Sydney holds one of many main set up charges for solar power the world over. In reality in sure suburbs of Sydney (corresponding to Schofields) the info from the Australian Photovoltaic Institute reveals that over 70% of the rooftops have a solar panel set up. This article goals to have a look at the funding case for solar and supplies a information on methods to decide on solar power in Sydney.
If you’re all for solar power to your Sydney-based enterprise, see our article on Commercial Solar Power in Sydney.
How a lot power do solar panels generate in Sydney?
Although it is probably not as sunny as Brisbane or Darwin, Sydney continues to be receives loads of solar hours. With NREL’s PVWatts calculator we will see that for every kWh that’s put in in Sydney you must be capable to generate a mean of three.96 kWh per day. This components in a system effectivity lack of 15% which might be typical of an affordable high quality Sydney solar system.
We’ve put collectively the beneath desk of widespread system sizes that can assist you perceive what this implies. It’s useful to keep in mind that kilowatt-hours (kWh) are the items that seem in your electrical energy invoice – and which your electrical energy retailer makes use of to calculate your quarterly or month-to-month electrical energy prices.
Estimated solar panel power manufacturing in Sydney (in style system sizes) |
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| Solar system measurement (kilowatts) | Avg every day system output (kilowatt-hours) | Annual output (kilowatt-hours) |
| 2kW | 7.9 kWh | 2,891 kWh |
| 3kW | 11.9 kWh | 4,336 kWh |
| 4kW | 15.8 kWh | 5,782 kWh |
| 5kW | 19.8 kWh | 7,227 kWh |
| 7kW | 27.7 kWh | 10,118 kWh |
| 10kW | 39.6 kWh | 14,454 kWh |
| 15kW | 59.4 kWh | 21,681 kWh |
* Output was calculated utilizing PVsyst software program
What do these numbers imply for me if I am going solar?
Solar power is a good funding for just about any home that has a reasonably-sized, unshaded roof and a few electrical energy consumption throughout the daylight (see the sections beneath). This is as a result of your home-generated solar energy can prevent cash in two methods:
- Solar helps you cut back the quantity of energy you must buy out of your electrical energy retailer / the grid. This is usually known as ‘solar self-consumption‘, and it’s the key to profiting from your solar system – you must do every part you’ll be able to to maximise your self consumption. In apply, self-consumption entails operating your home equipment (pool pump, washer, dish washer, and so forth) when the solar is shining. (Read extra about shiftable hundreds.)
- You can earn credit in your electrical energy invoice to your system’s surplus energy. This is often known as a solar feed-in tariff. Any solar energy produced that’s not instantly put to make use of in gadgets in your home will routinely be despatched again to the grid, incomes you a feed-in credit score. A couple of years in the past, feed-in tariffs had been state-sponsored and fairly beneficiant; nowadays the charges supplied are a bit decrease however nonetheless sufficient to assist make solar a sexy funding.
The worth of your solar energy is predicated on a mix of how a lot you self-consume and the way a lot you export. If you could have a 6.6kW of solar panels in Syndey that produces a mean of 26.1kWh/day, however you solely handle to self-consume 20% of that, then your financial savings will likely be smaller than in case you managed to self-consume 40% – and even, ideally, 60%.
It’s subsequently essential that the system you select is appropriately sized to your home and electrical energy consumption. We have developed a instrument that can assist you choose a solar PV system measurement primarily based on the quantity of energy that you just eat and your consumption sample.
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What solar rebates can be found in Sydney and NSW
Federal STC Rebate
Like everybody all over the place in Australia, Sydney residents who set up solar can profit from the nation’s small-scale know-how certificates (STC) rebate beneath the Renewable Energy Target. In easy phrases the STC rebate affords an upfront low cost of roughly 30% for any solar set up beneath 100kW in capability in Australia. The rebate does differ barely relying in your places in Australia and on the present market worth for the certificates it produces.
The rebate is designed to be collected by the corporate who installs your solar system, in order that they in flip give you a internet worth which has deducted the STC rebate. Most quotes will present a breakdown of the overall prices (earlier than the rebate) and the online price to you (after the rebate).
To provide you with an instance, a typical 6.6kW solar panel system in Sydney would generate 82 STCs (utilizing the Clean Energy Regulator’s calculator) and at a present worth of $36.9 per certificates that may end in a rebate of $3,026.
NSW Government curiosity free loans for batteries
The NSW authorities has launched a program to offer interest-free loans to prospects putting in a battery. The scheme is just accessible to residents who’re in one of many postcodes listed on this web page, largely overlaying the Hunter Valley and Blue Mountains areas.
We present some info on the monetary return of solar batteries additional down this text, nevertheless in our view at Solar Choice an interest-free mortgage just isn’t ample to vary the financial story of putting in a battery.
How a lot do solar panels price in Sydney?
Thanks partially to the federal incentives defined above, Australia is home to among the lowest solar PV system costs on the planet – which is without doubt one of the causes that so many properties and companies have solar panels put in. Solar Choice has been protecting observe of set up worth developments since 2012 and as you’ll be able to see within the beneath desk the price of solar in Sydney tracks intently to the nationwide common.
The chart beneath reveals how costs have modified (when it comes to {dollars} per watt of capability – $/W) since 2012 for a spread of in style system sizes. On common solar system costs in Sydney have greater than halved since we began publishing figures.
According to our information from March 2022, a typical 5kW system in Sydney prices about $4,450 on common after the STC rebate has been deducted.
Pricing will range relying on if any extra prices are concerned like tile roof installations or tilt frames. Solar Choice’s on-line quote comparability instrument features a comparability of all of those further prices which could apply to your home.
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What is the monetary return for a solar panel system in Sydney?
The brief reply is that there’s a nice return on funding for Sydney properties with the flexibility to save lots of as much as $2,707 per yr in your energy invoice with a typical payback interval between 4 and 5 years.
The desk beneath reveals payback durations and annual financial savings within the first yr for a Sydney solar panel system for a a number of completely different eventualities. Note that now we have tried to match the system measurement to the energy utilization, nevertheless the correct measurement system additionally depends upon what time of day energy is used inside a home. The self-consumption price of 40% implies that an affordable quantity of power is getting used in the course of the day.
As we’ve used common costs from the Solar Choice Price Index, the monetary return may very well be higher for you if yow will discover a less expensive quote. Although be cautious of quotes which are too low-cost as workmanship, gross sales and set up course of and high quality of merchandise can drop away in a short time.
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Indicative financial savings and payback durations for solar panel methods in Sydney – Updated March 2022 – |
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| Solar Panel Size | Average Cost | Average Daily Energy Usage | Self Consumption Rate | Annual Savings | Payback Period |
| 5kW | $4,620 | 15 kWh | 40% | $902 | 5.0 Years |
| 6.6kW | $5,290 | 20 kWh | 40% | $1,196 | 4.4 Years |
| 10kW | $7,860 | 30 kWh | 40% | $1,804 | 4.3 Years |
| 15kW | $11,590 | 45 kWh | 40% | $2,707 | 4.2 Years |
Assumptions/limitations of this evaluation
- Assumes an electrical energy worth of 23c / kWh which is in direction of the center of what’s supplied in Sydney
- Assumes an uncapped solar feed in tariff of 9c / kWh which on the higher finish of what yow will discover in Sydney
- Average prices come from the Solar Choice Price Index for March 2022
- Your self-consumption price will range relying on how you utilize power in your home. At increased price, means much less power is exported to the grid and improves your monetary return
You can mess around with the numbers particular to your Sydney solar panel mission with our Solar Payback Calculator.
What about solar battery storage in Sydney?
The price of solar batteries in Sydney is far increased than the associated fee to put in solar panels. Although the battery performance has been effectively established and there are completely different manufacturers available in the market, the return on funding nonetheless leaves one thing to be desired.
At Solar Choice, now we have been monitoring the prices of solar batteries within the battery worth index and usually performing an evaluation of the monetary return of batteries. We have a look at 3 typical use instances for solar batteries and alter the dimensions of the solar and battery answer to suit. See the beneath payback durations and annual financial savings from solar and batteries in Sydney.
| User Case | Solar and Battery Solution | Total Year 1 Savings | Payback Period Solar & Battery | Payback Period Battery Only |
| Young Adults / Older Family | 5kW of Solar Panels and a 3.5 kWh battery | $828 | 11.7 years | > 20 years |
| Retirees / Young households | 6.6kW of Solar Panels and a 6.5 kWh battery | $1,264 | 10.1 years | > 20 years |
| Big Energy User | 13 kW of Solar Panels and a 13.5 kWh battery | $2,189 | 10.6 years | > 20 years |
To overview our assumptions and the methodology of this evaluation see our full article.
As most batteries have a guaranty for 10 years, our evaluation means that the battery won’t be able to pay for itself throughout its lifetime. There continues to be fairly a method to go on the price of batteries earlier than this story will change. Previously now we have estimated that batteries might want to price $200-$300 per kWh of capability to supply a very good return on funding whereas the present worth is round $1,000 to $1,100 per kWh.
This evaluation does ignore among the non-financial advantages of batteries. Crucially as Australia is experiencing increased frequencies of flooding and extra extreme bushfires many households are interested in batteries to offer back-up power within the occasion of the grid outage.
There can be the profit to the atmosphere to help within the discount in Australia’s reliance of coal-fired power stations. Batteries, and lots of of them, will likely be required if we’re going to eradicate fossil gasoline power in Australia altogether.
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