Should You Get a Bigger Solar System in 2023?

In Australia, the cost of solar power and batteries are becoming more affordable. This, combined with the rising price of residential electricity, has encouraged people to invest in solar PV systems with battery storage to reduce their electricity costs.

For several years the size of the average solar power system for homes has been between 5 and 7 kW. It’s just the right size to produce energy for a home to run during the day and reduce energy bills enough to see a quick ROI.

You will still see many advertisements for solar systems around 6.6 kW, but is it better to get a bigger system now – perhaps 10kW? Will a larger system save you more money in the long run?

Since 2012, larger solar power systems have halved in price. You will be surprised to know that smaller systems have dropped by only a quarter when it comes to price.

Larger solar power systems have always received significant price drops compared to smaller systems because it’s easy for solar installers to add more panels. The current industry has become more familiar with bigger solar systems that are now more frequently installed.

Feed-in Tariffs across many states have also increased. Hence, it makes more economic sense to go big now.

The changes to the FiTs are mainly because of the wholesale electricity prices in the eastern states that have doubled in 2022 to around 10c/kWh. It’s not too long until other states follow suit, which means homeowners may get rewarded with better FiT rates.

Your return on Investment is another important factor when considering solar energy. It is the number of years it will take for the savings on your electric bill to cover the cost of the solar system. Generally, systems that have a payback time of 10 years or less are seen as desirable, as the savings will cover the cost before the system needs to be replaced. The average ROI timeframe for a solar system is between 3 and 4 years. How you use your system will determine how long the payback period will be. Additionally, solar panels have performance warranties of 25 years or more, leading to even greater savings over time.

How big should you go?

Bigger is better today, but how big is too big? A key consideration is your roof space. You can have your roof assessed first to determine how much the space can accommodate and work from there.

Your budget is also important here, but don’t let it restrict you from getting the most out of your solar system. A bigger solar system will bring more significant savings in the long run.

The bottom line…

Bigger is definitely better for most Australian households. A small system will limit your electricity production, thus limiting your potential savings. With a move toward electrification, and the surge of households purchasing electric vehicles, we are using more electricity than ever before and future-proofing your investment makes sense!

March 2023