Cost Of Solar – Australia Vs. UK And USA

As UK households and businesses grapple with skyrocketing energy prices and increasingly seek out solar panels, they probably look upon Australia with a degree of envy.

In recent weeks, we’ve noticed an uptick in visitors to SolarQuotes from the UK. While SQ doesn’t serve that market, it’s not surprising why our UK friends are looking for solar information. As is the case in Australia with electricity prices, the UK has been hit too – but much harder.

After a round of savage hikes a few months ago in the wake of Russia’s invasion of Ukraine,  the UK’s energy regulator delivered more bad news last week. Ofgem has set a new price cap to apply from October that is 80% higher than now.

My understanding is these energy price caps are a bit like standing offers in Australia – the maximum that can be charged by energy retailers if a customer doesn’t (or can’t) take up a market offer. As such, they set the scene for pricing on other offers.

Ofgem’s energy price cap will increase to £3,549 per year for dual fuel for an average household from 1 October 2022. That’s a whisker over AUD $6,000 at current exchange rates. Things aren’t looking any better looking further ahead, with further hikes possible in the not-too-distant future.

“Although Ofgem is not giving price cap projections for January because the market remains too volatile, the market for gas in Winter means that prices could get significantly worse through 2023,” stated the regulator.

Solar’s Popularity Powers Ahead

Given such severe hikes, it’s little wonder there is increased interest among UK folk in getting solar panels installed. But this actually started before Putin’s first tanks rolled into Ukraine in February. According to Solar Energy UK, more systems were installed on residential rooftops in the first month of this year than the whole of 2021.

The association says solar energy supplies about 4% of the UK’s total annual electricity consumption currently, but that can reach up to 30% during summer. Total PV capacity across the UK is expected to reach around 16GW by the end of this year. Solar Energy UK is calling on the government to commit to a target of 40GW solar capacity by 2030 and then boost it to 54GW by 2035.

How Much Does Solar Cost In The UK (And USA)?

One of the many blessings of living in Australia is comparatively cheap solar power systems. This doesn’t  mean cheap crap solar (although we still have far too much of that), but reasonably priced good quality systems installed by competent professionals.

Households in the UK (and the USA) aren’t so fortunate. Here’s how average prices stack up in the three countries for fully installed 6kW systems, after incentives:

• 6kW (6.6kW) solar cost in Australia: $6,000 – $9,000
• 6kW solar cost in UK: £8,000‑£10,000 (AUD ~ $13,600 – $17,000)
• 6kW solar cost in the USA: USD $12,300 – $13,330 (AUD ~ $17,900 – $19,400)

The Australian figures are for good quality components and installation, under typical install conditions. For Australian pricing ranges on other system sizes, see SQ’s solar panel costs page. And for more detailed information based on pricing submitted to us by Australians who have had systems installed, check out the SolarQuotes Solar Price Index.

While Australians may be paying more for PV generally since the same time last year, when it comes to solar power system pricing Australia is still very much the lucky country.

Original Source: https://www.solarquotes.com.au/blog/solar-cost-uk-usa-australia-mb2612/