Perth, WA is a great place to install a solar power system. Like most of Australia, in Perth retail electricity rates are rising, and solar installation prices have fallen significantly over the past few years, thanks in part to the financial subsidies available through the federal government. How much does a solar system cost in Perth, and how do you know if you’re getting a good deal on a system?
Why is Perth a good place for solar power?
1. Perth gets lots of sunshine
When you own a solar system in Perth, more sunshine means more savings, so it’s useful to know what to expect. According to PVWatts, Perth receives an annual average of around 5.8 hours of ‘peak sunshine’ per square meter per day – making it one of Australia’s top solar cities.
These 5.8 hours of sunshine are the ‘fuel’ for a solar system. The larger the system, the more of this fuel it can capture and turn into usable energy. The table below shows typical energy output for solar PV systems of various sizes in Perth (assuming the system is 80% efficient, which is typical).
|Solar PV system output in Perth (Popular system sizes)|
|Solar system size (kilowatts)
||Avg daily system output (kilowatt-hours)|
2. Solar energy helps Perth homes save money on their power bills
Having a solar system on your roof is basically like owning your own power station: The energy from the solar panels can be used to run the appliances in your home, thereby allowing you to bypass your electricity retailer for a portion of your electricity needs. Of course, you don’t use all of your electricity during daylight hours (when your panels produce power), so the solar energy that you produce can only cover a portion of your bills. (Unless you add on battery storage, that is – you can read more about battery storage in Perth here.)
Household demand varies by the size of family and the appliances used and how frequently, but as a ‘base case’, the average 3-person home uses about 20kWh of energy per day, averaged over the course of a year. Depending on your home’s electricity consumption pattern, you may only use as little as 30% of this when the sun is shining. In such cases, the remaining 70% of the solar energy will be sent into the grid, where it will earn you only about 8c/kWh – far less than the retail rate for electricity. Essentially, unused solar is ‘wasted’. For this reason, it’s important to choose a solar system size to meet your daytime electricity needs.
(For educational organisations & not-for-profit customers: Synergy offers generous feed-in tariff rates for not-for-profit, schools, and community organisations. This makes going solar a great investment. Read more: Solar Buybacks for not-for-profits, schools, and community organisations in and around Perth, WA.)
3. Government incentives mean low solar system prices in Perth
Under the federal government’s Renewable Energy Target scheme, households and businesses installing systems up to 100kW are eligible to receive certificates where effectively act as an up-front ‘discount’ off the price of a solar system. depending on their location, the size of the system that they install, and the market price for STCs at the time of installation. In Perth, this discount can cover over 30% of the up-front cost of a system – or about $1,500-$2,000 for a 3kW solar system.
The table below shows the price per watt ($/W, 1kW = 1,000W) for various solar system sizes for Perth from March 2016. A 3kW system contains 3,000 watts (W), while a 10kW solar system contains 10,000W. (Read more about current solar system prices here.)
Indicative returns for solar systems @ average Perth prices
(Assuming 20kWh electricity consumption/day, retail electricity @ 25c/kWh, solar feed-in rate @ 8c/kWh)
|@ 50% self-consumption||@ 70% self-consumption||@ 50% self-consumption||@ 70% self-consumption|
|~6.2 year payback||~5.1 year payback||~4.1 year payback||~3.4 year payback|
|~13% IRR||~18% IRR||~23% IRR||~30% IRR|
|~$350 annual savings||~$430 annual savings||~$470 annual savings||~$570 annual savings|
|@ 50% self-consumption||@ 70% self-consumption||@ 50% self-consumption||70% self-consumption|
|~5 year payback||~4.1 year payback||~4.9 year payback||~4 year payback|
|~19% IRR||~24% IRR||~21% IRR||~25% IRR|
|~$700 annual savings||~$860 annual savings||~$1,170 annual savings||~$1,430 annual savings|
Solar Choice, as Australia’s free Solar Energy Brokering and advice service, connects solar PV customers with installers who service their area. We provide comprehensive quote comparisons of solar power installations throughout the country–including in Perth. With a bird’s eye view of the solar power market, Solar Choice is uniquely poised to identify the best deals on offer and facilitate our customers to find the solar system that best suits their needs and budget.
Request a Solar Quote Comparison today by filling out the form to the right of this page, or call us on 1300 78 72 73.
© 2016 Solar Choice Pty Ltd
(Top image via Wikipedia)