Solar Energy offers many benefits for the environment that can’t be denied. But many people still are on the fence about it. If you are one of those people who are wondering if installing solar panels is going to be worth it in 2022, this is for you.
This article from EcoPower Electrical, your trusted solar power installers, examines the costs, advantages, and payback period of solar panel installation on a residential rooftop:
History of Solar Panel Prices
Before 2010, solar prices were around $5 to $10 per watt and were only taken up by the early adopters with better financial means. The popularity of solar power these past few years has been driven partly by the reduction of costs and an enticing federal STC scheme that offers about 40% of the expense of the system through a government incentive. Over the last five years, solar prices have been decreasing significantly as product manufacturers have reached economies of scale with production and as installation methods have been streamlined.
How Has the Cost of Solar Panels Dropped so Quickly?
There are a few reasons for the dramatic reduction in solar panel prices over the last few years.
Firstly, economies of scale with production – It is no longer necessary for one company to produce all components in one solar power system.
Secondly, the technology that these solar panels are based on is now well developed. The technology is not new, and it has, in fact, been used extensively in the space industry.
The third reason for the decrease in solar panel prices has been driven by local and international government incentive schemes designed to promote the uptake of solar power.
Future Solar System Prices
Solar system costs are predicted to continue to decrease. The high volume production of solar panels will continue to drive down costs. The economies of scale with production will continue to work in favour of the consumer. The technology itself is a tried and tested one. Over the next few years, new technology will be introduced to boost further efficiencies in solar panels. Still, the most significant impact on the price of solar panels will continue to be driven by economies of scale with the production of solar panels.
Are Solar Panels Worth It In 2022?
As the cost of the panels continues to decrease, it is predicted that solar power will get even more popular. In 2021, if you install a 3kW solar system, the payback period will be between 7-10 years. In 2022, that payback period will have decreased to a more reasonable time of a little less than six years.
How Do You Benefit from Solar Panels Financially?
If you install a solar power system, the amount of money you will be saving is significant. Not only will you be reducing your energy bills, but you will also be generating your electricity and selling the excess back to the grid, meaning that you will be getting paid for your green energy. For an average 3kW solar system, the annual savings amount to $1530 per annum.
Although the price of solar panels has dropped significantly over the last few years, solar panels are still quite an investment. It is still worth it in 2021 to invest in solar panels, and it will continue to be a worthy investment in 2022 and beyond.
The investment you make in solar panels will quickly be returned to you through the savings on your energy bills and also through the government incentive scheme. Reliable solar power installers can provide more information on this if you wish to know more.
If you do decide to go ahead with the solar panels, EcoPower Electrical is here for you. We are the best solar power installers in Australia that can answer your questions and provide you with expert services. Contact us today to learn more about solar power!