December’s Solar Choice Price Index will be the last to include the 2x multiplier after the federal government announced mid-November that the Solar Credit scheme will end six months early on January 1, 2013. All figures include the Small-scale Technology Certificate (STCs) discounts.
Cost of installed solar PV systems by city and system size
The average price of solar PV systems has decreased significantly across Australia, and costs are now less than half what they were 18 months ago. The beginning of December saw a further drop in the average system price of around $100 for 3-5kW systems and about $150 for 1.5kW and 2kW systems. This reduction in the average price across the country is the result of a decrease in price in certain locations and system sizes, with no general reduction in price in one location across the board.
The price of a 1.5kW system in Sydney is lower than last month, but a 2kW is slightly more expensive and the reverse is true in Brisbane. The cost of installing a solar PV system in Melbourne is now lower than in Brisbane – where once it was significantly more expensive – despite the additional costs as a result of installers working in Tasmania (Hobart is listed separately but is still partially serviced by Victorian-based installers, affecting the price for this state).
Solar PV system prices by city and system size – cost per watt
The decrease in the final cost of installed solar PV system prices is also reflected in the cost per watt, with a decrease across all system sizes by between 1-9 cents per kW. The cost per watt fluctuates across system size and location with no clear pattern. In Sydney, for example, cost is generally up on November, other than 1.5kW and 5 kW systems, which are 11 cents and 5 cents cheaper per kW, respectively.
As the early closure of the Solar Credit Scheme was announced mid-month it is possible that this unusual lack of pattern is in response to the announcement. Some installers on the Solar Choice network have announced they will honour the price of the system including the 2x multiplier even if they are not installed by the December 31 closing date.
System price highs and lows
The maximum and minimum system costs are almost identical to November, with the exception of the minimum price of a 5kW system, which has dropped by another $150.
Average STC discount
One positive impact of last month’s federal government announcement is an increase on the average STC price. At the beginning of November, and for several months prior to this, the average price was around $26 per STC. At the beginning of December STC prices rose to over $27 with the average in Sydney now sitting at $28.40.
As the STC value varies according to supply and demand fewer STCs on the market will drive up their value. Up until the end of the year the first 1.5kW of every system installed across Australia will receive double STCs, the number allocated is affected by location – the more sunshine you get, the more STCs are allocated.
Australia is divided into a number of RET Zones, regions that receive a great number of sunshine hours (such as Far North Queensland) are allocated a greater number of STCs, whilst those in less sun-blessed areas (such as Victoria and Tasmania) receive fewer.
The maximum and minimum values for STCs by system size reflect the change in price by location, a 5kW system can now command as much as $43 per STC but can receive as little as $23, equally a 1.5kW system may get as much as $30 per STC. Customers who are fully installed can potentially take advantage of higher STC prices and the 2x multiplier.
About this data
All figures are based on the offerings of active installers on the Solar Choice installer network for each of the six major capital cities. The system prices above do not reflect the average prices at which systems are ultimately purchased.
About Solar Choice
Solar Choice works with 100 solar PV installers in providing free and impartial Solar Quote Comparisons for customers throughout Australia. Solar Choice Commercial manages tenders for a wide range of commercial-scale solar PV projects throughout Australia, including solar farms and utility-scale solar PV plants.