The savings you can expect from installing solar panels in New South Wales (NSW) in 2024 depend on various factors including the size of the solar system, the available rebates, and energy usage patterns.
How Much Money You Can Save With the Solar Panel System?
A typical 6.6kW solar system in NSW can cost between $5,500 to $8,500. Such a system can offer savings of $1,200 to $2,000 annually, with a payback period of 4 to 7 years. Monthly savings can range from $300 to $500 per quarterly bill, depending on electricity usage and when it’s used. The more you can use solar power directly from your panels (self-consumption), the greater the savings, since the cost of buying electricity is higher than the feed-in tariff rate for selling excess solar power back to the grid.
The amount of money you can save with solar panels also depends on several factors, including your location, the size of your solar system, local energy prices, and any available incentives or rebates. Here are some key considerations that can help estimate the potential savings:
Solar System Size:
The size of your solar panel system is a crucial factor. Larger systems can generate more electricity, leading to higher potential savings. The size is typically measured in kilowatts (kW) or kilowatt-hours (kWh).
Sunlight Exposure:
The amount of sunlight your location receives directly impacts the efficiency of your solar panels. Regions with more sunlight, such as sunny climates or areas with fewer obstructions like tall buildings or trees, generally yield higher energy production.
Local Energy Prices:
The cost of electricity in your area is a significant factor. If your local utility charges higher rates, the potential savings from generating your electricity with solar panels will be more substantial.
Government Incentives and Rebates:
Many governments offer incentives, rebates, or tax credits to encourage the adoption of solar energy. These financial benefits can significantly reduce the upfront cost of installing solar panels, enhancing your overall savings.
The Small-scale Technology Certificates (STCs) are a key financial incentive under the Solar Renewable Energy Certificates Scheme (SRES). The number of STCs a system is allocated reduces every year, and their market value has been declining, which is expected to continue in 2024. The rebate value for STCs in 2024 will depend on the number of certificates your installation qualifies for and their current market value.
