Are Solar Panels Really Worth It?
Last year (and this year to date!) has been monumental when it comes to Aussies taking back control of their electricity usage and doing their (massive) bit for the environment too. Within all of the major states, solar capacity installed each month grew to new record-breaking levels.
Taking this into account, you might be thinking that 2021 really should be the year that you finally invest in solar. Let’s break down some of the reasons why you would be right in thinking so, and why switching to solar sooner rather than later makes financial sense.
The Sooner You Switch, the Sooner You Save
Australia’s household electricity bills have doubled in the last five years, so it’s no secret that more and more Australians are making the switch to solar in a bid to drastically reduce their electricity bills. In fact, the latest Renewable Energy Index figures report more than 8,500 homes across QLD and NSW installed solar in the month of October delivering cumulative savings of $100 million dollars in power bill reductions over the next ten years.
The sooner you make the switch to solar, the sooner you would start saving too. Consider the amount your home or business uses and spends on electricity each year (although it’s not usually a fun thought). Many people are surprised to find out that it is now typical for a good quality system to pay for itself in as little as 3-5 years, with years of significant savings ahead. We understand it might seem complicated to get a real understanding of what your returns might be on a solar system, so let’s look at just how good the benefits are so you can make an informed decision.
According to the Clean Energy Council the average hours of sunlight a day across the year is 4.2 hours, so we will use this as the base to calculate the solar generation. Based on 4.2 hours a day, a 6.6kW system will generate 28kW of clean energy every day. Now let’s say you self-consume 50%, or 14kW your total solar generation each day. Based on today’s average electricity charges of .28c/kW, by cutting your reliance on the grid by 50%, you stand to make a saving of $3.92 each day. That might not seem much but over the course of a year that’s $1,430 back in your pocket.
Then there’s the other 50% of your solar production that you can export back to the grid. Based on today’s average solar feed in tariffs you’re looking at anywhere from 8 cents to 15 cents, depending on your electricity retailer. Let’s base our calculations somewhere in the middle…if you are exporting the remaining 50% at 12 cents per kW, that’s another saving of $1.68 cents per day, or a further $613 a year you’ll save in electricity costs. That’s a whopping total of $2,043 per year in electricity savings alone.
Financing Options Make Switching in 2021 Easier
At SAE Group, we truly believe that knowledge is power. That’s why we have searched the market to find the best possible finance options to make it possible to affordably install solar on your home.
Brighte finance, our go to finance option, connects homeowners with affordable payment solutions for both solar and batteries. Application is quick, subject to lending criteria eligibility, with the approval process being simple, fast and fully online (although our consultants are always on hand if needed). Not only are they fast and accessible, you can trust them as being open and honest – with no interest added, no gimmicks and no hidden fees. We can help you figure out the best and most affordable option tailored to your energy usage and savings.
Federal Government Financial Incentive Is Only Set to Decrease
When you buy a solar system in Australia, the government subsidizes a hefty amount of the retail price based on the STC price on the day of installation. As part of the scheme, this subsidy is set to reduce every year until it drops to zero in 2032. I’m guessing what you really want to know is how much this financial incentive will save you on your solar system? Let’s look at a recent special of ours – a 6.6kW system for $4,841. The STC financial incentive which has already added to this amount is $3,700*, with the original retail price prior to discount and incentive being $8,541*. Now that’s a saving not to be sneezed at.
This incentive is designed to be self-regulated, and as such the amount you can claim depends on the current market price of an STC. For instance, when demand is high for solar systems, more STC’s (small scale certificates) are created, which in turn reduces the STC price and possibly your subsidy amount. With demand for solar expected to increase over time, the STC price is also expected to decrease and lower the claimable amount for this incentive which could make a massive financial difference.
Selling, Staying or Letting
Whether you’re a homeowner looking to sell, stay or let in the next few years – it still makes sense to invest in solar. If you’re concern is that you’re unsure as to where you will be in a few years’ time, then don’t let that worry you with more and more buyers and renters demanding solar from the get go.
If you have no plans of moving, then you can make the most of today’s massive warranty options lasting up to 25 years. That’s a long time to not have to worry about those dreaded electricity bills. What if you’re planning on selling in the near future? We have seen a significant rise in the number of people choosing to add solar to their properties right before they put them on the market with the aim of increasing both the value and demand for their home. Many people look for homes that already have solar installed on the property, so they know that it’s set for the future. Finally, if you’re thinking about renting then save yourself and the tenants the worry of high electricity bills. We’re sure you’ll find tenants that would happily pay that extra in rent to forego those electricity bills.
Great Quality Has Never Been So Affordable
Investment in solar has skyrocketed in recent years all around the globe, with safety and efficiency at the core of testing. Not only is solar safer than ever, whilst being affordable and attractive, it also puts you in charge of your electricity. Technology has advanced in leaps and bounds, where you can now monitor both your production and usage to be able track exactly how much you are saving.
As both solar and battery adoption has risen constantly, the price of solar has continued to drop. Especially in comparison to the consistently high electricity prices. Alongside these dropping prices, the average system size has increased. Where only a few years ago it was usual to have only a 1-3kW system on your home, it now makes much more financial sense to have at least a 6.6kW system for an average home.
Isn’t It Time You Got on Board?
It’s easy to see that each year you delay investing in solar, is a day you miss out on the economical and eco-friendly benefits of solar. The sooner you act, the more you save!
Why not give us a call on 1300 18 20 50 to talk through your options or to schedule a free, on-site, no obligation energy assessment complete the form below.
*STC value based on $35.00.