The Australian government has set the goal of achieving net-zero emissions by 2050. People living in Australia have made huge strides over the past decade in rooftop solar panel installation, as Australia currently enjoys one of the highest rates of adoption of renewable energy, particularly solar energy. Positive policy changes have also contributed to the boost in adoption rates.
When it comes to the cost of solar energy, the cost works out to slightly above $1 for every watt of solar energy for a 5 MW system. The cost comes down substantially for commercial systems upwards of 10 MW.
Solar Energy Rebates
In Australia, there are plenty of solar energy rebates at both the federal level and state levels. At the federal level, the rebate is given in the form of small-scale technology certificates. Each solar panel is equivalent to a certain number of these technology certificates (STC). The government has made it mandatory for electricity retailers to buy a certain number of these certificates in order to meet their legal renewable energy obligations.
As a solar panel buyer, you can sell these certificates. The price varies and goes down each year. You are not going to get this money in cash. It is necessary to get the solar panels installed by an accredited and approved retailer who will manage the process on your behalf. The price quoted to you by a solar installer already includes this rebate.
In addition, state governments also offer certain rebates but these vary across states. It is typically in the form of an interest-free loan for solar panels as well as battery systems for eligible residents. Some states also offer further rebates to bring down the price of new solar power installation.
Another form of the rebate is a feed-in tariff. You can export unused solar electricity generated through your solar power system to the power grid. The rate of feed in tariffs varies across the states as it’s a matter of state policy. While it’s not as high as the rate you pay for retail electricity, it is still a substantial saving.
In Victoria, the state government is currently offering a rebate of up to $1,400 for the installation of a solar panel system. This applies to both homeowners as well as rental properties. In addition, buyers are also eligible for an interest-free loan equal to the rebate amount. There is also an additional solar battery rebate available to Victoria residents. The maximum available discount for the solar battery is currently $3,500.
Australian residents can expect to save roughly $1,000 a year with a 5 kW solar power system installation. The actual amount will vary across the states and depends on a number of factors.
Approximate Costs of Solar Systems after the Rebate
As far as the exact cost of solar power systems is concerned, it varies from state to state. Residents in Victoria can expect to pay anywhere from $3,800 for a 3 kW system to around $8,200 for a 10 kW system. The average solar panel installation cost nationally is higher compared to the average cost in Victoria.
Keep in mind that this is the average cost and the actual cost after the rebate depends on your location, the type of system you choose as well as your solar installer.
How Much Do Solar Panels Cost?
The cost of solar panels varies across regions. It depends on the type of solar panels, quality of solar panels, manufacturer, warranty and certain other things. You should expect to pay slightly above $1 per kilowatt of solar power. This includes the cost of solar panels, inverters and installation charges after the rebate. Bigger systems will naturally cost less in terms of cost per watt of solar energy.
When you’re comparing different installers, you should look at the overall picture including the quality of solar panels, the experience of solar installers, warranties and after-sales support.
There was a time when solar panels weren’t within the reach of the average Australian but things have become better. Government policy has also made it cheaper for Australian residents to go for rooftop solar and it is the main reason Australia has become one of the leading countries across the globe for rooftop solar installation.
Since solar panels are expected to perform reliably for 20 to 25 years, you can save a lot of money over 2 decades. It is an investment in the future.
Don’t forget that the rebate program is being slowly phased out and there is unlikely to be any rebate after 2030 or thereabouts.
Switch to Solar Energy!
Solar energy is renewable, environmentally friendly and affordable. With the cost of electricity going up constantly, and the available rebates being reduced each year, now is the right time for you to invest in solar energy.
Macedon Ranges Solar Power is a Clean Energy Council accredited and approved retailer and installer. We have more than 10 years of experience in the industry and would be more than happy to come around and assess your home or commercial building for a quote that is tailored to your needs.
Please give us a call today on 1300 974 991 or make an enquiry.