Approximately 129 Megawatts of solar panels has been installed on rooftops in Newcastle, covering 28.8% of the residential rooftops, according to data recorded by the Australia Photovoltaic Institute. This article examines the key considerations for those thinking about having a solar system installed in Newcastle, including energy production estimates, system prices and payback periods.
How much solar power can you generate in Newcastle?
Australia is not known as the sunburnt country without a reason – regardless of where you are on the continent, you probably receive enough sunshine on your roof to make solar panels worthwhile. Newcastle is no exception, receiving about 5.3 ‘peak sun hours’ per square meter per day (on average throughout the year), according to PVWatts. Think of those 5.3 hours of concentrated sunlight as the ‘fuel’ for your solar system – in an ideal world, 1 kilowatt (kW) of solar installed in Newcastle would produce 5.3 kilowatt-hours (kWh) of energy.
But like any generator, a solar PV system is not 100% efficient – so some of the raw energy is lost in the conversion from light to electricity. Typically, a north-facing solar system tilted at latitude (~32 degrees for Newcastle) will have an efficiency loss of about 15% – for a total conversion efficiency of about 85%. The table below shows rough daily energy output figures for a range of popular solar system sizes if installed in the Newcastle region – assuming that they are 85% efficient.
Estimate power generation for solar panels Newcastle
Sounds good! But how does this solar energy save me money?
When you use electricity from the grid, your electricity retailer charges you per kilowatt-hour of energy – you should be able to see your historic usage on the back of your most recent bill. Your kWh consumption probably changes by the season, depending on the types of devices & appliances that you use (air conditioning, heating, dryers, etc). By figuring out your average usage, you’ll be in a better position to choose the best size system for your needs.
New South Wales no longer has a generous solar feed-in tariff for new solar installations, which means that you do not get financially rewarded for putting your solar energy into the grid (although some electricity retailers do offer a nominal buyback rate). In short, these days ‘self-consumption’ is the name of the game – you need to use as much of your solar energy as possible during the daylight hours in order to get the most out of your system.
There are two ways to maximise the proportion of solar energy that you consume:
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What rebates for solar power are available in Newcastle?
The federal government has a mechanism in place to reduce the cost of installing solar PV systems under 100kW in capacity. The actual value of the incentive depends on a number of factors such as location and system size, but usually works out to be about 30-40% of the total installation cost. This incentive has been pivotal in making Australia home to some of the lowest solar PV system prices in the world.
As an example, when this incentive is applied to a 5kW solar system, solar panels Newcastle customer would receive a STC rebate of $1,769 according to Greenbank as at July 2024.
Thanks in part to the federal Renewable Energy Target, Australia is home to some of the lowest PV system installation prices in the world. We’ve been keeping track of price trends in Australia’s capital cities since 2012 in our monthly Solar PV Price Index articles. While we don’t specifically publish prices for Newcastle, the are generally similar to those for Sydney.
What’s the return on investment for solar panels in Newcastle?
Payback times for solar PV systems in Newcastle can be short, with sizeable savings possible by installing a system. The table below provides an overview of the case for investing in systems of various sizes in the Newcastle area. The table below uses average system prices – keep in mind that lower system prices will deliver even more impressive returns.
Keep in mind, however, that while lower prices don’t always necessarily mean lower quality, they should be approached with a healthy degree of caution; a solar PV system should continue to produce power for up to 25 years (with inverter replacements every 7-10 years). Any system downtime (due to component failure, for example) will result in extended payback periods – not to mention the costs that may be incurred for repairs/replacements not covered under warranty.
Indicative savings and returns for solar panels Newcastle
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Jeff has consulted on over 20MW of commercial solar projects, ranging from SMEs to ASX top 100 companies. Jeff has also provided independent advice to 100s of residential solar, battery and EV charging customers across every state in Australia. He holds an MBA from the Australian Graduate School of Management and is an expert in business strategy and financial analysis.
