Solar ROI with FiT (Payback) - Feed-in Tariff Guide

Solar ROI with FiT (Payback)

Calculate your solar system return on investment and payback period based on your system details and electricity rates.

Note: This calculator provides estimates only. Actual returns may vary based on your specific circumstances and changing energy rates.

Solar ROI with FiT (Payback) Calculator

Enter your system details and electricity rates to calculate your solar investment return and payback period.

System & Rate Details

Total cost of your solar system installation
The size of your solar panel system in kilowatts
Select the state where your solar system is installed
The percentage of generated solar energy you use directly
What you pay for electricity from the grid
What you're paid for excess electricity exported to the grid

How This Calculator Works

This calculator uses typical daily generation factors (kWh/kW/day) per state and splits the value into avoided imports versus export credits.

The calculator determines:

  • Daily energy generation based on system size and state
  • Energy used directly versus energy exported to the grid
  • Value of self-consumed energy (avoided imports)
  • Value of exported energy (FiT credits)
  • Annual savings and payback period

Important: This is a simplified calculation. Actual results may vary based on system orientation, shading, weather patterns, and future electricity price changes.

Frequently Asked Questions

Answers to common questions about solar ROI and payback calculations.

What is a good payback period for a solar system?

A good payback period for a solar system in Australia is typically between 3-7 years, depending on your location, system size, electricity usage, and local rates. Systems with shorter payback periods are generally more attractive investments. However, it's important to consider that solar panels typically last 25+ years, so even a 7-year payback period can result in 18+ years of essentially free electricity.

How can I improve my solar system's ROI?

You can improve your solar system's ROI by increasing self-consumption through strategies like using energy-intensive appliances during daylight hours, adding battery storage to use more of your solar energy, and monitoring your system to ensure it's operating efficiently. Additionally, shopping around for better electricity rates and FiT offers can significantly impact your returns.

Why do generation factors vary between states?

Generation factors vary between states due to differences in sunlight hours, weather patterns, and solar irradiance levels. States closer to the equator and with more sunny days generally have higher generation factors. Local climate conditions, such as cloud cover and temperature, also affect solar panel efficiency and energy production.

Should I consider battery storage with my solar system?

Battery storage can be a worthwhile addition if you have low self-consumption during daylight hours or if you experience frequent power outages. Batteries allow you to store excess solar energy for use during the evening, increasing your self-consumption and reducing your reliance on the grid. However, batteries add significant cost to your system and may extend your payback period. The decision depends on your specific circumstances, energy usage patterns, and local electricity rates.