Is Solar Power Worth It?
One in five homeowners has installed a Solar system in Sydney all over Australia, which keeps increasing every year. Like any common person, we look forward to saving more money on our high energy bills. Taking a step toward solar means more sustainability awareness and also reducing our carbon footprint. It’s a win-win for us, as we are saving money and saving the environment by going solar.
It’s still a fuss about solar panels, as sometimes people tend to think about whether solar panels will still be an economical choice in 2025. This decision can be challenging to wrap our heads around.
We can assure you that the answer to this is a ‘yes.’ The cost of solar systems in Sydney has decreased now more than ever, making it a perfect time for you to make the decision to go solar.
Drop-in Solar panel prices compared to the early 2000s
Switching to solar energy was relatively inaccessible for many people due to the high prices of solar panels in the early 2000s, when renewable energy solutions were being adopted. To install solar panels in Sydney, you can expect to pay $5 to $10 per watt. This means a premium solar system in Sydney will cost you tens of thousands of dollars.
Prices have decreased since then, and there is a significant difference between the current prices and those of the past. By 2012, the average was around $2.50 per watt. This led to the introduction of solar systems at somewhat affordable prices for some Australian homeowners. By the end of 2025, the cost of solar would be under $1 per watt. This has led many homeowners in Sydney to go solar and install rooftop solar systems.
Massive savings through the Government solar rebates scheme
The Federal Government’s small-scale technology certificates (STCs) have gained significant popularity as they allow you to save a huge amount on your solar installation in Sydney. You can now save up to 40 per cent on the cost of installing your solar system, depending on your geographic location and other factors.
These certificates are paid directly to your solar company in Sydney, and they deliver the reduced rate to you. That means the price in 2025 is now under $1 per watt.
Solar panels are a more efficient solution.
In 2012, the best efficiency rate that you could get from your solar panel in Sydney was 17.8 per cent. The rate has been steadily improving, and any solar solution you invest in nowadays is far more advanced.
Most modern panels on the market now have an efficiency of around 20 per cent. And, as shown by the graph, we can indeed expect this efficiency rate to improve over the coming years.
What can be expected for solar panels in the future?
The downward trend in prices for solar systems in Sydney is expected to continue as technology improves and the manufacturing process becomes more cost-effective. But the STC system is also shifting, with the Federal Government phasing it out through a system called the ‘deeming period.’ This deeming period determines the number of STCs you are entitled to, based on the expected life cycle of the solar system installed in Sydney.
Every year until 2030, this deeming period will decline, resulting in fewer STCs being available annually. While this may sound like a negative development, it aligns with the expected price drops, so costs should remain relatively stable during this period.
