Australia is blessed with abundant solar resources, and the opportunity for households to benefit from solar energy installation are compelling thanks to state government support around the country. We discuss the solar opportunity for New South Wales home owners below.
The NSW Government subsidizes the cost of installing solar. NSW home owners who purchase solar panels are eligible to receive the NSW Government solar rebate which can lower the cost of installing a solar system by up to 33%. The rebate is based upon the number of small-scale technology certificates (STCs) created when a solar system is installed which is calculated according to the amount of energy the system will generate. Generally, one megawatt hour of production capacity equates to one STC, and on average, the NSW solar rebate saves home owners around $600 per KW of installed solar capacity. So, for a larger 6KW solar system, that translates into around a $3600 saving. It’s a significant saving which explains why 25% of NSW households already have solar installed, and many more are considering it.
The financial returns are generally compelling. Once solar is installed, NSW households benefit from significantly lower electricity costs, and they also have the opportunity to sell any excess solar energy they generate back into the grid through feed in tariffs with their energy supplier. It’s the combination of both factors which makes the return on investment attractive.
Geoff Pollock, General Manager of North Homes, encourages installing solar: “NSW homeowners have the opportunity of generating an attractive return on investment on solar thanks to the government rebate. Most are able to recoup their upfront investment within five years, so it’s a worthwhile investment which also helps to reduce Australia’s carbon emissions.”
