Your Guide To Solar Panel Roi
While choosing to buy solar panels in Sydney provides an abundance of benefits, many homeowners may wonder if solar panels are worth it in the long run.
Solar panel return on investment (ROI) refers to the value your system will provide over a set period of time. Solar panels in Sydney are more affordable than ever but there are methods that can potentially provide a higher return.
Solar self-consumption
Solar self-consumption refers to directly using the solar power generated by your system. The more solar power you’re able to utilise, the less energy needs to be purchased from the grid. Solar self-consumption can be increased by scheduling high-energy appliances throughout the day or by adding solar batteries to your system. Solar batteries allow you to store energy collected by your panels for later use.
Increasing the amount of solar energy used by your home can increase your ROI and decrease the payback period.
Solar feed-in tariffs
A solar feed-in tariff (FiT) is a credit applied to your electricity bill for excess solar power generated by your system. Excess energy is sent to the main energy grid, able to be used by other households. The feed-in tariff differs between solar providers and plans, providing a few cents for each exported kilowatt-hour. Higher feed-in tariffs can help offset the costs of your electricity bills.
STCs
While solar panel prices have become more affordable over the years, the upfront cost can still be a barrier for many people. That’s where STCs come in. Provided under the Small-scale Renewable Energy Scheme, small-scale technology certificates (STCs) are solar credits that reduce the initial cost of your system.
The credit provided by STCs is determined by postcode, potential energy generation, STC value, and the deeming period. However, since this scheme was designed to be temporary the discount provided by the certificates decreases each year. To maximise the effectiveness of STCs, a qualifying system must be installed before the beginning of the next calendar year.
Larger solar systems
As solar system production has gotten more efficient, solar panel prices have dropped while the average sizes have increased. This means larger systems can not only offer greater value for money than smaller systems but can provide higher ROI.
While the best method for increasing your returns is to directly use as much solar energy as possible, larger systems can export more energy to the grid. In turn, this can provide a greater feed-in tariff.
If you’re looking to buy solar panels in Sydney and would like more tailored advice on the ideal size, contact Solar System.
May increase home value
Through studies and surveys of Australians, solar panels are generally viewed as a positive asset for the home, providing an improved perception of the property and often an increase in price. The combination of rising energy prices and focus on green energy have made renewable power a popular choice in the real estate market.
Contact Solar System today to book a free solar assessment!