IPART tariff recommendation delivers 28% improvement on payback

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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:

IPART doubles solar export tariff in NSW with decrease in annual bill

 

16 month decreased payback period

Investment payback period over years at average 5c kWh vs 14.6c kWh:

IPART doubles solar export tariff in NSW with decreased payback period

 

28% return on investment

Return on investment at average 5c kWh vs 14.6c kWh:

IPART doubles solar export tariff in NSW with increased return

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.