How long will it take my solar to start paying for itself?

Dominic O'Leary General Leave a Comment

Adelaide has one of the quickest payback periods when it comes to seeing the money you’ve spent come back into your pocket.

Although with government rebates and subsidy schemes, you will still be looking at outlaying costs of your own to get those panels working for you and your energy bill.

For the budget conscious, we can look at an average residential solar system costing around $6,500. There are some costs that will vary, but for a system of this size and the average cost, the buyer would be looking at a payback period of 4 years. The basic idea, that after 4 years of the system running, it will equal the cost of the system. 

Different energy companies will have different costs associated with grid electricity. Origin Energy, one of Australia’s largest retailers uses a high feed-in tariff, but only for 12 months and for people who have bought a system from the origin. This is then reduced to a lower feed-in tariff but you can make a simple call to get back on the original plan.

The average household will self-consume around 25% of the solar electricity they generate using a 5kW system. One of the reasons associated with this is daytime vacant households, with working parents and children in school. The more you, your family or business consumes in-house, the faster the solar system will pay for itself. This is because it is more beneficial to generate and use 1kW of power through your residential solar system than it is to sell it back to the grid and then buy back the electricity you require later. 

Prices will lower and the rate the system begins to pay for itself will get faster as we see a fall in solar technology. A number of online calculation tools can help you decide what is the best retailer to use but at P4B Solar & Energy Solutions we can design the system from the start to get you best possible price and system for your individual needs.

The best way to get value for money is to use as much of the energy you’re producing within your home.

By using your own, you can avoid having to purchase energy from the grid, which will save, depending on where you live, between $0.20-$0.30 per kilowatt-hour. Whereas the rate to send excess solar into the grid is around $0.08 to $0.15 per kilowatt hour. 

Looking into the future, we’re set to see more rooftop panels being installed in both the commercial and industrial sector as well as in the residential sector, making it the main growth for renewable energy across the country. South Australia’s Government is launching one of the biggest solar schemes in the country to help households reduce their grid-energy consumption and helping to lower their bills as well.

Call P4B Solar & Energy Solutions now to discuss what we can do to get you seeing the benefits of solar today.

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