Making money with solar in Australia is an attractive opportunity due to the country’s abundant sunshine, supportive government policies, and advanced energy market. Here’s how you can make money by investing in solar energy.
1. Feed-in Tariffs (FiTs)
- Sell Excess Energy to the Grid : One of the most common ways to make money with solar is by selling excess electricity generated by your solar panels back to the grid. Many energy providers in Australia offer feed-in tariffs, where you receive payment for the excess energy your system produces.
- Maximize Earnings : To maximize your earnings, consider installing a larger solar system that generates more energy than your household needs, especially if you have high daytime energy production.
2. Government Incentives and Rebates
- Small-scale Technology Certificates (STCs) : When you install a solar system, you are eligible for STCs under the Renewable Energy Target (RET) scheme. You can sell these certificates to reduce the upfront cost of your system or receive a cash payment. The number of STCs depends on your system size and location.
- Solar Rebates : Various state-level rebates and subsidies are available in Australia, which can reduce the initial cost of installing solar panels. These rebates help you recover your investment faster, indirectly allowing you to start making money sooner.
3. Solar Energy Storage and Selling During Peak Times
- Install a Battery System : By pairing your solar panels with a battery storage system, you can store excess energy generated during the day and sell it during peak hours when electricity prices are higher. This strategy can significantly increase your earnings.
- Virtual Power Plants (VPPs) : Join a VPP, where your stored energy is aggregated with other solar and battery systems to sell electricity to the grid at higher rates during peak demand. Some energy companies offer incentives and payments for participating in a VPP.
4. Participate in Solar Power Purchase Agreements (PPAs)
- Enter a PPA : In a Solar Power Purchase Agreement, a third-party company installs and maintains the solar system on your property, and you agree to purchase the electricity generated at a lower rate than the grid price. Although this doesn’t involve direct ownership, you save money on energy costs, which indirectly increases your disposable income.
- Earn Rent from Solar Installations : If you own multiple properties, you can lease roof space to solar companies. They will install panels on your property and pay your rent, providing a steady income stream without the need for upfront investment.
5. Install Solar for Your Business
- Reduce Operational Costs : If you run a business, installing solar can significantly reduce your operating expenses by lowering your electricity bills. The money saved can be reinvested into your business or used to increase profit margins.
- Claim Tax Benefits : Businesses can claim tax deductions through accelerated depreciation (under the instant asset write-off scheme), reducing the taxable income and improving cash flow.
6. Sell Renewable Energy Certificates (RECs)
- Large-scale Generation Certificates (LGCs) : If you install a large solar system (100 kW or more), you can generate LGCs, which can be sold to energy companies that need to meet renewable energy targets. LGCs can provide a significant revenue stream over time.
- Monetize Carbon Offsets : If your solar system reduces carbon emissions, you might be eligible to sell carbon credits or offsets, which can be an additional source of income, especially in corporate sustainability markets.
7. Community Solar Projects
- Invest in Community Solar : If you don’t have suitable roof space, you can invest in community solar projects where multiple investors fund a large-scale solar installation. The profits from selling the energy generated are shared among the investors, providing a return on their investment.
8. Increase Property Value
- Higher Resale Value : Installing a solar system increases the value of your property. Homes with solar installations are often sold at a premium, allowing you to make a profit when you sell your property.
- Attract Eco-conscious Tenants : : If you rent out your property, a solar system can make it more attractive to tenants, especially those who value sustainability and lower energy costs. This can justify higher rental rates, increasing your rental income.
9. Partner with Solar Installation Companies
- Referral Programs : Some solar companies offer referral programs where you earn a commission for every successful referral that leads to a solar installation. This can be a simple way to earn extra money by promoting solar energy within your community.
- Become a Solar Distributor : : If you have a business or network in the energy sector, you can partner with solar companies to sell their products, earning a margin on each sale.
10. Engage in Energy Trading
- Peer-to-Peer Energy Trading : : Platforms like Power Ledger allow you to trade your excess solar energy directly with others. You can sell your excess energy at a rate higher than the feed-in tariff, potentially earning more money.
Key Factors Influencing Property Value
Energy Savings & Lower Utility Bills
Solar panels offer significant financial benefits by reducing electricity bills. Homes with solar installations typically see a reduction in energy costs of up to 50%. This translates to substantial savings over the lifetime of the panels.
A study analyzing the potential savings and payback periods for solar panel systems in major Australian cities found that a 2-kW system could generate 19–29% of a typical household’s winter energy needs, while a 5-kW system could generate 49–73%. The payback period for different systems varies, depending on city-specific factors such as solar radiation and energy consumption.
An empirical study examining the cost-effectiveness of PV systems across eight major Australian cities found that households could achieve life cycle cost savings ranging from $273 to $53,021 over a 15-year period. The percentage of cost savings varied from 0.35% to 123.83%, depending on the capacity of the PV systems and the specific city.
Environmental Appeal & Sustainability
Beyond financial benefits, solar panels, or Photovoltaic (PV) systems, appeal to buyers who prioritize environmental sustainability. The demand for energy-efficient and eco-friendly homes is growing rapidly in Australia. Homeowners are becoming increasingly aware of the impact of climate change and actively seeking ways to reduce their carbon footprint.
By generating clean energy, Solar photovoltaics help reduce reliance on fossil fuels and minimize greenhouse gas emissions, making them a desirable feature for environmentally conscious Australian Property owners. This environmentally conscious approach is attractive to buyers. They see solar panels as a sign of responsible homeownership. Homes with solar installations are often perceived as more desirable and command higher prices in the market.
The Australian government recognizes the importance of promoting renewable energy. It offers various incentives and tax credits to encourage solar installations. These incentives can significantly reduce the upfront cost of going solar, making it more affordable for homeowners. These incentives include:
- Small-scale Renewable Energy Scheme (SRES) : This scheme provides financial rebates for solar panel installations, making it more financially viable for homeowners to invest in renewable energy.
- Renewable Energy Target (RET) : This policy encourages the development of renewable energy sources in Australia. It includes measures that support solar panel installationas.
- State and Territory Incentives : Several states and territories offer additional incentives and rebates for solar installations. These vary based on location.
By highlighting the environmental benefits of solar panels and the available incentives, homeowners can make informed decisions about investing in a sustainable and valuable home improvement.
Increased Demand & Higher Resale Value
The demand for solar-powered homes is steadily increasing across Australia. This growing popularity is driven by various factors, including rising energy costs, environmental awareness, and government incentives.
Real estate data consistently shows that homes with solar panels often attract higher prices than comparable homes without solar. This trend is particularly noticeable in areas where energy efficiency and sustainability are highly valued.
According to a Domain Sustainability in Property Report, Australian buyers are willing to pay a premium for energy-efficient homes, with buyers spending an average of 17% more to secure a sustainable property. Sustainable houses with features like solar panels, rainwater tanks, and insulation receive 8.7% more online views and sell 4% faster than comparable homes without these features.
Here are some key market trends that support this data:
- Buyer Preferences : Prospective buyers are increasingly seeking homes with energy-efficient features, and solar panels are a highly sought-after attribute.
- Faster Sales : Solar-equipped homes often sell faster than comparable homes without solar, demonstrating the high demand for this feature.
- Premium Pricing : In many areas, buyers are willing to pay a premium for homes with solar installations, recognizing the long-term financial and environmental benefits.
Motivations for adopting solar panels include both economic benefits, such as reduced energy bills, and environmental concerns. Renters particularly desire solar panels for these reasons, but face barriers related to cost uncertainties.
How Much Value Does Solar Add to Your Property?
Solar panels can add up to 4% to your home’s value. For example, a $300,000 home could increase by $9,000 to $12,000.
While monetary value is important, homes with solar panels also sell up to 20% faster than those without. This faster sale can be a significant benefit.
A study on residential properties in Western Australia found that homes with solar photovoltaic (PV) systems enjoy a property price premium of approximately 2.3–3.2%. This premium allows homeowners to fully recover the costs of PV investments upon selling their properties.
Another study showed that Australian renters with solar panels pay about A$19 more weekly housing rents than those without. This indicates that landlords can benefit from solar panel investments through higher rents with a payback period of around five years.
Conclusion
Investing in a home solar system is a smart financial decision that can save you money on your energy bills, increase the value of your property, and even generate income through various incentives and programs. With the right setup, a solar system can pay for itself within a few years and continue to provide financial benefits for decades to come. Whether you're looking to reduce your monthly expenses, earn extra income, or make a positive environmental impact, solar power offers a compelling solution for homeowners.