If you decide to go ahead with a solar panel system installation in Tweed Heads, you need to factor in both the upfront cost and your electricity bill savings to determine your breakeven point. These two key factors involve several key considerations in order to make an accurate determination.
Let’s take a look at calculating your breakeven point (total installation cost ÷ annual energy savings) so that you can make a more informed decision.
Total Installation Costs
The first thing you need to consider is the basic upfront cost of your solar installation. This includes the purchase price of the solar panels and associated system components, such as inverters, batteries and installation fees.
However, it’s important not to stop here, as you also need to factor in any rebates and incentives on offer. Depending on when you go ahead with your installation, the relevant government rebates or financial incentives available in your area might change, such as the rebate swap for solar offer previously made by the New South Wales (NSW) government, which closed in July 2024.
However, your installer should know which grants, rebates, or incentives are still applicable and advise you accordingly.
For example, the Australian government still offers the nationwide Small-Scale Renewable Energy Scheme, under which rebates can be applied for in the form of Small-Scale Technology Certificates (STCs), which can help reduce the cost of installation.
Calculating the net cost of your installation requires understanding the upfront cost minus any applicable rebates and incentives.
Annual Energy Savings
Once you know what the net installation cost is going to be, you need to go about working out your electricity usage offset. This requires a clear and accurate determination of how much electricity your home typically consumes against how much of your electricity consumption will be covered by the solar system.
To find this, you’ll need an accurate in-home energy assessment, which Static Solar & Electrical will do for you upfront.
Understanding your electricity usage offset also requires a determination of how much electricity your solar installation will produce, given its size and location. Tweed Heads, for example, receives fairly consistent sunshine, so solar systems in the area typically have strong energy output.
If you end up producing more electricity from your solar installation than you use, you might want to export surplus energy back into the grid. This will further offset your costs through feed-in tariffs (FiTs). FiTs are determined by your local electricity retailer in line with benchmarks set by the NSW Independent Pricing Regulator and Tribunal.
To work out your total energy cost reduction, you need to combine any savings on your electricity bill with earnings from FiTs to find your total annual savings.
If you would like to see if a solar panel system installation in Tweed Heads is right for you, speak to Static Solar & Electrical today!
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