How Much Does Solar Power Cost?
The cash price for solar power is usually different to the solar power finance price. Although “zero-interest” is sometimes advertised, you usually pay more choosing a finance option. The price of solar power varies because of changing market conditions and different product quality. The cost of labour in countries where solar parts are made (e.g. China or Germany) also affects the price.
Here is a table that shows roughly how much solar power costs to get installed in Brisbane:
|Cost (before rebates)||$3,200 - $4,700||$5,700 - $9,800||$9,200 - $15,800||$10,600 - $17,400|
|Total rebates available||$1,147||$2,294||$3,811||$4,588|
|Cost (after rebates)||$2,053 - $3,553||$3,406 - $7,506||$5,389 - $11,989||$6,012 - $12,812|
|Maximum federal rebate (%)||35.8%||40.2%||41.4%||43.3%|
Of course the prices in the table above are only estimates but it does give you some indication of how much solar costs. The rebates are based on a value of $37 per STC and the pricing is about how much it would cost for:
- A simple system with cheap Chinese components as the bottom of the range and
- An absolute premium system with high performance panels and micro-inverters at the top end.
So you would expect to get a very good system somewhere in the middle of the range.
How Much Does Solar Power Save You?
Here is a bar chart which will give you an idea of how much your solar power system will return (ie. how much you will save on electricity costs when you have solar).
The chart above uses 5% increase in electricity prices per year and assumes that the cost of electricity to start with is $0.28/kWh and a feed-in-tariff of $0.18/kWh. The chart also assumes 50% of solar is consumed and 50% is sent to the grid.If you are on a solar power finance plan, this won’t change your savings but could change how long before the savings pay off the system.
What Solar Power Finance Options Are Available When Buying Solar Panels?
Different companies have different options when it comes to solar power finance. Many solar installers offer zero interest finance over a fixed term which can work out really good. Especially if the repayment amount is less than the amount the solar power will save you in power costs.
No matter what the finance option, you can expect to pay more when paying going on a solar power finance plan than if you pay cash. It’s important to be aware of exactly how much the solar power will cost you before giving the final go-ahead with any system.
Generally, the best finance option for solar power in Brisbane at the moment, is if you can put it onto your mortgage – the ongoing cost is very small and the solar power should more than offset the cost giving you instant savings from day 1. This isn’t for everyone but it’s one way to do it.