Many Melbourne-based households have already invested in solar panel systems. The answer to the question, “does solar stack up in Melbourne?”, is yes! In some areas, like Clyde, more than 70% of the building roofs are covered in solar panels.
Some years ago, solar panels were still considered to be very expensive. Because of this, the federal government introduced a rebate scheme to make it a more affordable investment. On top of this, a state rebate was introduced.
The rebates are not as big as they used to be, which raises the question: How does solar stack up in Melbourne as an investment? Is it still beneficial?
Solar rebates in Melbourne
Before explaining whether solar panel systems are a good investment or not, we will present the different solar panel system rebate schemes you might receive in Melbourne.
The federal government solar rebate
In Melbourne and other parts of Victoria, you might get a solar panel rebate from the government if you install an eligible solar panel system before 2030. The rebate is based on Small-scale Technology Certificates, also known as STCs.
When a solar panel system is installed, STCs are generated. The value of one STC can change from time to time and is dependent on supply and demand. So, how many STCs will you receive? This will depend on the STC zone your household is located in, and also the system size.
Throughout Australia, there are four different STC zones. Melbourne is located in STC zone 4, which will give the lowest federal support. This begs the question, does solar stack up in Melbourne? The answer is yes because the incentive can lower your costs significantly.
In 2030, the rebate scheme will come to an end. The rebate is reduced by around 4% every year.
The Victorian rebate scheme
The government rebate may be somewhat small in Melbourne compared to other Australian cities. When answering the question, does solar stack up in Melbourne, luckily, you might also be able to receive a local Victorian solar rebate as well. This rebate is very generous, and can potentially reduce your costs by as much as 50%.
The maximum Victorian solar rebate is set to $1,400. But remember, not everyone will be able to get this rebate. It is first and foremost aimed at low-income households. To be eligible for the rebate, the following criteria must be met:
- Total annual income is lower than $180,000
- Your home value is lower than $3,000.000
- The solar panel system and installer is CEC certified
- You are the owner-occupier of the property
Instead of the Victorian solar panel rebate, you may choose the battery rebate. This will potentially reduce your battery costs by 50%.
Other reasons to invest in a solar energy system in Melbourne
Besides the rebate schemes, there are also other reasons to invest in a solar energy system in Melbourne. Let’s take a closer look at it!
Sufficient energy production
Melbourne has an average of 48 sunny days a year. In comparison, Perth and Sydney have 149 and 110 sunny days a year, respectively.
So, Melbourne is not as sunny as many other Australian cities, but the amount of sunshine is still good enough to ensure a high power production rate throughout the year. Remember, solar panels will produce power on cloudy days too which ensures that solar stacks up in Melbourne.
A typical 7 kW solar panel system installed on a Melbourne house, will generate a daily system output of 21.9 to 25.2 kWh. This will in many cases be enough to cover your day-to-day needs or at least a big part of them.
Reduced electricity costs
Melbourne households with solar power systems installed on the roof will be able to save a lot of money on their electricity bills. If your system is producing more electricity than needed, you might also receive a feed-in tariff that will reduce your costs even more.
Because you might save money by using less electricity through the grid, the solar panel system will essentially pay for itself. If you have a 6.6 kW solar panel system, the savings from the system can pay back within four to six years.
Conclusion: Does solar stack up in Melbourne?
Although a solar system might not be as efficient in terms of power production in Melbourne as in other Australian cities, it might be a good investment. After some years, the solar panel system will pay for itself thanks to the reduced power costs.
On top of this, you might receive different financial incentives. The government rebate will reduce your costs significantly, and some households might also be eligible for the Victorian rebate scheme.
So, if you are wondering if solar does stack up in Melbourne?… it certainly does. If you want to spend less money on electricity or reduce your carbon footprint, a solar panel system is a great investment.
Remember to install your solar system before the federal rebate terminates in 2030. The rebate is reduced every year until then.