Solar panel prices have dropped significantly in the first two months of 2023. Experts predict significant price drops of 10% annually for the next ten years.
Keeping the above in mind, is it still a good idea to get solar panels in 2023? And how much money do you save with solar panels in Australia?
One of the reasons solar panel prices have risen in recent years has been due to a shortage in polysilicon manufacturing. Several factors influenced the price increase, including weather, industrial accidents, and the global pandemic.
These factors contributed to supply chain issues, and prices went up. But will solar panels get cheaper in 2023? Yes, solar panel price drop is very evident now.
But if you wait any longer, you’ll definitely miss out on significant energy savings at a low initial cost. And electricity prices will continue to rise.
Many factors contributed to a spike in natural gas prices in 2022, which affected energy prices. The energy price has increased by up to 50% in many states in Australia.
With the cost of solar PV systems falling, now is the perfect time to switch. Even if forecasts indicate that prices will fall further in the coming years, you shouldn’t take your chances.
Many promising government incentives are still active in Victorian and New South Wales. Therefore, taking advantage of low prices is a wise decision now!
Solar panel prices have fallen by nearly 82% in the last decade. As a result, Australians can enjoy the best solar feed-in tariff for their solar system at a low cost.
People who adopted solar technology early had to pay an excessive amount for systems that could be more efficient compared to now. But they relied heavily on the feed-in tariff to achieve a reasonable payback period.
Governments aided early adopters financially while driving the industry to develop new and more efficient systems using a feed-in tariff.
Solar Rebates and Incentives In 2023
The Small-scale Renewable Energy Scheme provides individuals and small businesses a financial incentive to install eligible small-scale renewable energy systems. It is managed through the development of small-scale technology certificates.
And for expected power generation, small-scale technology certificates are provided. This renewable energy is used to replace nonrenewable energy sources.
Homeowners can now get lower purchase rates through an agent via these certificates. The volume of this benefit varies depending on the amount of solar energy available in that state.
Small-scale technology certificates can be generated after the installation of an eligible system. And these are calculated based on the amount of electricity produced or replaced.
The small-scale technology percentage (STP) determines the number of small-scale technology certificates that electricity retailers must submit annually.
Energy prices in Australia are expected to skyrocket in 2023 in Australia.
The market offers rose between 8.5% and 18.3% in New South Wales, up to 12.6% in Southeast Queensland, and 9.5% in South Australia, beginning in July 2022. Victorians have also experienced an increase of approximately 5%.
The changes also affect small business customers. With standing offer prices rising by up to 13.5 per cent depending on the state.
The Australian Energy Market Operator (AEMO) warned that the average household energy bill could rise by 20% again this year.
With the energy prices rising, solar manufacturers might increase their prices too. So grab your desired solar system before it’s too late.
Why Are Solar Panels Less Expensive Now?
Initially, solar panels took a lot of work to manufacture and install. Thus, making them costly. Because of their lower efficiency ratings, panels took longer to help recoup their high upfront costs.
However, advances in solar technology, combined with federal and state incentives, rebates, schemes and initiatives, have entirely transformed the solar industry landscape.
According to a 2021 study, the cost of solar panels has lowered by more than 82% since 2010. There was an average increase in efficiency of about 250%. As a result, solar power is now less expensive. And they can pay for themselves in less time.
Despite price drops, solar panels still have a high upfront cost. However, numerous federal incentives, such as the Federal Solar Investment Tax Credit and statewide programs, can assist homeowners in recouping the high upfront costs.
How Much Money Can You Save With Solar Panels?
Solar consumption means using the solar energy you generate to power your home. As feed-in tariffs fall, solar energy is your best option for getting the most out of the Sun.
You can get the most out of your solar panels if you use them during the day when your panels produce electricity from the sun.
However, you should continue saving money in the evenings, early mornings, at night, or during bad weather or winter.
In that case, you must invest in a solar battery that can store excess solar power for longer. Instead of selling your energy and repurchasing it from the grid, you can distribute it evenly across your household’s needs.
How Much Value Will Solar Increase to Your House?
Electricity bills have risen dramatically, and the prospect of one less utility bill appeals to any buyer. In March 2023, it was announced that electricity prices in Victoria would increase by 31%, while prices in NSW would rise by 22%.
But how much does solar increase home value in Australia? According to a survey, 85 per cent of Australians believe solar rooftop panels increase the value of a property.
Furthermore, it is believed that three-quarters of renters would pay more rent to live in a property that used solar energy.
So, Do Solar Panels Pay for Themselves?
The short answer is yes in almost all cases. The payback period for solar panels in Australia has gotten easier. But to get the most out of your panels, you must first understand how your household uses power and begin thinking about self-sustainability.
A few years ago, your feed-in tariff rate made it an easy choice. However, by 2023, most solar systems installed will only achieve a satisfactory return on investment with the assistance of a solar battery.
Why Should You Switch to Solar in 2023?
We recently saw an increase in electricity prices for the entire year of 2022. This resulted in price increases for energy of up to 50% in some areas.
Waiting to install solar panels means missing out on savings on your energy bill, which will continue to rise over time.
Here are some reasons why you should go solar now rather than later.
- The cost of PV panels for homes is currently low, but this may change soon.
- In several markets, favourable government incentives for solar energy are decreasing or being phased out entirely in the coming years.
- Solar power eventually increases your home’s value, and you can sell it faster.
- Compared to 2022, residential electricity prices in Australia will increase significantly by the end of 2023.
- If you installed a solar photovoltaic system that generated enough power to offset the increasing energy bill, your savings would grow in two or three years.