How much does a 5kW system cost and what is its payback time?
Payback time is variable and can be determined by a number of factors like your location, your consumption of electricity, the capacity and size of your system, solar feed-in tariffs and the cost and efficiency of your system.
In this article, we will tell you the payback patterns of a 5kW solar PV system which is the most commonly installed system these days.
How much will a solar PV system cost?
The average price of a 5kW system in top locations in Australia would be around $5250. These are prices quoted for a standard installation inclusive of GST and rebate.
Although the rebates and incentives on solar products have considerably reduced over time, the price for a 5kW system has decreased by approximately 58% in recent years.
Payback time in NSW
The payback time is dependent upon a few factors as mentioned above. But the estimated average payback time for a 5kW system in NSW can be:
Households with high daytime usage (Exporting 50%): 4-5 years
Households with low daytime usage (Exporting 75%): 5-6 years
Payback time is affected by the sunshine hours. More sunshine means more power generation which will result in decreased grid electricity costs. Also, higher potential electricity generation means more STCs which lower the upfront cost of the system.
Incentives to promote solar
Your electricity retailer will pay you for the power you export to the main grid. Sometimes, your electricity generation may be a lot more than your requirement. In this case, you get paid for the electricity you feed into the main grid.
In NSW, the newly introduced time-variant FiTs are complex and payback time can’t be determined without a detailed specific house modeling.
Small-scale Technology Certificates
The Australian government has incentivized solar power to encourage people to shift to renewables. In order to promote solar energy, you get a solar rebate(or refund). This rebate depends on the Small-scale Technology Certificates (STCs). The number of STCs you receive is dependent on the capacity of panels, year of installation, and where in Australia the system is going to be installed. The value of STCs largely depends on the market conditions and varies accordingly.