Solar Power Payoff

HOW DO I GET PAID FOR THE POWER THAT I PRODUCE?

In South East Queensland solar power systems are normally installed so that the output from the solar system goes to the home first and if there is an excess, it goes out to the electricity network through an ENERGEX meter. The customer simply signs an energy buy-back agreement with an electricity retailer – usually the retailer who sells them their electricity.

When the meters are read, the excess kilowatt-hour output from the solar system is recorded and under the Queensland Government “Solar Bonus Scheme” you are paid 44c per KWH for the excess power. Click here to read more about the Qld Govt Solar Bonus Scheme

WILL MY SOLAR SYSTEM PAY FOR ITSELF?

Your solar system will pay for itself. Customers who install solar power usually do so for environmental considerations first and foremost. From the day the panels are installed and connected to the grid, you are reducing your CO2 emissions and your impact on the environment.

As a bonus however, there are considerable financial benefits. Electricity prices are on the rise. Each time the prices rise, the payback time on your investment reduces. With the Queensland ‘Solar Bonus Scheme’, if your home uses minimal solar power during the day then your system can pay for itself in as little as 5-6 years. The solar energy system also adds value to your home in the same way as any other form of home improvement.
Solar panels and inverters have long life expectancies, and today’s inverters are very reliable and the components are maintenance free.

Be paid for the electricity you produce

In Queensland, every kWh of electricity produced by your solar power system above what you use (at any given moment in time), can be sold back into the power grid for 44 cents or more (compared with the 18 cents it costs to purchase electricity).

How Much Money Can You Spend Now?

Obviously the larger the system, the better the financial return through the feed-in tariff. However, usually cash is a major consideration (and road-block in installing a solar panel system).

There are a number of solutions:

•    Green loans – up to $10,000 over 4 years, interest free. The application process is a bit slow.

•    Rolling the payment into your mortgage – If you have some free equity in your home, this is the most cash-flow friendly way. Your mortgage gets repaid over 10, 15 or even 20 years, so the additional monthly repayments are usually lower than the savings you get from your solar system.

•    Personal green loan from a credit union – Most credit unions offer a reduced rate green loan (not to be confused with the government green loan). MECU has an online approval process for their personal green loan.