More than 20% of all households in Wollongong have invested in solar panel technology. With increasing power prices and low solar panel prices, many households are considering installing solar panel systems on their roofs. The question many ask is, “as an investment, does solar stack up in Wollongong?”.
The solar panel rebate is decreasing every year. Because of this, you might wonder whether a solar investment right now is a good idea or not. This article should help you weigh up the pros and cons.
Solar panel system rebates in Wollongong
With a rebate, you can potentially save a lot of money when investing in a solar energy system. For many residents in Wollongong and other parts of NSW, access to financial incentives is crucial to make solar installation possible.
So, what rebate schemes are available?
Federal solar rebate
A couple of years ago, the Australian government introduced us to the federal solar rebate. By gaining STCs (Small-scale Technology Certificates) upon installation of a new solar panel system, your total installation costs will get significantly smaller.
The STC value is usually around $34 to $40 and is subtracted from your costs related to products and installation. So, how many Small-scale Technology Certificates will you get? The more STCs, the bigger your total solar rebate will get. To qualify for your rebate you must use a Clean Energy Council (CEC) approved installer.
If you are installing a solar energy system with a big power output, this will give you more STCs. Besides the size of your solar energy system, the location of your home will also matter. In zone 1 and 2 you will get more STCs than in zone 3 and 4.
Wollongong is located in STC zone 3, which will generate fewer STCs – but still more than in zone 4. A normal 6.6kW sized solar system will typically give you a rebate of $2,394. You will then pay $5,606 for a system that would cost almost $8,000 without the rebate.
The STC rebate gets smaller and smaller
It is worth noting that the STC rebate only is scheduled to last until 2030. Every year, the rebate is getting smaller because the amount of STCs will reduce by around 4% annually.
This is also the reason why the solar rebate in Wollongong is smaller today than it was some years ago.
Are there any state rebates?
No, unfortunately not. At the time being, the federal rebate scheme is the only financial rebate you have access to.
But thanks to the federal rebate you will still be able to reduce your installation costs greatly.
Reduce your energy costs
If your household gets its power through the grid today, you can expect to save a lot of money by going solar.
With optimal orientation and angle of your solar panels, you can expect a 6kW system to produce more than 25 kWh a day. This is more than enough to cover the electrical energy needs of an average Wollongong household.
If you have a big house or many family members, your power consumption might exceed this. But do not worry – a bigger solar panel system may then cover your needs. A 10kW system, for instance, is expected to produce as much as 38.5 kWh a day.
Sometimes your system might produce even more energy than you are able to use. In that case, the leftover power can be sold through the grid. In return, you will receive a feed-in tariff. That way, you can reduce the payback time.
Return on investment and payback time for solar panel systems in Wollongong
If you are planning to install a solar energy system, it is always a good idea to consider how effective the system is going to be. The more power it can produce, the more money you will save. And saved money is giving you a better return on investment.
The payback time will tell you how many years it will take to earn back the money you invested in the solar panel system. In Wollongong, the weather conditions are perfect for solar energy, and you can expect the system to pay its initial costs within three to four years.
Conclusion: How does solar stack up in Wollongong as an investment?
Wollongong residents that still have not invested in solar power, might consider doing it as soon as possible. The STC rebate is the only rebate scheme available and will reduce by around 4% every year. Because of this, it might be tactical to invest as soon as possible.
Anyways, investing in solar panel systems in Wollongong is definitely a good idea. Not just because of the rebate, you will receive, but also because the system is expected to pay for itself. You will be able to save a lot of money due to lower electricity bills.
If you get a grid-tie system you may also reduce your payback time, even more, thanks to the feed-in tariff.
Find the perfect solar panel system today!