Best Time to Invest in Solar Power? Now
Amazing but true! Despite wild swings in government incentives, the solar power industry has ensured that renewable power options remain available and attractive.
There are three major factors driving the continuation of the solar success story despite erratic and confusing government policy.
- Continual improvement in technology.
- Rapidly rising cost of electricity.
- Remarkable falls in the price of installing solar power.
EG: In 2005, a high quality 2kw grid connect solar system would cost $23,260 fully installed before government rebate (which was $4000). A similar system now with improved technology and efficiency is available for $8,300 and there is still around $3,000 cash back for the sale of the renewable energy certificates. So while the cost of dirty coal power has continued to rise, the price of a clean and reliable renewable energy system for your home or business is roughly one third of the outlay that it was seven years ago. Great news!
So what about feed in tariffs and the fabled 60 cent “Solar Bonus Scheme?”
What we need to understand is that although new customers are no longer eligible to take part in this scheme, your metering can be arranged so that all the power your panels produce can be balanced against the electricity you are using AT THE TIME OF THE POWER PRODUCTION, thus saving on the real cost of electricity. This is a very important point. If you use electricity during the day, you do not need a feed in tariff or government incentive to make solar an attractive proposition. The power companies are doing all the work for us already by continually ramping up the cost of their product. Logically, the more the cost of power goes up, the more attractive renewables become. So your 2 kw system will put you roughly $5,300 out of pocket after claiming the renewable energy certificates. Given a good solar aspect, you can expect it to create around 9 units of electricity per day. Assuming your usage during daylight hours is above the rate of power production, you will be saving your normal tariff, which is at least 28 cents. This gives a saving of about $920 per year on your power bill or a return on investment of 18%. This does not take into account tax advantages on depreciation of the equipment or rises in electricity tariffs, destined to head towards 40 cents in the foreseeable future.
If your home or business is a heavy user of electricity during daylight hours, you can install a bigger system for greater savings and excellent outcomes both for the environment and public relations.
Call your local solar installer today for information and quotes.
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