It is common to see solar panels in Melbourne, and in some suburban areas, more than 70% of all households have installed solar panels on their rooftops. Are you planning to go solar? If so, you might wonder if solar is still worth it in Melbourne.
In this guide, we will tell you everything you need to know about solar panel pricing in Melbourne!
Solar rebates in Melbourne
Like all other Australians, residents located in Melbourne will have access to a federal government rebate scheme when installing solar technology. The STC rebate will give you a certain amount of Small-scale Technology Certificates, and each of these has a market value.
The STC value will be deducted from the solar panel costs, and the number of STCs received will decide the size of the rebate. So, how many STCs will you get? Both the size of the solar panel system and your household location will matter.
If you install a 6.6kW system in Melbourne, this will give you 54 STCs in 2024. If each STC has a value of $36.90, this will give you a total rebate of around $1,998. The market value of the STC might fluctuate based on market forces.
Besides the STC rebate, you may also benefit from the Solar Homes Program. This is a state-specific rebate and can cover up to $1,400 of your solar panel costs.
Interest-free loan
In addition to the solar panel rebate, Victorians may also get access to an interest-free solar battery loan.
Through Solar Victoria, interest-free loans of up to $8,800 are available to help eligible Victorian households reduce the upfront costs of installing a solar battery.
But remember, not everyone is eligible for this loan. To get the loan, your household must have a maximum income of $210,000. Also, the value of your home must be $3 million or less. For further information visit the Solar Victoria website.
How much do solar panels cost in Melbourne?
A classic 6.6kW solar panel will cost around $5,300 on average, after deducting the STC rebate. Note that in this example we have not included the state rebate.
If you are eligible for the state rebate, you might save an additional $1,400. If so, you can end up with a total solar cost of $3,900.
The financial return for solar installations
Residents located in Melbourne can expect to save as much as $2,200 every year due to lower energy costs. Because of this, the payback time can be as short as 2 to 4 years for an average 6.6kW solar system.
If we assume a self-consumption rate of 40%, a daily energy consumption of 20 kWh, an installation cost of $3,630, energy prices of 22c per kWh and a solar feed-in tariff of 6.7c, the payback period would typically be 3.6 years.
What is the solar battery price in Melbourne?
If you plan to install a solar panel system, you can also include a battery. As much of the energy produced will be produced in the middle of the day, you might not be able to use the power if you are not at home.
With a battery, you will be able to increase your self-consumption rate, as you can save energy for later use. During nighttime or in poor sun conditions, you will be able to use the power stored in the battery.
Although solar batteries are good to have, they can also be very expensive. The payback time of a solar battery will typically be around 20 years, which is much more than the expected lifetime of a battery (10 years).
So, despite the fact that solar technology is a good investment in Melbourne, investing in batteries is not generally recommended.
Energy output from solar panels in Melbourne
Solar panel systems installed on households in Melbourne are expected to produce power efficiently. The climate might not be as sunny as in Perth or Sydney, but there is more than enough sunlight to make solar panels a great investment.
If you have a 7kW solar system, this will typically generate up to 25.2 kWh of electricity, which is a great output.
Is solar technology a good investment in Melbourne?
Melbourne is actually one of the best places to go solar in Australia, thanks to the great return on investment and good rebate schemes. If you would like to invest in solar technology, you can expect to pay between $3,900 and $5,300 for a 6.6kW system.
With a payback period of 2 to 4 years, the system will pay for itself within a relatively short period of time. The system will provide you with clean and free energy.
Find an approved installer today, and get a solar system that covers the needs of your household!