Why Property Owners Shouldn’t Install Smaller Solar Systems to Receive Greater Feed-In Tariffs
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Home > blog  > Why Property Owners Shouldn’t Install Smaller Solar Systems to Receive Greater Feed-In Tariffs

It is becoming increasingly difficult to source high feed-in tariffs, given electricity retailers across Australia are placing system size restrictions on their more lucrative rates. For example, in New South Wales, South Australia, and Queensland’s Southeast, a range of retailers are only offering their higher solar feed-in tariff rates to systems below around 10 kilowatts, leading many to consider installing a smaller system. A solar panel guide Brisbane property owners can use to find various options on the market is helpful to make your decision, but there are a few key issues to first consider on why it might be better to invest in a larger system.


Lower Cost Per Watt

If 10 kilowatt systems are our lower limits, you will still find that they can cost somewhere in the realm of $10,000 to install on your property. Utilising simple maths, we know this on average equates to $1,000 per kilowatt, and accounting for variations in the market among competitors, logic would suggest that to increase the size of your solar system, would cost an extra $1,000. In actuality, solar systems become cheaper per kilowatt as the size increases, as you are saving on the associated costs.


Savings with Lower Feed-In Tariffs

After the initial investment, another main focus is on the annual and long-term savings delivered by solar panels. Based on the increased size of your system, will the increased amount of self-consumed energy relate to great savings over the funds lost from a lower tariff?

Every home is different, and so, too, will their ongoing energy consumption. For this point, however, let us keep everything equal. The size of your system will dictate your self-consumption amount, but if it is larger than the 10-kilowatt solar system, then you could be saving anywhere between $50 to hundreds of dollars per year in savings.

But given the added initial investment, this added savings might seem minuscule to you, taking close to a decade or more simply to retrieve your outlay. Is it worth it?

Well, solar panels can last for multiple decades, and with added savings every year, you will naturally be left with more in the long run. It is also important to remember, however, that energy retailers are liable to change their feed-in tariff plans whenever they see fit. Should this occur and your contract ends, the benefits you hold will not only be gone, but you will also be left with a smaller system, offering a minimal amount of available solar energy.


Better for the Environment

Given the global climate crisis becoming more front of mind with every passing year, everyday Australians need to do what they can to minimise their carbon footprint – and this largely stems from minimising or ending our reliance on traditional energy providers. This decision obviously needs to be tamed with our available finances, but with the benefits described above, it both makes sense to invest in larger solar energy systems for your wallet, and the surrounding environment. Simply put, the more of the sun’s energy that can be captured, harnessed and repurposed into not only our day-to-day activities – but fed back into the grid for others to utilise – all the while retaining more money in your pocket in the long run, is a fairly straightforward decision.