Huge news for NSW solar owners!
The NSW regulator (IPART) just announced that Feed In Tariffs for solar owners will more than double! Currently, solar users only get around 5c kWh for exported energy but from July 1st 2017 the recommended rate will increase to a high of 14.6c kWh (partly to offset the soaring electricity prices).
What does this mean to solar owners?
With the help of our friends at PVSell we ran the numbers and it improves the payback on a typical system by almost 30%! New solar buyers can expect a payback of around 3 years and 6 months on solar from July (previously 4 years 10 months), equivalent to a 28% return on investment.
We know the result will be different for all households, but we made the following calculations based on an assumption of 20 kWh/day average consumption at 25c kWh with a standard residential demand profile. The following examples show 5c kWh versus 14.6c kWh export FIT. Solar System at $1.13/W installed including STCs at $38.50 each. North-facing, unshaded 5 kW system:
40% increase in savings
Annual bill reduction at average 5c kWh vs 14.6c kWh:
16 month decreased payback period
Investment payback period over years at average 5c kWh vs 14.6c kWh:
28% return on investment
Return on investment at average 5c kWh vs 14.6c kWh:
We know that many of you are still waiting for net meters after the end of solar bonus scheme which has been hurting; this is welcome news for you and all solar owners, and even more reason to get on board and install solar now. Have your say and read more on the IPART website.
Make sure you installer equips you with Solar Analytics monitoring so you can get more out of your solar. Find out more here.