Solar is an excellent investment for almost all Australian households, but there are a wide range of savings, depending on the characteristics of household electricity consumption, retail tariffs and roof characteristics. Nevertheless, the majority of households installing a wide range of PV system sizes under different types of tariffs can expect a payback of between 3-7 years.
Recent regulatory reform efforts in the Australian National Electricity Market (NEM) have included a number of rule changes aiming to contain electricity price rises driven by network investment by distributed network service providers (DNSPs). One focus area has been the economic inefficiencies of current network tariff arrangements, particularly for residential and small business consumers. These tariffs are typically shaped by limited metering capabilities and equity considerations and have generally involved a major volumetric consumption component.