There’s good news for homeowners who are considering installing residential solar panels this year. According to the January 2020 price index report, costs continue to decrease, making it even easier to reduce your energy costs and your carbon footprint by switching to solar power. The average costs for a residential solar system in Australia decreased to only $1.07 per watt in January.
A historical look at residential solar PV prices
When solar manufacturers put solar PV systems on the market during the first solar boom in 2008, the price ranged from $15 to $20 per watt. At this point, the technology was still new, so the costs of production and installation were much higher. Over the years, as demand has grown and photovoltaic technology has improved, the prices have decreased steadily. By 2012, the average cost per watt was less than $2.50. It fell below $1.50 per watt in 2017 and has been slowly decreasing since then to just over $1 per watt.
What’s keeping residential solar system prices down?
Today, installing solar panels for residential use is much more affordable than it was just a few years ago – and this is true across Australia. From Melbourne to Perth, costs have dropped, with an average decrease of 50 per cent from August 2012 to January 2020.
This decrease has a lot to do with increased demand and the overall stabilisation of the market. Solar companies are now able to produce high-quality solar power systems at scale, which brings their production costs down.
Not only that but Australian solar credits are helping to keep demand high. The government is still offering homeowners solar credits as part of the country’s Renewable Energy Target. Homeowners who install residential solar panels can redeem their small-scale technology certificates, or STCs, for a dollar value, which can be used to reduce the costs of installing the solar system.
Residential solar PV system options
With the residential solar PV price index showing a steady drop in average prices, homeowners have more choices they can afford; no longer are the high-performance, large kW solar panel systems accessible only to those with large budgets. It’s now possible for the average homeowner to purchase a larger solar system as well as residential solar panels with premium features.
Today, you can also take advantage of low prices and government rebates in order to afford a high-performance system. Fewer homeowners are purchasing the smaller 2kW systems and more are choosing 5kW and 6kW systems, or even larger because they are affordable and offer a great value. These systems make it easier to cover most or all of your energy usage through solar power, significantly reducing your household’s reliance on fossil fuels.
For a reliable solar solution for your home, contact Arise Solar today. We offer a range of options for homes across Australia, including 5kW, 6.6kW and 10kW residential solar PV system packages built with tier-1 solar panels. Reach out today for a free quote.