At the end of the day, installing a solar system on your roof is all about gaining independence from your utility company. We all want to keep our hard-earned money instead of constantly paying off electricity bills, after all.
So, today, let’s talk about how to make money from solar panels because, honestly, I’m tired of these greedy energy providers – and I know you are, too.
How to make money with solar panels
1. Lower electricity bills mean more money in your pocket
Two things. First, you can generate your own solar electricity. This means you don’t draw electricity from the grid which lowers, if not eliminates your electricity bill altogether especially if you also have solar batteries.
For example, a 6 kW solar system – the most commonly installed system size in Australia – that can generate 375 kWh of solar power can save you roughly $1200 every year.
Second, installing solar panels now is like locking the current price of electricity. You see, the price of power has consistently gone up over the years. Just between 2021 and 2022, South Australia has seen a 9.1% increase in their quarterly utility bills.
Installing a solar panel system now protects you from this inevitable rise because, again, you generate your own solar power.
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2. Sharing your excess solar power gets you paid
Like many other countries, Australia participates in solar net metering. It allows homeowners with solar systems like yourself to send their excess energy to the grid.
In return, your energy provider rewards your excess electricity with credits (i.e. feed-in tariffs) that are deducted from your electricity bills. Again, that puts even more money in your pockets.
However, it’s worth noting that net metering alone likely won’t totally eliminate your electricity bills. Unfortunately, the value of these tariffs isn’t nearly as high as current electricity costs.
3. The government has various incentives. Make use of them.
Of them all, the most well-known is Small-Scale Technology Certificates (or STCs). Really, it’s just a fancy term for solar panel rebates that are open to everyone who wants to install solar panels.
The more STCs your solar system is eligible for, the higher your rebate. And the higher your rebate, the cheaper your solar panels become.
Furthermore, there are more incentives that make solar panels cheaper. Every territory in Australia has its own set so be sure to check yours and claim as much as you can. To help you out, here are our summaries for the following territories:
- Western Australia (WA)
- Southern Australia (SA)
- Australian Capital Territory (ACT)
- Queensland (QLD)
- Tasmania (TAS)
- Victoria (VIC)
- New South Wales (NSW)
4. Consider solar leasing and PPA
If it doesn’t make sense for you to pay the full price of your solar system, there are numerous solar financing options available to you.
Solar leasing and Power Purchasing Agreements (PPA), in particular, allow you to get solar panels installed on your roof without any upfront cost.
There are downsides to these, of course. For solar leasing, you will most likely end up paying for your solar panels; for PPA, the solar company owns the solar panels and you’re required to buy a minimum amount of energy.
Despite these drawbacks, however, both options still lower your electricity bills significantly.
5. Lease your property to solar companies
On the topic of leases, you might also want to think about leasing your unused property to a solar company.
Naturally, details of this lease will depend on who you’re leasing your property to but, in most cases, you should be expecting long-term contracts that last decades and roughly $700 to $3000 per acre.
6. Installing solar panels will increase your property’s value
If you’re planning on selling or renting out your property, a solar panel installation makes sense despite the upfront cost.
Here are a couple of statistics for you:
- On average, homes that can generate solar power sell 20% faster and are 17% more expensive
- Homeowners with solar panels have properties that are valued $125,000 higher than those without
There are a few reasons why these numbers make sense, too. All of them revolve around altruism, financial advantage, and personal satisfaction.
If you want to read more about this topic, we have an article discussing exactly why solar panels increase a home’s value.
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7. Have you ever thought of building a solar farm?
Yes, it’s possible. The way I see it, building your own solar farm is like flipping the table on power companies. Instead of paying them for more electricity, they pay you to sell your solar power to them.
I’m talking about generation wealth here, not just adding a few more thousand to your bank account.
Now, is it easy? Definitely not. There are a lot of hurdles you need to jump through before you can make this possible.
First of all, you need to have a significant amount of land with abundant sunlight. There’s the HUGE capital investment, too. Not to mention the numerous permits and regulations, agreements you have to make with the power companies, and other things.
8. Invest in the future with solar stocks
There’s no question that the solar industry is booming. As of 2023, Australia alone has 3.5 million rooftop solar panels generating about 8% of the entire country’s energy. In 2030, the experts are projecting that to be 82%.
Needless to say, the demand for solar panels will very likely (and very soon) outpace supply. And if that happens, solar stocks are going to skyrocket – and so will your returns if you invest today.
Truth be told, though, I’m not an expert in the stock market. But, like they say, “Buy low, sell high”.
9. Start your own solar installation business
On a similar note, you could also take on a career as a solar installer.
Like any other trade, solar installers make money from, well… installing solar panels. But, if you’re CEC-accredited, you can also sell STCs on the Green Energy Markets.
Oh, and while we’re on the topic of CEC-accredited installers, we have a network of them ready to help. Should you need experienced and trustworthy men and women to handle your solar installations, we can get you 3 FREE quotes from them right away.
How much money do you save with solar panels?
How much money you can save with solar panels depends on many things, including the size of your system, your consumption, current electricity costs, and other things. For your reference, check out our sample savings profiles.
How much money can you make selling solar energy back to the grid?
How much money you can make from feed-in tariffs depends on your energy provider. They each have their own rate. For example, Origin Energy’s values range anywhere from 2 to 10 cents per kWh.
Can you make a living selling solar?
Of course. According to PayScale, solar salesmen in Australia make roughly $62,000 every year.
Solar panels have become more than just the world trying to promote green energy. Now, owning a system is a wise financial move. After all, you can earn money and save money, too.
So, if you’re still on the fence about your solar installation, I hope this helped tilt you in the direction of going through with it. And, if it did and you needed someone you can trust, remember we can get you 3 FREE quotes from our pre-vetted network of installers right away.