Solar Panel in Sydney

Solar Panel in Sydney: Compare, Cost, Roi & Installers

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.

power production for solar panels

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 6.6 kw solar 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 Panel 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:

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.

Financial Return on Solar Panels

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:

Solar Battery Storage

The cost of solar panel 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.

Benefits of Solar Energy:

Cost Savings and Efficiency:

The most important advantage of installing solar panels is that this option is cost-effective. In Australia and nearby places like Brisbane, the price of solar installation is decreasing, making them more financially accessible for ordinary Australians. Also, the Australian government provides incentives, tax reductions, and breaks to reduce the initial investment in solar installations. These savings, especially in solar installation, can significantly impact the amount of money saved through solar energy and expedite the payoff period for solar panel investments.

Esteem Energy is dedicated to assisting you in selecting the optimal solar power solution for your household that aligns with your budget and objectives. Esteem Energy mainly aims to save the owner’s money and provide excellent service.

Reduction on Energy Bill:

While installing solar panels on the property, the owner can expect substantial reductions in your electricity bills. Solar power systems can save energy from the sun to power your property, decreasing your reliability on other conventional energy sources. In regions with abundant sunlight, like Brisbane, leveraging solar energy can lead to even more significant savings.

Return On Investment (ROI):

Solar panels represent a smart and excellent investment opportunity for many homeowners. While calculating the ROI, you can consider the initial upfront costs, ongoing savings on electricity bills, and any government incentives. For most individuals, solar panels typically pay for themselves within 5 to 10 years. Subsequently, you enjoy cost savings, making solar panels a favourable long-term investment.

Environmental Benefits:

We also need to see the financial aspect of installing solar panels on property, but it’s also essential to acknowledge the environmental advantages of solar power. Solar energy is renewable, clean, and emits fewer greenhouse gases than traditional fossil fuel-based electricity generation. By opting for solar energy, you reduce your carbon footprint and promote a healthier planet.

Increased Property Value and Equity on Property:

The value of solar panel installations is increasing across  Australia, with one in four Australian properties now equipped with solar panels. Studies suggest that solar installations can enhance property value by up to $6,000 per kilowatt installed solar capacity, accounting for approximately 4% of a home’s total value.

Comparison with Traditional Electricity:

Reducing Cost and Pricing in Electricity: In Australia, electricity prices continue to rise day by day, placing an additional strain on household budgets. However, investing in solar panels can shield oneself from these reduced costs.

Environmental Impact:

Traditional energy sources, such as coal and natural gas, hide some environmental costs by emitting greenhouse gases that harm ecosystems. Compared with, solar energy is clean and environmentally friendly, contributing to reduced carbon emissions and a healthier planet.

Traditional vs Untraditional cost on electricity bill:

A typical property consumes around 15 kWh of electricity on weekdays, which can be increased to 20 kWh daily on weekends. We can assume a fixed electricity rate of $0.288 per kWh, and the annual electricity bill for such high electricity bills would amount to roughly $1,726. Factoring in a 2% yearly increase in electricity rates over a decade, the family would spend approximately $18,919 on electricity over ten years.

Solar Panels FAQs:

1. How common are solar panel systems on properties in Sydney and nearby areas?

According to the Australian Photovoltaic Institute report, many suburbs in Sydney boast an impressive percentage of solar installation on their properties, with studies showing a record as high as 70% of dwellings featuring rooftop solar. Moreover, most suburbs throughout Sydney exceed a 50% rate of solar panel adoption.

2. What is the recommended orientation for solar panels in Sydney?

For residents in Sydney looking to optimize their solar panel performance, a northern orientation is typically recommended to maximize overall power generation. However, if energy consumption tends to peak in the mornings, panels facing eastward can harness more energy earlier in the day. Similarly, west-facing panels can be beneficial for capturing additional power during the evening hours.

3. If we see it financially, is investing in solar energy systems worth it in the coming years?

Australians can enjoy some of the best competitive prices globally for rooftop/ ground solar installations, and there are some federal government STC rebate programs. On many points, residents considering solar panels in Sydney can expect a payback period of around 4 to 5 years for their typical energy bills.

4. How many solar panels are typically needed for a household in Sydney?

While the most common system size for solar setups in Australia is 6.6 kW, requiring approximately 16 to 20 solar panels depending on their wattage rating, the ideal size for each household varies based on factors such as energy consumption patterns and available roof space.

5. What factors should owners consider before investing in a solar panel in Sydney?

Before installing a solar panel in Sydney and at a property, assessing and examining factors such as the owner household’s energy needs, available roof space, orientation, shading issues, and potential financial returns is crucial. Consulting with a reputable solar provider can help you tailor a solution that suits your specific requirements and budget.

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