Solar energy systems pay their own way in no time

Adelaide Advertiser
Monday 13/4/2009 Page: 44

A QUESTION often asked by consumers is: How long does it take for a solar energy system to pay for itself? There are many variables that will affect the pay-back time frame of a solar system, but it certainly takes a lot less time than it used to. A 1kW photovoltaic energy system can retail from anywhere around $12,000.

Many people are eligible for an $8000 government rebate, which brings the cost down to about $4000. The State Government then offers a feed-in tariff on all excess solar energy produced from your system. This is a net figure of the surplus energy produced above your consumption level and it is bought at a rate 2.5 times higher than the rate you pay, providing another pay-back route for your initial investment.

There is speculation that this feed-in tariff will become based on a gross figure of energy produced. This would drastically reduce the time in which you would pay for the system and encourage more people to put in solar energy systems. One of the most important variables is the individual habits of the household. The less energy you consume, the quicker the payback period. From my experience, a system can be paid back in four to six years, a vast improvement from the 20-25 years it used to take.

Building a sustainable house adds to the capital value of the asset, and as time passes it will do more and more so. Valuers are now starting to consider the added value of sustainable design and energy-efficient technologies in homes. If two homes were side by side in a street, both three bedrooms, two bathrooms and on similar-sized blocks, yet one had 20,000 litres of rainwater, a 2kW solar energy system and a solar hot-water system, I am sure almost everyone would prefer the home with the sustainable attributes.

It would cost a great deal less to live in, while providing a comfort and satisfaction the other house could not deliver. Energy and water costs are certainly not declining, so these elements added to a home should increase the value significantly in the future. Purchasers are asking a lot more questions about sustainability and are expecting greater performance from their homes. This will either add value to homes that are energy efficient or alternatively devalue homes that are not.

Adam Wright is a director of Beyond Today.