Solar For Free?

But Is It Worth It?

 

I recently came across a scheme by AGL called the ‘Solar Smart Plan’

The Plan

You sign a 7 year contract.

AGL install panels on your roof for free.

You are able to buy the power generated by the panels during the day for a reduced rate (I understand this will be 12c/kwhr)

Savings Comparison

A few weeks ago I posted about the performance of my solar system at this link:   ‘Solar Power Revisited’

Basically I bought a 3.3kw system for $4,450 which on current usage should save me $550 dollars per year.

Based on our usage the ‘Solar Smart System would generate the following benefits:

Annual Grid Power Costs Saving = 824 kwhr x  $0.15  = $123.30

Annual income from Feed In Tariff  = $0

Total Annual Benefit  = $123.30

Meanwhile they receive 1,389 kwhrs they can then sell to others for over 27cents/kwhr  = $375 (plus the power they sell back to you of $123.30)

Conclusion

All the above is based on rates for my supplier (Powershop) , , , , if AGL rates are higher the outcome may be worse.

As I wouldn’t have paid anything there is a benefit . . . . however I would be signing away the rights to my roof for $123 a year.

It’s also not clear what happens at the end of the 7 year contract.

 

I think I am a lot happier paying the upfront cost and getting more than 4 times the saving.

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