Solar Panel System Cost Analysis

Ok, so you’re hearing that Solar is a great investment.

Here are the overview statistics:

  1. Cost – $/kwh for solar electricity is at least half the cost of grid electricity
  2. ROI – Return on Investment per annum is about 12-18%!   Compare this to an investment property at 6% pa return and shares at 11%, or your money sitting in the bank at 3% pa.

What you need to work out is:

  • Whether or not it’s a good investment in your circumstances,
  • How long it will take to pay for itself before you start seeing a benefit financially,
  • How the returns on the initial investment compare to putting your money into shares or even just putting it into the bank at 3%.
  • If you’re paying for the system on finance, you want to be sure that the return on investment is quite a bit more than what you’re paying in interest or else what’s the point?

Let’s look at a scenario and we’ll show you how to work out the returns for yourself. Firstly, how much energy will you solar energy system generate.

3.24kW Solar System Cost / Benefit Analysis

  1. You decide on a 3.14kW system (11 x LG Electronic solar panels) and it costs you $6,930 out of pocket fully installed (after STC & including GST).
  2. You live in Newcastle where a 3.14kW system produces on average 12.96kWh per day. This assumes a north facing roof with no shade issues.
  3. The price you currently pay for electricity is approx $0.28/kWh.
  4. You use 70% of the energy your system generates during the day time and you therefore you export 30% to the grid.
  5. Yearly System production = 12.96 units (kWh) x 365 days = 4,730 kWh per year
  6. Yearly Solar consumption  = 4,730 units (kWh) x 0.7 = 3311 kWh (70% Consumed) = 1419 kWh (30% Exported)
  7. Yearly Benefit = (3311 x $0.28) + (1419 x $0.05) = $1000.
  • Cost $/kwh of solar over 25 year life of system = $0.06/kwh (compared to $0.28 /kwh for grid electricity).  That is a 79% reduction!
  • Return on Investment = $1000/$6,930 x 100 = 14.43% per annum
  • Payback period = $6,930/$1000= 6.93 years
  • And the price of this electricity will not go up!

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The new LG NeON® R at a similar physical size reached an incredible 360W (20.8% efficiency)! This makes it ideal for solar systems seeking visually pleasing panels and for roofs where space is tight.
The NeON® R is also the right panel when future solar system expansion is considered. Or as a combo install of panels and solar energy storage via batteries as well as electric vehicle charging.
The LG NeON® R is a very powerful module. The 30 multi-ribbon busbars at the rear of the module sets a new standard of innovation. It is the result of LG’s extensive solar R&D investment.

The LG NeON® 2 has seen many improvements, from

  • longer warranties and
  • higher efficiency, to
  • stronger frames, and
  • better wind loading.

This panel is ideal for homes seeking a visually pleasing solar panel. And for roofs where space is tight or where you are considering future system expansions (e.g. to incorporate battery storage or electric car charging).
The LG NeON® modules have double sided cells and CELLO technology absorb light from the front and the back of the cell. This technology sets a new standard for innovation and is internationally awarded.

The latest Mono X® Plus benefits from years of LG research. The fifth generation LG Mono X® Plus offers

  • long warranties
  • higher efficiency
  • strong framing, and
  • Australia’s highest wind loading panel.

The LG Mono X® Plus will provide many years of clean, reliable energy. Choosing the high quality Mono X® Plus is an investment in superior standards of design, manufacture, back up support and warranties.