Solar Finance Formula

Step 2: Compare It to the Cost of Financing a Solar System

Suppose you purchase a professionally designed solar and battery system for:

$20,000

Financed over 7 years, the repayments may be approximately:

$5,000 per year

Step 3: Calculate the Difference

Current electricity costs:

$3,000 per year

Solar system repayments:

$5,000 per year

Difference:

$2,000 per year

Or approximately:

$38.50 per week

What Does This Mean?

For an additional $38.50 per week over the next 7 years, you can own a complete solar and battery system.

During those 7 years, you’re not just paying an electricity bill – you’re investing in an asset that will belong to you.

Once the finance term ends:

✅ Your repayments stop

✅ You own the system outright

✅ Your electricity costs can be significantly reduced

✅ You can reduce your reliance on the grid

✅ You can help protect yourself against future electricity price rises

Unlike electricity bills, which continue forever, a solar system is something you eventually own.

The Real Cost of Doing Nothing

If you choose not to install solar, you’ll continue paying electricity bills year after year with nothing to show for it.

Using the example above, you would spend $21,000 on electricity over the next 7 years (assuming no increase in electricity prices) and still be completely reliant on your electricity retailer.

By comparison, for an additional $38.50 per week, you could own a solar and battery system outright at the end of those 7 years.

The Question to Ask Yourself

The real question isn’t:

“Can I afford a solar system?”

The real question is:

“Can I afford an extra $38.50 per week for 7 years to own a solar and battery system that could provide savings for many years afterwards?”

You’re already paying thousands of dollars every year for electricity and will continue to do so indefinitely. Solar redirects part of that spending into an asset that can continue delivering value long after it has been paid off.

If the answer is yes, solar may be one of the smartest long-term investments you can make for your home or business.

This example is for illustration purposes only. Actual repayments, electricity savings and system performance will vary depending on system size, finance terms, energy usage and local electricity tariffs.

HARD SOLAR SYSTEM FACTS

1. Most of the leading brand solar panels available in Australia are guaranteed for 25 years.
2. Almost all solar batteries are guaranteed for 10 years with a life expectancy of 18 to 25 years for the better brands.
3. Some panels and batteries are better than others so it’s important to avoid the “cheap” end of the market because the old saying of “you get what you pay for” 100% applies to solar equipment.
4. Regardless of how high the quality of your solar panel/solar battery system is, on heavily overcast days you may still need to buy power from the grid, however with a little bit of common sense and guidance from your solar installer you can for the most part isolate your grid usage to the lowest off-peak rates.
5. Solar installers do NOT provide their own finance although almost all of them can refer you to bona-fide lenders who will deal with your application in accordance with all the rules and regulations which apply to Australian lending institutions. Or you can arrange your own finance.