With the Australian dollar predicted to weaken further, the time to install solar power systems is now.
Up until recently, the Australian dollar was riding high; but after nearly a year of sitting pretty (in terms of costs of imports); its fortunes have faded.
In April, the dollar was sitting as high as USD 105 cents. On Friday, it was touching on 92 cents – a drop of over 9%.
According to The Australian, the Aussie is expected to continue falling in coming weeks. In an SMH article, ForexCT’s head of research has said the days of the dollar being above parity are “done and dusted“.
While this is good news for some sectors; for others – including solar – it’s not so cheery as new imports of solar equipment will cost more.
The solar panel cost and inverters has been dropping in price through other factors, but the situation with the dollar is eating into those reductions. If the trend continues, at some point soon it will translate to a greater capital outlay (or higher repayments) on a system and longer system payback period for the end consumer.
Even the continuing wholesale price reductions in equipment may be under threat regardless of the currency exchange situation – in May we reported prices for solar panels in key markets were observed to be increasing.
Other factors that will certainly extend the payback period on a solar system are feed in tariffs in some states being slashed in the near future for those who don’t secure incentive levels now. The most recent announcement of this nature was the ACT’s incentive being reduced from 1:1 to just 7.5c per kWh for those who don’t lodge the necessary paperwork by June 30.
To help more Australians take advantage of current low solar prices and beat the looming threats and incentive deadlines; national provider Energy Matters is currently holding a mid-year sale, with special deals on its full range of systems. Additionally, the company’s zero deposit solar payment plan option is making it even easier for Australian households to take more control over their electricity bills.
