Why are So Many People Investing in Solar in 2024?

So how does solar power stack up as an investment? Well, we clearly can’t give financial advice but let’s start with this.

Let’s say you take $10,000 to buy a good quality solar system and let’s say you put $10,000 in the bank on a term deposit. The first $10,000 is going to earn you somewhere around to $2,000 to $3,000, perhaps even $3,500 per year every year, for up to 30 years.

The $10,000 in the bank at today’s term deposit rates are going to give you about 100 and something dollars per year every year until you withdraw it. Now, yes, with the solar, you don’t get your capital cost back but you’ve got a breakeven point in three, four, or five years. So you’re so much better off and you’ve got your capital back after that.

The other thing that a lot of people do is they draw down $10,000 or $20,000 if they want a battery from their mortgage and again, with mortgage rates being 2% or less, the savings from your solar system are going to far outweigh the interest payments on your mortgage.

Therefore, if you spend $20,000 on a solar and battery system, at the end of year one, you’re going to be actually better off from a cashflow point of view than you were if you didn’t do it.

To get a more personalised understanding of the financial benefits of solar power for your home, head over to our comprehensive guide. This in-depth resource dives into factors affecting your return on investment, including the impact of feed-in tariffs, system sizing, and financing options.

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