IS SOLAR WORTH IT IN THE LONG RUN?
In short, yes, solar is defiantly worth it in the long run, however the initial sting of buying a full system can be daunting for customers who don’t have much of a disposable income, however there is hope for those who want to get into solar but aren’t quite sure what’s right for them. On average, solar panel systems in Australia have a typical payback period ranging from 3 to 5 years. This timeframe signifies the duration required to recover the initial investment by leveraging the savings achieved on electricity expenses. Solar not only contributes to long-term financial savings but also promotes sustainability by harnessing renewable energy sources. (source)
According to Loans.com.au the average time it takes customers to pay back their investments in Victoria is 6 years however this can depend on what’s called a Feed-in tariff rate. A Feed-in tariff rate is when you send any surplus solar energy back to the main power grid, when you do this, you are eligible to receive a rebate on your power bill. This incentive typically ranges from 7 to 11 cents per kilowatt-hour, and varies among different Australian states and energy providers.
Applying for A Rebate through Solar panel (PV) rebate can have customers seeing a return on investment of up to $1,400 if eligible. However the requirements for this are relatively high, depending on customers individual circumstances. These requirements include; Being the Owner/occupier of the existing property or, new home under construction for installation, The Household income needs to be $210,000/year minimum, The property value needs to be under $3M (existing home/completed construction), The property address has not previously received a solar panel (PV) or solar battery rebate under the program and If you are moving house you can reapply for the incentives at new address if the previous owner did not access them.
Ticking off this list of requirements to access these incentives might pose a challenge for customers initially. Once you buy into the market, the immediate returns may appear modest, but, over time, the cost savings are likely to surpass your initial expectations.