Title: Payback Periods For Different Solar System Sizes - Solar Secure
1PAYBACK PERIODS
FOR DIFFERENT SOLAR SYSTEM SIZES
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2ABOUT
SOLAR SECURE
Solar Secure was founded with the mission to
spread solar across the rooftops of Australia
while providing an exceptional customer
experience. We have dedicated team of
solar experts and professionals across Australia.
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3One reason why solar energy is widely being seen
as the more viable option for Australian
businesses and households is the payback period.
The payback period essentially refers to the
number of years taken for the total savings to
outnumber the total costs of the solar panels,
including installation. Total savings translate
to the avoided cost of consumption, coupled with
revenues received from the feed-in tariff. The
total price includes the initial investment
along with the time value of money.
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4A couple of factors determine the payback period
of a
solar panel system, including its size, cost,
offered feed-in tariff, the prevailing price of
retail electricity, and the interest rate on
loans. A lot of these determinants are different
for states across Australia.
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5The following graph represents the payback period
for different sizes of solar PV systems across
the country. Note that the higher the feed-in
tariff offered by the local retailer, the higher
the savings, the shorter the payback period. A
comparative study with the previous quarter shows
that the price of solar systems has not changed
in Darwin and Hobart the two states with the
highest installation costs, and consequently, the
highest payback period that exceeds 10 years.
Melbourne also marks higher solar system costs
than Adelaide, Perth, and Sydney, a discount of
120, 350, and 640 for 3kW, 4kW, and 5kW solar
systems. The others have noted a fall in system
prices by 40 to 140.
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6Note that these findings hold true only as long
as the discount rate is set at 3.45.
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7On the other hand, a graph for the expected
payback period for systems with a discount rate
of 5.49. Melbourne has a distinct advantage
when installing 5kW systems, as opposed to
installing 3kW or 4kW systems. Preferring a 5kW
system over the other two in Melbourne can bring
down the payback period by three years. As for
Adelaide, Perth, Sydney, and Brisbane, the
payback period remains constant, even with
higher interest rates, as illustrated in the
graph below.
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8info_at_solar-secure.com.au
9THANK YOU!
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