A nervous wait for solar PV payback

The scaling back of feed-in tariffs in several Australian states will alter the shape of the PV market. It may not mean less solar systems but it will mean smaller ones.

In the last few months the New South Wales, South Australia and West Australia governments have scaled back the price PV owners are paid for electricity they export to the grid. The reduction has been to levels substantially below the retail electricity price these same owners pay for any electricity they import from the grid. The analysis detailed below suggests this will have two major implications for the solar sector:

1) The trend towards larger solar systems is likely to reverse and it makes much more sense for households to install a system of about 1 kilowatt rather than the three to five kilowatt systems that had become popular.



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