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Cost of solar and your investment
Understanding Your Solar system cost
Investing in solar energy means both immediate and long-term savings. Each ZEN system is tailored to fit your energy needs, with starting prices listed below for a clear overview. This initial investment sets the stage for lasting financial benefits.
Low power usage
Small system*
- Monthly bill: $150 to $250
- Annual consumption (kWh): 7,000 to 9,000
- Household size: Up to 4 people
- Appliances: Standard use
Medium power usage
Mid-sized system*
- Monthly bill: $250 to $350
- Annual consumption (kWh): 9,000 to 12,000
- Household size: 4-5 people
- Appliances: Medium use (e.g spa, EV)
High power usage
Large system*
- Monthly bill: $350+
- Annual consumption (kWh): 12,000+
- Household size: 5+ people
- Appliances: Heavy use (e.g spa, EV, pool, central and/or underfloor heating)
What affects the cost of your solar power system?
Energy needs
System size typically scales with consumption levels, directly affecting cost.
Battery capacity
Chosen based on usage patterns, the battery size is a key investment factor.
Components quality
High-grade panels, inverters, and batteries impact cost and long-term reliability.
Install complexity
Cost is influenced by roofing, site specifics, wiring needs, and scaffolding.
Energy goals
Grid independence or substantial energy savings goals necessitate a larger system.
Tech upgrades
Smart tech and EV charging integration increase both efficiency and initial cost.
Custom solutions
Personalised energy systems for unique requirements (e.g. smart homes) alter the financial outlay.
Choosing solar is a personalised journey. We work with you to select high-quality components and design a system tailored to your energy needs and lifestyle, delivering a solution that maximises efficiency, savings, and performance.
Understanding your solar savings
Embrace Solar, Enjoy the Savngs
Switching to solar provides significant reductions in your energy bills. Here’s a real-life example of the tangible savings you can achieve by making the switch.
Monthly Bill Savings
$250
$200
$150
$100
$50
0
($242)
($73)
Cumulative Savings
$80,000
$60,000
$40,000
$20,000
0
In our real-life example, we look at a family of four paying an average electricity bill of $242 monthly, based on an average daily usage of 22 kWh. Their goal was to cut down on electricity costs and target a self-consumption rate of 70%—meaning they aimed to use 70% of the energy generated from their solar system directly. They decided to invest $11,932 (including GST) in a tailored grid-tied solar system, installing a 5.28kW grid-tied system with 12 LONGi 440W Black Frame panels paired with a Redback SI5000 5.0 kW inverter.
After switching to solar, their average monthly bill dropped to $73.07, saving them approximately $168.94 monthly, or 69.81%. Over 25 years, this totals $70,740.08, considering rising electricity costs and income from excess electricity.
Additionally, their decision to go solar had a significant positive impact on the environment—equivalent to the CO2 absorption of 40 trees and powering 528 light bulbs around the clock every year.
Real-life solar success journey:
Cost savings & environmental impact
$70.7k smart savings
25 years of solar turned into $70,740.08 of smart, eco-savings.
40 trees' carbon work
Equivalent to the environmental impact of 40 trees absorbing CO2 every year.
528 light bulbs powered
Lighting up 528 bulbs non-stop for 25 years, all through clean, solar energy.
Rising electricity costs vs. affordable solar
Over a Decade of Rising Costs: Why Solar Makes Financial Sense Today
Since 2008, electricity prices have risen steadily, while solar installation costs have dropped significantly. This shift underscores the financial advantages of switching to solar, offering immediate and long-term savings.
electricity cost (¢/kW)
solar installation cost ($/kW)
35
30
25
15,000
12,000
9,000
6,000
3,000
20
0
Solar gets cheaper:
The cost of solar has dropped significantly since 2008 (-83% decrease).
Electricity prices rising:
Electricity costs have soared over the past 16 years (+58% increase).
Source: Electricity Cost: Ministry of Business, Innovation & Employment (www.mbie.govt.nz) | Solar Installation Cost: Combined $/kW data from mysolarquotes.co.nz & ZEN Energy | 2024 Electricity Costs (¢/kW) are based on pricing as at February 2024 | 2024 Solar Install Costs ($/kW) are based on pricing as at April 2024
The chart above illustrates a compelling trend: Electricity prices have surged by 58% from 2008 to 2024, while solar installation costs have decreased by 83%. This contrast highlights solar’s growing affordability and strong economic benefits, making now the ideal time to invest in a reliable, cost-saving energy solution.
Solar energy payback period and ROI
How Quickly Can Solar Start Paying You Back?
Solar energy is a powerful financial investment with both immediate and lasting benefits. Key metrics, such as payback period and return on investment (ROI), help illustrate how quickly your system can start paying for itself.
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Understanding solar payback periods:
The payback period measures how long it takes for energy savings to equal the initial cost of your system, which varies based on system size and usage.
25%
20%
15%
10%
5%
0
Years
Years
(per real-life example)
Years
Years
The chart above illustrates various payback periods and their corresponding annual returns on investment (ROI):
- 5-Year Scenario: Quick ROI for high-efficiency systems, with a 20% annual return.
- 5.5-Year Scenario: In our real-life example, a tailored setup for a family of four achieved an 18.1% annual return.
- 6-Year Scenario: A balanced option for many homeowners, providing a 16.7% annual return.
- 7-Year Scenario: For a more conservative setup, offering a 14.3% annual return.
With custom solar solutions, payback periods can be tailored to your energy needs, optimising your investment for faster returns.
Turn Energy Savings into Financial Gains
Switching to solar reduces electricity bills and frees up income for smarter financial choices.
Quick insights:
- Pre-tax vs. post-tax savings: Traditional electricity costs are paid with after-tax income. By reducing these costs, solar increases your disposable income.
- Solar advantage: Pre-tax savings from solar can be invested in tax-advantaged accounts like retirement funds, boosting financial security and growth.
Maximise Returns with Pre-Tax Savings on Solar
Investing solar savings in tax-advantaged accounts can significantly increase your investment returns (assuming a 33% marginal tax rate):
Investing solar savings wisely:
- 5-Year payback scenario: ROI rises from 20.0% to 29.9%
- 5.5-Year payback scenario: ROI improves from 18.1% to 27.0%.
- 6-Year scenario: Yield increases from 16.7% to 24.9%.
- 7-Year scenario: Returns grow from 14.3% to 21.3%.
Beyond reducing energy bills, solar enables tax-efficient investments (pension plans and retirement funds) for lasting financial growth.
Solar investment vs. traditional investment returns
A High-Return Investment for a Greener Future
In today’s economy, choosing the right investment is key. Solar energy not only supports sustainability but also outperforms traditional investments like real estate, bonds, stocks, and term deposits over 5 to 7 years.
0%
5%
10%
15%
20%
The numbers speak for themselves: solar investments deliver strong returns, providing financial growth alongside environmental benefits. Investing in solar strengthens your finances and supports clean energy for the future.
Solar energy systems: Purchase vs. lease
Choosing Your Solar Energy Path
Deciding between buying and leasing a solar energy system is a key choice. Here, we outline the main differences in cost, savings potential, and impact on home value to help you find the best option for your financial and environmental goals.
Purchasing a Solar System
Pros:
- Ownership: Full control and the full benefits of solar energy.
- Savings: Immediate and long-term reductions in energy costs.
- Home value: Boosts property resale value.
Cons
- Upfront cost: Higher initial investment, but this can be offset with green loans offering flexible, competitive rates.
Leasing a Solar System
Pros:
- Low initial cost: Lower upfront expenses, similar to green loan benefits but without ownership.
Cons
- No ownership: You forgo long-term financial benefits and property value increases.
- Lower savings: Fixed lease payments and finance charges may reduce overall savings.
- No Increase in Property Value: Leasing does not enhance your home’s market value.
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Financial benefits of solar energy
How Solar Strengthens Both Your Finances and the Planet
Investing in solar offers substantial financial advantages:
Reduce Expenses:
- Slash electricity bills: Cut monthly energy costs significantly.
- Protect against rising energy prices: Gain stability from rising and unpredictable utility rates.
Increase Financial Returns:
- Quick payback: Recover your initial investment through savings and income from excess energy.
- Predictable costs: Solar provides a stable alternative to fluctuating energy expenses.
Boost Property Value
- Higher resale value: Solar panels enhance your home’s market value.
- Attractive to buyers: Solar-equipped homes often sell faster and appeal to eco-conscious buyers.
Eco-Friendly Investment:
- Sustainable choice: Significantly lower your carbon footprint and support essential environmental efforts.
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Ready For
Your Power
to Change Hands?
Start your switch to solar today. Get in touch and we can support your journey to energy savings, sustainability and self-sufficiency.
No strings attached.