Is Rooftop Solar Panel Investment Worthy?
With thousands of Australian homeowners inclining towards green life, it’s time to consider clean-sourced energy – solar, over other energy sources. In fact, approx. 3.04 million homeowners have already adopted residential solar panel systems and are saving hundreds, if not thousands, on their monthly, quarterly, or annual utility bills. In addition, the solar installation rate is increasing at a rapid pace and helping homeowners achieve their energy goals. However, the question of return on investment for solar installation has left some homeowners confused about whether they should opt for solar or continue using their fossil-fueled electricity.
If you are contemplating whether rooftop solar panel installation is worth the investment or not, continue reading. This article is dedicated to those homeowners who want to go solar and slash electricity bills.
1. What Is the Average Cost of Solar in Australia?
Solar panel installation has become a reliable investment for homeowners because of the financial and environmental benefits it offers. However, homeowners prefer understanding the cost of the solar system to get the best possible deal. The cost of a solar system varies depending on various factors, including the location and size of the solar system. The table below showcases the costs of solar systems (based on location and solar system size) with the upfront STC rebate offered by the Australian government. (Note: it excludes any other additional state incentives like the Victorian Rebate Scheme)
2. Has Solar Feed-In Tariffs Reduced Over Time?
Solar feed-in tariffs were introduced to encourage homeowners to go solar and make the cost of solar panel installation cost-effective and feasible. Previously, residential homeowners couldn’t afford to pay for solar technology. The solar panel installation prices were only suitable for homeowners with high-end income or large commercial businesses. The introduction of feed-in-tariff and lower purchase cost allowed homeowners with even basic income to leverage the exceptional advantages of clean-sourced energy – solar.
Over the past decade, the purchasing and installing cost of solar systems has decreased evidently. Due to solar systems, homeowners can also send the excess energy stored back to the grid. Consequently, the excess energy produced by solar panels doesn’t offer many benefits to homeowners as much as it used to.
3. What about the Payback Period?
A solar system’s payback period may vary depending on various factors, including your energy usage habits, location, roofing, and installation. Check this table to understand the payback period and return on investment for your solar installation.
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4. So, is a rooftop solar panel a good investment?
The decreasing cost of solar installation and ongoing electricity costs allow you to reduce your monthly, quarterly, or annual energy bills significantly. By installing solar panels on your rooftop, you reduce the amount of electricity drawn from the grid and your actual energy usage costs. Besides, you can further even reduce your energy usage with the help of a solar battery. Using solar batteries, you can store the excess energy produced by solar panels during the day and use it for nighttime or during power cuts. Another best part of installing a residential solar panel is reducing your carbon footprint and doing your bit to the environment.