Sydney has one of the leading install rates for solar power across the continents. We will look forward to the investment case guide for solar providers and how to make decisions on solar panel installation.
How much power is generated?:
Sydney receives an adequate amount of sunlight despite the region and areas of Sydney, but with the help of the Australian govt can calculate and see how much kwh is installed or can be installed in Sydney but an average of 3.96 kWh per day can be generated. This would increase efficiency by decreasing the loss by 15%, which is the main reason for the reasonable quality of the solar system.
Benefits of these Numbers regarding solar:
Nowadays, solar is an excellent investment for future perspective and a great ROI. When the property has a reasonably sized roof, unshaded roof, and some electricity consumption during peak times like in the daytime, it can save money in 2 ways:
1. Solar helps you reduce the amount of energy you need to purchase from retailers/ the grid, referred to as solar self-consumption.
It is the key to making the most of the solar system – and doing everything to maximize self-consumption. It entails running your appliances when the sun is at its peak and shining.
2. One can earn credits on electricity bills for your system’s surplus energy, referred to as solar Feed-in tariff (FIT).
Any solar energy produced that is not used and produced immediately put to use in the device in your home will be sent to the grid automatically, earning you FIT. A few years back, FIT was sponsored by the state, but now these rates are low compared to earlier but still making solar a significant investment.
The value of your solar energy is based on a combination of self-consumption and how much it is exported. If we talk about the 6.64 kw system, then it produces 26.1 kw/ day in Sydney, but only one can manage to self-consume 20% of that, then your saving will be less, but if your self consumes is 40% or 60%, then your saving is more.
Rebates available for Solar Panels in Sydney:
1.Federal STC Rebate: Residents of Sydney who install solars can benefit from the nation’s Small Scale of Technology certificate(STCs) rebate under Renewable Energy Target. STC offers an upfront discount of approximately 30% for any solar installation under 100kw in the system. It can differ slightly depending on Australia’s location and current market price. The rebate is designed by govt and has to be collected by a solar company, and in return, they offer you a net price after deducting the STC rebate. Most quotes will provide a breakdown of the total costs (before the rebate) and the net cost to you (after the rebate). Recently, the NSW government has introduced a new program to provide interest-free loans to customers for installing batteries.
How much Solar Panel Cost in Sydney:
This solar cost price index has gradually changed since 2012 per the product size range. According to July 2023 data, a 6kW system costs about $5,140 on average after deducting the STC rebate. Price can vary on the installation day, adding some additional cost, too.
Financial Return on Solar Panels:
There is an excellent ROI of around $2707 per year on electricity bills with a payback period between 4 and 5 years.
This table shows the payback period and annual savings for different scenarios. The exemplary system size depends on what time of day energy is used. In this scenario, the self-consumption rate is 40%, which means a reasonable amount of power is used in the middle of the day, so we assumed the system size to be the energy usage.
Solar Battery Storage:
The cost of batteries is a little costlier than the solar system as, in terms of installation and brands, it varies due to their properties and functions. In this table, we have taken three different scenarios and adjusted the size of the solars and batteries to fit in.