Is solar power still worth the investment in Sydney, NSW? This article takes a look at the case for investing in solar power in Sydney.
Solar incentives for solar power have been dramatically slashed in recent years, leading many to mistakenly believe that solar power may no longer be a worthwhile investment in many parts of Australia.
But thanks to the falling solar system prices which have coincided with the gradual decline of strong incentives, many homes and businesses are realising that solar is indeed still well worth considering.
On top of this is the fact that electricity prices have been rising steadily over the past few years–a trend to which Sydney has been no exception. This has further strengthened the case for Sydneysiders to go solar.
How much does a solar system cost in Sydney?
Solar Choice tracks solar system pricing trends from across the nation’s capital cities, including Sydney. The graph below shows how system prices in Sydney have changed since the beginning of 2014. The most popular residential solar system sizes are included: 1.5kW, 2kW, 3kW, 4kW, 5kW and 10kW
Prices in the graph are presented in dollars-per-watt ($/W) and inclusive of the federal incentive for solar available through the Renewable Energy Target. To get the final price, multiply the $/W price by the system size and then by 1000 (as 1W = 1000kW). Keep in mind that the prices are averages–higher and lower prices can be found on the market.
Alternatively, you can also request an instant comparison of solar quotes from installers in your area of Sydney by filling out the Solar Quote Comparison request form to the right of this page.
What is the average payback period for a solar system in Sydney?
Solar system payback times vary depending on a number of factors, including the local climate, the cost of the system, and the cost of electricity. Sydney households can expect around 4.8 hours of ‘peak sun’ averaged across the year (more in summer, less in winter).
Provided the household in question manages to consistently ‘self-consume’ the bulk of the electricity produced (e.g. 70%) by the system by running more appliances when the sun is shining, it’s feasible and common to have a payback period of under 6 years for a 5kW solar system costing around $7,800 (about $1.56/W).
This is comparable to the payback periods available during the heady days of NSW’s Solar Bonus Scheme, when solar feed-in tariff incentives were strong but solar system prices were high.
You can explore the financial case for going solar in more detail yourself using Solar Choice’s Solar PV System ROI & Payback Calculator. Although results are indicative only, this tool will give you a pretty good idea of what to expect from a solar system in Sydney.
Read more: (Almost) everything you need to know about going solar in Sydney.
© 2014 Solar Choice Pty Ltd