Will you ever be able to pay it off in time to enjoy the savings?

Font Size:

There’s little doubt that solar power is the way of the future. And with the cost of power steadily increasing – 63 per cent over the last decade – solar panels are becoming more prevalent atop many Australian houses.

The average cost of installing a solar system, including inverters, panels and batteries, can be between $4400 and up to $10,000 for a larger system and, over 25 years, could cost up to $20,000 to run. This leaves many to wonder whether they’ll ever pay it off in time to enjoy the savings.

However, recent analysis has revealed that solar panels can pay for themselves within six to 10 years, and that the average savings over 25 years could be as much as $94,273.

In Adelaide, residents could save up to $3771 per year on electricity over 25 years. In Sydney, you can look for annual savings of up to $3150; in Brisbane, it’s around $2683; and in Melbourne, around $1988. 

So, in Adelaide, a solar system could be paid off in six years. It would take seven years in Sydney, eight in Brisbane and nine in Melbourne.

While electricity prices soar, increased demand for solar systems is coming down. However, Australians are still reluctant to consider the solar option, with cost being the biggest deterrent.

“The overriding impression is that it’s really expensive,” said Finder Editor-in-Chief Angus Kidman.

“The technology is a lot more widespread now, it’s a lot cheaper, but I don’t think that part of it has sunk in for people.

“And while it can be very economically viable, it is a long-term commitment. It’s between six and 10 years, that does rather presume that you’re in a house and you’ll be living there for that long.”

New South Wales is leading the charge (pardon the pun) on solar installations, followed by Queensland and Victoria. Overall, solar installations are up 30 per cent on the previous year.

The price of panels has come down, as too, has storage, meaning those who had previously installed solar only to see the excess power going back to the grid can now store this energy for the long term at a lower cost.

And with peer-to-peer trading becoming an area of potential growth, you could soon sell your excess power to your neighbours at a better rate than selling to electricity retailers.

Read more at www.domain.com.au

Do you have a solar system? Does it work well for you? Would you recommend solar power to our members? Can you describe your system’s success or failure? Any other tips?


Aussies want power prices regulated, Government not listening

A new poll shows a clear majority of Australians want energy prices regulated.

The retail sector you trust less than banks

Discounting not understood, satisfaction in freefall.

How price hikes affect retirement tribes

Recent price increases, especially in energy, have hit all Australians hard.

Written by Leon Della Bosca

Leon Della Bosca is a voracious reader who loves words. You'll often find him spending time in galleries, writing, designing, painting, drawing, or photographing and documenting street art. He has a publishing and graphic design background and loves movies and music, but then, who doesn’t?



Sign-up to the YourLifeChoices Enewsletter

continue reading

Health Insurance

Ageing baby boomers are missing out on health cover savings

Most older Australians see their health insurance premiums rise every year but don’t realise these high costs can be for...

Travel News

Vaccination no guarantee of open borders, says health minister

Australia's international border could remain closed even after the vaccination rollout is complete, according to health minister Greg Hunt. Mr...


The 'risk' of letting your grey hair grow out

At what point do you stop dyeing your hair and allow the grey to grow out? Is it after you...


Five running shoes reviewed

With the cooler weather, autumn and winter are arguably the best seasons to run in Australia, so it might be...


How large is Rupert Murdoch's reach in Australian media?

Former prime minister Kevin Rudd's petition to establish a royal commission into media diversity in Australia attracted more than half...


Coronary heart disease is the biggest killer of women worldwide

Heart attacks are still often seen as a 'male health' issue, yet coronary heart disease - which is the main...


Another vaccine ruled out as second blood clot case emerges

Australia's Therapeutic Goods Administration (TGA) has announced that a second case of blood clots is believed to be linked to...

Superannuation News

Super funds fight for changes to reforms

Your Super, Your Future legislation will be enacted within three months and leading players are weighing in on the impact...