Ultimate Guide To Buying Solar Panels

There is a lot to consider when choosing the right system for your home.

Make sure installer is a CEC-accredited installer

An incorrect installation can result in a solar power system being unreliable, inefficient, and even unsafe.

The Clean Energy Council (CEC) is Australia’s peak body representing the clean energy sector, and it strives to improve standards in the solar industry. It runs an accreditation program that recognises installers and designers who adhere to best practice standards, including undertaking the requisite training.

A solar power system is a significant investment: it pays to use an installer who will get it right the first time. Using a CEC-accredited installer is also required to be eligible for small-scale technology certificates (STCs), which is the term for the federal rebate scheme.

Reviews online? Positive or negative?

Consumer advocacy group CHOICE publishes reputable product reviews of solar systems. Be wary of websites that may promote biased or paid reviews.

Does it meet the required standards?

Purchase a solar system that meets Australian and international standards. This is a necessity in order to be eligible for small-scale technology certificates. Obtain proof of this from the manufacturer and the installer.

What is the payback time?

The cost of the upfront investment is recouped between two to seven years, according to estimates by CHOICE.

Cost

The estimated costs of a good quality solar panel systems are provided below by Solar Quotes. Prices are inclusive of rebates and incentive schemes, and costs may be higher if there are more complex installation requirements:

• 5kW: $4000–8000
• 6.6kW: $5500–9000
• 10kW: $8000–13,000

Company reputation

Source your solar panels from a reputable company. Look for a retailer that has signed up to the CEC’s voluntary code of conduct, because it indicates a commitment to best practices.

Warranty coverage

There are two types of warranties: product and performance. The product warranty is more important, because if something goes wrong it is the one to rely on for redress.

Most product warranties are for 10 or 12 years. Some manufacturers offer up to 40 years.

Most solar panels have 25-year performance warranties, however it is difficult to judge whether performance is still optimal as the years go by.

Consumers have different financial options to select from when deciding to go solar. In general, a purchased solar system can be installed at a lower total cost than system installed using a solar loan, lease, or power purchase agreement (PPA).

If you prefer to buy your solar energy system, solar loans can lower the up-front costs of the system. In most cases, monthly loan payments are smaller than a typical energy bill, which will help you save money from the start. Solar loans function the same way as home improvement loans, and some jurisdictions will offer subsidized solar energy loans with below-market interest rates, making solar even more affordable. New homeowners can add solar as part of their mortgage with loans available through the Federal Housing Administration and Fannie Mae, which allow borrowers to include financing for home improvements in the home’s purchase price. Buying a solar energy system makes you eligible for the Solar Investment Tax Credit, or ITC. In December 2020, Congress passed an extension of the ITC, which provides a 26% tax credit for systems installed in 2020-2022, and 22% for systems installed in 2023. The tax credit expires starting in 2024 unless Congress renews it. Learn more about the ITC.

Solar leases and PPAs allow consumers to host solar energy systems that are owned by solar companies and purchase back the electricity generated. Consumers enter into agreements that allow them to have lower electricity bills without monthly loan payments. In many cases, that means putting no money down to go solar. Solar leases entail fixed monthly payments that are calculated using the estimated amount of electricity the system will produce. With a solar PPA, consumers agree to purchase the power generated by the system at a set price per kilowatt-hour of electricity produced. With both of these options, though, you are not entitled to tax benefits since you don’t own the solar energy system.

Navigating the landscape of solar financing can be difficult. The Clean Energy States Alliance released a guide to help homeowners understand their options, explaining the advantages and disadvantages of each. Download the guide.