News in Brief
How long does it take for solar panels to pay for themselves?
On average, a solar system in Victoria could pay for itself within three to five years with a Victorian solar rebate or seven to nine years without a rebate.
This length of time, known as the payback period, will depend on a number of factors including the size of your solar system, the quality of the components, where you live, when you use electricity and even your energy rates.
The size of your solar system
The bigger the solar system, the more you’ll pay. But this doesn’t mean smaller is better. Your system should be big enough to cover your energy needs and then some. If it’s undersized, you’ll have to buy more electricity from the grid to cover your needs and you’ll miss out on valuable savings.
The quality of your solar system
As with most purchases, you pay more for better quality solar panels and inverters. However it’s worth investing in good quality products from reliable brands because you’ll be less likely to experience faults down the track and, with a life expectancy of 25+ years, they’ll hold more of their efficiency over the long term.
The more sun that falls on your solar panels, the more electricity they will generate and the shorter the payback period will be. So solar systems installed in sunnier locations will usually pay for themselves a bit quicker than those in areas with fewer daylight hours. And, at Solar Flow, we can mitigate the effects of shade on your panels with optimisers and micro-inverters.
Your energy consumption habits
When do you use most electricity? The more you can use during the day when your solar panels are generating electricity, the more free solar power you’ll be able to use and the less electricity you’ll have to buy from your power company. That’s the key to saving more and paying off your system quicker.
Your energy rates
How much you pay for electricity will impact the savings your solar system will deliver and therefore your system’s payback. These electricity rates not only include your usage rate and daily rate, but your feed-in tariff too (that’s the amount your power company will pay you for the excess solar power you export back to the grid).
Find out how long it will take for your solar panels to pay for themselves with a personalised solar quote.
Because solar panel installations are so personalised, the best way to get an accurate estimate as to how long your solar panels will take to pay for themselves is to get a personalised solar quote from a Clean Energy Council accredited installer.
At Solar Flow, we’ll develop a free, no-obligation solar quote for you that includes your system details (such as the panel layout, system size, and components), the system’s estimated performance, cost and payback, an environmental impact analysis and more.