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Even before rising energy prices began to put pressure on the cost of living for Australian households, the economic and environmental benefits of installing solar panels were well known. According to the International Energy Agency (IEA), Australia has the highest installed solar photovoltaic capacity per capita in the world.
So it makes sense that solar energy is popular in Australia because we have a high socio-economic profile and lots of sunshine.
And with the October 2022 federal budget predicting a 56% increase in electricity consumption and a 44% increase in gas consumption over the next two years, those who can afford the upfront costs are looking to install solar panels. Installers have reported a 750% increase in requests since the budget was announced.
Higher prices for conventional energy sources are speeding up the payback period for solar and batteries as solar customers save on their bills.
However, while solar offers exciting opportunities for virtually free clean energy, it's important to research what's involved before you buy. There are many variables that will affect the overall potential of solar energy, as well as different cost options.
Your home receives several hours of direct sunlight per day. Houses in densely populated areas can be overshadowed by tall buildings. Even periods of constant rain and cloud cover will make the panels less efficient, meaning it will take longer to recoup the initial investment.
For many people, the benefits of going solar aren't just financial. reducing households' dependence on fossil fuels in terms of carbon emissions is reason enough for change.
How much do solar panels cost?
There are many variables when determining the cost of installing panels. Factors to consider include where you live, the vendor, the size of the solar system and the number of panels to be installed.
The price depends mainly on the mileage and the quality of the equipment. The average price starts at $4,000 for a 4 kW system and goes up to $10,000 for a 10 kW system.
The good news is that prices in Australia are falling and should continue to fall, according to SolarQuotes. Its Solar Price Index provides real-time average prices for a complete system installation in various states and territories.
Is there a discount?
There are many discount programs available for homeowners. Check out this comprehensive list of discounts to see eligibility for each program.
Many solar rebate programs introduced nearly a decade ago have either been canceled by state governments or will expire in the coming years. This is especially true for discounted rate plans. With a high voter turnout, the need for discounts decreased.
Homeowners in New South Wales can replace their low-income barn with a complete 3kW solar system. Some conditions apply, such as being restricted to certain regions.
Victoria has a Solar Homes program that offers a variety of rebates, including rebates on solar panels up to $1,400, as well as the option of an interest-free lease loan. Discounts are also available at solar panel outlets.
The Northern Territory has the largest subsidy for solar panels in the country. Eligible homeowners and businesses can receive a grant of $450 per kilowatt hour of usable battery system capacity, up to a maximum of $6,000.
How much will solar panels save me?
The amount of savings depends on a number of factors, such as the amount of sunlight the panels are exposed to, the size of the unit and the amount of credit the retailer gives customers for the electricity they export to the grid.
It has been estimated that a home with a six-kilowatt system in Australia's five largest cities, receiving five hours of sunlight a day and exporting half of that energy to the grid, could save between $600 and $1,000 a year.
Buying a battery means higher upfront costs, but conversely, the savings will be greater in the long run.
Should you buy cheap solar panels?
A good quality system should last around 25 years, but a lower quality system is unlikely to last that long and may require more frequent repairs.
According to Daniel Jarrett, CEO of Queensland Solar and Lighting, cheap solar panels are not worth it because they break and need to be replaced.
Inexpensive brands of solar panels often require full replacement after four years. This high quality panel assembly is guaranteed for 25 years.
The main problem is that rainwater gets in and kills them. If there is a short circuit, it can also turn into a fire hazard.
Can you make money with solar panels?
Making money from solar panels has become less viable than it once was because feed-in tariffs are lower than they were ten years ago.
Back then, the family could make a few thousand dollars selling solar power, but Jarrett says it's important to remember that the initial investment was about $50,000.
Another factor to consider is that installing solar panels will increase the value of the property when it is sold.
Are solar panels worth it?
The initial costs of installing solar power can be high and it can take years to get a return on investment. On average, it takes 8-10 years to figure out how much the installation will cost, and in the case of a battery, it can take longer. A high-quality device with batteries can cost up to $20,000.
It will also require regular maintenance and during this time the equipment will wear out so it will not work efficiently.
says Daniel Jarrett, CEO of Queensland Solar and Lighting.
