Howdy Solar enthusiast, so Solar Power in South Australia is better value than ever before, Huh.. I here you say. Well allow me to elaborate. Even though the old feed in tariff amounts have been recently reduced to 8 cents per kWh (kilowatt hour) for power that your solar system feeds back into the grid, its not all doom and gloom.
The fact is that solar panels have never been cheaper than they are right now, these now mature solar panel manufacturers have increased production over the last few years while at the same time incentives and rule changes in some (formally) major markets like Germany for example have meant we have a global over supply so panels have become a bit cheaper for us to buy here in Australia.
There are two other factors that make solar great value, this is the up front rebate you receive when you buy a new solar system and the fact that we pay the highest rate for kWh (kilowatt hours) in Australia.
The Renewable Energy Target (RET) creates a market for REC’s (Renewable Energy Certificates) all polluters (read coal fired power stations) have to buy an amount of REC’s each year that helps to create the incentive for people to install clean green energy like solar. A 5kW solar power system is currently worth around $3,800 in REC’s, we do the paperwork to create the REC’s and sell them on the market and give the customer the value of the REC’s as an upfront discount of the overall price of a solar system, all solar installers do this. If there were no REC’s it would add $3,800 to the out of pocket cost of the 5kW solar system. Please note that the value of REC’s reduces every year, so you will never get more REC’s for your Solar PV system than you do right now.
Now last but not least the price we pay for electricity in South Australia is an absolute bloody disgrace as it is the most expensive power in Australia and the only place in the western world that has more expensive power is Hawaii and they are an island with basically no natural resources. The value of your solar system is that a properly sized solar PV system will ideally run your daily electricity loads.
So if your house uses an average of 20 kWh per day and half of that (1o kWh) is used during the day when solar energy is being produced and you are paying .36 cents per kilowatt hour and your solar system is producing enough power (not a rainy day) you can save $3.60 per day. Now this is a generalized example and each household is different but hopefully this illustrated the saving that a solar system will deliver. To talk through your situation and determine what a solar power system could save you, pick up the phone or send us an email and one of our solar pro’s can help.