Solar panels in Sydney are very common and can be seen on many rooftops across the city. According to some experts, more than 50% of households located in the suburbs of Sydney have gone solar.
If you consider doing the same, you might have some questions about pricing and other useful information. Here is everything you need to know!
Solar rebates in Sydney
Everyone living in Australia will have access to the federal solar rebate, also known as the STC (Small-scale Technology Certificate) rebate. However, the rebate size varies across Australia. Both location and system size are relevant for the rebate amount.
One STC will have a specific market value and will be deducted from your installation costs. The rebate will be bigger the more STCs you receive upon installation. Also note that the number of STCs received will be reduced every year, as the scheme is set to end in 2030.
In 2024, a 6.6kW solar system will generate 63 STCs for households located in Sydney. If the market value of each STC is $36.20, this will give you a $2,268 rebate.
Besides the STC rebate, residents located in Sydney may also benefit from interest-free loans. However, this loan is only available for households located in specific areas of Sydney – like the Hunter Valley area.
How much do solar panels cost?
In Sydney, a typical 6kW solar system will usually cost around $5,200 – $8,700 with an average cost of $5,370. This is the price after deducting the government STC rebate.
Australia is known to have some of the world’s best solar panel system prices. The installation prices in Sydney and the rest of NSW are close to the Australian average and have reduced by around 50% over the last ten years.
Remember that the exact price will depend on many different factors, including system size and the installation process. There might be additional costs if your installation requires specific tilt frames or similar.
The financial return for solar panels
Households in Sydney will be able to save as much as $2,700 annually due to reduced energy costs when installing a solar panel system. With that in mind, the system will basically pay for itself after only a few years.
The average payback period for households located in Sydney is around four or five years. In other words, you might expect a great return on investment or financial return after installing solar panels.
If you have installed a regular 6.6kW system with an initial cost of $5,290, the payback period will normally be around 4.4 years (assuming an electricity price of 23c per kWh, a feed-in tariff of 9c per kWh, and an average daily consumption of 20 kWh).
What do batteries cost in Sydney?
A solar panel system in Sydney might include solar batteries. With batteries, your system will be able to store energy when the solar panels produce more electricity than consumed. During the night or when the sun conditions are bad, you might use the stored power.
In other words, solar batteries can be very useful! At the same time, they are known to be quite expensive. Actually, the price of solar batteries in Sydney is significantly higher than the solar panels themselves.
The payback period for the battery itself will often be 20 years or more. At the same time, the expected lifetime of a battery is usually not more than 10 years. Because of this, the battery will most likely not pay for itself during its expected lifetime.
What is the expected power output in Sydney?
The Sydney area might not be as sunny as Perth or Darwin, but you can still expect a great number of sun hours during a year. On average, you can expect every kW of your system to produce around 3.96 kWh of power a day.
If you install 6.6kW of solar panels in Sydney, you can assume it to produce around 26 kWh on a daily basis. In other words, you will most likely be able to reduce the amount of energy that you usually buy from your power retailer.
Solar self-consumption makes it possible for your household to save a lot of money over the years, especially when the power prices are high. With a solar energy system, you will basically have your own power station on the roof.
Is it a good idea to go solar in Sydney?
Yes. Australians in general are fortunate to have some of the lowest solar prices in the world. With an expected payback period of 4.4 years for a 6.6kW solar system, the system will pay for itself.
Find an approved solar installer today, and get a price quote. The installer will help you find the right system for your household.