What are the financial returns available from the installation of a domestic solar system?
Before installing a solar system consumers must guess the financial benefits. After installing a solar system their electricity bill does not show information required to calculate the benefits.
This lack of visibility leaves consumers vulnerable to exploitation.
What should the Government do to address this issue?
The AER’s tariff comparison website Energy Made Easy should be updated to support solar calculations.
The AEMC’s smart meter rollout should require meters installed at solar equipped households make the necessary additional measurements to calculate savings. They should update the NERR to ensure consumers can access these additional measurements.
The ACCC should review the exaggerated claims often made in solar installer advertisements.
The above changes would allow interested consumers to access the information required to compare returns. Many will find even after receiving significant Government rebates solar systems remain a long term financial investment offering a low return on the investment.
In stark contrast the Government’s energy labelling scheme provides easy to interpret and accurate advice guiding the purchase of energy efficient appliances. The majority of consumers will find choosing to invest in energy efficient appliances provides significantly higher financial returns. These savings are delivered all day, everyday, not just when the sun is shining.The analysis of previously unavailable data leading to the above results is available from here