How fast you can pay back the cost of installing solar panels will depend on the size of your solar system, feed-in tariffs and how much you're currently paying towards your energy bill.
On average, it can take between 4 to 6 years to recover costs. However, with energy prices predicted to go up by 50% over the next 2 years, your payback period could likely shorten.
Calculate your solar payback period
Not keen on rough numbers? You can add in your details in the solar power payback calculator for a more precise estimate.
Where you live. For example, southern Queensland is better for homes with solar than southern Tasmania
As a general rule of thumb, you could save $400 per year per kW by installing solar. If you install a 6kW solar system, you could be looking at $2,400 in savings each year.
However, it's best to calculate saving estimates based on your household and a solar payback calculator can help you do just that.
How long will it take to pay back my solar system?
It can take between 4 and 8 years on average to pay back the cost of your solar system.
There's reports that solar payback periods could go down with energy prices predicted to go up in the next 2 years. We spoke with an expert to discuss these claims.
Although electricity prices are forecast to increase significantly between now and 2024, this will have a limited impact on rooftop solar payback periods as strong global demand will put continuous upwards pressure on solar pricing and increasing solar in the grid will push down feed-in-tariffs. In the best case, consumers might be able to expect that payback periods will stay the same or reduce slightly. Keep in mind, solar panel manufacturers continue to warn that demand in the US and Europe will see prices increase in Australia.
A normal sized 6kW Solar PV System can cost between $4,000 and $6,000 in most states in Australia and a 10kW system can cost between $7,500 and $10,500.
What is the average cost of solar panels in my state?
Here's a city specific breakdown of total retail prices of a solar system. This will help you with solar panel estimates for your state.
Costs include both the up-front incentive available for small-scale systems (STC discount) and GST.
Is installing a solar system a good investment for my home?
If the upfront cost of installing solar won't put a burden on your finances then yes, going solar will benefit your budget in the long run.
This is keeping in mind the rising cost of energy bills in Australia as well as on a global scale.
Plus, you'll be doing your part to help the environment too. After all, energy efficient homes are all the rage these days.
Good to know: Just make sure you go through a Clean Energy approved solar retailer so that you receive detailed information on the installation process, any rebates you might be eligible for and most importantly, a good quality solar system.
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Mariam Gabaji is an editor and tech and utilities expert at Finder with over 11+ years of experience in print and digital media. Her main goal is to help households cut through the industry jargon and save money on their household bills. Her expertise is often featured in media including the ABC, Yahoo Finance, 9News, 7News, A Current Affair, The Guardian, SBS and Money Magazine.
If you're looking to buy a solar PV system for your home, these retailers have been accredited by the Clean Energy Council as an approved solar retailer.
Terms like on-grid, off-grid and grid-tied can lead to confusion. They essentially refer to whether or not you want to access the grid alongside your solar power service.
State-based rebates and incentives can help you with the hefty upfront costs of installing solar.
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