An interesting question was left in a post, deep in the archives, and I thought it would be better bought out into the light so that other might comment and share their experiences and knowledge.

As a ‘singleton’ maintaining a household alone (well, with 4 pets) I’d be really interested to know how other singles manage, esp. if they are paying mortgages on their own. Sometimes I feel completely overwhelmed by the price of utilities (electricity – eek) and I find the price of food…frighteningly expensive. Also, I walk out of the supermarket every week wondering if they (the big shops) think we’re stupid, ie, that we can’t see they are reducing sizes but charging us more! My main interest is whether I’m overspending, compared to others in a similar situation.

If you’re single how do you manage the bills on one income? What suggestions would you make for keeping down expenses?

Have you read these articles?:

1. living an authentic life here and now
2. budgeting for irregular income
3. what is your dream life costing you?

Last week we had to dip into our emergency fund twice: once to pay the insurance excess on the sewage damage to the house ($500) and then to pay for my laptop to be fixed ($300).

The broken laptop was an inconvenience, but very minor in the scheme of things. The price tag for repairs brought a tear to the eye but it could have been worse: we could have been forced to rely on credit or we may not have had the funds to repair it at all.

The sewage flowing into the living room wasn’t much fun either, but it too could have been worse. Inconvenient, icky, smelly, but again, in the scheme of things, not that bad.

But I want to talk about why an emergency fund makes life easier. Having an emergency fund meant we had no added financial stress on top of the ick and inconvenience.

In the recent reader survey I asked you what it means to be ‘thriving’ and many of you wrote about living with less stress. Having an emergency fund is just one way to reduce financial stress.

So how do you create an emergency fund, particularly if you’re trying to pay the bills, pay off debts and save for more tangible things (potential future emergencies are hard to visualise and predict, which means it can be difficult to find the motivation to save for them)?

First, the foundation of an emergency fund is adequate insurance. In nearly ten years of having insurance, this is the first time I’ve ever had to make a claim, and boy am I thankful that I have it. This week, insurance has been well worth the yearly expense. When things go wrong, insurance is your emergency fund.

You will often read articles on how to save money on insurance premiums and that’s great, but it is just as important to make sure you are adequately covered. It is common for people to be under-insured. If you never have to make a claim then sure, you’ll save money on premiums. If you do have to make a claim, being under-insured can make things pretty miserable. The thing about insuring against future risk is that you just never know whether you will ever need to make a claim.

You can create a balance between saving on the insurance premium and making sure you are adequately insured by increasing your excess. We have a higher than minimum excess and for a couple of extra hundred dollars at claim time we have saved ourselves in premium costs over the years. But again, the savings depend on how often you have to make a claim and it’s impossible to predict future events. If you’re going to increase your excess (or even if you aren’t) put aside the excess amount so that you have it, should you make a claim. This is where your emergency fund comes into play.

Our emergency fund paid for the computer repairs and the insurance excess. If we have to wait for the insurance money and we want to buy replacement items in the interim, the emergency fund will come in handy then too. And if the insurance company decides not to pay our claim well, we’ll be angry, but still partially covered by our emergency fund.

To build an emergency fund, start by putting aside a little each payday into a separate account. Make your life easier and automate the payment. Even a couple of dollars is better than nothing.

Just say we had only managed to save $100 in our emergency fund. That’s $100 less to pay off the credit card as well as not having to pay interest on that $100. It might not cover the emergency, but it makes things that little bit easier financially.

If you’re trying to balance saving for an emergency fund with paying existing bills and debts, then I’ve outlined a strategy for getting on top of it all with minimum fuss and pain in a free eBook, which you can find here. Some argue that it’s more important to pay off debts before you start saving for an emergency fund but I disagree. If emergencies and bills are continually paid for with credit, then you may never pay off your debt and you could end up paying more interest in the long term compared to what you pay if you put a little aside each week to cover future emergencies.

Sometimes poo happens and we have no control over it. While it sucks having to use your savings on insurance excesses and repairs rather than fun stuff like holidays, it would be much more stressful not to have the funds to cover these unpredictable events.

If you don’t have an emergency fund, why not start one right now? Log onto your online banking and set up an account and automatic transfer (it will only take a minute) and that’s one thing done today that will make life easier in the future.

What are your tips for saving for emergencies?

Have you read these articles?:

1. emergency fund in four parts
2. the what, why and how of emergency funds
3. tip tuesday–The ‘always something comes up’ fund

As a follow on to the article on solar power a couple of weeks ago, I thought I would write about another solar alternative: solar hot water.

We had a solar hot water system installed about a year ago. Our old system, although it performed valiantly to the end, finally gave up the ghost so we were in the market for a new system. After doing the research and the maths, solar hot water made the most sense for our situation.

Below is a description of how solar hot water works, the costs, rebates and savings applicable as well as details about our own system and savings.

Solar hot water – the system and how it works

Solar hot water works differently to solar energy in that it heats water using the heat generated from the sun rather than converting the UV rays into electricity.

There are two main types of solar hot water: the roof-mounted system, where the tank is on the roof; and the split-system where you only have panels or glass tube collectors on the roof and a stand-alone tank below. This article gives a detailed description of the two systems.

According the the Energy Matters website, the energy benefits of each system are similar. The choice between the two comes down to cost (the roof-mounted system is cheaper), the structure of your roof, aesthetics etc. One thing to keep in mind is that glass tube collectors can be more efficient in colder climates, which would make a split-system more appropriate.

With a roof-mounted system, water from the mains gets heated by the panels, which then rises (is thermo-siphoned) into the tank on the roof for storage. With a split-system, cold water is pumped from the mains into the solar panels, is heated by the sun (copper pipes in the panels absorb the sun’s heat) and then travels down to the tank where it is stored until used. If the water in the tank drops below a certain temperature, it is pumped back up to the solar panels to be reheated. The pump runs on electricity; the roof-mounted system has no pump.

With either system, if there’s not enough sun to heat the water, you will have to ‘boost’ the system with electricity (or gas, if you have gas) from the grid.

Boosting your system

There are two options for boosting your system: either you have your system connected so that it automatically kicks in when the sun can’t maintain the heat of the water or you boost the system manually by turning on the booster at the switch-board.

Whether you choose the manual or automatic option will depend on where you live and your household usage. Your installer should be able to advise you which method will be appropriate for your circumstances. In colder climates, where you have to rely more on the grid, it may be better to have your booster automatically kick in and connect your system to your off-peak metre.

We chose to boost our hot water system manually. If you do this, make sure you get your electricity company to remove the off-peak hot water metre so that you aren’t paying rent on a metre that isn’t being used.

About our system

We purchased a split-system. While it would have been nice to have the extra yard space rather than a whopping great big tank in the middle of it, there was no way the other members of our body corporate would have approved the ‘ugly’ roof-mounted system.

Our aspect couldn’t be more perfect for solar power. We get direct, unobstructed sub-tropical sunlight for the entire day and throughout the whole year on one side of the house (where the panels are) and pretty much no sun on the other (where the tank is). As a result, we had a fair bit of pipework installed inside the roof, and we have only had to ‘boost’ our system about 20 times in the last year.

Because we boost our hot water manually, it is connected to the regular tariff metre rather than the off-peak metre, saving us around $18 a month on the off-peak metre rent. When our hot water isn’t so hot anymore, it’s simply a matter flicking the hot water switch at the fuse box, leaving a reminder note on the kitchen bench and then switching it back off again after an hour or two.

Here are some pictures of our system. The photo above is of the panels on our roof.

How much does a solar hot water system cost?

The cost of installing a solar hot water system will vary depending on the system you choose, the installer’s retail price, the design of your home (how much pipework you’ll need, for instance) and the rebates that are available to you. You could be looking at anything between $1000 and $10,000 (the breakup of our system costs are below).

The rebates available

(Note: Subject to change – current at time of writing (October 2011); STCs are set to change in November 2011.)

Depending on where you live and what system you install, you could be eligible for a cost offset of between $300 – $3,100.

The rebates available include small scale technology certificates (which replaced the old renewable energy certificates), the federal government rebate and possible state government rebates (assuming you meet the eligibility criteria on the last two (see resources below).

To find out about the rebates available to you, check out the Hot Water Rebate website.

1. Federal rebates

The Federal rebate is currently $1,000 (applied for through the Medicare system) and paid into your bank account after installation (their advertised turnover period is around 8 weeks, however, we waited seven months for our rebate, so don’t rely too heavily on the rebate!). You are not eligible if you received the insulation rebate.

2. State rebates

3. Small Scale Technology Certificates

You can find a detailed explanation of how the STCs work in last fortnight’s solar power article. According to the Solar Hot Water Quotes website, the STCs will give you between $300 and $600 back on your hot water installation.

What our system cost

We installed our system just over a year ago, before the RECs became STCs. We got several quotes and found Solarhart to be several thousand dollars more expensive than other companies. That’s quite a big difference, although as I understand it, Solarhart systems are Australian made, whereas we bought a Chinese made system (which still has to meet Australian standards).

The total cost of our system was $4,400 from which the RECs were deducted, making our up-front payment $3,175. The federal and state rebates brought the total cost down to $1,175. As a comparison, replacing the existing electric storage tank with another would have cost between $600 and $1,000 plus the constant running costs, so it was a no-brainer for us to go solar.

The savings

The savings you make with solar hot water will depend on several factors including where you live (how much sun you get), your usage (how long your showers are, whether you wash clothes in hot or cold water) and the number of people in your household.

Having said that, the government estimates that the average household will save around $300 a year off their bills.

Our savings

I have a small caveat before I write about our savings: living in the sub-tropics makes solar energy more than feasible. The ambient air temperature is quite high, even on a cloudy day, which means we rarely have to turn the booster on for our hot water. If I were still living down south, where the winters are significantly colder, I am sure our hot water would need to be boosted much more frequently, reducing our savings.

Ok, having said that, our energy consumption dropped by an overall average of 34% after installation. Here’s a graph of our average daily kilowatt usage over the past four years as per our bills (I know, I really need to get a shredder!):

The high points on the graph are, not surprisingly, during the cooler months where we have hotter (ahem, and longer) showers. Also, our electricity rose quite a bit after we had a baby.

You can also see by how much our consumption dropped after we installed solar hot water. This year’s winter ‘high’ is still significantly lower than the previous years’ lows.

As far as the money goes, compared to last year, our average daily expense dropped by about 10%. The discrepancy between the savings in electricity and the dollar savings results from the continuous price rises. The price rises are further emphasised by the fact that compared to the average daily expense between 2008 and 2010, this year’s average daily expense has increased by 4%, despite our reduction in usage. I’m sure it’s only going to get worse.

If you’re in the market for a new hot water system, solar could be the way to go, especially when you take into account the government rebates. Other options include a gas system or a heat pump system, both of which are cheaper and more environmentally friendly than an electric storage system and may also be eligible for rebates.

A solar system has certainly saved us money and will continue to do so in the future, particularly considering that we had to get a new hot water system anyway.

Resources

• Solar Hot water rebates -  Climate Change Website (government)
• Solar hot water details – Office of Renewable Energy (government)
• Technical details  – Your Home (government website)
• Hot water rebate calculator
• Find more detailed information on solar hot water here and here and here (government).
• Choice guide to Solar hot water systems (this was written in 2008, so a little out-dated but there’s still some useful information here).

Have you read these articles?:

1. 10 easy tips to save water and money in your home
2. save money on the bills by going green
3. solar power not for you? think again – an introduction to passive solar design

The other day I wrote about the ins and outs of installing solar panels and concluded that solar panels don’t make a great return on investment at the moment (although for an alternate view, please see this article which compares solar investment to a savings account investment).

For many of us who are concerned about our impact on the environment, there can be a certain amount of guilt associated with our inability to afford solar power, or our decision not to install it.

After all, doesn’t solar power reduce the need to burn dead dinosaurs?

There is an alternative, however, to spending thousands of dollars on solar panels. It’s a smart alternative and one that everyone of us can do today, without the huge outlay of cash.

In the original article I noted that the average Australian household uses around 18kW of power a day [Choice]. Let’s assume the average person living near Brisbane installed solar power. They would be able to reduce or offset their grid electricity consumption by an average of approximately 8kW a day going off the figures of this calculator.

As a comparison, living in Sydney you could generate approximately 7.5kW, in Melbourne about 7kWs, in Hobart about 6.6kW, and Perth around 8.6kW.

To labour the point: to save 8kW a day in electricity (and around $1.70 a day), you need to make an initial $3,000 – $6,000 investment.

The kicker of an alternative

Here’s how to get the same or similar result for free (or a lot cheaper): reduce your energy consumption.

Reducing consumption is something we can all do, starting today, no money down.

Imagine if you reduced your consumption by 1kW a day. That’s the equivalent of using an electric heater for a total of 1 hour less a day, or watching 2 hours less of TV a day. At 21c a kilowatt, that’s a saving of around $75 a year.

Reduce your consumption by 3kW a day, a very achievable goal, and you can save around $230 a year.

And if you were to then install solar panels, your net energy consumption will be much closer to zero.

The bigger picture

A 3kW per day energy consumption reduction doesn’t seem like a big deal. But imagine if every household in Australia reduced their energy consumption by an average of 3kWs a day.

There are around 8 million households in Australia. At 3kWs per day, that would reduce the nations electricity usage by 8.76 billion kilowatts a year.

Australia produces around 195 billion kilowatts of electricity for general consumption. Around 30% is for residential use (going off the nation’s average of 18 kilowatts per household, per day).

At 3kWs less per day, that would be a reduction in residential energy consumption of 16% and a total reduction in energy consumption of 4.5%.

Approximately 77% of all electricity generated is from coal-fired power stations. A 3kW reduction would also mean a total reduction of coal-based energy consumption of 5.8%, which is the equivalent of over 9 million tonnes of carbon dioxide released into the atmosphere per year (extrapolated from these figures).

Let’s take this a little further. Part of the government’s emissions reduction plan is to reduce carbon emissions to 5% less that the 2000 levels (which would be a total emissions target of 530 megatons per year). The current projection for 2008-12 is 582 Mt. That means we need to reduce emissions by 9% to be on target (instead of increasing emissions, which is our current trajectory).

If we were to all reduce our energy consumption by 3kW, that would contribute 15% to the total emissions reduction required.

So if you think that off the lights or using the dryer less doesn’t make a difference, think again. It all adds up.

While many of us may not be able to afford to install solar panels, or decide not to for various reasons, what we can do is reduce our energy consumption which is just as important, if not more so, than installing solar panels.

Have you read these articles?:

1. solar power–are you missing out on energy that’s out of this world?
2. solar power not for you? think again – an introduction to passive solar design
3. bathing in sunlight – can solar hot water save you money?

The what, why and how of solar power – an overview of how solar power works, the costs and rebates involved, and whether it’s worth it.

Some months back, a F&T reader asked me about the pros, cons and costs of installing solar power. Is it really worth the cost in terms of energy savings? Will you actually be saving money on electricity once the cost of installation is factored in?

I have to admit that after doing some reading(particularly about how the rebates work here in Australia) this article went into the ‘too hard – need time to think’ basket for quite some time.

While I’m an environmentalist at heart, and I strongly believe we should be moving away from fossil fuel based energy, after doing the reading I’m not convinced that the average person in the street can or should install solar power – at the moment.

Yes, it will reduce our reliance on fossil fuels, but like flat-screen TVs, do you want to spend a huge amount on emerging technology, or wait a while and spend less on better, more efficient technology?

I’m willing to wait (ok, we have to wait, we don’t have a spare $6,000).

But there is something we can all do in the meantime.

Why install solar power?

There are several reasons why you might consider installing solar power in your home:

1. You are concerned about your environmental impact and reliance on fossil fuels.
2. You wish to improve the value of your property by investing in solar panels.
3. You want to be less dependent on big business supplying your energy needs.

Notice I didn’t write ‘you want to save money on electricity’.

Sure, you’ll be paying less money on your electricity bills and the value of your savings will increase each time the cost of electricity supplied rises (and it will continue to rise steeply in the future). But as far as a return on investment goes, it’s not great (more below).

First thing first

Solar power works best in an energy efficient building. The more energy you consume, the more you will have to rely on the grid to make up the deficit between consumption and the energy generated by your solar panels.

So, before even considering installing a solar power system, focus first on reducing energy consumption in the home by using less, insulating your home, installing energy efficient lighting, buying energy efficient appliances and improving energy efficient habits (hanging the washing out instead of using the dryer, for instance).

This of course, is what we can all do instead of (or as well as) installing solar panels.

How does solar power work?

When it comes to solar power, there are two main systems: a solar hot water system, and solar electricity, both of which work quite differently.

Solar hot water works by using the heat from the sun to heat water. The hot water is then stored in a tank. I will look further into solar hot water at a later date.

Solar electricity, on the other hand, is generated when electrons are freed by the interaction of sunlight with the semiconductor materials in the solar photovoltaic (PV) panels, and are then captured in an electronic current.

This DC current is then carried through an inverter that converts the current into 240C AC power (which is the current used by Australian appliances. The current conversion will be different in other countries).

The AC power then travels via a disconnect switch (for safety) to your fuse box and your appliances or into the main electricity grid if your panels are producing more electricity than you are using at the time.

The solar power system

A solar power system consists of panels, an inverter, a disconnect switch, wiring, and an import/export metre box and works as noted above. The import/export metre monitors both the electricity that you are supplying ‘the grid’ and the electricity from the grid that you use.

The smallest system is a 1kW system, however, because of the way the rebates work (described below), the standard system in Australia is the 1.5kW system. A 1.5kW system will produce 1.5 kilowatts of electricity during peak output (when the sun is at it’s strongest and the rays are hitting the panels at a direct, perpendicular angle). You can find a good graph here that shows approximately the generating output of a system during the day.

To put this in context, here near Brisbane, we would average around 5.3 hours of peak sunlight a day, over the year, which would generate about 8 kilowatts of electricity in one day (using this calculator).

The average Australian household uses around 18 kilowatts a day according to Choice. Our average, by the way, is 7.9 kilowatts a day as per our last electricity bill, thanks to having solar hot water and few appliances.

To generate 18 kilowatts a day here near Brisbane, we would need a 3.4kW solar system.

Factors that affect how efficiently the panels are generating electricity include:

• The time of day
• The time of year
• You latitude (the closer to the equator you live, the more sunlight)
• Air pollution (water vapour, dust etc)
• Cloud or shading

Things you need to consider

The first thing you need to consider is the installation location. Solar panels need to be to be positioned where they get unobstructed sunlight for most of the day and for most of the year. In Australia, that means positioning them on a north facing roof where the panels won’t be shaded by trees, other buildings, chimneys, gables etc.

The second consideration will be the size of the panels you want. This will be determined by three things:

1. how much you are willing to spend
2. how much space you have on the roof for panels
3. your electricity requirements

Obviously, the bigger the panels, the more electricity they will produce but the more expensive they will be and the more space you will need on your roof. As a guide, the standard 1.5kW panels require 15 square metres of roof space.

A solar power system generates electricity any time the sun is shining. However, it operates at ‘peak output’ only during sunny days and when the sunlight is direct (the angle of the sun means that it’s rays are hitting the panels straight on).

The cost of installing a solar system

The cost of a solar system will be determined by it’s size. According to the Solar Quotes website, the cost of a typical 1.5kW system is around $8,000 before rebates (see below) although I’ve seen it online for as low as $5,000 before rebates.

Current Australian rebates

The rebate system is confusing at best. At the time of writing (Oct 2011) there are actually no longer rebates as such, the cost of solar installation is offset by Small-Scale Technology Certificates and Solar Credits.

At the end of the day, your installer will work out your cost offset for you, so you won’t need to worry about calculating it yourself. If you’re interested in how the system works, however, read on.

You know the whole carbon emissions trading scheme we hear about every now and then? Well this is kind of how the solar cost offset currently works.

Rather than getting a standard rebate, you save on the cost of installing a solar system with Small-Scale Technology Certificates (STCs). These certificates are actually tradable commodities. When you install a solar system you may claim a certain number of these certificates. These certificates offset the cost of installation.

How many certificates you are entitled to will depend on your geographical location, the size or capacity of your system and the year it is installed.

For the purpose of STC credits, Australia is divided into zones (you can find a zone map here). The zone you live in will determine your number of certificates.

The government also currently offers ‘solar credits’, which multiply the number of STCs you are entitled to (up to 1.5kW), based on the year of installation. For example, if you install solar panels in the current financial year, you can multiply the number of eligible STCs by 3 (see multiplier table here) Each year, this number will reduce to 0 credits from July 2013 onwards.

Here’s the formula for calculating your STC eligibility with an example:

Zone rating (found here (page 9)) x Rated Power Output x Deeming Period (life span of system up to 15 years) x Solar Credits = Total no of STCs

For example, here near Brisbane (like all of the east coast) I am in zone 3 with a rating of 1.382. Assuming I install a 1.5kW system this financial year that has a 15 year lifespan I will be eligible for 93 STCs.

The value of these certificates depends on the market value at the time (generally between $20 and $40). If the STCs were valued at $24 each, that would be a total of $2,232 in cost offset (93 x $24). For an $8,000 1.5kW system, that would bring the installation cost down to $5,768.

So, how much will you save if you install solar power?

According this government source, a 1.5kW solar installation would provide the average family with about 25% of their energy needs. At 18 kilowatts a day and 21c per kilowatt (the current QLD rate for electricity) that’s a saving of around $350 per year, down from $1380 to $1,030.

Not exactly earth shattering.

At $5,500 installation cost and a saving of $350 a year, it would take approximately 15 years to get a full return on investment (assuming the price of electricity never went up again).

However, working out the actual savings is quite complicated because of the way feed-in tariffs work. Here’s what I mean.

You might be producing 1.5kW during the middle of the day (peak output), but because you’re at work and not using the power generated, the excess is fed back into the grid.

Come home after dark, turn on the TV and start cooking dinner and you will be using energy while your solar panels are generating none, and this electricity will be coming from the grid.

This is where your import/export metre is important for monitoring what you feed into the grid, and what you use. The amount you get ‘paid’ for electricity fed into the grid is called your feed-in tariff. Again, your feed-in tariff will depend on the state you live in and your electricity retailer.

How does your retailer calculate your energy bill?

Most states (except NSW and the ACT and, oh, the rest of the world) use a net-metred system, where you are paid for the difference between the amount of energy you use and the amount generated. It is very difficult then, to estimate the savings.

Under the gross-metred system (used in NSW and ACT), you are paid for all of the energy generated at the set rate and pay a different rate for any energy used. This is a much better system because you are paid a higher rate for all electricity generated and you can more easily calculate your savings.

In NSW under the gross-metred system, for instance, the feed-in tariff is 60c per kilowatt. You get paid 60c for every kilowatt you feed into the grid, but you pay only 19c for every kilowatt you use from the grid.

(At the time of writing, many of these feed-in tariffs have been scrapped for new entrants. For more on feed-in tariffs see the Energy Matters website.)

Don’t forget though, the more the electricity prices go up, the more you end up saving by having solar panels installed now and the shorter the return on investment.

Now it’s pay back time

The difficulty in calculating the savings also makes the pay-back time difficult to calculate.

The pay back time refers to how long it takes for you to get a full return on your investment. With a gross-metred feed-in tariff, it can be as little as 4 years until you have ‘paid off’ your initial installation cost with electricity savings. With no feed-in tariff, it can take up to 20 years to recoup the initial investment in savings.

Of course, the payback time will also be affected by how much electricity your panels generate and how much energy you use (the more energy efficient your home and lifestyle, the less time it will take to get a full return on investment).

For how pay-back calculations work in greater detail, see the the Alternative Technology Association website.

Summary

There are two important unknown variables that play a role in the viability of residential solar energy generation: future electricity prices and future technology advancements.

There may come a time when electricity produced by fossil fuel becomes so prohibitively expensive (whether that is due to global demand, peak oil or the up-coming carbon tax), that solar energy becomes a necessity for households.

The alternate scenario is that advancements in solar technology both increases the efficiency of solar energy generation and reduces the price, making it a more viable option for the average person in the street.

My personal conclusions is that right now, today, it is better to focus on reducing energy consumption by being more energy efficient (by forgoing the dryer, for instance). And maybe putting aside some money for a future investment in solar panels (waiting for that elusive technology advancement).

Listen, the simple point here is right now solar panels and other green energy sources cost a lot more than fossil fuels. Solar panels cost perhaps 10 times as much as fossil fuels. Now, you can get a few rich, well-meaning Westerners, put them up on their rooftops, feel good about themselves, but it’s not going to solve global warming.

But if we could innovate the price down of solar panels over the next two to four decades to be cheaper than fossil fuels, we would have solved global warming. Everyone […] would switch…

If you make fossil fuels more expensive, yes, people will switch slightly towards renewables, but what will essentially happen is that you’re just buying a lot of inefficient technology today, simply with government subsidies. [source]

Resources and further reading

• Choice guide to buying solar panels
• Solar Quotes: Dummies Guide to Solar. Lots of information on solar.
• Green energy market (where you can find out the current price of Small-scale Technology Certificates (STCs also know as SRES: Small Scale Renewable Energy Scheme) which will affect the value of your rebate.
• Solar Rebate Overview @ The Office of Renewable Energy Regulator (Australian Government)
• Alternative Technology Association
• Output calculator for solar panels
• Solar Panels Factsheet – The Climate Change website (government)

Have you read these articles?:

1. an energy saving alternative to solar – an addendum
2. solar power not for you? think again – an introduction to passive solar design
3. bathing in sunlight – can solar hot water save you money?

In all this talk about carbon tax, emissions reduction, renewable energy investments, solar, wind, geothermal… there is one source of power that doesn’t get a mention.

A renewable source of power that we have be using successfully for hundreds of thousands of years.

A renewable source of power that generates more energy, the more we use it.

A renewable source of power that gives back to the earth.

A renewable source of power that if we use it often enough, not only saves us money but makes us stronger, fitter, healthier, happier and smarter.

What is this renewable power source?

I’m talking about muscle power.

You don’t need expensive gym memberships or tedious exercise regimes to tap into this power source. All you have to do is use it during your everyday activities.

Electricity has given the average person in the street the ability to do what only the rich could do in previous centuries: the ability outsource work.

But instead of outsourcing work to servants, we outsource our work to machines.

We don’t pay machines a wage, but we do pay for their labour.

We pay for the cost of purchase, we pay for the cost of electricity and we pay with our health.

We have more time. But to do what? Go to the gym?

Rather than let your muscles atrophy, here are some tips to save on electricity by making the most of your muscle power.

• Walk (or cycle) rather than drive where you can
• Sweep rather than vacuum
• Sing or play an instrument rather than turn on the radio
• Use a wooden spoon rather than an electric mixer
• Hang your washing rather than use a dryer
• Dance rather than watch ‘So you think you can dance.’
• Write a letter with pen and paper
• Hand stitch
• Let your hair dry naturally
• Play actively rather than be entertained passively
• Use hand tools rather than power tools
• Wash the dishes rather than use the dishwasher
• Get active rather than turn on the heater
• Grow rather than shop
• DIY rather than outsource

What are your tips for making the most of muscle power?

*Image by Victor Bezrukov, used under the creative commons licence.

Have you read these articles?:

1. solar power–are you missing out on energy that’s out of this world?
2. Drastically Reduce Your Energy Bill for Free (or really, really cheap)
3. an energy saving alternative to solar – an addendum

This is a guest post by Daniel Zuraw of The Buzz Insurance.

Being an astute consumer is becoming an essential part of survival and success in the modern world. And this is just as relevant for those of us who drive a vehicle – for personal or professional reasons.

While many of us keep an eye on the fluctuating price at the local petrol stations to nab the best weekly deal, look out for the best deals on new tyres, and get second opinions when considering mechanical work, we often accept the price of our car insurance as a given.

There are many ways to save on car insurance and it’s all about taking the time to secure the best car insurance quote possible each time your renewal notice rolls around.

By following a few simple guidelines, making a few minor changes and asking the right questions, you too can save on your car insurance. Here’s how!

Loyalty- rewarded or ignored?

Some insurance companies acknowledge and reward customer loyalty, others don’t. When your renewal notice comes in the post, be sure to compare it against your previous year’s invoice. If there is a significant increase, ring and ask them to justify it. Be sure to comment on how long you have been a customer and if you are not satisfied with their response, let them know you’ll be shopping around. Some extra frugal people have even called and asked for a quote on insurance without mentioning they are an existing customer- only to find that their insurer is offering new customers a cheaper rate! The more information you have and the more questions you’re willing to ask will help you save.

Alternatively, if you are happy with your car insurance quote and wish to stick with your insurer, a quick phone call to discuss discounts for bundling all of your insurance needs with them could save you a bucket load on all of your insurance- health, home, life insurance etc.

[Mel’s note: I’ve tried all of the above tips in the past and have found that they can reduce your insurance premium from the amount quoted on your renewal notice.]

Your car, your expense

The type of car you drive will always impact on the cost of your insurance. If the budget is looking tight, consider downgrading to a more cost effective car. Call the insurers or go to an online insurer in Australia to see what cars are more affordable when it comes to insurance.

Alternatively, increase the safety features on your car such as alarms, automatic safety features (eg. Reverse cameras) and antitheft devices. If you are less likely to be in an accident or have your car stolen, your insurer will reward you with a lower quote.

And of course, when purchasing a new vehicle, be sure to consider both the type of car you choose and the safety features so as to avoid a rude shock when you try to insure your new pride and joy!

Your lifestyle

If you’ve ever taken out any kind of car insurance, you’ll be acutely aware that insurance companies place a great deal of emphasis on where you live, how often and far you drive and where and how your car is housed. This is because the more you drive and the greater exposure your car has to damage or theft and the more you and your car are likely to become a liability to the insurer.

While it’s not practical to move suburbs to get cheaper car insurance, if you can make simple modifications to your lifestyle to change where and when you drive (eg. Walking or cycling to work) and how your car is housed (ie. Putting the more expensive household car in the garage or converting the garage into a home for your car rather than a pool room!), you’ll be pleasantly surprised by how much you can save on insurance.

Know what you need out of your insurance

Some insurance companies (such as The Buzz Insurance) now recognize that people need more flexibility in their car insurance and allow you to modify your policy to suit your needs. If your insurer allows you to opt in and out of certain elements, be sure to discuss and compare such potential savings before agreeing to any policy. Know what you want out of your insurance and avoid being up-sold to other policies over the phone because it sounds like a good deal.

Put simply, saving on car insurance is simple and easy – all it takes is the willingness to do a little research, the drive to ask the right questions and the ability to acquire the knowledge to make smarter choices.

To find out more about car insurance and how you can save money visit The Buzz Insurance for the cheapest car insurance in Australia.

[Mel’s note: Just thought I had better add that I’m not remunerated for these guest posts, nor do I have an affiliation with Buzz Insurance or any other website that guest posts on Frugal and Thriving (if I ever do, I’ll let you know). Guest articles are published here to expand the knowledge base of Frugal and Thriving, and I think Daniel has some great tips for saving on car insurance.]

Have you read these articles?:

1. tips for saving money on insurance premiums
2. how to save money for a new car
3. pay your insurance annually

This is a guest post from Wallet Watcher.

Following a green lifestyle doesn’t necessarily mean you have to spend more. There are little things we can do in our everyday lives to save energy and maybe even a little money. Green living is all about simplicity—using less while also re-using and recycling more. There are plenty of basic ways in which we can cut down on the things we tend to use in excess, while also cutting down on our bills.

Here are some simple strategies for ways to save money and to live a greener life.

Use Less Water

Only use the amount of water you need. This seems simple enough, right? But many of us might not realise how much we are actually wasting each day. So be kind to your water bill and the planet by trying to use only what you need.

For instance, when you’re boiling water for cooking, use a smaller pan and less water when possible. Or if you’re making tea for only yourself or one other person, don’t fill up the kettle. Also, don’t leave the water running when you’re brushing your teeth or wiping down the kitchen after dinner.

Using your dishwasher more is another great way to cut down on water use. Dishwashers are more energy efficient than scrubbing each dish by hand is, especially with the water running the whole time. Fill up the dishwasher as much as you can before running it. You’ll also save yourself time from having to do all the dishes by hand.

Turn the Lights Down Low

Don’t feel like you have to read by candlelight at night. But when you’re leaving a room in your house, turn the lights off. And don’t have every single light on in a room, when you’re in it.

If you have dimmers on your light switches, you can make use of them. This can also create a very relaxed mood and atmosphere that you might actually enjoy.

Above and Beyond with Solar Energy

If you really want to get serious about going green and saving money on your monthly bills, you can consider solar energy. Solar companies can install solar panels on your roof to power your home, which can significantly decrease your electric bills; a hot water system to heat your hot water and cut down on your water bill; and even a heating system for your swimming pool. These systems might require initial investments but can definitely provide a return on your investment within a few years. Also, the maintenance required for these systems is often minimal and not very costly.

This is an option for those who want to do their part in helping the environment and are interested in investing now in order to save in the future. Also, your return on investment begins as soon as you receive your first monthly electric or water bill, which will be significantly reduced.

But you don’t have to do something drastic to benefit the environment and your monthly bills. Simply try to be more mindful in your day-to-day life.

Have you read these articles?:

1. 10 easy tips to save water and money in your home
2. bathing in sunlight – can solar hot water save you money?
3. The Green Loans Programme

I’m a huge fan of going paperless when it comes to bills. I confess that I HATE filing and my previous employers will confirm that filing is not a talent of mine. I’m surprised however, at how many companies still don’t have online billing. I have contacted our electricity provider and credit card company and neither have a paperless bill system, not to mention the rates, body corp fees and water charges.

The downside to online billing is that it can be difficult to keep track of when things are due, instalment payments, receipt numbers, payment information etc. With a paper bill, you have a visual reminder that the bill is due and you can write on the bill when you paid it, how you paid it, the receipt number and how much you paid and you can file the bill away for further reference (unless your filing is anything like mine). How do you record all this information with a paperless system? This is how I manage our electronic bills.

1. Sign up for email notifications and reminders. If you can, set up your bill accounts so that your bills and bank statements are sent to your regular email account and ensure that your account doesn’t filter those emails to the spam box. If bills are in your partner’s name and you manage the household finances, it can be a good idea to have your partner’s bills (like their mobile phone account for instance) sent to your email address so that payments don’t get missed.

2. Set up folders on your computer to file bills and statements. I like to download PDF copies of all our bills and bank statements so that we have our own reference copy. It’s always important to have copies of bills and statements in case of errors. Our internet provider for instance, kept undercharging us on our account. When I rang to tell them, they said it was a computer system glitch and not to worry about it (yes, we’re with Telstra unfortunately, but for good reason). Legally in Australia, a company can’t ‘double dip’ once an invoice has been sent, paid and receipted so I keep all copies of our bills as a reference.

To manage the PDFs I have a folder for bank statements, and one for paid bills. PDFs of unpaid bills remain on my desktop until paid and are then filed in the ‘paid bills’ folder. It is a good idea to rename your PDF files with a relevant name when you save them to your computer so that they are easy to find later on. Something like the date, and what the bill covers is useful, for instance: ‘201105savingsaccountstatement’ or ‘201105phonebill’.

3. Enter the pay date in your electronic calendar. Make the pay date a few days before the due date to ensure your payment isn’t late. This is especially relevant for BPAY which can take up to three working days to process.

For many bills you can record them in your calendar just once and schedule them as a recurring bill. You can also record the bill amount in the title for quick reference. Depending on what calendar you use, you may also be able to attach the PDF file to your calendar task or event. I use Sunbird and it can currently only attach webpages.

The process of recording your bills in an electronic calendar is useful even if you don’t normally use one because you can also record receipt details (below). Of course, you can use a paper calendar and write the details onto that instead, but an electronic calendar is quicker especially if you’re on the computer paying your bills anyway.

4. Pay your bill online and record the receipt number. The easiest way to pay recurring bills is to automate them. Whether you automate them or pay them manually (as I prefer), your internet banking service should provide you with a payment receipt. If your bills are paid automatically, you may need to go searching for the receipt, otherwise it will come up when you have made a payment.

I like to copy and paste this information into my electronic calendar for easy reference. If I ever think, ‘now, did I pay that bill?’ I can open up my calendar and look for the receipt. It also provides easy access to your receipt number if any payment disputes arise (which they do from time to time). You can also change the event heading from ‘Bill Due’ to ‘Bill Paid’ so that you can see at a glance which bills have been paid.

Once the bill is paid, the last step is to move your PDF file into the ‘Bills Paid’ folder.

As someone with an accounting background, I’m a little obsessed with good ‘internal control’ procedures and creating ‘paper trails’ or in this case paperless trails. If you keep adequate records (and, ahem, file them correctly) it makes life so much easier later on if you’re unsure about a payment or if there is a dispute. The above method is my internal control procedure for managing electronic bills.

How do you manage your electronic bills?

Have you read these articles?:

1. pre-paying bills
2. save money on the bills by going green
3. saving on the bills – it doesn’t hurt to ask

This is a guest post by Lisa Shoreland of Go College.

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Wasting water is harmful to the environment – and it’s also a good way to spring a leak in your wallet. It’s easy to forget how much you’re paying for the water you use every day, but once that bill comes, you realize just how much water your family really uses. Fortunately, there are some simple and effective ways to decrease the amount of water wasted in your home – just modify your habits and stay aware of water use. The following tips can help you save water and use it more efficiently, reducing your water bills and giving you one more easy way to keep your home running green.

1. Round up a rain water tank

If you water your yard or garden at all, it’s worth it for you to get a rain tank. You’ll reduce the amount of water you have to pay for almost entirely, depending on how often you water. And you’ll be reusing water directly from nature, which means that you’ll be avoiding wasteful behaviour.

2. Look for leaks

Don’t let water go to waste through leaks in your pipes. Check underneath your sinks, make sure your toilet isn’t leaking or running incessantly, and check connections on your washing machine, dishwasher, and other appliances that use water. This will ensure that the efforts you’re making to conserve water don’t go to waste because of an invisible leak.

3. Catch and use excess water

Whether you’re taking a shower, rinsing fresh produce, or running the water until it gets hot, you can save the excess water in a bucket or small pail. Use it to water your yard or garden – you can even dump it directly into your rain barrel, making it easy to water everything at once.

4. Keep laundry and dishwasher loads large

Don’t run small loads of laundry or dishes – this just wastes water, even if you change the load size to “small.” You’ll maximize the efficiency of your washing machine and dishwasher if you fill them to capacity before using them.

5. Limit toilet flushing

Don’t flush your toilet before and after cleaning it or use it as a trash can. Flushing after tossing in a tissue wastes water, and there’s nothing wrong with leaving the cleaner in your toilet until someone else flushes after using it.

6. Shorten showers

Try to limit the amount of time you spend in the shower. In the average home, 30% of the water bill is due to shower use, so don’t keep the water on for the duration of your shower. Just use the water to get wet and to rinse off, keeping the water off while you shampoo and soap. You can even keep the water off while you shave if you keep a small cup in your shower to hold water for rinsing your razor.

7. Don’t run taps

While you brush your teeth and shave, don’t run the water. When brushing your teeth, you can simply wet your toothbrush, turn the water off, brush your teeth, and then rinse. If you’re shaving, plug the sink and run just enough water to rinse your razor, then turn it off.

8. Keep drinking water in the refrigerator

Instead of running your tap until you get cold water out of it, keep a jug of drinking water in the refrigerator. This will prevent you from wasting water, and if you get a pitcher with a filtration system, you can even enjoy cleaner water.

9. Avoid cleaning the pavement with water

Don’t use your garden hose to clean your footpath or driveway. A broom will do the same job – it may require a little more elbow grease from you, but it won’t waste any water.

10. Water your lawn & garden at night

To avoid wasting water via evaporation, do your watering at night. Without the heat and dryness from the sun, your yard will be better able to soak up and retain the water you’re using on it.

[Mel’s note: Of course, keep in mind water restriction guidelines when watering your garden, washing the car or hosing cement. We just got our water bill: $520 for six months. Ouch. The annoying thing about our bill is that we only have one metre between 14 units, so no matter how much we save, they just divide the water usage evenly between the 14 units.]

Lisa Shoreland is currently a resident blogger at Go College, where recently she’s been researching school grants as well as scholarships for African American students. In her spare time, she enjoys creative writing, practicing martial arts, and taking weekend trips.

Have you read these articles?:

1. bathing in sunlight – can solar hot water save you money?
2. tips for saving money on insurance premiums
3. save money on the bills by going green