Last update March 24th, 2025 at 11:44 am
Let’s take a look at solar power pricing in Cheltenham explore how solar power is transforming the Victoria suburb of Cheltenham, including average system sizes, savings on power bills, solar power pricing and available rebates.
Since the year 2000, around 1,898 solar systems have been installed on homes and businesses in Cheltenham.
There are 8,762 homes in Cheltenham, therefore the percentage of homes with solar power is approximate 22%.
How does Cheltenham compare to the rest of Victoria?
Cheltenham has a lower proportion of homes compared to the rest of the state as the percentage of homes in Victoria that have installed solar panels is 22%.
Solar Panel Statistics in Cheltenham VIC 3192
Number of homes in Cheltenham: 8,762
Number of homes with solar in Cheltenham: 1,898
Percentage of homes in Cheltenham with solar panels installed: 22%
Percentage of homes in VIC with solar panels installed: 29%
Percentage of homes in Australia with solar panels installed: 40%
Top 3 Postcodes in VIC for Homes with Solar Panels
Here is a list of the top 3 postcodes in Victoria where homeowners have installed the most solar panels:
- 3029 – Hoppers Crossing, Tarneit etc… – 138MW
- 3064 – Craigieburn, Donnybrook etc… – 103MW
- 3030 – Werribee, Werribee South etc… – 92MW
Average Solar Power System Sizes in Cheltenham
In Cheltenham, homeowners typically install solar power systems ranging from 4.1kW to 10.1kW. The average solar system size installed in Cheltenham since the year 2000 is 7.1kW. This average system size compares to neighbouring suburb Sandringham which has an average system size of 6.2kW. These solar systems help Cheltenham residents generate enough electricity to significantly reduce their reliance on the electricity grid.
Solar Power Pricing in Cheltenham
According to our recent research, the price range for a 6.6kW solar system supplied and installed in Cheltenham after government rebates can range between $3,000 to $5,000.
This price can vary a lot as it depends on factors such as your roof type, solar panel quality, inverter quality and so on. For example, microinverters can add several thousands of dollars to the cost of a 6.6kW solar system.
Solar Panel Performance in Cheltenham
For an unshaded, north facing well performing 6.6kW solar system located in Cheltenham, we estimate that you may generate on average around 20kWh/day.
How much money will solar panels save me?
We just estimated that a well performing 6.6kW solar system installed in Cheltenham may generate 20kWh/day on average throughout the year.
To estimate how much this can save you on your electricity bill, we need to make a few assumptions. Let’s assume the following items:
- Electricity cost is 25c/kWh
- Solar feed-in tariff is 5c/kWh
- Percentage of solar generation dicrectly consumed is 50%
- Percentage of solar sold to the grid is 50%
Give the above assumptions, we estimate that the annual savings could be $1,112 per year.
This represents a simple payback time of 3.6 years which some may say is a good return on investment.
Solar Finance and Green Loans in Cheltenham VIC
These days, may households decide not to pay cash up front for their solar system, but to use a green loan or solar finance.
This is growing in popularity as for zero dollars up front, sometimes the amount saved on your powerbill by installing solar panels more than covers the solar finance repayments.
To estimate the solar finance repayments in Cheltenham, let’s first make some assumptions:
- Solar system size is 6.6kW
- Cost of solar system after rebates is $4,000
- Interest rate is 8% per annum calculated monthly
- Term of green loan is 5 years
- Annual solar savings on powerbill is $1,112 (this was taken from above)
- Establishment feed or admin fees have not been included
The cost of solar finance using the above assumptions is $973 per year.
This means that you may be able to install solar panels on your home for zero dollars down and it is still cash flow positive. “Cash flow positive” means that the savings you get from your solar system on your power bill exceed the annual repayments for your green solar loan in the first year. In other words, you’re saving more money on energy costs than you are spending on the loan, resulting in a net gain in cash flow.
The above example is an estimate only and of course you need to check these numbers independently with a profiessional financial advisor rather than relying on our calculations.
Government Rebates for Solar in Cheltenham
Cheltenham residents can take advantage of several solar rebates to reduce the upfront cost of solar panel installations. The Federal Government’s Small-scale Renewable Energy Scheme (SRES) provides rebates for solar panel systems. Homeowners can receive certificates that can be traded for cash at the point of installation, significantly lowering the cost of installation.
Under the solar rebate scheme, Cheltenham is situated in Zone 4; consequently, this classification affects the available benefits for solar installations. Therefore, a 10kW solar system in Zone 4 can generate 82 Renewable Energy Certificates. Assuming, moreover, that the amount paid per certificate is $37, we can calculate that the total rebate applied as a point-of-sale discount amounts to $3,034.
The price paid for each certificate does fluctuate so keep that in mind. On top of this, there are conditions for the eligibility of a government rebate so it is best to talk to a solar professional how it pertains to your situation.
Solar Panel Tilt Angle for Cheltenham
Often times people ask what is the best angle to mount solar panels so that they generate the most energy throughout the year. This is almost always determined by the roof you happen to have on your house.
According to the Solar Radiation Data Handbook, a very good placement for solar panels located in Cheltenham is 38° from the horizontal; therefore, this angle maximizes solar exposure and enhances energy efficiency.
It is very unusual to find a roof with the perfect pitch facing north in Cheltenham, however, do not despair, it is often still worthwhile to install solar panels, nevertheless, as the losses of solar panels mounted at 25° instead of 35° is fairly minimal.
Sometimes it can be a good idea to mount solar panels facing West. The reason for this is because West facing solar panels can generate more electricity in the afternoon as the sun is setting.
This can correlate with the price of electricity in some markets; consequently, prices may increase in the afternoon as the demand for electricity rises.
Again, it is best to talk to a solar professional to see what is the best valley for money. solar panel placement for your situation.
Battery Storage Adoption in Cheltenham
Energy storage is also gaining traction. Home battery systems allow homeowners to store excess solar power generated during the day for use at night or during cloudy periods. This setup maximizes the benefits of solar energy by ensuring a consistent power supply and further reducing electricity costs.
How does Cheltenham Compare to its Neighbours?
Here are some suburbs close to Cheltenham and how they compare:
Sandringham is ahead Cheltenham with a solar penetration of 23%
Highett is lagging behind Cheltenham with a solar penetration of 16%
Moorabbin is ahead Cheltenham with a solar penetration of 31%
Please note that the solar statistics used in the article was sourced in March – 2024.