Australia enjoys the lowest solar panel costs in the world

Lowest solar panel costs in the world

As a world leader in solar panel installation, ever wondered why renewable technology is increasing in use across the country? With South Australia enjoying the lowest unsubsidised solar panel costs in the world, the growing affordability of these green energy solutions is the reason why the country is now a hotbed for solar activity.

On that note, our blog this week further examines this trend, demonstrating why Australia is the perfect place for solar installation and power generation. Continue reading for more!

Technological advances

According to Deloitte’s recent Global Renewable Energy Trends Report, technological advances have improved the affordability and performance of solar panels, skyrocketing installations around the world.

Apart from this, manufacturing efficiencies and the decline in polysilicon prices over the past decade – the material used in the photovoltaic production process – have all led to a gradual decrease in the purchase price.

Increased demand

Another factor that has been a pivotal force behind the reduction of solar panel costs is increased solar demand across Australia.

Demand is so extensive, in fact, that the surplus of solar-sourced electricity being fed back into the grid could prove too much to handle.

As a matter of simple economics, increased demand almost always leads to an excess in supply. In this regard, when solar manufacturers and installers find there’s too much competition, the only way to remain competitive is to bring down cost and provide buyers with a more affordable experience.

A surplus of demand, therefore, proves beneficial to buyers given the subsequent reduction in solar panel costs.

Increased automation in the manufacturing process

With entire industries moving towards the automation trend, it’s no surprise that solar panel manufacturing is heading the same way as well.

A recent case study in the US showed that automation transformed the operations of a solar manufacturing plant, tripling the size of panels at a cost that undercut Chinese manufacturers by a staggering 30%. Automation was thus responsible for transforming the manufacturing process from a hundred-step, multi-day process, into one that required a few steps and a couple of hours, at most.

Beyond cutting down on business expenditure, therefore, automation also lowers purchase cost for buyers, making solar installation a more affordable exercise.

Technology credits make solar systems more affordable

Among the country’s many solar rebates and incentives, Australia’s Small-Scale Technology Credits cuts down on the cost for many buyers on the market. Applicable for solar installations up to 100kW, the subsidy covers most, if not all, residential systems and many commercial installations for small to medium-sized companies.

As of 2018, the rebate makes solar power more affordable – reducing to $650 per kilowatt – with minor variations depending on where the installation takes place.

Apart from this, there are also a number of alternative incentive schemes that lower solar panel costs just as effectively. Given the government’s eagerness to slash reliance on carbon-intensive energy solutions and other non-renewable alternatives, such rebates are likely to lower costs even further in the near future.

Flexible zero-interest payment schemes

Another factor that contributes to lowered solar panel cost is the availability of flexible zero-interest payment schemes in Australia.

Given the level of competition in the industry, industry leaders now provide easier payment options, increasing the affordability of solar panel installation for individuals struggling to stay within budget.

Key takeaways

Solar panel costs are not only the lowest in Australia, but they’re also likely to reduce significantly over the next few years.

While waiting for prices to hit rock bottom may seem like a good idea, adopting solar panels in your property today is likely to save you more money over time, compared to potential reductions in the purchase price.

Given that all the factors above continue to evolve, Australia seems like a safe haven for an increasingly environmentally conscious lifestyle for generations to come.

Keen on enjoying the lowest solar panel cost?

Contact EarthSave today for zero-interest payment schemes that cut down on solar panel cost unlike ever before!

 

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