Solar Choice Solar PV Price Check - January

The Solar Choice Price Index for January 2013 is the first to contain updated installer prices in response to the early closure of the Solar Credit scheme on January 1. 

After the publication of our December Price Index some installers announced they would honour the quoted system prices for contracts entered into before the end of 2012. As is to be expected the cost of solar PV systems have risen, however this rise has been mitigated by an increase in the value of Renewable Energy Certificates.

The data contained in this report is generated from Solar Choice's Australia wide network of installers, and provides a monthly up-date on the price of solar PV in and around Australia's main cities (excluding Darwin). In addition to the cost of solar PV the report also includes variations in the price of Small-scale Technology Certificates (STCs); all figures take into account the STC discounts.

Cost of installed solar PV systems by city and system size

As a result of the early closure of the Solar Credit Scheme there has been an increase in the average price of a solar PV system across Australia. Based on the REC price at the time of the announcement in mid-November it was estimated that prices would increase between $700 and $1000 depending on the location of the household.

This month's figures show that the rise has been in the region of $400 with variations either side. The average cost of a 1.5kW solar PV system has risen by just under $450 and a 5kW by just over $350 since December 1. Although noticeably higher than December, dramatic reductions in the price of solar PV systems in the last few months of 2012 ensure that costs remain significantly lower than 18 months ago.

Increases across the states are largely uniform, with Hobart faring slightly better than Brisbane. This is possibly as a result of the lower number of STC's available to Tasmanian customers due to their location in REC Zone 4.

Solar PV System prices by city and system size – cost per watt

The average price per watt has risen by between 7 cents and 30 cents, pushing the cost per watt back up to over $2. The exception to this is a 4kW system in Sydney which sits just under the $2 mark, at $1.99 per watt. The most cost effective systems per watt remain 3kW, 4kW and 5kW systems.

Solar PV system prices – highs and lows

The minimum price for a fully installed solar PV system has shown the most change with an increase of around $200. The maximum system costs have changed only at the lower sizes; 1.5kW is $50 more expensive and a 2kW premium has increased by around $300.

Average STC discount

The increase in value of REC's that was first identified at the beginning of December, has continued into January. The average price of an STC has increased by up to 30 cents. Although homeowners will receive fewer STCs and a lower discount on their solar PV system, the rising value of the STC has offset impact of the 2x multiplier ending.

Australia is divided into a number of REC Zones and STCs are allocated on this basis, 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.

Prior to January 1, households investing in a solar PV system effectively received ‘double discount' on the first 1.5kW installed through the Solar Credit Scheme. Although this particular scheme has now ended, there are still federal incentives available to help offset the cost of investing in a solar PV system.

Although the overall price of the STCs have changed the maximum and minimum figures remain the same. A 5kW system varies between $43 per and $23, while the STC's for a 1.5kW system may be worth as much as $30 per STC.

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.