Many homeowners say that they are not looking at a solar system as an investment. Our response to that is they definitely should do so.
If a solar system does not stack up as investment then why not put your money somewhere that does. However, an investment return need not be considered just in terms of dollars and cents, but in dollars and sense.
If you care about this planet and your future and that of your children living on this planet, you may wish to think in terms of solar as an investment in sustainability, in reduction of carbon emission,( CO2), less use of finite resources, fossil fuel etc.
So if money is not the issue in your case, you could maximise your use of solar power just to be a good citizen of this planet.
However, most of us live in a world where money for us is also a finite resource, so it makes sense to make sure that a solar power system is a good investment.
A Solar System as a Financial Investment
How well a solar system will stack up as an investment for a homeowner will depend on how much electricity you use during the daytime. This aspect was irrelevant when the generous State Government Feed in Tariff of 44 cents per kW for electricity generated and fed into the grid was available. It is still payable for customers who installed a system before 1st January 2014. new installations do not receive any State Government Feed in Tariff. Some
Electricity retailers however, pay a Feed in Tariff, which can be up to 8 cents per kW.
The standard regulated rate for electricity (Tariff 11) is currently just on 28 cents per kW cents - Doubled Up - including GST, so for every kW you generate and consume you will save 28 cents. A 5kW system with 6.5 kW of panels will produce on average around 27kW per day. So 27kW by 28 cents is $7.56 per day, or total $2,759.00 pa.
Note: Good quality inverters will usually cope well with more panels than the nominal size of the inverter, with the way that the rebate works it costs little more to have a 5kW inverter with 6.5kW of panels, which will give substantially increased electricity generation.