When you install a solar system, one of the biggest questions is: how long until it pays for itself? The payback period depends on many factors, but some changes have far more impact than others.
Key Factors That Affect Solar Payback
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Retail electricity price – Every kWh you avoid importing saves you at the retail rate. Higher tariffs mean faster payback.
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Feed-in tariff (FiT) – While usually lower than retail import rates, a strong FiT boosts your export income.
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Self-consumption ratio – The more solar you use directly during the day, the less you buy from the grid.
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System cost – Lower upfront costs shorten the break-even point significantly.
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Retailer choice – Different providers offer varying FiTs and supply charges that change the maths.
Worked Examples
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Family A: Uses 60% of solar power onsite. With a 35c import rate and 8c FiT, they save ~$900/year, hitting payback in about 5 years.
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Family B: Same system but only 30% self-consumption. More exports lower savings to ~$600/year, pushing payback closer to 7 years.
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Family C: Switches to a retailer with a 12c FiT. Their exports earn an extra $200 yearly, cutting payback to ~6 years.
Conclusion
So, what changes your payback the most? Self-consumption and retailer choice. Use our tools to compare your options:
With the right setup, you’ll not only shorten payback but also boost long-term solar savings.