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Is Solar Worth It?

Jacaranda Team

Jacaranda Team

January 15, 20206 minute read
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Are solar panels worth it?

“Is solar worth it?” If you’re considering installing solar panels this summer, then this is probably the top question on your mind. In Australia, solar power could be a cost-effective way for you to manage your electricity bill. Our summers bring longer than average days with more sunlight for your panels to turn into electricity. Yet, if you’re looking to save on your power bill, returns will definitely vary between households. So, before you start looking into solar installers – let’s go over some of the core details you should consider first.

On this page:

    How does solar power work?

    Before we get into the nitty-gritty of answering “why is solar worth it this summer” it’s important to understand how it works. Solar power operates by converting light from the sun into electricity. Here’s how it happens: 

    1. The solar cells on the roof of your house collect sunlight. The solar cells then produce electricity via the photovoltaic effect. What is the photovoltaic effect? Basically, it is the process that generates a voltage or electric current in a photovoltaic cell when it is exposed to sunlight. This is the process that makes the solar panels useful, as this is how the cells inside the panel convert sunlight into electrical energy.
    2. The electricity generated by your solar panels is then directed to your central inverter where it is converted into electricity that can be used to power your home and appliances.
    3. Your inverter will always make sure your appliances are using your solar production first. Energy from the grid will only be accessed when your solar reserve is completely used up. 

    Is it difficult to manage?

    We know, it sounds complicated, but don’t get overwhelmed by the details. Your electricity provider will usually set up a new bi-directional meter that will monitor and report both the incoming and outgoing electricity of your solar panels. This means you can keep a good eye on how much solar you are both generating and using. 

    You won’t need to remember to switch it on or off, either. The system will do this automatically. The same applies to switching between solar and the grid power as well. When your solar power is spent, your electricity will revert straight to grid power. Ultimately, solar power requires very little maintenance at all. So if you’re asking ‘is solar worth it’ because you’re unsure how much upkeep it’ll require – you probably won’t even notice it’s there! 

    How much does it cost?

    The cost to install solar panels on a house can be pretty hefty, but the savings are usually worth it! The price of installing solar has come down considerably in the past couple of years. However, to the average household, it is still a big investment.

    The cost of installing a standard rooftop solar system usually varies between $3,000 and $12,000. What is the price based on? The price of installing solar is usually based on the size of the system and your location. It is important to keep in mind that the larger the system is, the more pricey it is going to be to instal. 

    The good news is that the Federal Government’s Small Scale Technology Certificate (STC) can subsidise part of the cost of installing solar panels.  Keep in mind that STC’s can provide a substantial discount off the cost of installing your solar panels, but this will again depend on your location and the size of the solar panel system. 

    A general rule of thumb is that the price you should expect to pay for solar installation is $1.40 per watt or $1,400/kW. The price per watt will, however, decrease with larger solar systems. 

    Average pricing per state

    The table below shows Canstar Blue’s average prices for purchasing and installing a solar PV system across Aussie states and territories.  

    Solar system size  National average price  NSW  VIC QLD  SA  TAS WA
    1.5kW $3,144 $3,100 $2,940 $3,050 $2,530 $3,040 $2,460
    3kW $3,970 $3,630 $3,730 $3,870 $3,230 $3,980 $2,550
    4kW $4,670 $4,120 $4,350 $3,520 $3,740 $4,970 $3,190
    5kW $5,140 $4,510 $4,830 $5,110 $4,100 $5,500 $3,120
    6kW $5,750 $4,980 $5,400 $5,430 $4,520 $6,640 $4,200
    7kW $7,170 $6,580 $7,210 $7,090 $5,630 $8,260 $5,420
    10kW $9,680 $8,760 $9,950 $9,660 $8,330 $11,340 $9,100

    Why is solar worth it this summer? 

    Summertime is the best time to instal solar power. Solar power generation in summer vs winter is definitely higher, given the extended daylight hours:

    Season Average daylight hours
    Summer  12
    Spring  8
    Autumn 9
    Winter  7

    With a national average of 12 hours of sunlight during the Aussies summer months, you can be guaranteed you’ll get bang for your buck. If you’d like to know a little more about solar installers, we suggest doing some research as to the most reasonably priced provider in your area. It can be helpful to get a few quotes before deciding on a provider. 

    Solar loans from Jacaranda Finance 

    So, if you’ve been wondering ‘is home solar power worth it?’ or ‘is solar worth the investment?’  the facts and figures sure do provide some food for thought.

    If finances are holding you back from installing solar panels, a solar loan from Jacaranda could be just what you’re looking for! At Jacaranda, we could provide finance from $300 to $10,000 that can be used to cover the cost of installing solar panels. Solar loans can be secured or unsecured and can be used to cover the cost of solar panels, batteries and hot water systems. 

    If you’ve been considering solar panel installation, there is no better time than the present. You could apply for a solar loan from Jacaranda online right now. We make it simpler than ever for Aussies to access the cash they need – without the hassle. If you apply during AEST business hours, the team at Jacaranda could have an outcome for you in just 60 minutes.

    Who can apply?

    At Jacaranda, we are proud to be giving all Aussies a fair go when it comes to a reasonable and safe personal loan. Here are the criteria you’ll need to meet: 

    • Applicants must be over the age of 18;
    • All applicants must have an active mobile number and email address;  
    • A regular income must have been deposited into your personal bank account for the last three months; 
    • Applicants must have internet banking set up; 
    • You must be able to prove you are a New Zealand citizen or permanent resident.

    What if I have bad credit?

    Worried that a poor credit score could stand in the way of solar finance? At Jacaranda, we take a realistic look at finance. Our team won’t discount your application just because of a bad credit report. We’ll take a look at the whole picture as we consider issuing bad credit loans. Our team will access read-only copies of your bank statements to assess factors such as income, spending habits and existing financial commitments. If we can see that you have made a considerable effort to reconcile bad credit you could be eligible for a solar loan.

    How do I apply for a solar loan?

    Like what you hear? If you’re ready to apply for a solar loan you’ll be pleased to know that it couldn’t be simpler. Here’s what you’ll need to do: 

    Apply online 

    Head to the top of the page and use our solar loan calculator to input a loan amount and repayment period. 

    Fill out the form 

    You’ll need to complete our 100% online application form. This could only take a few minutes. Our team will just need a few important details to help us assess your loan application.

    We assess your application 

    Our team will conduct a fair and thorough assessment of your solar loan application. If you apply during AEST business hours we will do our best to get back to you with an outcome in 60 minutes.

    Sign your agreement 

    Our team will send over an agreement for you to review and sign. We encourage all borrowers to read through their contract carefully and make themselves aware of any fees or charges that could incur for late or failed repayments. When you’re happy with the terms of our agreement all you’ll need to do is sign it and send it back. 

    Get your cash 

    Once we receive a signed copy of the agreement our team will transfer the cash straight to your account. Thanks to instant banking the cash could be in your account and ready to use in just 60 seconds*. 

    *For NPP enabled bank accounts. 

    Want to read more?

    Head to the Jacaranda blog to check out the best cheap family getaways this summer.  

    Struggling with money management? Want to know how to repair your credit rating? Jacaranda has the tips you need to read.

    Copyright © www.jacarandafinance.com.au Jacaranda Finance Pty Ltd ® ABN 53 162 078 195 Australian Credit Licence 456 404, Pawnbroking License Number 4221738. The information on this web-page is general information and does not take into account your objectives, financial situation or needs. Information provided on this website is general in nature and does not constitute financial advice.

    Jacaranda Team
    Jacaranda Team

    Written by Jacaranda Team

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