Many people ask the question, “does solar stack up in Sydney?”. Sydney is not only the capital city of New South Wales, but it is also the biggest city in Australia in terms of population numbers. Not surprisingly, many Sydney residents are considering going solar.
Around 30% of Australian households have already invested in solar panel energy systems. If you live in Sydney and still get all your electricity through the grid, you might consider installing a solar system sooner rather than later.
The financial incentives for installing solar panel systems usually decrease every year. So, how does solar stack up in Sydney as an investment today? Here you will find the answer.
How much power will a solar panel produce in Sydney?
Solar panels are extremely popular in Sydney, where almost 70% of all rooftops have PV panels installed. And although Sydney is a bit less sunny than cities like Darwin and Brisbane, the number of sun hours is still very high from a global perspective.
You may expect to produce as much as 3.96 kWh of electricity per system kW. So, if you have a sufficient number of solar panels on your roof, you might cover a significant part of your power consumption (or even all of it).
If you install an average 6.6 kW system, you might expect a daily system power output of 26.1 kW. An average Australian household will consume around 18 kW per day. Because of this, you can expect the system to produce even more than you use.
By producing electrical power through sunlight, you will be able to spend less money (or no money) on electricity through the grid. Because of that, the system will usually pay for itself as time goes by.
Feed-in tariff in Sydney
Excess power is possible to store in a battery, and/or export through the grid. If you feed the surplus power to the grid, you will be able to receive a feed-in tariff (FIT).
Although there is no minimum FIT rate set by the government, you can expect a good tariff from your power retailer. The power retailers compete to attract customers, which is good news for your household.
Rebates for solar panel installations in Sydney
Based on the expected power production and the possibilities of feed-in tariffs in Sydney, installing a solar panel system might seem like a good idea. And it is. However, a solar panel system can be expensive, despite the price drop we have seen in the last few years.
To make it more affordable for households across Australia to invest in a solar power system, there are financial incentives that can help you out.
Government STC rebate
Sydney is located in New South Wales (NSW), and this means you will be eligible for a federal rebate when installing a solar panel system. The size of the rebate will depend on what STC zone your household is located in.
In Australia, you will find STC zone 1 to 4, where the residents in zone 1 will get the biggest solar panel rebates. Residents living in Sydney belong to STC zone 3. In other words, the rebate is somewhat smaller than in other parts of Australia.
However, the rebate will still cover a great part of your costs. Every STC has a given value, and the number of STCs you will receive depends on the size of the solar panel system you install (in addition to your STC zone).
If you install a classic 6.6 kW system, a gross cost of $10,400 can be expected. But thanks to the government STC rebate, around $3,700 will be subtracted from the amount. In other words, you will only have to pay $6,700 or so.
But remember, the federal solar panel system rebate is getting smaller every year. And in 2030 the scheme will end. The longer you wait, the smaller the rebate will be.
Are there any state rebates for solar panel installations in Sydney?
In addition to the federal government STC rebate, the Rebate Swap for Solar offer targets low-income households in NSW by providing them with a free 3kWh solar energy system. Residents eligible for the low-income household rebate may qualify for this free solar system from the NSW government. It’s important to note, however, that participating residents must own their homes and be willing to forego their low-income household rebate for a period of 10 years in exchange for the solar system.
For further details regarding the terms and conditions of this offer, it is advisable to refer to the NSW Climate and Energy Action website.
Conclusion: How does solar stack up in Sydney as an investment?
Installing a solar panel system can be beneficial for residents living in Sydney. Thanks to a sunny climate you can expect the solar system to cover a significant part of your total electricity consumption.
This combined with a federal solar rebate and feed-in tariffs are making solar panel systems an overall good investment in Sydney. But remember, the financial incentives will most likely decrease in the coming years. Because of that, it would be smart not to wait for too long.
Find a solar panel system that will cover your needs, and get started!