Have you been thinking of installing solar at home?

If you live in NSW there may never be a better time than right now.  In a surprising policy move the NSW State Government will now pay a Gross feed in tariff (as opposed to a net tariff which only rewarded households for surplus energy produced), meaning a household will now get paid $0.60 for every kWh of power produced. The scheme will run for seven years and is now Australia’s highest paying solar payback scheme.

What does this mean in real numbers?

There is a marked difference being advertised in the tariff benefit  by the solar energy companies (who claim up to $1500p/a for a 1.5kw system) and the State Government, which says $1500 benefit for a 2.5kw system. Either way, the ROI on installation is suddenly reduced from an average of 15 years to about seven to eight.

However, the corresponding jump in demand has forced the REC (Renewable Energy Certificate – another sign on benefit that dramatically reduces the overall cost for households) price south – from a high of $50 to a lowly $23. In some cases this means  up-front installation costs are now rising as solar energy groups adjust their prices forcing the Federal Government to review the REC scheme.

Confused? The bottom line is if you intend to stay in your current house long term, then you may never get a better opportunity to install solar. The price of energy will continue to rise and those people who have systems installed will likely be having the last laugh in 10 years time.

Click here to learn more about the NSW Government’s Solar Bonus Scheme.