So, you live in Newcastle NSW, this glorious place. Newcastle, Maitland the Hunter – it’s all relevant to the scenario: It’s 18 February 2025, and solar power system prices are going up, feed in tarrifs are going down. The question is elucidated: ‘Is it still worth it for me to invest in a Newcastle Solar Power System’ ?
In this blog, we will explore just that, and as a solar company owner I will tell you exactly if it is ‘worth it’ or not.
Step 01: Define Worth
Okay, so step 01 is easy. To answer this question I’m simply going to ask you the reason why you’re here reading this blog. It’s to figure out if solar power is worth it for you. So ask yourself ‘why am I looking at getting solar power’ The answer is going to be as you have just repeated to yourself ‘it’s a financial investment – I want to get a solar power system to save and make money’
People aren’t really willing to throw money away these days considering the economic climate but solar power has historically been a financial investment that people have made whilst also having a side benefit of being good for the environment.
People know this, that’s why they turn to solar, that’s why you are here. With that in mind, we are going to progress on that context that worth it means a financial investment. Let’s continue now to evaluate whether a Newcastle solar power system by Newy Solar Co, or other solar power companies (not that you would use them) is still worth it in this day and age.
Truth disclaimer:
Also, you may think this blog could be subject to a bias, because we are a solar power company and of course it is in our best interest to sell as many systems as we can. But you have assumed that Newy Solar Co’s main mission is to put solar power on every home. Well no, that’s not correct. We do want to put our beautiful Newcastle solar power systems on homes here, that is right, but we only seek to do so when it is in the best interests of our customers.
This is one of the differences you get when you choose us, we don’t fluff you around and tell you things just to sell you a system, we will give you the hard truth. And that is, sometimes a solar system is actually not worth it, and we will tell you that. Because imagine if we told you it was, and then that wasn’t reflected in the real world – you’d leave us a review which is not 5 stars, and we cannot have that, because we have a reputation to maintain here as the best solar power installer Newcastle has seen.
How to save and make money with solar power
First, a word on how people used to make money with solar
Back in the good old days, you used to get paid good money to export your solar power. People made alot of money. But, due to the amount of solar power that has now been installed, solar feed-in tariffs (FiTs) have undergone significant changes in recent years, reflecting the evolving dynamics of the energy market. Basically, they have gone down a bunch.
This reduction is partly due to the increased adoption of rooftop solar installations, leading to a surplus of solar-generated energy during peak daylight hours.
If you forecast this out logically, based on the actual history of the FIT’s, the forecast for FiTs in NSW suggests a continued decline. As more households and businesses install solar panels, the amount of energy fed back into the grid increases, potentially leading to grid congestion during peak production times.
In fact, as the decline in FIT’s increase, customers could actually be subject to a tax for selling their solar power back to the grid. Fear not though, Newy Solar Co have a plan to tackle this – it’s called thinking about the future.
How to maximise solar power savings in 2025
Alright, so let’s not even account for and benefit you will get with feed in tarrifs anymore.
How you make money these days, it to self consume your own power.
With feed-in tariffs (FiTs) declining in NSW, the smartest way for solar system owners to save—and even make—money is by maximizing self-consumption rather than relying on exporting excess power to the grid.
Why Self-Consumption is Key
For example, if your electricity retailer charges 40 cents per kWh for power but only pays you 5 cents per kWh for exported solar, it makes far more financial sense to use the energy yourself rather than sending it to the grid.
Strategies to Maximise Solar Self-Consumption
Energy providers are reducing FiTs because of an oversupply of solar energy during peak daylight hours, making exported power less valuable. Instead of selling excess energy at a lower rate, homeowners and businesses can use their solar energy directly, which offsets the need to buy electricity from the grid at much higher retail rates.
- Time Your Energy Usage
- Run appliances like washing machines, dishwashers, and pool pumps during daylight hours when solar power is being generated.
- Shift heating and cooling systems (e.g., air conditioners) to run in the afternoon instead of at night.
- Install a Hot Water Diverter
- Devices like the Catch Power diverter can send excess solar energy to heat your water instead of exporting it. Since hot water heating is a major household expense, this reduces your electricity bill significantly.
- Invest in Battery Storage
- A home battery, such as a Tesla Powerwall or GoodWe Lynx battery, allows you to store excess solar energy during the day and use it at night instead of drawing from the grid. This is especially useful for homes where daytime energy usage is low but evening demand is high.
- With a battery, you can also avoid peak electricity rates and protect yourself from blackouts by having a backup energy source.
Honestly though, you just need to check how much everything will costs and then see how long the estimated payback period is.
The general rule of thumb is that the higher your power bills are, the more solar power is worth it for you.
How to save with solar power energy: Having High Bills
Take this job for a solar power system in Merewether NSW we just quoted;
The customer at hand was using an extreme amount of solar power energy at his home, to the tune of $2,500 a quarter. The system we quoted was the below, and the quoted amount was $13,164 INCL GST and rebates.
The is Solar Power Worth it Calculation
So we have power bills at $2500 a quarter, and a system cost of $13,164.
The first step is to work out how much power the customer uses during the day. If the customer uses alot of power during the day, then the power consumption will come from the solar power, not from energy imported from the grid.
And this is the key distinction: In order to make money with solar, you need to have a good self consumption ratio.
For this customer, it was calculated the most of his usage comes from the day. But we use in this scenario 50% self consumption as a conservative figure.
The solar power system we designed for this customer is able to handle at least 50% of power drawn by the house – so – 100% of the power self consumed.
So let’s work it out, roughly.
$2500 a quarter for energy, let’s say 50% of that is handled by the solar. So for 50% of the bill, they are not paying anything. Savings for solar energy self consumed = $1,250 a quarter.
Simply, the cost of the system / yearly savings = the estimated payback period.
So – $13,164 / ($1,250 * 4) = 2.6 years
Estimated Payback of solar power is 2.6 years. After the payback, the customer is expected to save around $5,000 annually off his power bill.
So for this customer, of course investing in a Newcastle solar power system it is worth it! Especially if he gets a good Newcastle Solar Power Installer, like us, to install it.
GET A SOLAR POWER QUOTE TO SEE HOW MUCH YOU CAN SAVE
Solar Power Economics are a Balance
Clearly, not everyone has crazy high power bills like this. Your are likely to ride somewhere between $300 – $1500 a quarter. The higher on that end, the likelier it is solar is worth it for you.
The bottom line if solar is worth it or not
Yes. Solar power is still worth it in many scenarios. The scenario where it is worth it the most is if you consume a decent amount of power during the day. (This is also why solar power is perfect for businesses and commercial properties – they use solar during the day)
To find out conclusively if a Newcastle solar power energy solution will be worth it or not for your particular circumstance we recommend contacting us for a quick quote.
Usefull Solar Power Links
- Solar Pricing Guide: See how much a solar power system by Newy Solar Co is estimated to cost you. This will also show you how many solar panels are in the system and how much you are likely to save
- Solar Panels: See the solar panels that we use
- Solar Batteries: See the solar power batteries and energy storage system that we use
- Solar Installations: What matters in a solar installation? Is it the solar panels, the components, – figure out what really matters.
