When a customer asks “how much do solar panels cost” there are many factors to consider.
Firstly in most cases the customer is asking about the cost of the entire system installation from application to design to supplying the panels, inverter, rails, frames and the components that make up the balance of system. In addition they include the installation, commissioning, inspections and meter changeover costs. Lastly there could be on-going maintenance.
However even though the customer asked a simple question which becomes a far wider one for the installer, the customer still only requires a simple answer of $xxxx.
If the solar salesperson immediately replies with $xxxx, the customer will assess the figure to decide whether or not they can afford it. They may decide not to go ahead and send the salesperson away.
In my opinion a solar installation is not a purchase, it’s an investment. You are not buying an idle asset that will depreciate away over a period of time. You are buying a working asset which will offset your escalating electricity bills for at least 25 years. The longer you have this asset the more valuable it is to you.
As more and more Australians move away from their dependence on the grid towards generating their own energy, the electricity utilities will find it increasingly difficult to survive. Already the demand for their products is dwindling. Consequently electricity prices will need to increase so they can maintain their huge infrastructure of poles, wires and meters. Solar energy is generated on the premises, used on the premises and if exported can be consumed by your neighbours.
The projected increase in electricity prices must be considered as an integral part of this investment. At 30c/kWh today, with 4% increase per year for 25 years will yield 80c/kWh in 2041.
Because, surprise, surprise, the sun only shines during the day, we can only offset our electricity consumption during the day to maximise our savings. And don’t forget, we pay peak rates during the day, Monday to Friday. If our sun-time consumption is 15kWh/day and we’re paying 30c/kWh, then a solar installation should save us 15 x $0.30 = $4.50 per day. That’s $405 a quarter and $1620 a year. These savings will increase each year without you doing anything.
If your actual savings are $1620 a year and you pay $5000 for the installation, then your pay-back period is a tad over 3 years, and we still have not considered the rising price of electrical energy.
If a stockbroker could repay an investment in 3 years he’d be laughing all the way to the bank. Imagine then another 22 years of clear profit.
There is a commercial ROI (pay-back period) calculator (see above image) here.
To summarise, there is always a bottom line, of course. But you must not look at the up-front costs in isolation. The system will be designed for you to offset your consumption and there-in are your immediate savings.
Please call Energis who will perform all these calculations for you for your premises. They will calculate your pay-back period and provide an obligation-free appraisal and quotation. Please call now on 1300 782 217 to take advantage of this offer.