Even in the absence of FIT in the state of NSW, solar power is still a great investment to choose to. With the fact that solar energy prices are rapidly declining plus retail electricity rates are rising significantly, this just means that solar panels can now serve as a cost-effective, rooftop ‘power plant’ for NSW homes and businesses.

So what are the benefits in using solar energy in New South Wales?

The main reason residents in NSW switched to solar is to save money in their electric bills, but since the closure of NSW’s Solar Bonus Scheme to new applicants, new solar system owners stand to benefit most from having a system by aiming to consume as much of the solar power that they produce as possible known as ‘solar self-consumption‘.

Through solar self-consumption, system owners reduce the amount of electricity that they have to purchase from their electricity retailer/utility. Sending excess solar energy into the grid is more of a way to earn additional savings and to get some value from the solar energy you can’t use yourself.

Federal discount for solar PV system installation in NSW

The federal government’s Renewable Energy Target (RET) is now the primary mechanism for the subsidisation of small-scale rooftop solar in Australia. In effect, the federal government, through the RET, subsidises the installation of any solar PV system up to 100 kilowatts (kW) in capacity.

Exactly how much this federal discount works out to be depends on a few factors, including the location of the installation (sunnier regions will receive a larger discount) and the market price of the tradable certificates (small-scale technology certificates or STCs) that constitute the subsidy.

Directly speaking, in NSW this discount is in the region of 30% off the full cost of an installation. This means a discount of around $3,500 off a 5kW solar system, or $2,100 off a 3kW solar system. The subsidy is applied directly to the up-front cost of your system and should be itemised on the quote and contract from your solar installer.

Attractive ROI for solar power in NSW

In NSW, where there is currently no government-backed solar feed-in tariff in place, a solar power system can provide its owner savings on electricity bills by reducing the need to purchase power from the electrical grid. Additional credits can be earned for the solar energy that you send into the grid – the rate offered will depend on your retailer.

Investing in a solar power system would be particularly advantageous for those who consume the bulk of their electricity during daylight hours, but as long as you can use at least 30% of the energy that the system produces the investment case will probably look pretty good.

Solar power is a low-maintenance investment

Rooftop solar systems generally have no moving parts and require very little in the way of maintenance or inputs once they are installed and functioning.

Tax benefits for businesses with solar power systems

Rooftop solar systems generally have no moving parts and require very little in the way of maintenance or inputs once they are installed and functioning.

Wherever we are, solar power is always one of the best tool to gain financially and to have a greener home with a reduced carbon footprint. As a considerable investment, it’s always worth evaluating a solar power system for your home before have it installed. Doing your research and seeking professional advice can help you to make an informed decision.