What is solar energy?

Solar energy is becoming increasingly popular as a power source, but it’s still often misunderstood. If you’re wondering what solar energy is and how it works, or if it could be a smart addition to your home, you’re not alone. With rising utility bills, many Australians are considering solar energy to reduce their reliance on the grid.

Solar energy can help you save on electricity costs while providing a cleaner power source, especially if you’re concerned about your environmental impact. However, it’s important to understand what you’re getting into before making the switch.

In this guide, we’ll cover what solar energy is, how it works, and what it can be used for. If you’re thinking about moving away from fossil fuels, keep reading to learn more.

Categories of solar energy

Solar energy comes in two types: passive and active.

• Passive solar energy: This type captures the sun’s heat without any mechanical devices. It includes things like building designs that use solar windows or materials such as brick and concrete that absorb and slowly release heat.
• Active solar energy: This type uses mechanical devices to collect, store, and distribute solar energy. Examples include solar panels that generate electricity, solar thermal systems that heat water, and solar-powered pumps.

How does solar energy work?

Solar energy comes from the sun's core through a natural process called fusion. The sun sends out energy as electromagnetic radiation, which travels through space and reaches Earth.

We can capture this energy using photovoltaic (PV) cells in solar panels to create electricity for homes, businesses, and other uses.

There are three main types of solar energy technology: solar heating and cooling (SHC), concentrating solar power (CSP), and photovoltaics.

• Solar heating and cooling (SHC): This technology captures solar heat for applications like heating water and spaces.
• Concentrating solar power (CSP): CSP systems use mirrors or lenses to focus sunlight and generate heat, which is then used to drive turbines that produce electricity.
• Photovoltaics (PV): PV technology converts sunlight directly into electricity using solar cells, which can power everything from small gadgets to large electrical systems.

PV cells are typically made from silicon, a material that absorbs light. When sunlight hits the PV cell, it moves electrons in the silicon. These moving electrons create an electrical current that powers various devices.

How is solar energy used?

The most common way to turn sunlight into electricity is with photovoltaic (PV) cells, which are what we usually call solar panels. These panels are now widely used on rooftops of homes and businesses. In larger solar power stations, panels are arranged closely together in fields to capture as much sunlight as possible.

Solar panels are made from semiconductor materials, typically silicon. When sunlight hits these cells, it releases electrons from their atoms. These free-flowing electrons create an electric current, which generates electricity.

Solar energy can be used in many ways. It can power homes and businesses, provide lighting in remote areas, and even heat water. Large solar installations, known as ‘solar gardens’, can supply power to entire communities. NASA also uses solar energy to power satellites in space.

In Australia, solar power is mainly used for generating electricity for homes and businesses, and also for large-scale solar farms. Solar energy is a popular and accessible renewable energy option for both small and large projects.

Unlike photovoltaic systems, solar-thermal power plants use the sun's heat to produce energy. These plants concentrate sunlight to heat water, creating steam that drives turbines to generate electricity, similar to traditional power plants. Although solar-thermal plants exist, they are less common than photovoltaic systems.

Is solar energy renewable?

Renewable energy comes from sources that won’t run out. Unlike fossil fuels like oil, natural gas, and coal, which are limited, renewable resources are always available.

Renewable energy doesn’t produce the large amounts of carbon that contribute to climate change. For example, solar and wind energy are endless and don’t create carbon emissions. The sun and wind are always present, so solar energy is a true renewable resource.

As we shift to cleaner energy, solar power might become our most crucial tool for moving towards sustainable energy sources.

Solar energy advantages to consider

Solar energy offers several benefits for your home or business. Here are the main advantages of making the switch to solar power:

Lowers your electricity bill

Using solar power can significantly cut down your monthly electric bill.

Provides potential savings through incentives

Solar systems may qualify for state incentives, rebates, and federal tax credits, helping offset installation costs.

Environmentally friendly

Solar power generates minimal carbon emissions and reduces greenhouse gases compared to traditional energy sources.

Moves us toward energy independence

Unlike finite fossil fuels, solar energy is abundant and will continue for billions of years, promoting energy self-sufficiency.

Sustainable

Solar energy is a virtually limitless resource, with the sun providing more energy than we currently use.

Low maintenance

Solar systems typically require minimal maintenance, with long warranties and few parts that need replacing.

Benefits the electricity grid

Solar power can reduce the strain on the electric grid, and some areas offer net metering, allowing you to earn credits for excess power you generate.

Solar energy disadvantages to consider

While solar energy has many benefits, it may not be suitable for everyone. Here are some potential drawbacks:

High upfront costs

Installing a solar power system can be expensive initially. Costs vary based on your location, the number of panels, and installation needs, which may be challenging for some households. Financing options like loans or credit cards might be necessary.

No power at night

Solar panels generate electricity only when the sun is shining. At night, you’ll need to rely on the energy grid unless you have a battery backup, which isn’t always available.

Energy storage issues

Storing solar energy for use when the sun isn’t shining requires batteries, which can be costly and take up space. Although battery technology is improving, this remains a consideration.

Space requirements

More solar panels mean needing more space. Not all roofs have enough room for the panels you might need, and installing them in your yard requires direct sunlight, which may not be possible if you have many trees.

Inconsistent energy availability

Solar energy can be less reliable in areas with frequent rain or long periods of darkness, such as in places with harsh winters or during solar eclipses. Adequate battery storage is essential in these situations to ensure a steady power supply.

Is solar energy here to stay?

Australia leads the world in solar energy adoption, with over three million homes and businesses having rooftop solar systems, according to the Clean Energy Regulator.

This is largely due to Australia's sunny climate, government solar rebates, and falling costs of solar technology. By 2025, Australia aims to generate 50% of its electricity from renewable sources, as reported by the Australian Academy of Technological Sciences and Engineering.

As demand for clean energy grows and solar technology becomes more affordable, its role is becoming increasingly important. Globally, governments are pushing for renewable energy to cut greenhouse gas emissions and meet climate goals. In 2023, the Albanese government signed the Clean Energy Transition Partnership with 39 countries, aiming to reduce carbon emissions and boost clean energy in Australia.

So, in short, yes, solar energy is expected to remain a key part of our energy future.

Compare solar plans with Compare Energy

With its diverse uses and decreasing costs, solar energy is set to be a major part of our energy landscape for many years to come.

If you’re looking to compare the best solar plans in Australia, give the team at Compare Energy a call on 1300 790 106 - let’s talk about harnessing the power of the sun.