Determining “how long for solar panels to pay off” requires an evaluation of your location, energy usage, and energy rates.
While the upfront system price often steals the focus, the payback period is what we encourage homeowners to look at.
Investing in solar is a long-term asset that continues to save money after it has paid for itself.
Here, we’ll answer how long for solar panels to pay off and why payback time matters more than upfront cost.
Average Solar Payback Period in WA Homes
If you’ve researched solar system prices in WA, you’ve likely noticed a vast range of advertised payback periods. Simplistic or broad payback estimates, which we see often, can be misleading.
Various factors affect payback timelines, making it difficult to pinpoint the average solar payback range.
However, here are some broad solar payback ranges and considerations to keep in mind:
- Typical WA payback range: 3 to 5 years for most Perth homes.
- Faster payback for households with strong daytime usage.
- Slower payback in households where most power is used at night.
Keep in mind these ranges are estimates, not a guarantee. The only way to know your payback period is with a detailed assessment tailored to your unique situation.
4 Key Factors That Impact Solar Payback Time
1: Electricity Usage Patterns
One of the biggest points we stress is that payback is influenced by behaviour and design, not just price.
Two solar systems could be similarly priced but have different payback ranges due to usage.
For instance, consider three households with four occupants and a similarly sized solar system in Perth:
- In house A, the four occupants use appliances, air con, and electronics during sunny daylight hours. Their electricity usage is high but it is concentrated to daytime hours.
- In house B, the four occupants are gone all day at work. They use the majority of their energy at night, running appliances, watching TV, and using electronics.
- In house C, the four occupants hardly use any electricity at all, with the majority being exported back to the grid.
House A will likely see the shortest payback period, even though the system sizes and location are the same.
Still, each of these houses can benefit from long-term savings, increased energy independence, and contributing to a greener planet.
2: Electricity Tariffs
Electricity tariffs also affect the payback period in WA.
- Flat rate tariffs: Consistent energy rate regardless of the time of day; best for homes with higher electricity usage at night
- Time-of-use tariffs: Pricing that varies based on time of usage; higher pricing during peak hours and lower off-peak rates
- Feed-in tariffs: The amount you are paid by your electricity supplier for exporting surplus energy to the grid. This amount varies based on your location.
Feed-in tariffs are modest in WA, making self-consumption more important for shortening your payback period. Aim to export excess energy during peak times, usually between 3 pm and 9 pm.
3: Solar System Size
One of the common misconceptions we hear about solar is that “bigger is always better”.
While an undersized system will limit savings, oversized systems can pose similar payback issues. If export rates are low, oversized systems can extend payback.
Correct sizing is crucial and matters more than “bigger is better”.
Wondering about the right size solar system for your home? See our guide here: What Size Solar System Perth?
4: Solar Rebates and Incentives
Under the Small Scale Renewable Energy Scheme, households may qualify to receive money for small-scale technology certificates (STCs).
Federal STCs reduce the upfront cost of eligible solar systems. These solar rebates shorten payback by lowering the amount that needs to be recovered through savings.
Learn more about Government solar rebates in our guide here: Government Solar Rebates Australia.
Perth vs Regional WA Payback Differences
As one of the sunniest cities in the world, Perth is well-suited to solar systems. With long hours of sunshine to take advantage of, Perth homes often see consistent, predictable solar payback periods.
While there are clear benefits of solar energy in Perth, other WA regions also perform well.
Still, there are location-based considerations that may affect payback periods, including:
- Regional WA homes may have higher electricity costs.
- Larger roof space and higher daytime usage can improve payback in regional areas.
- Regional outcomes are more variable and depend heavily on usage patterns.
Wherever you are located, a proper assessment is the only way to determine an accurate payback period.
How Batteries Change the Solar Payback Equation
Even though batteries can reduce your energy bills even more, adding a battery usually extends total system payback. But that doesn’t mean solar batteries aren’t worth the investment.
It’s important to understand the benefits of solar batteries and how they will affect your payback equation.
Solar panels typically pay for themselves faster than batteries, but solar batteries offer valuable benefits.
Benefits of solar batteries include:
- Increased self-consumption
- Increased energy independence and resiliency
- Store energy and use it as needed
- Utilise the energy your solar panels generate as efficiently as possible
- Reduce your reliance on the grid
- Lower your energy bills even further
- Protect yourself during power outages
With batteries continuing to become more affordable, they are worth considering. Whether a solar battery is right for you will depend on your budget, location, and how much nighttime energy you use.
Interested in learning more about solar batteries and whether they are right for your home? See our guide here: How To Find the Best Solar Battery Package. Or, check out the government of Western Australia’s rebate page: WA Residential Battery Scheme.
Realistic Expectations vs Solar Payback Sales Claims
Solar pays for itself in a year!
Have you heard this common solar payback claim? These ‘too good to be true’ claims usually are.
Another ‘too good to be true’ solar payback claim is a payback period based on 100% self-consumption. It is rare for a homeowner to have 100% self-consumption, so avoid any payback claims based on this.
Accurate payback estimates require household-specific data and a detailed look at system size, location, and energy usage habits.
A detailed payback assessment will evaluate your:
- Location and average hours of sunshine
- Electricity rates combined with FiTs
- Power bills
- Solar system cost and quality
- Energy usage habits
- Roof orientation and layout
- Eligibility for rebates and incentives to cut down on the initial cost
- Energy goals
By carefully evaluating these factors, we can determine the most accurate solar payback estimate.
Book Your Personalised Perth Solar Payback Estimate
Investing in solar is a practical step toward reducing your electricity bills and fortifying yourself against rising energy rates.
Ready to join the millions of other Australian households that have installed residential solar systems? We offer a personalised payback estimate based on your specific household data, such as energy use habits and roof layout.
We emphasise accuracy, transparency, and realism, not instant results or overhyped claims. We want you to have a realistic idea of how quickly your system will pay itself off. This means conducting a thorough assessment that takes your energy usage, energy goals, budget, location, and system size into account.
Request your personalised payback estimate for residential solar in Perth and let’s see if solar is the right choice for you.
