It’s the first question many have when we start to consider switching to solar energy.
There’s no black-and-white answer. Why? Because there’s no one size fits all answer to solar energy.
The cost of installing solar panels in your home or business has drastically decreased in the last decade, thanks in part to the Australian federal and state governments’ various subsidies and rebates.
To give you a rough idea as a point of reference, a 6.6kW solar panel system – which is standard for your average Australian home – currently costs approximately $9,500 including installation.
With subsidies currently clocking in at about $3,500, the full cost of your solar system installation will typically cost you around the $6,000 mark.
But there’s a whole host of factors that play a role in how much your solar panel installation will cost.
How big is your home or commercial property?
Your solar energy output hinges on the size of your property, how many appliances you’re operating, how many people are inhabiting the space, and so on.
For example, a small home may be able to run off a 1.5kW solar system with just six panels. This could cost significantly less, while still yielding about $700 in average annual savings.
Then again, a large home with six or seven people might require a 6.6kW system with 24 solar panels. Although this will cost more, an average annual saving of $3,000 makes the return on investment about the same.
How much energy does your home or business use?
The most efficient way to answer this question is to gather your last few electricity bills and average your monthly or quarterly energy consumption costs down to your daily usage.
Your usage will be measured in kilowatt-hours (kWh), which you can then use as your point of reference when researching a solar system’s capacity. A home with just one occupant will typically consume less than 10kWh a day, while five or more occupants can use upwards of 33kWh per day, especially if there’s a swimming pool.
Are you willing to invest in quality parts and components?
Just like clothing, electronics and cars, there’s often a direct correlation between the price tag and the quality.
Whereas a 1.5kW system with four panels can cost as little as $2500, the range can extend up to a 36-panel 10kW system for roughly $12,000.
There are plenty of inferior solar system parts out there that won’t do their job and negatively affects your safety, system longevity and return on investment.
Whether you pay for your solar panel installation outright or set up solar financing, you’ll be amazed how quickly a good quality solar panel setup can pay for itself.
It should take a maximum of four or five years for the savings on your reduced bills to surpass the cost of your solar panel installation.
But payback from quality solar panels and solar systems can often happen much sooner than that.
“Most homeowners worry about rising electricity bills so we create custom solar plans to ensure you never face outrageous bills ever again.”
Subscribe to our free weekly Monday newsletter. Join 11,000+ homeowners around Australia for quick solar news, latest breakthroughs and exclusive offers.