Prices for solar power systems are set to rise by 15-20% in the New Year due to a reduction in the Federal Government solar incentive, the Chinese energy crisis and looming solar panel shortages.
Whilst the pricing pressures from China may settle down with a correction at some point next year, there is no guarantee of this.
Whereas the cut in the value of the Federal Government solar incentive – known as Small-scale Technology Certificates – is an absolute given. STCs are like a point-of-sale discount on solar power systems. Without them, the cost of solar system would be around 30 percent higher.
Each year, on the 1st of January, the value of STCs drops by around 10 percent. On a 6.6kW solar system, this is a reduction of around $300 in the value of STCs for a solar system installed in Victoria or Southern NSW including Sydney.
Deadline for beating the STC-related price rise
What a lot of people don’t realise is that your solar system must be installed by 31 December 2021 to qualify for the STCs at the higher rate.
To avoid incurring the $300 price rise on your system, it is necessary to place your order in good time before the end of December so that the installation can be organised.
At Specialized Solar & Electrical we are guaranteeing to hold prices at current levels if you place your order by Monday 15 November 2021. In that way, we have time to do everything that’s necessary to ensure your system is designed and installed before the end of the year.
For you, that means guaranteed lower pricing and a smooth installation experience.
Chinese solar panel price rise
The biggest price shock that’s already hitting the Australian solar market is a rise in solar panel prices of around 25-30 percent.
With at least 80 percent of solar panels coming out of China, the industry is vulnerable to economic and political changes in that country.
Earlier this month China’s cabinet, the state council, said it would allow power prices to rise by as much as 20 per cent to incentivise power production, a jump from the current 10 per cent limit.
This was in response to a shortage in coal production caused by lack of investment, rising demand for Chinese manufactured goods as Europe and the US emerge from the pandemic and coal supply shortages.
Rising shipping costs are also putting pressure on prices for all imported good – including solar panels. Shipping now accounts for around 10 percent of the total unit cost of a panel, up from 3 percent in 2019.
The net effect of these impacts is a looming shortage in the supply of solar panels and a predicted price increase which will add hundreds of dollars to the cost of a solar system.
How can you avoid getting hit by rising solar panel prices?
Due to our strong industry contacts, we saw this price rise coming and ordered containers of solar panels before the pricing changes hit.
If you place your order by 15 November 2021, we will guarantee to hold prices at current lower levels.
This will save you around $1,000 on a typical 6.6kW solar power system. That’s because you’ll be getting your system with the higher value of STCs and before the panel price increase takes effect.
Order by 15 November to beat the price rises
If you are thinking solar, now is the best time to do it. Price rises caused by Government rebate changes and shortages in solar panel supply are going to add hundreds of dollars to the cost of solar in the New Year.
Get ahead of the game and get in touch with us today.