Right time to buy solar?

Should I wait around to get solar?

The answer to this question is: don’t wait, get solar installed now.

Why is that?

It’s because here in Australia we have amongst the highest electricity prices in the world and an abundance of sunshine. Put the two together, and that’s why solar power systems are a no-brainer for most Australian homes and businesses.

Delay installing solar for a year, and you miss out on the savings that come from using free solar electricity in your home.

With a typical 6.6kW solar system – the most popular size for a new residential solar system – most households are saving $1,200 to $1,800 each year off their electricity bill.

Get a solar system installed now, and you save money off your electricity bill from day 1. Wait another year, and you’ve lost out on up to $1,800 in reduced electricity bills for a typical solar system.

Take advantage of generous government rebates to add battery storage to your installation, and you can virtually eliminate your electricity bills. Plus, with the right battery you get full blackout protection and a much higher level of energy independence.

This is just the start when it comes to answering the question: ‘Should I wait around to get solar?’.

In this article, we’ll highlight the top reasons why the best time to get solar installed is right now – and why getting a battery at the same time makes sense if your budget allows.

1. Victorian solar and battery rebates reducing

Solar Victoria’s successful solar rebate scheme – known as the Solar Homes program – has a stack of state government cash attached to it. However, since the program launched in 2018, the value of the solar panels and battery rebates have reduced in value. The Victorian Government made no secret of this, stating upfront that the rebates would decline in value in a steady manner over the 10 years that the program is set to run.

As of 21 January 2022, the value of the rebates available to eligible households are:

  • Solar panels – up to $1,400 (for homeowners and rental properties)
  • Battery storage – up to $3,500 for homeowners
  • Solar panels interest-free loan – up to $1,400 (for homeowners)

Small businesses can also apply for a solar panels rebate worth up to $3,500. This value holds until all 5,000 forecasted rebates for 2020-21 have been fully allocated. Once that occurs, the rebate will reduce to $1,750.

Based on previous years, rebates reduce in value every 12 months. However, the timing of the reduction varies depending on the number of rebates allocated for each financial year.

If you think you may be eligible for a solar rebate, it pays to jump on board quickly to avoid missing out on rebates at their higher value. The Victorian solar panels rebates are in addition to the Federal Government solar rebates, making solar even more affordable.

Get in touch if you want to find out more about Victorian Government’s solar rebates and eligibility criteria.

2. Federal Government solar incentive

This long-running Federal Government solar incentive – known as Small-scale Technology Certificates (STCs) – is one of the main reasons why over 3 million Australian homes and hundreds of thousands of businesses have rooftop solar. It’s a generous solar rebate scheme, slashing the upfront cost of solar by up to 30 per cent.

However, this program also has an end date and a documented timetable of annual rebate reductions. The STC program will end in 2030 and the reduction in the value of STCs is around 7 per cent each year, kicking in on the 1st of January. This equates to several hundred dollars for a typical residential solar system.

By purchasing a solar power system now, you’ll be getting the STCs at a higher value, than if you were to wait another year. Wait two years, and the cost of your solar power system will increase by even more.

Given that most people who install an approved grid-connect solar power system are eligible for the Federal Government STCs, it’s a fabulous incentive and one that you don’t want to miss out on!

3. Electricity prices – rising

In the 10 years to 2018, electricity prices rose 117 per cent – more than four times the average price increase across all sectors. Since then, annual electricity price rises have stabilised but remain high, tracking above CPI.

With the requirement to update the ageing infrastructure of the Australian national electricity grid, the cost of electricity is unlikely to reduce any time soon. Network distributors must work within regulatory rules but have the right to increase prices to remain competitive. Electricity retailers likewise. The upshot is a high probability that electricity bills will continue to rise – unless of course you install solar!

4. More home working

According to a recent government report, up to 40 per cent of Australian workers were forced to work from home due to the pandemic. This compares with around 8 per cent of workers having some form of home working arrangement in 2019.

While the stay-at-home orders that forced this experiment are gradually easing, the level of working from home is likely to remain much higher than it was before the pandemic. This forced experiment showed that many people could do their jobs at home just as well as in the office.

Whilst the benefits of home working are well-documented, there are hidden costs for workers; one of the biggest being higher electricity bills. To avoid power bills eating into your pay packet, getting solar panels installed makes a lot of sense. In fact, solar panels are the ideal solution for 9-5 home workers as solar producing hours mirror working hours. By consuming free solar electricity during the daytime, you’re maximising both your solar self-consumption and electricity bill savings.

5. More blackouts

Another problem with our ageing electricity grid is that the supply of power to our homes and businesses is becoming less reliable. This is particularly true in rural areas – and those communities on the end of a power line – but it is becoming more common for those living in metro areas as well.

Protection from blackouts is one of the main reasons why so many people are buying solar battery storage. But here’s a buyer beware; not all batteries provide blackout protection!

So if blackout protection is important to you, get in touch to ensure you select the battery that’s going to give you the energy security you need.

6. Rapid uptake of hybrid and electric vehicles

Is a hybrid or fully electric vehicle on your radar? Did you know that electric vehicles are likely to make up 80% of new vehicle sales by 2030 according to the Reliable Affordable Clean Energy for 2030 Cooperative Research Centre (RACE 2030)?

With a decent size solar and battery system, you can charge your electric vehicle from home at any time of the day or night.

If running your car on free solar electricity appeals to you, then a solar power system teamed with the right battery is a great investment. Fast charging technology is moving ahead in leaps and bounds. Getting solar and battery storage now means you’re buying the technology that’s going to enable your move into the new age of low cost, low emissions driving.

7. Shortage of natural minerals

Finite natural resources are a challenge for the global solar industry. In 2021, solar panel prices rose for the first time in many years due to an unexpected shortage in silver, copper and silicon. Whilst solar tech innovators are exploring alternatives, the solutions aren’t there yet. Solar panel pricing is highly exposed to shortages in raw materials and global market conditions, such as the challenges posted by the Covid pandemic. Prices in early 2022 are reducing to pre-Covid levels but it is hard to say what the future will bring. Purchasing solar panels now makes sense if you want to avoid future possible panel price rises.

8. Trend towards the all-electric home

What are your plans with regards to making your home all-electric and moving off gas? The arguments for switching hot water, cooking and heating off gas and onto electric are persuasive. For instance, The Grattan Institute found that a large home in Melbourne can save $1,024 per year by disconnecting from the gas grid.

Australian state governments are starting to put forward proposals for de-gassing new residential developments within the next five years. With natural gas becoming an increasingly scarce resource, it’s a good idea to act defensively and upgrade your appliances to electric as they wear out. That way, you’ll be able to run your household on electricity, powered for free by your solar panels and battery storage system.

9. Reduce your household’s carbon footprint

Do you want a carbon neutral home? Did you know that on average in Australia 75% of grid power is from fossil fuels with most of that from coal-fired power plants?

One of the quickest ways to get your home carbon neutral is to invest in a large solar panels system combined with battery storage. A typical 10kW solar system will make the average Aussie home carbon neutral with immediate effect. Team it with a solar battery, and you can be running your home on clean energy day and night. How good would that be!

Get in touch for a quote

If you’re keen to make the move to solar, get in touch. We’ve installed thousands of solar panels and battery storage systems on homes and businesses in Victoria and NSW. Leading brands, competitive prices and outstanding customer service are just the start when you get Specialized Solar & Electrical on the job.