Solar Affordability
Rising energy prices will improve the payback period of solar energy systems despite the recent reduction of feed-in tariffs.
Electricity prices across Australia are expected to rise between 20-40% in nominal terms over the next two years. This follows a request by the Ministerial Council on Energy (MCE) to the Australian Energy Market Commission (AEMC) in 2010 to forecast possible price movements through to 2013, and this does not factor in the impact of the new Carbon Tax.
At ZEN we have found that one of the main reasons homeowners and businesses purchase a solar energy system is for protection against future electricity price rises. Besides limiting consumption habits, householders felt they were powerless to combat ever-increasing power bills, which have risen dramatically in the past five years.
Solar power continues to offer this comfort with substantial Federal rebates still available, and provides the opportunity to create income for any excess power generated.
For instance if you invest in a 1.5 kW system you should be in front on your power bills within six years. However if the price of Electricity rises by 30% as forecast the payback then drops significantly to even below the levels before the September 30th Feed-In Tariff reduction.
The large Federal rebates in the form of Small Technology Certificates (STC's) are still available and represent up to a third of the overall system cost.
Solar panels are a long-term investment – most systems installed include a 25 year warranty, which means you will be ahead on your power bills for many years after the cost of installation.
Feed-in tariffs are only one element to the affordability of solar power and the estimated time needed to get a return on the investment.
When calculating a potential return on investment, solar companies have to make assumptions on future power price rises, the cost of the panels, the ongoing efficiency of the panels, the amount of government subsidies offered and even the amount of sunny days each year.
In recent years technology has improved and more efficient production now occurs. In real terms the cost of solar systems has fallen by 40% in seven years.
To find out how affordable solar energy can be for you, contact us on 1300 936 466 or submit an enquiry here.
