Are you thinking of installing solar panels on your home? You may be wondering if it’s a good investment.
Solar panels are a good investment in every Australian state, no matter how much power you use. Solar panels are an excellent investment in Australia, although their cost, savings, and turnaround depend on various factors. It is not unusual for solar panel systems to recoup their initial investment in as little as four years.
An effective solar energy system should save you money for at least three decades if you invest wisely.
This post will help you decide if solar panels are the right choice. Remember that solar panel installation is a big commitment, so weigh all the factors carefully before deciding. Thanks for reading!
Costs of Solar Energy Systems Over Time
In the early 1990s, solar energy cost between 5-10 dollars per watt, and only the well-to-do could afford to invest in it. An appealing federal STC plan, which pays up to 40 per cent of the cost of the installation via government incentive, has contributed to solar’s rising popularity.
As solar product manufacturers have established scale economies with manufacturing and assembly procedures that have been standardised, prices have dropped drastically over the last five years.
Cost of Solar Systems in the Future
Many experts in the solar field believe the cost of solar panels will keep going up. The worldwide shortage of solar panels led to a 10-15% increase in the price of solar energy by the end of 2021.
Even if solar panel efficiency advances keep pace with the annual decrease in the government STC refund (expected to happen through 2030), the value of solar energy is still projected to rise.
The Return on Investment (ROI) for Solar Panels
In 2022, 6.6kW solar panel systems will be widely installed. The price of a high-quality system of this magnitude ranges from $5.5 million to $8.6 million.
You might save as much as $2,000 annually, depending on your electricity consumption patterns.
Electricity use patterns, geographical location, roofing angle and tilt are all factors that affect how quickly a solar panel installation pays for itself.
What is the average monthly cost savings from installing solar panels?
The average 6.6 kW system can reduce quarterly costs by $300-$500. You might wonder, “Why is there such a large price difference?” Well, that depends on your electricity consumption patterns and time of day.
Tips for Cutting Costs
Using the solar power that your panels produce, you can save your electricity bill by 30 cents per kilowatt-hour.
A feed-in tariff, or credit for the surplus electricity you provide to the grid, will be paid if you use solar energy to power your home. Feed-in taxes range from roughly 10 cents to 20 cents per kWh, depending on the state and the merchant.
Indulging one’s own needs
Self-consumption of solar energy and direct usage of that energy will result in substantial cost savings. Why do savings estimates fluctuate so much?
Because the 30 cents you save by utilising your solar electricity is very different from the 10 cents, you gain by reselling it back to the grid.
Solar energy production on your land is also affected by many other factors.
Various Other Factors to Think About When Assessing Solar
The Long-Term Cost Savings of Solar Panels
It’s OK to consider the short term, such as the payback period or the savings you’ll see on your next electricity bill, but a solid system should last you for at least 25 years.
You should consider the money you will save throughout your solar panels’ lifetime. Our solar panel pricing is based on systems of the highest quality, intended to last for many years.
While cheaper solar panels might pay for themselves sooner (assuming they stay long enough), they are not a wise investment because they will likely fail and need to be replaced much sooner.
Common Misconception: Installing Solar Panels Will Eliminate the Need to Pay for Utility Services.
A solar energy system will not usually wholly reduce your electricity cost. Though your electric bill will decrease significantly, you will still be responsible for paying at least some of it.
Learn more about the inner workings of solar panels and how you may make money by selling and buying electricity for the grid with this article.
One That Faces East or West
Even if your roof doesn’t face north, installing solar panels is an excellent idea. Because solar panels are most effective at producing energy in the morning and afternoon, so positioning them to face east and west can be helpful.
This is because peak demand occurs at night and on weekends when more people are likely to use electricity at home.
Energy-Efficient Users
Some people who utilise little electricity may question the utility of installing solar panels. The response is still often “yes,” as in most circumstances.
It is also recommended to purchase a system more extensive than required. Higher feed-in tariffs allow you to recoup the cost of your solar energy system sooner, offsetting the marginal decrease in your capacity to save money through solar.
The Size of the System Matters
Based on the results of a system size calculator, a 5kW or 6.6kW system should be adequate for most homes.
According to our findings, low-energy consumers should invest in a more extensive system, as the extra kW will pay for themselves considerably more quickly.
Should Businesses Invest in Solar Energy?
Since electricity costs are rising on an ongoing basis, switching to solar power might benefit companies. Businesses can benefit from installing solar power installations because
- It helps cut down on carbon dioxide emissions.
- Build up your company’s sustainable credentials to earn more respect from customers.
- As energy costs are expected to rise, it is vital to prepare for this possibility.
- Energy independence and grid independence are prioritised.
- Credible and risk-free financial commitment.
In all probability, you can feel safe purchasing commercial solar panels for your company.
Conclusion
If you make smart investments, a good solar energy system should continue to bring you financial benefits for at least three decades.
No matter how much electricity you consume, installing solar panels is always a wise investment in any of the Australian states.
Depending on how you typically use electricity, you might potentially realise a yearly savings of up to $2,000 dollars.
Before making a final choice, it is important to keep in mind that installing solar panels is a significant investment, and you should give careful consideration to all of the relevant considerations.
The production of solar energy on your land is also impacted by a great number of other factors.
How quickly an investment in solar panels pays for itself depends on a number of factors, including the typical patterns of electricity consumption, the geographic location, as well as the angle and tilt of the roof.
You can reduce your monthly electricity costs by as much as thirty cents per kilowatt-hour by making use of the solar power that your panels generate. The typical 6.6 kW system has the potential to bring quarterly savings of $300–$500.
Because solar panels produce the maximum amount of energy in the morning and afternoon, angling them to face east and west can be useful in getting the most out of their potential production.
Higher feed-in tariffs enable you to recoup the cost of your solar energy system sooner, offsetting the marginal drop in your potential to save money through solar. This can be a significant financial benefit.
Installing solar power systems can be beneficial for businesses because it reduces the amount of carbon dioxide emissions produced and wins more respect from customers.
Content Summary
- No matter how much energy you use, solar panels are a solid investment in all Australian states.
- Although the upfront cost, long-term savings, and payback time of solar panels can vary widely, they are still a great investment in Australia.
- Financial returns on solar panel systems are typically shown in as little as four years.
- If you make a smart investment now in a solar energy system, you can expect those savings to continue for at least 30 years.
- If you’re trying to decide whether or not solar panels make sense, this article should help.
- Installing solar panels is a long-term investment, so make sure you’ve given it some thought.
- Its increased popularity can be attributed in part to the attractiveness of the federal STC plan, which provides a government incentive equal to up to 40 per cent of the installation cost.
- Several authorities in the solar industry predict that prices will continue to rise.
- By the end of 2021, the cost of solar energy has risen by between 10 and 15 per cent due to a global shortage of solar panels.
- The value of solar energy is likely to increase even if efficiency gains in solar panels only maintain pace with the annual drop in the government STC refund (which is scheduled to happen through 2030).
- ROI for solar panels
- Numerous 6.6-kilowatt solar panel installations will be set up in the near future.
- Costs for a high-quality system of this size average between $5.5 and $8.6 million.
- Depending on how much electricity you use, you might save as much as $2,000 each year.
- The rate at which investment in solar panels pays off is dependent on a number of variables, including the homeowner’s electricity consumption habits, the property’s location, and the roof’s orientation and tilt.
- Costs can be cut by $300-$500 per quarter with the typical 6.6 kW system.
- That, of course, is conditional on the time of day and how often you run the lights.
- Advice on Reducing Expenses
- Using the energy generated by your solar panels can reduce your electricity costs by 30 cents per kilowatt-hour.
- If you utilise solar energy to power your home, you will be eligible to get a feed-in tariff, or credit for the excess electricity you supply to the grid.
- self-gratification, the satisfaction of one’s own desires
- Savings can be rather large when solar energy is consumed on-site and used directly.
- Using your solar energy to power your home can save you 30 cents an hour, but selling it back to the grid can get you only 10 cents an hour.
- There is a wide variety of other elements that can affect solar energy generation on your land.
- A good system should last you for at least 25 years, so it’s fine to think about things like the payback period or the savings on your next electricity bill.
- The lifetime savings from installing solar panels should be taken into account.
- Our solar panel costs reflect the very best systems available and are built to last for decades.
- It is rare for a solar energy system to completely eliminate your monthly electricity bill.
- Your share of the power bill may be much smaller, but it will still be in your budget.
- This post will teach you how solar panels function and how you may generate money by trading electricity with the grid.
- It is still a great idea to put solar panels on your roof even if it does not face north.
- Since solar panels generate the most power in the mornings and afternoons, angling them such that they face east and west can be beneficial.
- Since most people use energy at home when it’s dark and on the weekend, this is when demand is highest.
- Installing solar panels may seem unnecessary to those who rarely use their electric appliances.
- Buying a system with more features than necessary is also advised.
- The minor reduction in your ability to save money through solar is countered by the faster cost recovery made possible by higher feed-in tariffs.
- Most households can get by with a 5kW or 6.6kW system, according to system size calculators.
- Our research shows that low-energy consumers should prioritise purchasing a more robust system because the additional kW will pay for themselves in a far shorter amount of time.
- Companies may save money by making the switch to solar power as electricity prices continue to rise.
- Incorporating solar energy systems into commercial buildings is beneficial since it aids in reducing carbon dioxide emissions.
- Customers will have more faith in your business if you demonstrate your commitment to sustainability.
- Expected increases in energy prices make it imperative to plan ahead.
- Priorities include being completely self-sufficient in terms of energy production and requiring no outside grid infrastructure.
- reliable assurance of financial support without the usual associated risks.
- You can probably relax about getting solar panels for your business’s commercial use.
FAQs About Solar Panel
Are Solar Panels a Good 2022 Investment?
The report added, that a 2022 solar system could end up costing more than it would have in 2021 as providers run out of materials and deal with continued delays and higher prices. Having been in residential solar for 15 years, the pricing trend has almost always been down.
Is It Financially Smart to Get Solar Panels?
Not only is solar power good for the environment, but you can earn money selling back excess power to the grid. While costs have come down over the past years, installation and maintenance of solar panels can be quite expensive. Solar panels are best suited for homes that receive ample sun exposure throughout the year.
What Is the Biggest Problem With Solar Energy?
Intermittency. One of the biggest problems that solar energy technology poses is that energy is only generated while the sun is shining. That means nighttime and overcast days can interrupt the supply.
What Is the Maintenance Cost of Solar Panels?
The national average cost for routine solar panel maintenance is between $140 and $180, but warranties cover the expense of many services. The service you’re most likely to need is an annual inspection, which costs $150 on average across the nation.
What Happens to Solar Panels After 25 Years?
In reality, solar panels can last quite a bit longer than that: the warranty typically guarantees panels will work above 80% of their rated efficiency after 25 years. A study by NREL shows that the majority of panels still produce energy after 25 years, albeit at slightly reduced output.