Solar energy has brought a revolution in the field of green energy. This is the cleanest and cheapest source of green energy for homes and businesses. It requires only an initial investment then you can use the free energy for many years. Affordable Solar panels pay back their buying cost by supplying free energy for your home or business.
The past few had been very important for solar energy. Man has made tremendous advancements regarding solar energy. More efficient solar panels with longer working life are discovered. Flexibility in the shape and size of solar panels is also part of the latest innovation. Transparent solar panels have been introduced to be integrated into doors and windows. This is all due to the increasing popularity and competition in the field of solar energy. Another benefit of this competition is the consistently decreasing cost of solar panels all over the world.
History of solar prices in Australia
Before the 2008 solar revolution, solar electricity could cost up to $15 to $20 per watt and was mostly used by early adopters with more resources. The government announced premium feed-in tariffs in 2008 and 2009, offering up to 60 cents per kWh for solar energy exported into the grid. As a result, solar took off in those years. Due to a large number of clients and installation businesses being drawn to the market, all of the state’s schemes were finally closed ahead of schedule between 2011 and 2012.
The federal rebate scheme was launched by the government in 2011 and has since contributed significantly to the initial cost of solar systems. To dramatically reduce the underlying cost of solar panels and solar inverters, product manufacturers started to achieve considerable economies of scale and implemented robotic automation in their facilities.
The Solar Choice Price Index examines the market dropping back to 2023 and demonstrates how the continued development of solar panel technology and production methods is lowering the costs offered to end users. Residential solar is currently regarded as a mass-market product because over 300,000 solar power installations were finished last year.
Premium solar panel system costs (February 2023)
The deals that each installer believes to be their top offer have solar prices that are below average. For customers on a budget or those prepared to spend more for higher-quality equipment, solar installers typically provide levels of offers. The more expensive offers displayed in Solar Choice’s quotation comparison tool often come with superior technical specifications, and longer guarantee terms, and are produced by the most recognized and reliable firms. Based on the typical costs shown on this page, it is reasonable to assume that these systems have a 20–30% higher price tag.
See the infographics above, which show the most common brand names that installers are putting in their premium option, to get a sense of what is regarded as a “premium” solar panel and solar inverter. It should be noted that the most popular premium inverter or solar panel is not necessarily the finest; rather, it is only a measure of market share.
Four important factors influence the cost of solar panels in Australia:
As we the price does not depend on a sole or a couple of factors. Here are always multiple factors that influence the cost of any item in the world. The same is the case of solar panels all over the world. However, the factors may vary from country to country. The following are the most important four factors that can affect the price of solar panels in Australia.
Wholesale equipment costs:
The economies of scale attained by the makers of solar panels and inverters, who are primarily from Asia, have been the main factor in the decline in the cost of solar during the past ten years. As a new business, companies have been able to scale up manufacturing and logistics, automate operations, and significantly lower the cost per watt of solar installations. To further reduce prices, many installers have already reached a point where they may buy solar panels and, in some cases, inverters directly from manufacturers.
The Australian Dollar:
The majority of a solar system’s parts are foreign-made. As a result, the cost of solar energy reflects the Australian dollar’s capacity to purchase machinery, whether that machinery is purchased directly from manufacturers by installers or indirectly through Australian distributors of machinery. Because of this, solar quotations sometimes incorporate an expiration date of 14 to 30 days to protect installers from financial loss if equipment prices rise or fall.
The Solar Rebates:
The STC program, a government solar credit, rolls back a year until it is taken out in 2030. Although it exerts upward pressure on solar pricing, this has been eclipsed in recent years by falling solar costs. As seen by the graph above, this is starting to shift as solar costs have been trending sideways. The cost of solar has significantly decreased as a result of the implementation of regional solar rebate programmes, notably in Victoria.
Competition and Cheap Solar:
With over 6,000 contractors certified by the Clean Energy Council to install solar, the solar business is one of Australia’s most competitive sectors. As a result, the market’s margins have to be extremely thin. However, this has led some installers to offer “crazy pricing” and back them with substantial marketing budgets to drive high volumes, sacrificing the quality of the product and service in the process. Although these strategies have pushed prices lower, they often haven’t improved the situation for customers.
What about solar panel costs in the future?
The solar sector is anticipating continued price reductions for solar systems but at a considerably slower rate. Manufacturers are releasing incremental upgrades to panel and cell designs, which are gradually moving Solar Panels closer to 1,000W of power. Yet, many of the early step change production efficiencies have already been attained in massive, robotically powered facilities. Likewise, the STC refund in Australia is expected to disappear in 2030 after declining each subsequent year. The graph above illustrates how pricing has levelled out over the past 12 months as a result of this rising pressure on solar prices.
Commercial Solar Panel Costs
Commercial solar panels are used in larger industries and buildings to provide the cleanest energy. They are a little different from home solar panels. They are expected to produce more energy than solar panels because they are larger and installed on a larger scale. The price of commercial solar panels in Australia is also in a slowly decreasing trend. In future, solar panels are expected to follow the same trend but at a gradually lower rate.
The following are given important pricing tables for famous cities in Australia. Incentives offered by the federal Renewable Energy Target (i.e. STCs) are included in all pricing in the tables below, along with GST. However, meter installation fees and other expenses like ground mounting, grid protection, and grid connection studies are not included.
The above-mentioned table shows the prices of famous sizes of solar panels in different cities in Australia. The prices are currently updated. There may be a little change due to ever changing prices of solar panels.
Average Cost Per Watt:
This is another popular scale to calculate the price of solar panels all over the world. This scale calculates the cost of a single watt produced by the system. Many specialists who compare the cost of different solar panels use this scale to get the best comparison. Following is given a table of average cost per watt in different cities.
The above-mentioned prices are very close to the current prices. Minor changes are possible due to the volatile nature of the solar marketplace.
Solar panels are gaining higher popularity all over the world, especially in developed countries. Australia is one such country. Due to increasing popularity and supply, the prices are falling on the pricing graph of solar panels. The graph is anticipated to follow the same falling trend. Home solar panels and commercial solar panels are getting cheaper and more advanced at the same pace. No matter what you buy, you will save a lot of money. The plus point, the government is providing many financial reliefs to solar panel buyers to encourage the use of clean solar energy. Such steps of the government are highly praised because they further decrease the cost of solar panels.