Are solar panels worth the investment?

solar panels worth investment

Are solar panels worth the investment? This is an oft-repeated question faced by the solar power business of Western Australia. With the cry for energy independence, solar energy and battery storage systems are quickly becoming the norm.

Irrespective of electricity consumption, solar panels are worth buying in every Australian state. Going solar is quite beneficial if one has budgeted for a good quality solar system from reputable installers.

A good quality solar system has a life span of 25+ years and is expected to give savings for 25 years while generating clean energy for all those years. With proper sizing, one can get the return on their investment in 4 to 6 years. Cheap solar systems will need replacement in a shorter time frame. Therefore, it is better to install a good quality solar system.

Rooftop Solar system is a good investment in Australia. Most of them get paid back in 4 to 6 years, though there are few where the repayment period is as little as 4 years.  It all depends on the solar system installation cost, government rebates, and the savings it makes.

Electricity generation and payback

Electricity generation and payback depend on variables like the location, roof orientation, tilt and electricity usage habits.

A 5kW solar system will generate around 20kWh a day and can save up to around $50,000 on the electricity bills over the entire life of the system. Battery storage enables households to run their home entirely on solar power.

Cost of solar panels Perth

In 2021, the most commonly installed solar panel in Perth is a 6.6kW solar system.   A good 6.6kW solar system in Perth would cost anywhere between $6,000 to $8,500. The price mainly depends on the panels and inverter you choose. If you are choosing a European-made inverter, there will be around an $800 increase in the cost. You can choose top brands of Chinese and German brand solar panels

Installation of an 8kW solar system with good quality panels will cost around $8000 to $9000. It would generate an average of 30kWh per day.

How much you save from a solar system

A 6.6kW solar system Perth can deliver around $1,200 – $2,000 savings per year whereas 8kW solar system would make a savings of over $3,000 every year on the electricity bills

The benefit of solar PV in NSW is that it reduces your power bill by around $400 per year per kW of solar energy, so by installing an 8kW solar system one can save up to around $3,400 a year, or $850 on quarterly electricity bill.

There are 2 main ways in which one can make savings by enjoying the benefits of home solar system:

1. Self-consumption

Consuming the electricity generated by solar PV is the primary way in which one can tackle energy costs. Self-consumption reduces the amount one needs to buy from their electricity retailer, thereby reducing the electricity bill.

One can save 30c per kWh when they use the solar energy that is directly generated from the panels.  Maintaining a high ‘solar self-consumption rate will help to optimise the return on investment.

2. Feed-in tariff for excess energy  

 If the generated solar energy is fed back into the grid, one will receive a feed-in tariff. It is the credit for excess power sent to the grid. It is usually around 10c per kWh but can vary according to the state and the retailer.

 In WA and NT these rates are fixed, but in other states, it is up to your energy retailer. In Victoria, there is a mandatory minimum of 10.2c per kWh. The feed-in tariff is usually low compared to how much you buy energy for.

Installing a good quality solar power system will increase the property value of and also increase the potential rental yield as new owners or tenants can benefit from the solar PV on the roof. When it comes to selling a house, the one with solar PV is more in demand.

The solar power business of Western Australia provides a great opportunity for a positive financial and environmental outcome by converting to 100% renewable energy sources by reducing each household’s carbon footprint.

Government Rebate

Australian government solar rebate is applicable to all solar systems installed with CEC approved panels. Solar system installation in Victoria, are eligible for federal rebate as well as Victorian solar rebate which helps them save up to $1,850 off the cost of a 6.6kW solar system. The Victorian rebate can significantly reduce the payback of a system.

Even for a low energy user, solar panels are still worth it. It is always better to buy a larger solar system as the additional kWs will pay off much faster. Though system installation doesn’t eliminate the electricity bill entirely, it will reduce the bill substantially.

With the soaring electricity bills and record low cost of solar panels Perth, people have realised that it is the perfect time to opt for solar system and have ushered in for solar installation to reduce their electricity bills. This account for the tremendous increase in solar power business of Australia, in the recent years. The federal solar rebate has come down 9% in 2021. With the federal solar rebate reducing every year, the clients will have to pay a little more for every year that they wait. Victorian rebate is also subject to change. It can be anything from a reduction in the amount to a change to the scheme. Read more about solar rebates

Solar Battery System

Solar panels are getting more efficient each year and, their cost is decreasing; though the curve is flattening. The earlier one goes for solar PV, the better it is as one can save money off their next electricity bill and contribute to the betterment of environment with the renewable energy.

Cost of Tesla Powerwall

Most of the solar installers are of the view that battery systems will not pay for themselves in 2021. Currently a Tesla Powerwall battery system costs around $14,000.

With a life span of 10 years and a payback period of 15 years one would hesitate to invest in a battery system. Waiting for few more years for battery systems to become affordable means few more years of huge electricity bills.

Realising this, many are going for solar system installation now itself as is evident from the statistics of solar panels Perth companies.

From a financial perspective, solar system installation is a good choice. Solar PV can be a solid, long-term investment as it helps to save a lot of money in the long run. Above all, it will lower electricity bills, lower carbon footprints, and potentially higher home values.

The thriving solar power business of Western Australia highlights the sustainability awareness among the people about renewable energy as they are very prone to reducing their carbon footprint.

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