Solar Panels Still a Wise Investment

Some consumers are wondering if solar PV systems are still a wise investment despite all the uncertainty in the feed in tariff scheme. Most of the Australian states have nearly reached their Feed in tariff caps, and following the abrupt closure of the NSW scheme is the imminent cut in the Victorian Tariff.

Unlike in New South Wales, the Victorian feed in tariff will not end on Sept 30^th, but instead change over to a transitional program for another 5 years.  The premium rate of 60 cents paid will now be replaced by a new rate of 25 cents, which is still higher than the costs of paying for electricity. People who have already been accepted into contracts for the PFiT will not be affected.

Energy minister O’Brien said that despite the huge cut the new Victorian TFiT will still offer one of the highest rates in the country next to Queensland.

But the question still remains are solar panels still worth it? Well the answer is a resounding yes! While the state feed in tariff scheme have played an important role in helping the solar industry in Australia to become as strong as it has, we all knew that it would not last forever. The feed in tariff’s purpose of widely introducing solar power to many Australian homes by making it more affordable has already fulfilled; now that system prices have fallen so much the extra financial assistance is no longer required to the same extent.

The falling prices of solar PV systems and the ongoing rises in the cost of fossil fuel produced electricity now make it a wise investment regardless of the bonuses that the tariffs supplied. 5 years ago a typical 1.5 Kw system would cost around $7000 compared to today’s average of $4000, which has made solar panels affordable to many more people in the community.

Half of the power requirements of an average Australian home can be powered a typical 1.5 KW system, which means the system can generally have a payback period of only 5 to 7 years, out of at least 20 years of productive life.

The sheer number of investors in Australia today will serve as proof that solar is still a stable industry and a wise investment.

On top of all the financial benefits that you can gain even with the absence of the feed in tariff scheme, there are also the important environmental advantages of a solar system as well. Significant cuts in your family’s carbon footprint will be achieved also, helping you to play a part in leaving behind a healthy planet for your children.