The switch to a renewable source of power with solar has been a very successful endeavour in Australia. Solar powered systems have gone from being just a frontier technology to a cost-effective and environmentally friendly solution for consumers and has proven to help the Australian population save big on their quarterly bills while also receiving the benefits of incentives like Feed in Tariff. As a result, residential and commercial solar installation has seen a remarkable growth over the last few years. In order to continue this level of growth, it is important to observe the return on investment that this “green” technology provides to convince a larger population of the tangible benefits of installing a solar powered system. This article guides you to calculate the ROI of your installation and get the most out of your solar investment.
One of the reasons why solar has gained unprecedented popularity in Australia is because of the incentives set up to maximize ROI for customers. The Government policies and schemes offered in Australia offers generous tax incentives to encourage homeowners and businesses to switch to this renewable energy source.
1. Installing a solar powered system reduces energy bills
One of most noticeable benefits of switching to solar from a traditional power source is the ability to reduce your energy costs. Electricity bills make up a significant portion of monthly expenses for both homeowners and businesses, and these costs have risen on average by three percent per year over the last decade in Australia.
With a solar panel system, you can get a fixed electricity rate and avoid unpredictable spikes or surges. This is extremely useful for anyone with a fixed income, as well as for businesses that need help maintaining a more stable cash flow.
2. Helps you earn tax credits and rebates
There was never a better time to invest in solar as it is now. The federal solar tax credit in Australia, allows you to deduct a significant percentage of the cost of installing a solar energy system from your taxes.
This has eased the financial burden of installing solar panels for many homeowners and businesses, leading to remarkable growth in the solar industry.
3. Helps you save money in the long term
Electricity bills can reach up to several thousands of dollars annually like any recurring costs. By installing a solar power system, the more energy you use, the more money you save. Your savings will rapidly make up for the initial installation, even faster if electricity rates are high in your area. And, since electricity prices are projected to continuously rise, your savings will grow every year over the 25+ year lifespan of your solar panel system.
Now that you are aware of how solar helps you save, you should get an estimate for how long it will take for the installation to pay for itself in savings (also known as the payback period) to help you calculate the return on your solar investment. The starting point to calculate your solar ROI is to summarize how much you pay for electricity now.
Most solar installers will ask for an estimate from you, or to send them one utility bill. But if they’re only looking at one month’s consumption, their projection of your ROI will be inaccurate as your energy usage and consumption fluctuates several times during the year as the seasons’ change, so to get an accurate estimate of ROI, you should base your calculations off of 12 months of energy usage history.
Contact Austra Solar today for an estimate of your solar ROI and let us help you maximize it along the way and help contribute to the clean energy economy of Australia.