What is the likely payback period on my solar system?
The payback on a solar system can vary across the country, depending on the local price of electricity, the local amount of sunshine and the electricity usage pattern in the home or business where the system is installed. In general, the more the electricity that is used on site and not exported to the grid for a low feed in tariff - the quicker the payback period.
Nowadays, the payback for many solar system ranges from 5 to 8 years depending on the above variables. That's why it is important to get a reliable high quality equipment installed as the solar system owner only starts to earn a real income from their system after they paid off the initial outlay.
If for instance it takes you 5 years to pay off a "budget" system and the system fails after 4 years and the panel or inverter manufacturer have gone bankrupt, the solar home owner loses part of his investment. On the other hand if it takes you 6 years to pay off a "quality" system but the system lasts 25 years, the owner earns real cash for 19 years.
Therefore buying a cheap, quality compromised solar system, from a long term investment point of view, makes little sense. We suggest you look at the LG solar savings calculator for a rough estimate of the payback period applicable in your post code. Also look at the Lifetime ROI Calculator.
While the payback period should be considered, the more important factor is how much power the system produces and for how many years power is produced after the system has "paid itself back"