Due to recent global inflation, leading solar panel manufacturers in China have recently warned against the rising costs for materials and shipping, with an energy crisis in China further complicating the situation and impacting the production of solar system components.
While the Chinese government has taken some action on this, it will be a little while before there are any changes that can be observed by the solar industry as a whole. The way this situation has evolved due to this global inflation has put some solar installers in Australia in a very difficult position.
China's Canadian Solar Panels, one of the top panel producers, noted that its product prices were up 10% in the first quarter from the previous three month period, an increase it plans to pass on to customers.
With regard to rising cost of materials, the polysilicon spot price in October 2021 was US$35.28 per kg – which is a 20% increase in the price in just a week.
All these recent changes however, still point to one fact - the longer you put off getting solar panels installed, the longer you’re locking your household or business into electricity bills much higher than they could otherwise be.
Putting off a solar installation could potentially mean a loss of hundreds of dollars every month and over six months, thousands of dollars, going into the pockets of electricity retailers instead of staying in your own. This is in addition to the environmental damage you will be simultaneously causing by relying on non-renewable sources of energy
The weight of solar panels is roughly 21kg and while silicon only makes up around 550g of a solar panel’s weight, it eventually all adds up, making the cost of producing the panels higher.
The issues that have risen for manufacturing costs have affected the solar industry globally. China isn’t the only country in the world that produces solar panels, but materials supply and shipping issues are impacting other countries as well.
If you are still hesitant about taking the final decision to go solar, you should be aware that the amazing deals advertised by solar companies won’t last forever. These deals are possible with the help of government incentives set in place in the form of rebates. At the start of 2022, Australia’s “solar rebate” is predicted to be reduced. The rebate shouldn’t be confused with feed-in tariffs, which is another government incentive to encourage people to go solar. Feed in tariffs are the payments/credits solar system owners receive for the surplus electricity they export to the mains grid after their solar system is installed.
In practice an up-front subsidy, the “rebate” is based on virtual bits of paper called Small-scale Technology Certificates – STCs. The number of certificates an eligible system receives is based on the size of the system (solar panel capacity), where in Australia it is installed and the installation date. The value of these certificates fluctuates with market conditions just like a stock market.
Given installation date rather than purchase date can play a role in the amount of subsidy, it won’t be long before some solar installers will start quoting based on an installation occurring early next year – meaning the reduced rebate will be taken into account in quotes.
At this point in time, the good news is STC values remain high – the latest spot price I’ve seen for certificates was $39.20 each on Tuesday. Bear in mind installers will generally offer $2-3 less than spot price to cover the administrative cost of trading the certificates.
You can Contact SunMate Solar today for a system priced with the government rebate included in the price.
However, in spite of all the great reasons you should go solar sooner rather than later, it’s really important not to let fear of missing out or pressure from solar companies offering dodgy finance deals or poor quality systems at a low price lead to a poor purchase decision.
Even if the cost of solar systems do go up significantly temporarily, it is still a solid investment sure to give you a great return. Contact Sunmate Solar today for a great deal on a quality system which is guaranteed to give you a high return.