May 14, 2024

Opinion: Should I Buy Solar Now or Wait?

Solar panels with Australian currency on foreground, text overlay asking "Should You Buy Solar Now? (or Wait)".

When is a good time to invest in a solar system? You’ve seen the prices of solar panels drop since the late 2000s. It used to be a boutique industry, but now 30% of roofs in Australia have solar panels on them.

Technology – when it’s in demand – can grow by leaps and bounds. Solar components are no different.

The solar industry boom in Australia has been accelerating for the last two decades. The cost of components is steadily decreasing as their efficiency has been steadily increasing. The free market is doing what it does.

At Penrith Solar Centre, we know how incredibly popular solar is in Australia. Staying on top of the solar game is what we do. We’re working with our customers to push our national and global community to Net Zero by 2050, (while saving Australians some coin on their energy bills).

In this article, you will learn:

  • Should I Wait for Solar Energy Prices to Drop?
  • What Factors Affect the Price of Solar Panels, Inverters, and Batteries?
  • How Much Does a Solar System Cost?

By the end of this article, you will have insight into how the industry is shifting and how you can still save money on solar energy.

Should I Wait for Solar Energy Prices to Drop?

Nope.

We know a good solar panel setup can be expensive. It’s a large upfront cost. Because of this, many folks put off their plans to invest in solar energy, hoping for lower prices later.

Here’s a lovely visual representation of how solar prices have dropped in Australia:

The above price index from the good folks at solarchoice.net.au gauges the expense of solar system installations in dollars per watt.

That steadily decreasing line will never get lower than zero.

Please stop waiting for that.

Have you considered how much money you will spend on electricity between now and when you finally install a solar system? How high was your last energy bill?

If you wait until next year to install solar on your roof, you need to consider how much you spend on energy bills in a year. Because you will be spending that money on electricity while you wait for the perfect price drop.

You don’t get that money back after you install solar. It’s gone forever to the energy retailers who burn fossil fuels to generate energy.

That’s a year of investing in fossil fuels. The same fossil fuels that are causing our climate crisis.

In 2023, energy went through two significant price increases. It’s getting more and more expensive to continue investing in energy retailers.

Solar systems are not decreasing in value fast enough to meet how fast energy costs are increasing. The gap is still opening even though the cost of the system is going down.  

Talk to an expert

What Factors Affect the Price of Solar Components and Technology in Australia?

Demand:

The biggest factor affecting the price of solar installations in Sydney these days is the demand for solar. As demand increases, manufacturers benefit from economies of scale. And as we just mentioned, the price of electricity continues to rise as the cost of solar continues to drop.

The industry is booming worldwide as people invest in solar energy. This leads to a drop in wholesale equipment and components. The free market will find ways to make those products more efficient and economical for consumers.

Folks have noticed and invested in solar for their homes.

In Australia, there are over 6,000 solar sales and installation companies and contractors that have been accredited by the Clean Energy Council to install solar.

Because the market is so saturated, some solar installers are getting a little weird as they attempt to undercut each other. This is something that you’ll need to keep an eye out for.

That competition has driven some installers to choose lesser products. This leads to marketing campaigns that aren’t entirely honest, which in turn leads to unhappy customers.

If you’re interested in learning a bit more about which solar blogs to read and trust, you might want to check out the following article titled, 5 Best Solar Blogs in Australia.

Technological Advances:

Technology is advancing very rapidly to match demand.

If we look at the leaps and bounds made in the advancement of solar panel technology in just the last ten years, we’ll see some great innovations.

Manufacturers consistently introduce advancements in cell efficiency and panel designs, inching closer to 1,000W of power output per panel.

The Solar Rebate:

The solar rebate program (STCs) is steadily decreasing until 2030 when it will disappear altogether. The Australian government is phasing this program out because it has done its job: incentivised investing in solar energy.

If you want that extra discount, it will be larger the sooner you purchase a system.

If you’re interested in learning a little more about the solar rebate, you might want to check out the following article titled, How Does the Solar Rebate Work?

Australian Dollar:

Since most solar system components are imported, fluctuations in the AUD relative to other currencies affect the prices of solar equipment.

If the AUD is worth more than the Chinese Yuan, then Australian solar technology importers are happy. They need less money for more equipment.

A higher AUD rate reduces the cost of solar for consumers, while a lower rate increases it.

Find out more

How Much Does a Solar System Cost?

With all this chatting about the price of solar components decreasing, we thought we ought to mention what solar systems cost.

The overall cost of a solar system varies, sometimes wildly, from installation to installation. Each solar system ought to be customised to your unique energy needs and goals because they will be different from family to family.

Purchasing a solar system is like getting an energy coupon for the next 20 – 30 years. Your energy needs and goals will determine the size and the price of the system. 

The cost of solar components – all competing to become the standard for efficient energy technology in Australia – varies wildly. We install microinverter solar systems. The energy efficiency of what we install is different from the energy efficiencies of other solar technologies.

There are primarily two types of solar systems you’ll be pricing: a microinverter solar system or a string inverter solar system.

A microinverter solar system or a string inverter solar system with DC optimisers will cost more than a standard string inverter solar system.

We have made videos and written articles about how much solar systems cost. Here are a few articles and videos about that topic:

If you’re interested in learning more about the cost of string inverter systems, microinverter systems, and string inverter systems with optimisers, you might want to check out the following articles titled, Microinverters vs. DC Optimisers: Which Is Better?, How Much Does a Microinverter Solar System Cost?, and Cost of Microinverters vs. Cost of String Systems.

If you’re interested in learning a bit more about the cost of string solar systems, you might want to check out the following article titled, Why Do Companies Sell 6.6kW String Systems with 5kW Inverters? and String Inverters: Are They Worth It?

More about micros

For Watt It’s Worth, Solar Will Save You Money

Now you know why it’s a good idea to install solar on your roof sooner rather than later. A lot is happening in the industry.

While the price of solar components like panels and inverters is dropping over time, waiting for the ultimate low price is costing you money in the form of electricity bills. How long do you want to continue giving that money to fossil fuels?

At Penrith Solar Centre, we stay on top of the latest market trends and how they relate to the costs of solar installations. The solar boom has transformed how Australians think about energy. Our needs have grown and changed, and the market is adapting.

A group of people posing in front of a building at Penrith Solar Centre.

If you’re interested in learning more about how to prioritise shopping for components and what to consider as you investigate each piece of solar technology, you might want to check out the following article titled, How to Shop for Your Solar System.

Get a free quote

In this article:

FREE E-GUIDE

Solar Buyers Guide
Solar Buyers Guide

We’ve crafted this comprehensive booklet filled with essential information to guide you through every question you may have to be confident in your solar investment.

Download

Keep Reading:

Are you ready to start your solar journey?

Quick Quote Pop-Up

We request your address details as this info helps us create a personalised solar design quote for your place.

Installer of the year perth solar centre.New energy tech approved seller.1 all star solar installer australia.The best rated solar installer in australia.Eud research top brand pv installer australia 2023.The solar quotes logo with the words'legendary rated installer'.

Penrith Solar Centre

130A Batt Street, Jamisontown NSW 2750
Ph: 1800 20 29 30
E: [email protected]
You’re in safe hands with Australia’s number one rated solar installer.
If you’re interested in learning more about solar, contact us today.