Adelaide’s strong push towards renewable energy is evident on the rooftops of its residents, with more and more people making the switch to solar panels and solar power. And, really, it’s not hard to see why.
Here, solar panels and a solar battery storage system cost about as much as anywhere else in Australia. But because of the generous incentives, the cost of electricity, and the massive potential of saving money, it just makes more sense to invest in solar power here.
Consider this article as your go-to resource for all things solar in Adelaide and South Australia. Here’s a list of all the topics I’m covering here:
- How much solar power can Adelaide’s solar panels generate?
- Potential savings you can get from solar panels in SA
- Government incentives (ROI, FiTs, others)
- The cost of installing solar panels in Adelaide
- Is it worthwhile to get a solar system in Adelaide?
- Are solar batteries worth the investment?
How much solar power can solar panels in Adelaide generate?
Australia is gifted with one of the most solar-friendly climates in the world. Adelaide and Southern Australia, in particular, enjoy abundant sunshine year-round, making it an ideal location for installing solar panels.
This means that investing in solar panels here brings benefits not only to the environment but also in terms of savings on your electricity bills.
Considering this, the table below outlines the potential daily, monthly, and annual outputs of solar systems sized 1 through 10.
| System Size (kW) | Daily output (kWh) | Monthly output (kWh) | Annual output (kWh) |
|---|---|---|---|
| 1 | 4 | 125 | 1504 |
| 2 | 8 | 251 | 3008 |
| 3 | 12 | 376 | 4512 |
| 4 | 16 | 501 | 6016 |
| 5 | 21 | 627 | 7520 |
| 6 | 25 | 752 | 9024 |
| 7 | 29 | 877 | 10528 |
| 8 | 33 | 1003 | 12032 |
| 9 | 37 | 1128 | 13536 |
| 10 | 41 | 1253 | 15040 |
Note that these numbers are calculated using the PVWatts calculator, with roof pitches of 22.5% and inverter efficiencies of 96%.
Potential savings after installing solar panels in Adelaide
To understand the potential savings from a solar PV system in Adelaide, it’s essential to consider several important factors. These include your current electricity bills, the available space on your roof, the upfront cost of installing the panels, and whether to add battery storage to your setup.
Other significant considerations are the per-kWh rate offered by Adelaide’s energy providers, the size of the solar panel system you plan to install, and the available Feed-in Tariffs (FiTs).
I can’t quantify all of those factors because a lot of those are going to be very specific to your situation. But, just to give you an idea of what your savings could potentially look like, allow me to make the following assumptions based on our collected data:
- The average cost of electricity per kWh in Adelaide is 39 c/kWh
- Households use about 4,500 kWh of electricity per year and about 375 kWh per month (based on the average annual electricity bill of approximately ~$1760).
- A 1 kW system generates 125.33 kWh of solar energy per month, and 1504 kWh per year.
- Batteries are used to store all solar energy, and all of it is used.
Based on those suppositions, here are sample savings profiles for different systems. Each system size will have both approximate monthly and annual savings.
| System Size (kW) | Monthly Savings ($) | Annual Savings ($) |
|---|---|---|
| 1 | 49 | 587 |
| 2 | 98 | 1173 |
| 3 | 147 | 1760 |
| 4 | 196 | 2346 |
| 5 | 244 | 2933 |
| 6 | 293 | 3519 |
| 7 | 342 | 4106 |
| 8 | 391 | 4692 |
| 9 | 440 | 5279 |
| 10 | 489 | 5866 |
Government incentives for solar panels
Rebates (STCs)
Adelaide and South Australia are witnessing a green revolution, with an increasing number of households investing in solar panels. More importantly, I have no doubt that the generous rebates played a huge part in this.
On that note, the rebates you get in Adelaide are dependent on how many Small-scale Technology Certificates (STCs) the solar panels installed on your roof are eligible for. The more STCs you have, the more rebates you get.
What affects the number of STCs you’re entitled to is how soon you install solar panels, the size of your system, and your postcode.
For Adelaide residents, your homes are in Zone 4, which means they don’t get as much solar radiation compared to cities in Zones 1, 2, and 3. But if you decide to switch to solar as soon as possible, you could still get a fair number of STCs.
P.S.: You can calculate how many STCs you’re getting by using the Australian government’s free STC calculator.
Feed-in tariffs
Feed-in tariffs are credits from your electricity retailer for producing more solar energy than you can use. This works via net metering, which allows you to send your excess solar power to the grid.
Similar to STCs, the more credits you get, the better. That’s because these credits are deducted from your electricity bill, thus lowering it even more.
Adelaide residents also enjoy a wide range of choices when it comes to energy retailers. We have a list of retailers with the best feed-in tariff rates in SA if you want to check that out. However, if you’re just choosing what retailer you should have, do consider other things too, not just the feed-in tariff rates.
Other solar incentives available to Adelaide and South Australia residents
- Sustainability Incentive Scheme (SIS): incentives of up to $3000 for installing solar panels, and up to 50% off, or $1000 max, for replacing gas-powered appliances with electric.
- Home Battery Scheme: incentives of up to $3000 to offset the cost of installing batteries with a solar system installation
How much does a solar power system cost in Adelaide, South Australia?
From the data we’ve gathered, the average cost of solar panels per kW in Adelaide and South Australia is roughly $1043. However, note that you should only use this number when getting a rough estimate of how much your installation is going to cost. There are many factors that can affect this, after all.
Perhaps most notably, your planned solar system’s size can affect this. Larger systems tend to have a lower cost per kW than smaller ones. For example, a 10 kW system might have a cost per kW of just $850, whereas a 3 kW system could have $1000.
Other factors that can affect this include quality of panels, the complexity of the installation, and your installer’s service fee.
Speaking of installers, we have a network of pre-vetted solar installers that can give you 3 FREE quotes right now.
Is it worth getting a solar system in Adelaide?
Evaluating the merits of solar panels as an investment is logical. And, indeed, they are a sound investment in Adelaide. The ROI and payback period strongly say so. Let me show you.
Return on investment (ROI ) of solar panels in South Australia
ROI is a measure used to evaluate the efficiency of an investment. It calculates the return on an investment relative to its cost.
In the context of solar panels, the ROI is determined by comparing the net savings (the amount saved on electricity bills over the lifetime of the solar system) to the initial cost of installing the solar system. Here’s what those equations look like:
- Installation Cost = Cost per 1 kW * System Size.
- Net Savings = Annual Savings * Lifespan of the Solar System (25 years).
- ROI = (Net Savings / Total Cost) * 100.
Let’s put them into action using a 6 kW solar power system.
- Installation Cost = $1043 * 6
- = 6,258
- Net savings = $3519 * 25
- = 87,975
- ROI = (87,975 / 6,258) * 100
- 1,405%
That’s insanely impressive. Now, the cost of solar panels in Adelaide is roughly the same as everywhere else in AU. And as much sun as South Australia gets, it’s honestly not as much as most other states, yet it has the most impressive ROI.
Why? Because Adelaide also has the highest cost of electricity. Installing a solar system saves you from that burden for years to come, and you get to keep more of your money in your pockets.
Payback period
This relates to how long it takes you to pay for your solar panels. Naturally, shorter repayment periods will be more beneficial to your finances.
It is also much easier to calculate than ROI because the equation is much more straightforward. Take a look.
- Payback period = total system cost / annual savings
Again, let’s use 6 kW solar panel system sizes as our example.
- Payback period = $6,258 / $3519
- = 1.78 years
All things being perfect, you’re looking at over 23 years of perfectly free renewable energy and cheap energy bills. Stress on “all things being perfect,” though, because it almost always will never be perfect, so take this with a grain of salt.
Nevertheless, you’re still looking at a payback period that’s shorter than average. Heck, even a payback period of 6–10 years is still considered good.
Are solar batteries a good investment in Adelaide?
First of all, the cost of batteries in Adelaide is roughly the same as that of solar panels. So, you’re looking at about $1000 per kWh of battery capacity.
Similar to solar panels, though, the brand, capacity, and quality of the battery also affect its price. Tesla Powerwalls, for example, are more expensive than a BYD battery with about the same capacity.
Now let’s circle back to the question.
Yes, a solar battery can be a good investment. But there’s a catch.
Needless to say, this is yet another pricey investment. It’s also going to be more expensive if you choose to add it later on instead of installing your battery alongside your solar system.
So, if you’re going to be selling an arm and leg just to store solar power, then it might not be wise. This is especially true if you don’t have a lot of excess solar energy to store in the first place.
That being said, a battery storage system can be a good investment because it maximizes your solar savings, too.
All in all, it all boils down to how much money you have to spend and how much energy you have in surplus. If you have a system that produces a lot of energy that you can’t use and you have the money for it, by all means buy battery storage.
Conclusion
In Adelaide, the combination of abundant sunshine, supportive policies, the high cost of electricity, and community interest in green living makes solar power a wise investment. After all, solar panels installed here offer a high return on investment and a shorter repayment period.
Truthfully, though, solar panels are expensive for most of us. I mean, even the wealthy might think it’s a lot of money. The good news, however, is that there are numerous incentives that help make it more accessible to regular people (like me and maybe you).
Okay, so if you’re still on the fence about switching to solar power, get 3 FREE quotes from our network of pre-vetted installers. Who knows? Maybe you like the price, and it helps you make a decision.
