. This allows you to have better control over your energy costs and to plan your budget more easily in the long term. Even if electricity prices continue to rise, you benefit from a stable and predictable source of energy, which contributes to better financial planning. |
Long-term stability of energy costs |
| Solar self-consumption offers long-term energy cost stability . Once your solar system is installed, your electricity production costs remain constant for the lifetime of your system, because the sun is a free and inexhaustible source of energy. This means that you can anticipate your energy expenses over a longer period of time and reduce the uncertainty associated with increases in electricity prices. This financial stability is a significant advantage of solar self-consumption, allowing homeowners to better manage their budget and avoid surprises related to fluctuations in electricity prices. Even more so when you know that the performance of the panels is guaranteed for between 25 and 30 years. |
Amortization of initial investment |
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The initial investment in installing solar panels for self-consumption may seem like a significant cost. However, it is essential to consider this investment as a way to save money in the long term and quickly amortize the initial costs. Investment payback period |
| The payback period for the initial investment in solar panels depends on several factors , such as the size of the solar system, electricity rates, savings on electricity bills, and any tax incentives or grants available. In general, homeowners can expect to recoup their initial investment in 5 to 10 years . After this time, the savings on electricity bills will continue to accrue, allowing you to enjoy a virtually free source of energy. |
Calculation of savings made over a given period |
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To assess the savings made over a given period, it is essential to take several factors into account. You must consider the amount of electricity produced by your solar system, the amount of self-consumed electricity, the amount of electricity sold and the purchase and sale tariffs . These elements can be estimated from solar production data (depending on your installation location, the orientation and inclination of your panels) and your electricity consumption history. Using this information, you can calculate the savings made or projected on an annual or monthly basis, which allows you to visualize the long-term financial benefits of solar self-consumption. Our simulator allows you to do this calculation online.
If we take the example of our house which consumes 7500 kWh and installs 10 panels of 420 Wc, the investment is 4337€ including the administrative assistance and the surplus purchase contract. If our house self-consumes everything (952€ annual bill reduction at the July rate, 1047€ at the August rate) the system is profitable in just over 4 years . If the house self-consumes 50% and sells 50%, the return on investment is closer to 5 years (annual saving of 476€ and annual surplus sale of 397€)
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Long-term profitability of solar panels |
| Solar panels are a profitable long-term investment . They have an average lifespan of 25 to 30 years or more, which means you can enjoy a clean and affordable source of energy for decades to come. As electricity rates continue to rise, so will your savings from solar self-consumption. In addition, solar panel maintenance costs are generally low, contributing to high overall profitability. This makes solar self-consumption a safe and sustainable way to quickly recoup your initial investment and enjoy long-term financial benefits. |
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In conclusion, solar self-consumption offers a multitude of financial advantages that make it an attractive solution for homeowners who are keen to reduce their electricity bills and maximize their long-term savings. The significant reduction in electricity bills , the ability to sell excess electricity , protection against electricity price increases and the amortization of the initial investment are all strong points of solar self-consumption.
In addition, to facilitate the adoption of this technology and simplify administrative procedures, specific offers such as the Administrative Assistance Package for the Sale of Surplus offered by Oscaro Power are available. Our all-in-one kits offer a turnkey solution, including the installation of solar panels, access to advantageous buyback rates for excess electricity and administrative assistance to facilitate resale. By choosing Oscaro Power kits, you benefit from a complete solution that combines the financial advantages of solar self-consumption with a simplified offer for the sale of excess electricity.
Investing in solar self-consumption with Oscaro Power kits allows you to benefit from the financial advantages of this technology, while contributing to the energy transition and reducing your carbon footprint. It is a sustainable and profitable approach, which offers you energy autonomy and the possibility of making substantial savings.
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