Solar ROI basics
Payback depends on system cost, self-consumption, import rate, FiT rate, and generation. Our ROI tool models both self-use and export earnings.
Note: Policies and rates change frequently. Verify with your retailer and regulator.
Key Factors Affecting Solar ROI
Understanding these factors will help you calculate your solar investment return more accurately and make informed decisions.
System Cost
The upfront investment for your solar system including panels, inverter, installation, and any additional equipment. Higher costs extend the payback period but quality systems may offer better long-term returns.
Self-Consumption
The percentage of solar electricity you use directly in your home rather than exporting to the grid. Higher self-consumption leads to greater savings as you avoid purchasing electricity at retail rates.
Import Rate
The price you pay for electricity from the grid when your solar system isn't generating enough power. Higher import rates increase the value of self-consumed solar energy.
FiT Rate
The rate you receive for excess solar energy exported to the grid. While typically lower than import rates, FiT payments contribute to your overall return and help offset system costs.
System Generation
The total electricity your solar system produces, influenced by factors like system size, panel orientation, shading, and local weather conditions. Higher generation increases both self-consumption and export opportunities.
How Solar ROI is Calculated
Solar return on investment is calculated by comparing the total savings and earnings against the initial system cost over time.
Self-Consumption Savings
The value of solar electricity you use directly, offsetting purchases from the grid:
Export Earnings
The income from excess solar electricity exported to the grid:
Annual Savings
Your total annual benefit from the solar system:
Payback Period
The time it takes for your savings to equal the initial system cost:
Solar ROI Tools
Use these tools to calculate your solar investment return and optimize your system for maximum financial benefits.
Solar ROI Calculator
Calculate your solar payback period and return on investment based on system cost, self-consumption, and local rates.
Calculate ROIFiT Savings Calculator
Estimate your annual savings from Feed-in Tariffs based on your export volume and current rates.
Calculate SavingsSelf-Consumption Optimizer
Learn strategies to increase your solar self-consumption and maximize your savings.
Optimize UsageRate Change Tracker
Monitor changes in electricity and FiT rates that could impact your solar investment returns.
Track ChangesFrequently Asked Questions
The typical solar payback period in Australia ranges from 3 to 7 years, depending on factors like system size, location, self-consumption patterns, and electricity rates. Areas with higher electricity costs and good solar exposure tend to have shorter payback periods.
You can improve your solar ROI by increasing self-consumption through behavioral changes, adding battery storage, using smart appliances during daylight hours, and choosing a retailer with competitive FiT rates. Regular system maintenance also ensures optimal performance.
Not necessarily. While a higher FiT rate increases export earnings, it's often more beneficial to maximize self-consumption since you avoid paying retail electricity rates (typically 25-35c/kWh) rather than receiving FiT payments (typically 5-15c/kWh). The best approach depends on your specific usage patterns.
Battery storage systems can improve solar ROI by increasing self-consumption of solar energy, allowing you to use solar power at night. However, batteries add significant upfront costs, which may extend the payback period. The financial benefit depends on your usage patterns, electricity rates, and battery costs.
Calculate Your Solar ROI Today
Use our comprehensive ROI calculator to model your solar investment returns and optimize your system for maximum financial benefits.