Many residents of New South Wales (NSW) have installed solar panels on their rooftops. In Newcastle, the second biggest city in NSW, it is estimated that around 16% of the households have installed solar. This begs the question, “does solar stack up in Newcastle?”.
Although solar panels are less expensive now than a couple of years ago, the installation costs can still be high. Because of this, you will have access to a rebate that will help you finance the installation.
As you might have noticed, the rebate is shrinking every year. This might make the residents of Newcastle wonder whether solar panel technology is a smart investment or not.
Rebate schemes for solar power installations in Newcastle
Across Australia, you will find solar rebate schemes that were introduced to make solar panel investments more appealing. However, access to rebate schemes might vary across the country. In some places, it is more beneficial to invest in solar technology than in other places.
So, what kind of rebates can you get when installing solar PV systems in Newcastle and the rest of NSW?
The government STC rebate
The government STC rebate will give Australians access to a financial rebate which is based upon something called Small-scale Technology Certificates (STCs). One STC is usually worth between $34 and $40, a value that will be affected by the solar market.
When your solar system is installed, it will give a certain number of Small-scale Technology Certificates. Of course, a large number will mean a larger rebate. Your STC amount will depend on the kW size of your system, but also your STC zone.
If your home is located in Newcastle, you belong to STC zone 3. This will give you a rebate that is somewhat lower than for residents living in STC zones 1 or 2.
In Newcastle, you might expect to pay around $6,190 for a 6.6 kW solar panel system (after the rebate is deducted). A 5 kW system will probably cost around $5,130. For the latter, a rebate of around $2,400 is deducted from the gross cost or 62 STCs.
Rebate Swap for Solar offer
In addition to the federal government STC rebate, the Rebate Swap for Solar offer targets low-income households in NSW by providing them with a free 3kWh solar energy system. Residents eligible for the low-income household rebate may qualify for this free solar system from the NSW government. It’s important to note, however, that participating residents must own their homes and be willing to forego their low-income household rebate for a period of 10 years in exchange for the solar system.
For further details regarding the terms and conditions of this program, it is advisable to refer to the NSW Climate and Energy Action website.
Is solar panel technology effective in the Newcastle climate?
To be able to decide whether solar panels are a good investment or not, it is important to think about the expected power output. The climate in Newcastle is relatively sunny, and throughout the day you can expect 5.3 peak hours of sunlight per square meter.
If you have a 10 kW system, that will give you an average daily system output of 45 kWh. A 5 kW system would produce around 22.5 kW, and so on. These examples are based on a system with 85 % efficiency. Remember that no solar system is 100 % effective.
All in all, the climate in Newcastle is great for investing in solar panel systems. You might expect your system to produce most of the electricity you need if not all of it.
Lower your electricity costs
By having solar panel systems on the rooftop of your Newcastle home, you will not have to spend so much money on electricity from the grid. This also means that you probably will save a lot of money.
Remember that excess energy that you don’t use, can be stored in batteries or transferred into the power grid. If the power is sent to the grid, you will earn feed-in tariffs.
The return on investment (ROI) is great, and your system will in most cases pay for itself after some time. Depending on how much you save annually with solar panels, you may expect a payback time of between two to five years.
In other words – every dollar you spend will pay you back in the long run.
Conclusion: How does solar stack up as an investment in Newcastle?
Based on the climate, rebates, feed-in tariffs, lower electricity costs and short payback time, solar panel technology is undoubtedly a great investment for anyone living in Newcastle.
It might be beneficial to not wait for too long before investing, as the STC rebate is decreasing every year. If you want to go solar, you should start by finding a trusted installer who can help you with the planning process.
Remember, your solar panels and the installation firm have to be CEC-approved. If not, your installation will not be eligible for the government STC rebate.
Find the perfect solar panel system for your household, and make an investment that will provide you with clean energy and economic benefits.