Why this could be the time to invest in solar

The cost of living is high and rising, with energy bills playing a significant role. With this in mind, could the potential financial benefits of a solar power system be worth the installation costs?  

According to the Australian Bureau of Statistics (ABS) utilities prices rose between 4 and 7 per cent in the past 12 months, and annual price reviews for gas and electricity saw higher wholesale prices passed on to consumers in the September 2022 quarter.

And in the recent federal budget, the treasurer forecast that energy prices are likely to rise by another 56% over the next two years.

As a result of these rising prices, solar companies are reporting a significant rise in enquiries as Australians look for ways to limit the impact of hefty power bills on their household budgets. Rising energy prices could potentially mean that it takes less time to make up the cost of a solar panel installation from the savings on your power bills. 

Whether you’re wanting to save money on your household power bill or make an ethical decision to decarbonise your money, going solar could be worth consideration. While there may be significant upfront costs to installing solar panels and batteries in the home, they may make up for it over the years through future energy savings.

Additionally, state governments across Australia are further investigating how to develop and improve electrical infrastructure with renewable energy in mind. For example, in the lead-up to the federal election earlier this year, the federal government made commitments to upgrade Australia’s electricity grid and to roll out community batteries to help encourage the take-up of rooftop solar. Similarly, for the upcoming Victorian election, Labor is intending to install 100 neighbourhood batteries across the state if re-elected. Easy access to community batteries could help households save the cost of adding a battery to their own home.

Australians may also be able to use specialist green finance products to help manage the cost of investing in solar technology for the home. This could include applying for a green personal loan or refinancing to a green home loan. These green loans often have lower interest rates, with eligibility criteria ensuring that the money be used to add green features to your home that will improve the property’s Nationwide House Energy Rating Scheme (NatHERS) star rating. There are also green car loans available for buying fuel-efficient vehicles, such as hybrids and electric vehicles (EVs).

You can use RateCity’s calculators to estimate the costs of a home loan, personal loan or car loan and compare these to potential energy savings to determine whether now is the best time to invest in solar and other renewable technologies for your household.

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