Why invest in Solar power now?
Solar Energy Quotes
from local businesses
With the federal election and sustainability being a hot topic, the states competing with each other to become the best state for sustainability, and the media coverage about proposed electricity price increases - it feels like everyone's talking about solar power.
But is it all hype, or is the proposed investment into solar power by normal people like us a solid investment? We've questioned whether investing in solar power now is a good idea and have come up with a solid case for immediate action and beginning your investment now. Here are our reasons.
Solar is a high yield, low risk investment
The risks of solar are low - most solar PV systems and solar hot water heaters come with long-term warranties of up to 25 years. Solar is low (or no) maintenance because it has no moving parts - some solar PV systems have been operating for decades already. Solar will continue to show you a return on your investment every day as the sun rises, almost like an annuity payment.
Energy costs are almost guaranteed to rise. The cost of solar PV and hot water systems may come down in price slightly with increased uptake and lower technology costs, but this risk is low and should be more than completely offset by the rise in energy costs. The sooner you invest, the sooner you can reap the returns.
The returns of your investment will come once the cost of installation has been offset - sometimes within the first 2 years of installation (this will depend on your sun exposure, the efficiency of the system you choose, and the costs of energy you would be using).
What about the risk of the technology improving significantly?
Some people we talk to say that they'd prefer to wait to invest in solar - waiting for the newer model that will no doubt be more efficient - in the same way that we hold out for the new iPhone. Gains in solar technology have been huge in the past few years, and this perception is valid. No one can predict how much technology can improve until it has, but many solar professionals tell us that they believe the technology has a long way to go before it jumps again. To liken solar to a techie theory, we're told that solar is where mobile phones are - every model can have has a camera, internet connectivity, music, and usually a touchscreen, and the next major improvement is nowhere in sight.
Increases the value of your home
Although there are no solid statistics in this area yet, early reports show that houses with lower annual utility bills sell for a higher price - and sometimes the difference is more than what the original investment was.
In Victoria (and soon federally legislated we're sure) houses for sale will have a compulsory star energy rating associated with them. With the higher visibility of a home's energy efficiency, you can be sure that more and more consumers will be looking to buy homes that are sustainable that they will not need to retrofit in the future.
The value of your home increases by at least the 'improvement' value - and remember that some of that improvement value will not be paid directly by you but by the state or federal government in the form of rebates.
Protection against future energy price increases
We all know what happens when the mortgage rate goes up. We have less disposable income, sometimes forcing us to cut corners into necessary items. Price hikes in utility bills are a high risk (64% price increase predicted in NSW over the next 3 years). Installing solar protects you against these price hikes by ensuring that you have the ability to make your own energy that doesn't fluctuate.
While you may not remove this risk entirely, you will definitely reduce the effect that price hikes will have on your lifestyle in future. That means that when you get a salary raise based on inflation (which is also calculated with utility prices in mind) you get more of your raise to use as you wish - not on life's necessities.
Rebates make investment costs lower and returns higher
Are rebates for solar energy going to be around forever? They may very well be, but we've all learnt not to count on a rebate structure being around for very long! Today's rebates are excellent, and you will get a collection of federal and state rebates as well as RECs. You can be sure that investing into solar will always be a priority of the government, but you can't be sure that there will always be enough money for rebates. The rebates currently available should be taken advantage of now.
Make money on selling excess electricity back
You can make money if you generate more energy than you use. Simple. Even if you don't generate more than you use, in some cases you will still receive payments from your utility company for generating your own electricity that can completely offset the costs of your energy usage when solar energy creation isn't at peak.
Once you have a system, it's relatively simple to add more PV panels to create more energy. If you have the space and the position, you can make your initial investment back more quickly and make a continuous return - similar to dividends on a stock that you own (but more predictable).
Good for the environment
Global warming and climate change is a reality. Doing nothing about it now means that we'll all suffer more later - and no one wants that. Solar hot water systems reduce carbon emissions by at least 20% per home, and solar PV systems reduce unsustainable energy use.
Of course, you can also back up your investment in solar by reducing your overall energy usage, which means you'll make more money from any excess solar energy that you feed back into the grid.
It's easy to get quotes and install solar PV or HWS
Thinking about Solar investments can be complicated - but getting quotes and advice couldn't be easier. Post a job on Service Central and get up to 3 top-quality Solar companies contacting you to talk you through the options and give you quotes and advice.
-
What are the rebates available from the governement re: installing solar power/grids etc
over a year ago by Mrs Wegener -
I already have a 1.5 kw system. Can i still get some more ? Do i still get the rebates ?
over a year ago by A sharma
Solar Energy Quotes
from local businesses
