Solar: Have I Missed the Boat? Too Late in 2023?

Have I Missed the Boat on Solar?

As the popularity of solar power has exploded in the past decade, you might wonder if it is too late to invest in solar power, and feel like you've missed the boat. Well, is it worth it investing in Solar in 2023?
To answer this question, we need the context of the costs of solar today compared with past times.

There are two elements making up what you pay for a solar system:

- The cost of the Components (Solar panels, Inverters etc.).
- The cost of Labour involved in installing the system.

The first element has various parts, the cost of the Solar Panels, electronic inverters, and the cost of other installation components.

These have changed very little over the past decade, as new manufacturers enter the scene and provide competition to keep prices down, while the economies of scale with worldwide solar expansion make manufacturing costs more attractive.

The second element, and the big ticket item, is the Solar Panel (PV module)

For which in Australia, effectively a subsidy scheme exists. This scheme discounts the system costs heavily, but by legislation, diminishes that discount by 7% each January until it reaches zero at the end of 2030.

Are Solar Costs Going Down?

This lowering discount rate has been balanced by a similar drop in the costs of solar modules as technology improves solar's efficiency, and other economic scales come into play. Added to this is the longer guaranteed lifetime of solar panels today compared with earlier times. 30 year performance warranties are becoming the standard with nearly 90% retention of power output at the 30-year point being common amongst quality panels.

Labour costs have largely remained fairly constant because systems have become larger and this impacts favourably labour costs by the efficiency of scale.

With the price of electricity going up, and the price of a 'tool' to keep the cost consistent, it is easy to see that today solar is even more valuable in offsetting the cost of electricity than ever before, compared to the earlier years of the solar revolution. In fact other additional options, the subject of another article, promise to make solar and batteries a similarly attractive financial option for both homes and businesses.

In regard to the subsidy scheme we should thank the forefront visionaries for encouraging Australians, allowing for easily accessible solar for the community, resulting in the world's largest uptake of rooftop solar with over 20GW.

Conclusion

Overall, it is not too late to invest in Solar power. In fact, the timing couldn't be better to make the switch and move to more sustainable energy production. We believe there are many opportunities to invest in the energy industry, with the innovation of new technologies, new mind-bending strategies, and new business providing affordable solutions to even make money as well as saving it.

If you are interested in installing solar for your home or business, or would just like to know more, we would love to hear from you!

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