Safe investments tend to have modest rewards, while high-risk investments tend to be the most lucrative. However, solar power systems are an exception, since they are safe investments with very high rewards. This is especially true in Australia, where abundant sunshine makes photovoltaic arrays very productive, and high kilowatt-hour prices translate into increased savings once you produce your own electricity.
The installed cost of solar photovoltaic systems has been decreasing rapidly in recent years, thanks to innovation and large-scale manufacturing. Australia also has the advantage of being relatively close to China, where leading solar panel manufacturers have their main operations, and this proximity reduces the shipping costs of solar equipment. It is now possible to install a fully operational commercial solar system in Australia for less than AU$1,700 per watt, and when you subtract government subsidies the price can go below AU$1,000 per watt.
On the other hand, Australians are faced with ever-increasing electricity prices, and some consumers have seen their power bills double in less than a decade. However, for homes and businesses with solar power systems, the savings increase along with kilowatt-hour prices; some households pay over 40 cents/kWh, but that is also how much they can save with solar generation.
This is a very simplified analysis, but it gives you a general idea of what you can expect after deploying a rooftop solar system. Now, let’s discuss why solar power can be considered a safe investment.
Solar photovoltaic systems work with sunlight, which is guaranteed to be available – the sun has around 5 billion years of life left, according to astrophysicists. The same cannot be said of generation systems that use fossil fuels, since their energy inputs are non-renewable and subject to volatile prices. In a few words, solar power systems work with an input that is free and abundant.
Photovoltaic panels and their complementary equipment are also very durable, and covered by solid warranties if you use equipment from leading manufacturers.
Commercial solar systems are affordable, while offering a short payback period and a huge return on investment. In addition, the long warranties that cover solar equipment ensure your installation will last for many years after the payback period.
Cameron Quin has been heavily involved in business development from an early age. After founding and selling two online companies, Cameron found a strong passion for renewables and the opportunities it brings for the commercial and industrial sector. Sharing the possibilities of solar and the knowledge from the Solar Bay team is his favourite pastime.