IS IT WORTH TO INSTALL SOLAR PANELS AT YOUR HOUSE?
If you don’t have a solar panel system at home and are thinking to install one, now is the time to take advantage of the Victorian Solar Homes program relaunched on 1 July 2019.
According to the scheme, the government will cover up to $2,225 of the solar panel system costs. In line with this rebate, the new interest-free loan can be applied up to an amount of $2,225.
For example, if you choose to install a solar panel system worth less than $4,450
*Prices are indicative only
It is an ideal scenario to have a solar panel system installed with the cost of $4450 exactly.
Let’s have a look of below real scenario:
A family of four with 4 bedroom 2 bathroom house in Glen Waverley, Victoria, the average monthly electricity consumption is approximately 250kW.
Under the Government rebate and interest-free loan scheme, householder only has to pay the upfront cost. The upfront cost depends on the solar system you selected and how much would it produce solar power.
Having said that, the solar panels only work during the period with massive sunlight, such as summer season or before noontime at other seasons.
If you use electricity to do all your house works during the daytime, you can enjoy the solar power generated from the solar panels. Otherwise, you need to install solar batteries to store solar power and consume it whenever you want. However, the cost of installing solar batteries are triple the cost of installing solar panels and there is some ongoing cost for maintaining the batteries. Whereas your solar panels will last 25 years and beyond, your batteries will likely need replacing at least once every 10 years or so. The Government will rebate half of the battery cost, but, you can only enjoy either one of the rebate schemes.
An estimated solar power output at Glen Waverley, Victoria.
Energy Output is calculated based on historical solar irradiance at the given location. A typical meteorological year is selected using statistical methods. Factors including panel tilt, orientation (azimuth), and system efficiency are taken into account.
If your solar panels generate more solar power you can use, you will find a credit on your power bills of around 12 -18 cents per kWh for the energy you have fed back into the grid, although the financial benefit is not as great as the saving you make by using the solar. The credit can be accumlated to the next bill, which can cover the cost of the electricity you consumed at night time.
To understand more about electricity and gas bills, read this article: https://www.sa.gov.au/topics/energy-and-environment/energy-bills/understanding-bills
Does a solar panel system really pay off?
According to the above real scenario, the solar system generates an annual saving that could be off-set the investment cost in 3 to 5 years depending on the solar system you selected. But the ROI % is sure a positive return. You probably stop paying electricity bill after the break-even point by selling the solar power back to Energy Company.
To understand more about how to select solar panels system, read this article: https://solaray.com.au/is-solar-power-worth-it-in-melbourne/
Am I eligible for the Victorian Solar Homes rebate?
To be eligible for the Victorian Solar Homes program, you and your household must meet the criteria. These include:
- a combined annual household income before tax of less than $180,000;
- proof you are the owner-occupier of a home valued at under $3,000,000 (a copy of a recent council rates notice is required);
- confirmation your home doesn’t currently have a solar power panel system installed; and
- choosing Clean Energy Council (CEC) Approved Products (for solar panels) and a CEC Accredited Installer (such as Energy Matters).
You can check your solar panel retailer in this website.
The solar panel rebate scheme has a monthly quota of 3333. As of today on 4 July 2019, the remaining quota is zero which means 3333 applications have been received in four days. The next release will be available from 1 August.
Do solar panels add value to your home?
According to Origin Energy survey, 1,005 Australians aged between 18-79 from all States and Territories in 2018 2, 77% of Australians think a house with solar is more valuable than those relying on traditional energy sources. With 57% of homeowners saying they would pay up to $10,000 more for a home equipped with solar, and 60% would pay at least that much more for a home with both solar and a battery wall (Thornton, 2019).
Do solar panels add value to your investment property?
Solar panels not only benefit for homeowners but for landlords. 55% of renters saying they would be willing to pay up to $10 a week more in rent for a property with solar (Thornton, 2019).
Australians believe homes with solar are more valuable. Utilize your empty roof space as a potential asset by installing panels could help to reduce your electricity cost, increase home value and sells up to 20% faster compared to other homes without solar power (Momentum Energy).
To understand about our home selling method, click: https://www.waverleycity.com.au/our-unique-selling-method
Momentum Energy, How does solar power increase your home's, retrieved 4 July 2019, https://www.momentumenergy.com.au/habitat/at-home/solar-power-increase-homes-value
Thornton S, 2019, Does solar boost property value?, retrieved 4 July 2019, https://www.originenergy.com.au/blog/lifestyle/does-solar-boost-property-value-.html
Disclaimer: All estimated figures on this article are for indicative only. The actual costs, solar output and savings are various depending on the solar panel system you selected and the orientation of your property. We recommend you to implement thorough research for comparison and seek advice from different solar panel companies prior to making a decision.