ZEN payback periods assist against rising energy costs
25 January 2012
Protection against rising energy prices is now the main reason householders are opting for solar energy systems, says one of Australia's leading home energy companies.
"Regardless of where you live, electricity prices across Australia are forecast to rise between 20-40% in nominal terms over the next two years," said Richard Turner, CEO of ZEN Home Energy Systems.
This price rise does not include any potential impact of the federal government's new carbon tax.
In Queensland, South Australia, Tasmania and the Northern Territory a feed-in tariff is paid by the government to households that feed energy back into the state power grid. The tariffs range between 16 cents per kilowatt hour (kW/h) and 44 cents per kW/h.
As of November 2011, the remaining states or territories offered no feed-in tariff.
However, Richard Turner believes that while government subsidy through a feed-in tariff initially helps encourage people to install solar panels, it is not the deal sealer.
"Market research undertaken by ZEN during 2011 indicated that the main reason why homeowners and businesses purchase a solar energy system was for protection against future price rises," he said.
"Besides limiting their consumption habits, householders felt they were powerless to combat ever increasing power bills which have risen dramatically in the past five years.
"The average Australian home uses 20 kW of power a day. Solar panels offer households the opportunity to 'live for free' for part of the day by matching the generation of power to the homes consumption. Any potential income through credits on their power bill is just a bonus.
"Combined with the federal or state solar rebates, the average Australian who invested in an average 3kW system should be close to breaking even on their investment within five to six years.
| ZEN Home Energy Systems | Origin | ||
| System Size | Payback Period (Years) | System Size | Payback Period (Years) |
| 1.52kW | 5.1 | 1.5kW | 5 |
| 1.9kW | 6.5 | 2kW | 10 |
| 3.04kW | 6.8 | 3kW | 10 |
| 4.18kW | 7.4 | 3.8kW | 12 |
| 5.32kW | 7.3 | 4.5kW | 13 |
| 6.46kW | 8.0 |
|
|
| 7.6kW | 7.6 |
* The payback period table above includes assumptions:
- Average SA Peak Cost of Power is $0.32kWh
- Retailer Net Export is $0.08kWh
- Average Annual Export of 20%
Origin figures from 'Solar switch is still worth flicking'
Adelaide Now 23/1/12
"However, as electricity prices rise, the payback period for consumers drops significantly."
The Federal Government's Small Technology Certificates continue to provide savings for consumers when investing in solar energy, reducing the overall system purchase cost by up to one third depending on the system size purchased.
"There are a wide range of solar systems currently being advertised to Australian households but there are wide variations in the quality of the product and the experience of the various companies and installers," said Mr Turner.
"Consumers should make sure they shop around and get an understanding of exactly what they are getting before to committing to a purchase.
"Solar panels are a long term investment and buying a cheap system or one that is not suited to your house may not deliver the savings or performance you anticipated."
"The prices and capability of solar panel systems vary tremendously, but in real terms their prices have fallen by around 40% in the past seven years. That trend is likely to continue," said Mr Turner. Now is a very good time to secure your personal energy independence with power prices about to rise sharply. Summer power bills are going to provide some nasty surprises.
"Householders will be ahead on their power bills for many years after the cost of installation and have not 'missed the boat' if they are considering making the move to solar power."
