You Haven’t Missed Out: Solar Is Still King

Is it worth it for me to install solar today? If I installed 5 years ago I would be better off!

One of the most frequently raised concerns I am finding myself addressing when talking to people considering getting solar for their home. The answer is, of course it is worth investing in solar! Maybe you missed the boat on the old systems… but the world changes and we must change with it or get left behind!

The truth is, in NSW at least, those systems that were installed all those years ago now fell under the gross-metering government scheme and had a larger initial purchase incentive. This is a totally different setup to how solar is configured today. 

In the past where the federal government would chip in to allow you to earn up to 66c for each kilowatt of electricity produced with the help of some credit from the retailer, the system will now feed into your home for personal use first, and then export what is left with credits only being provided by your electricity retailer at a negotiated rate. 

The general rule back in the very early days was the bigger the system, the more you earned in credits on your power bill (sometimes paid in the form of a cheque if you were lucky). This encouraged uptake with the high initial price of the system and guaranteed a payback at around the same return as you would see today on a net-metered system. This government backing created a “safety net” for anyone buying into solar in the early days and on the surface it would seem they are better off. 

The current form of solar is under a net-metered scheme, in which the system is still backed by a generous initial incentive (basically a discount on the upfront price) but the buy-back from your retailer is the only return you will get. 

 This is not to say solar is no longer a lucrative investment, far from it!

With the current average price for a premium system being a fraction of the price it was 5 years ago and the incentive still being phased out you couldn’t be in a better position to invest now! With returns of around 20-30 percent you couldn’t get a more secure investment! Your bank in comparison is giving you an average of how much to have your money stashed away? 

There is a reason solar finance and investment in solar companies is fast becoming the most lucrative trade of the century. Goldman Sachs, the goliath investment bank had targets to invest $40 billion in clean energy technologies by 2012, now they are planning to quadruple that amount to $150 billion by 2025! Do you think they know something about investment? 

Regardless of your angle, the answer for me is solar will always be worth the initial expense. If you are using a very small amount of electricity (well done by the way) and you don’t qualify for the immediate financial benefits of solar, the environmental benefits are still there and you will get your return after a few extra years and it’s still likely to be better than the return your bank will offer on your money!

On the other hand, If you’re not concerned about the environmental consequences of dirty power (shame, shame) it’s likely that you will benefit from the financial benefit after the initial return of 2-5 years even on a premium system. 

The benefits are always there, but for most people the biggest concern is the financial impact it has on their lives. Solar has the potential to open up the door to financial freedom by reducing the budget allocated to the bottomless pit of paying ever increasing power bills.

It’s just like renting, you will never be free of the cost until you make a commitment and invest! Plus you’ve probably already bought a house at a higher cost with a slower return, now is your chance to get some of that money back in your pocket a little sooner!

One of the largest shifts in our modern world is approaching and the opportunity to be right in front is in your grips. 

Do you capture it or let it slip?