Should I buy a solar system?
The cost of solar systems is slowly falling while the price of network power is rising. In all states, even taking the worst possible case for solar, the investment in solar power is financially beneficial providing the system has a long-life and has not been purchased on high price finance. The financial economics of solar are improving year by year.
How much will a solar system save me? The worst possible scenario for solar would be buying a system then leaving the house empty for 10 years. However, even here, taking into account the worst feed-in-tariff in Australia a 6.6kw system will generate over $7,000 over 10 years, pay itself off and perhaps go on to earn the household $3,500-$10,500 profit before failing (if it's a quality system and lasts 15-25 years). This is the minimum return. The maximum return from solar for a 6.6kw system would be around $4,000 year or 40k over 10 years, 120k over 30 years. These are the best & worst financial extremes, both are unlikely but both are sound investments. The key proviso to these numbers is that they are based on a solar system lasting a long time. This is not a given as not all panels, inverters and installations are the same. Buying longevity in a solar system through buying quality is the single most important factor when investing in solar.
Should I wait for better/cheaper solar technology? While solar panel technology is steadily improving and slowly getting cheaper it is worth recognising that ‘rebates’ are moving in the other direction and steadily declining. The net present value of lower power bills from getting solar now is substantially bigger than the value of waiting for the next best thing in solar. So for example, waiting a year to buy a 6.6kw solar system will probably save you $300 on the buy price plus $20 year on extra performance on next years system, $320 year in total. However, getting the 6.6kw now will likely save $1,500-$2,000 year on power bills.
With the arrival of solar battery storage and electric vehicles solar is a crucial component on every home and now is the best time to start investing in a quality solar system to take control over your power bills.
Investing in solar is effectively buying future power consumption in advance at a very, very cheap rate. In five years or so power savings will have paid off the cost of the system. You will own your energy production outright and with a top tier LG solar system you will continue to make savings for at least a further 20 years.
In addition to financial considerations solar power is an opportunity to reduce personal CO2 emissions, global warming and man-made climate change. A 6.6kw system can avoid in the order of 132 tonnes of CO2 emissions over a 25 year life.
A certified LG installer will guide you from your first considerations through to planning and installation of your solar energy system.