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Solar Power System Cost, Savings & Investment
As traditional power sources become more unreliable and expensive, now is the perfect time to embrace solar energy. Today's solar panels are more efficient and affordable than ever. Transform your energy expenses into a strategic investment. Choose a greener, more sustainable future, and experience the financial benefits of solar power.
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Initial Solar Investment
Understanding Your Solar system cost
Choosing solar energy is a step towards a sustainable future. We tailor solar solutions to meet your unique needs. Below are starting prices for three foundational solar systems, based on system size, to give you an idea of potential costs. This initial investment sets the stage for long-term savings and a greener footprint.
Low Power Usage
Small System*
- Monthly Bill: $150 to $250
- Annual Consumption (kWh): 7,000 to 9,000
- Household Size: Up to 4 people
- Appliances: Standard use
Medium Power Usage
Mid-sized System*
- Monthly Bill: $250 to $350
- Annual Consumption (kWh): 9,000 to 12,000
- Household Size: 4-5 people
- Appliances: Medium use (e.g spa, EV)
High Power Usage
Large System*
- Monthly Bill: $350+
- Annual Consumption (kWh): 12,000+
- Household Size: 5+ people
- Appliances: Heavy use (e.g spa, EV, pool, central and/or underfloor heating)
What affects the cost of your solar power system?
Energy Needs
System size typically scales with consumption levels, directly affecting cost.
Battery Capacity
Chosen based on usage patterns, the battery size is a key investment factor.
Components Quality
High-grade panels, inverters, and batteries impact cost and long-term reliability.
Install Complexity
Cost is influenced by roofing, site specifics, wiring needs, and scaffolding.
Energy Goals
Grid independence or substantial energy savings goals necessitate a larger system.
Tech Upgrades
Smart tech and EV charging integration increase both efficiency and initial cost.
Custom Solutions
Personalised energy systems for unique requirements (e.g. smart homes) alter the financial outlay.
Embarking on solar energy is a unique journey. We guide you through selecting the right components and designing a system tailored to your energy needs and lifestyle. Expect a solution focused on efficiency, savings, and unmatched performance.
Discover Your Solar Savings
Embrace The Sun,
Reap The Savings
Switching to solar power benefits both the environment and your finances by significantly reducing your energy bills. Here’s a real-life example showcasing the tangible savings you can achieve by transitioning to solar energy.
Monthly Bill Savings
$250
$200
$150
$100
$50
0
($242)
($73)
Cumulative Savings
$80,000
$60,000
$40,000
$20,000
0
In our real-life example, we look at a family of four paying an average electricity bill of $242 monthly, based on an average daily usage of 22 kWh. Their goal was to cut down on electricity costs and target a self-consumption rate of 70%—meaning they aimed to use 70% of the energy generated from their solar system directly. They decided to invest $11,932 (including GST) in a tailored grid-tied solar system, installing a 5.28kW grid-tied system with 12 LONGi 440W Black Frame panels paired with a Redback SI5000 5.0 kW inverter.
After switching to solar, their average monthly bill dropped to $73.07, saving them approximately $168.94 monthly, or 69.81%. Over 25 years, this totals $70,740.08, considering rising electricity costs and income from excess electricity.
Additionally, their decision to go solar had a significant positive impact on the environment—equivalent to the CO2 absorption of 40 trees and powering 528 light bulbs around the clock every year.
Real-Life Solar Success Journey:
Cost Savings & Environmental Impact
$70.7k smart savings
25 years of solar turned into $70,740.08 of smart, eco-savings.
40 trees' carbon work
Equivalent to the environmental impact of 40 trees absorbing CO2 every year.
528 light bulbs powered
Lighting up 528 bulbs non-stop for 25 years, all through clean, solar energy.
Solar: The Smart Financial Move Today
Understanding the Shift: Rising Electricity vs. Falling Solar Costs
Over the past decade, energy costs have shifted dramatically. Since 2008, electricity prices have consistently risen, while the cost of installing solar systems has significantly decreased. This shift makes transitioning to solar more compelling than ever, offering both immediate and long-term financial benefits.
electricity cost (¢/kW)
solar installation cost ($/kW)
35
30
25
15,000
12,000
9,000
6,000
3,000
20
0
Solar Gets Cheaper:
The cost of solar has dropped significantly since 2008 (-83% decrease).
Electricity Prices Rising:
Electricity costs have soared over the past 16 years (+58% increase).
Source: Electricity Cost: Ministry of Business, Innovation & Employment (www.mbie.govt.nz) | Solar Installation Cost: Combined $/kW data from mysolarquotes.co.nz & ZEN Energy | 2024 Electricity Costs (¢/kW) are based on pricing as at February 2024 | 2024 Solar Install Costs ($/kW) are based on pricing as at April 2024
The chart above illustrates a compelling trend: electricity prices have surged by 58% from 2008 to 2024, while the cost of installing solar has plummeted by 83%. This stark contrast highlights the growing affordability and economic benefit of opting for solar today. With rising electricity costs and decreasing solar installation prices, now is the ideal time to invest in solar. This move promises significant long-term savings and makes a strong financial case for transitioning to solar energy.
Unlock Financial Benefits with Solar Energy
Investing in Solar: Understanding Payback & ROI
Investing in solar energy is not only environmentally beneficial but also financially advantageous. Understanding key concepts like the payback period and return on investment (ROI) is essential to see how solar systems can provide immediate and long-term financial benefits.
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Understanding Solar Payback Periods:
The payback period indicates how long it will take for the savings on your energy bills to equal the initial cost of the solar system. This period varies based on your specific system and energy usage.
25%
20%
15%
10%
5%
0
Years
Years
(per real-life example)
Years
Years
The chart above shows different payback periods and their respective annual return on investment (ROI), which includes:
- 5-Year Scenario: Quick ROI for high-efficiency systems, reflecting a 20% annual return.
- 5.5-Year Scenario: Based on our real-life example of a family of four, this tailored setup offered optimal returns, delivering a 18.1% annual return.
- 6-Year Scenario: A realistic goal for many homeowners, offering a balance between cost and savings at a 16.7% annual return.
- 7-Year Scenario: Reflects a more conservative system setup, offering a 14.3% annual return.
Custom solar solutions mean the payback period can be adjusted to meet your energy needs, demonstrating how different setups can be optimised for faster returns.
Turn Your Energy Savings into Financial Gains
Switching to solar energy reduces your electricity bills and frees up more of your income for smarter financial decisions.
Quick Insights:
- Pre-Tax vs. Post-Tax Savings: Traditional electricity bills come from after-tax income. By cutting these costs, solar effectively increases your disposable income.
- The Solar Advantage: Pre-tax savings from solar can be invested in tax-advantaged accounts like retirement plans, enhancing financial health and long-term security.
The Bottom Line
Going solar does more than just reduce energy costs; it unlocks financial opportunities, facilitating smarter, tax-efficient investments. It’s a choice that benefits both your wallet and the environment.
Maximise Returns with Pre-Tax Savings on Solar
Channeling solar savings into tax-advantaged accounts can significantly boost your investment returns (assuming a 33% marginal tax rate):
Investing Solar Savings Wisely:
- 5-Year Payback Scenario: ROI increases from 20.0% to 29.9%
- 5.5-Year Payback Scenario (per real-life example): ROI improves from 18.1% to 27.0%.
- 6-Year Scenario: Yield rises from 16.7% to 24.9%.
- 7-Year Scenario: Returns boost from 14.3% to 21.3%.
Investing in solar goes beyond reducing bills—it enhances financial growth when pre-tax savings are effectively used in accounts like pension plans and retirement funds.
Solar Investments: Outshining Traditional Options
Why Solar Makes Financial Sense?
In today's economic climate, choosing the right investment is crucial. Solar energy not only benefits the environment but also offers superior financial returns compared to traditional investments like real estate, bonds, stocks, and term deposits. Here's how solar stacks up over 5 to 7 years against these options.
0%
5%
10%
15%
20%
The numbers are clear: solar investments yield high returns, outperforming traditional investment options over similar timeframes. Investing in solar not only boosts your finances but also supports sustainable energy, providing both financial benefits and environmental impact.
Solar Energy Systems: Purchase vs. Lease
Choosing Your Solar Energy Path
Deciding whether to buy or lease a solar energy system is a pivotal choice. We simplify this decision, highlighting key differences in costs, savings, and impacts on your home value. Let’s explore which option best aligns with your financial and environmental goals.
Purchasing a Solar System
Pros:
- Ownership: Enjoy complete control and all the benefits of solar energy.
- Savings: Achieve significant reductions in both immediate and long-term energy costs.
- Home Value: Boosts the resale value of your property.
Cons
- Upfront Cost: While higher initially, this can be offset with Green Loans, offering competitive rates and flexible terms.
Leasing a Solar System
Pros:
- Low Initial Cost: Minimises upfront expenses, similar to the benefits of Green Loans for purchases, but without future ownership.
Cons
- No Ownership: Miss out on financial benefits and practical perks of ownership.
- Lower Savings: Fixed lease payments may reduce overall savings due to included finance charges.
- No Increase in Property Value: Leasing does not boost your home’s market value.
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Unlock Financial Gains with Solar Energy
Empower Your Finances & the Planet
Investing in solar energy provides clear financial advantages:
Reduce Expenses:
- Slash Electricity Bills: Experience significant reductions in your monthly energy costs.
- Shield from Rising Energy Prices: Protect against unpredictable and increasing utility rates.
Increase Financial Returns:
- Quick Payback: Recoup the initial investment through savings and income from selling excess energy.
- Stability: Enjoy a predictable alternative to fluctuating energy costs.
Boost Property Value
- Higher Resale Value: Solar panels can significantly increase your property’s worth.
- Attractive to Homebuyers: Solar-equipped homes often sell faster and at higher prices, appealing to eco-conscious buyers.
Eco-Friendly Investment:
- Sustainable Choice: Lower your carbon footprint significantly and contribute to crucial environmental conservation efforts.
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Take your
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