Is Solar Worth It In Perth, WA?

If potential savings from a solar system for your home have piqued your interest, you’re probably asking yourself the following question first. Is solar worth it in Perth?

In Perth, we average 3200 hours of sunlight annually, which is insane.

Let me put this in perspective: I’m originally from Sweden. We have about 1200 hours of LESS sunlight annually, and it’s also almost always cloudy. Yet, even in Sweden, solar is worth it. Yes, a solar system will take much longer to “wash its own face” (pay for itself), but you’ll still be better off with time.

Solar isn’t just worth it in Perth; based on sun-related data, it’s one of the best places in the country.

However, if you’ve spent more than 5 minutes looking into solar, you’ve probably realised it’s a jungle to navigate if this is all new to you. That’s why I started Solar Advisor.

To make this make more sense for you, in this short article, you’ll see a few examples based on real-world examples to help you determine if solar is for you and what to look out for.

Because if it makes sense, it makes cents!

It’s Always Sunny In Perth

With an average of 3200 hours of sunlight annually, Perth has the most sunlight in the country. Furthermore, compared to other parts of the country, there are, on average, very few clouds getting in the way.

This translates into Perth being one of the best places in Australia to get solar installed.

A solar system on your roof is the same as owning your power plant that harvests energy from the sun. The sun is our planetary system’s most abundant energy source; you only need to connect yourself to it.

Do you know how annoying it can be when your internet connection is unstable? We go out of our way to upgrade components and find better providers for a fast and stable connection.

The same goes for solar; the better your connection is in terms of components and workmanship for the installation, the better the system will work.

So, let’s explore some interesting topics for those who are looking for a solar system but, more importantly, a company to go with.

The Difference Between Price And Cost Of Solar

The price is what you pay on purchase, the cost of what the cost will be in the long run.

Perth is the cheapest place in the world for solar due to the competition among companies. This is great for consumers, as they can get a better deal because companies fight hard to win their business.

However, I’d like to remind you that the CEC guidelines for pricing are $1,000 per kW (after rebates) for a system with quality components from a reputable installer.

That doesn’t mean you can find a better deal with a reputable company, but it’s a good rule of thumb.

Company Examples For Price And Cost

You’ve done your due diligence and gotten three quotes from three companies.

You’re looking for a 6.6kW system and have gotten quotes at three different prices.

Furthermore, as someone who works in the industry, I believe these are all genuine examples that give you the best possible overview of what you may encounter.

Company A

Company A offers a 6.6kW system for $7199 with high-quality components, in-house installers, a 20-year workmanship guarantee, and a 48-hour fix and/or replace guarantee.

The company has been in business for over 10 years, has many 5-star reviews, was awarded as a top-10 solar retailer in the country, and is locally owned and operated in WA.

Company B

Company B offers a 6.6kW system for $5499 with high-quality components, a mix of in-house installers and contractors (to handle volume), a 10-year workmanship guarantee, and a 14-day troubleshooting guarantee.

The company has been in business for 3 years, has mixed reviews, and is owned and operated out of NSW.

Company C

Company C offers a 6.6kW system for $3199 with low to medium-quality components, contractors for installation, a workmanship guarantee that depends on which contractor you have, and no promise of how quickly they can help if you have an issue.

The company has been in business for 5 years, has mixed reviews, and is owned by an Indian holding company with its head office in Victoria.

Your research also shows that they lost their CEC accreditation in Victoria for six months after being deemed unfit to hold a license.

What Do You Value The Most?

The above examples are, in fact, very realistic scenarios you’ll find if you start looking at quotes. You have to make a decision based on the information provided and what you value the most.

You can opt for the cheaper price if that’s what you value to the most, but what will that cost you in the long run?

What happens if the company goes insolvent in 2 years, and your inverter needs replacing due to the installers cutting corners?

The warranty will be hard, if not impossible, to get fulfilled, so you will likely have to pay for a new inverter and the labour of getting it installed, which typically ranges from $1500 to $4000.

So your “cheap” option, isn’t so cheap anymore, and that’s only the first thing that happened after only 2 years!

This isn’t uncommon, either. The Cowboys operate this way intentionally.

A company doesn’t lose its license to operate for no reason either; I’d be very cautious if the company has lost their license in another state before.

We all have different values on different things.

Personally, I would go with Company A because, despite the slightly higher price, I know my potential future costs will be minimal.

But, more importantly for me, I know that the installation would be done to a high standard with their own in-house installers, and all reviews they have would be reflective of their own installers, not good or bad contractors.

Furthermore, they take their aftercare very seriously, with a 20-year workmanship guarantee and a 48-hour fix and/or replace guarantee.

The difference between a system that lasts 5 years and one that lasts 25 years is the quality of the installation; remember that.

How To Filter Out The Solar Cowboys

The solar industry is full of what the government calls “Cowboys”.

These operators prey on the information disparity between what they know and what you know to maximise their gain with no regard for you.

To them, you’re nothing more than a number on a board and money in the bank.

In this section, you’ll learn some essential things to look for, avoid, and ask your solar company before proceeding.

The idea is to arm you with the right questions and information to avoid getting caught in their lasso.

3 Questions To Ask Your Solar Company

As someone who works in the industry, I believe the following three questions are the most important to ask.

Will these 3 questions remove all risk of getting stung? No, but they will significantly reduce the likelihood of that happening.

I’ll also share what I want to hear in response so you can skip to the next company when their answer isn’t good enough.

How Long Have You Been In The Solar Business?

• Ask the consultant: How Long Have You Been In the Solar Business?

Unfortunately, this is an essential question because many companies in this space will operate under a name and ABN for a while, then close that down to only re-open with a new name and ABN immediately; this is important.

They do this because if they’ve officially closed the business, they have no responsibilities for aftercare, warranties, bad reviews, or dealing with customers needing help.

This saves them time and resources and puts more money in the owner’s pockets.

In other words, they do not care about you as a customer or the system you’ve paid for; they only care about their short-term interests.

Whatever they tell you, ask them what ABN they operate under and if they’ve previously operated under other names or ABNs.

You can then go to the Australian Business Register, look up the ABN, and see how long it has been registered.

If they claim to have been around for 15 years but registered their current ABN within the last few years, that’s a big red flag.

For example, the company I work for is MLEC Solar (MLEC West) of MLEC Group.

The ABN is 44602055569 and has been registered since 27 September 2014.

This gives you peace of mind knowing they’ve been around for a long time; they haven’t made the dodgy move of changing names and ABNs.

Are You Installers Employed In-House, Or Do You Use Contractors?

• Ask the consultant: Are You Installers Employed In-House, Or Do You Use Contractors?

If you purchase a system from a company that is only accredited as a Solar Retailer by the Clean Energy Council, they’ll use contractors for the installation.

This presents a problem because while great contractors exist, many are subpar.

In other words, you’re betting the installation on a coin flip, but the odds are not in your favour.

Most companies that are only retailers pay their contractors on a per-job basis.

They often assign jobs to contractors through a reverse auction in a chatroom, such as WhatsApp or similar.

1. The job gets sold by the solar retailer.
2. The job is posted in a chatroom group for their contractors with job specifics.
3. Contractors bid on doing the job.
4. Whichever contractor is willing to do it for the lowest amount wins.

You’ll then end up with a contractor who’s doing it at the cheapest rate. They’ll want to do it quickly and cheaply so they can still turn a profit.

What I find even more worrying is that many of these contractors will have installation teams consisting of ONE qualified electrician with CEC accreditation accompanied by backpackers as labourers.

Naturally, this often means that they’ll cut corners in many ways, such as using a regular resin instead of a UV-resistant resin for seal perforations, use cheap labour instead of electricians when they can, etc…

This is important because, beyond the components, the most critical factor impacting system longevity is the installation’s quality.

Furthermore, all your warranties are held by the installer. So, if you buy from a retailer, they use a contractor, and a few years later, if you have any system issue that may require a warranty claim, the retailer can not help you.

They’ll tell you to contact the contractor who performed the installation. This may seem like a minor issue, but often, they’re very hard to get ahold of and/or have long wait times to come and help you.

All these potential issues can be avoided if you choose a company that employs installers in-house.

Not only will you be almost guaranteed to receive a higher standard on your installation, but if you ever need any assistance, you’ll be dealing with the same company, not a contractor.

This typically means that you’ll get help much quicker, as it’s in their interest to look after you and ensure your satisfaction with their work.

From a company perspective, there is no better form of marketing and driver of growth than a satisfied customer who feels well taken care of.

What Is The Turnaround Time To Get Support If I Have An Issue After The Installation?

• Ask the consultant: What Is The Turnaround Time To Get Support If I Have An Issue After The Installation?

None of us want issues with a system we pay good money for, but the risk is always there. Even if you pick high-quality components and the best installation team in the world, the risk remains that something may go wrong.

That’s why this question is essential: if you have an issue you need help with, you want your system back up and running as soon as possible.

There are two components to this question. First, the duration of the workmanship guarantee is important; the longer, the better.

The standard workmanship duration in the solar industry is 3 to 10 years; some companies offer 15 years, and very few offer 20 years.

Secondly, do they have a guarantee stating a timeframe for how quickly they will help you if you have an issue?

This is important because you’ve paid big money for a solar system, and if it stops producing electricity for any reason that’s costing you money every day, it’s offline.

The sooner you can get it fixed, the better, so make sure they have a guaranteed timeframe for sending someone out to troubleshoot the issue.

I would not accept anything longer than 5 to 7 days (not business days), but some companies have 48-hour fix and/or replace guarantees, as an example, which speaks for itself.

China Versus The World

China has long been the largest manufacturer of many products, including solar panels and inverters.

Many people have had the misconception for decades that everything coming out of China has poor build quality and design.

Unfortunately, as I’m European, this isn’t quite the case nowadays, and in many ways, the Chinese are leading the industry in terms of quality and technological advancements.

Most of the top-rated solar brands are manufactured in China. Quite a few are headquartered and engineered in other countries but are still primarily manufactured in China.

When people tell me they don’t want Chinese components, I ask them:

• Where is your phone manufactured?
• Where are most, if not all, of the components in your car manufactured?
• Where is your computer or laptop manufactured?

If you have such a big issue with Chinese components, don’t tell me that most of what you already use was manufactured there.

Moreover, while alternative brands are manufactured elsewhere, even in Australia, such as Tindo Solar, they are so much more expensive that it’s tough to justify the additional cost.

Because while you can boast about having Australian-made panels, they have no better efficiency, warranties, or design than their Chinese counterparts.

But by all means, if you’re willing to pay an additional $2500 or so on top of the $6600 system price to upgrade to Australian panels, then do so and support an Australian company instead (I’m all for that!).

Conclusion: Is Solar Worth It In Perth?

As you know, if you’ve made it this far, absolutely yes. Unfortunately, many cowboys in the industry hope to take advantage of you for their gain.

Hopefully, what you’ve learned in this article above has armed you with some knowledge and questions that will allow you to reduce the risk of getting stung by the industry scoundrels.

Please comment below if you have any questions or want to start a discussion.

If you’re looking for solar and would like a quote from a local company with a strong record that ticks all the boxes above, reach out to me at m.haerdin@mlec.com.au, and we can find out whether or not we can help.

Thanks for reading. Please share this with a friend looking to go solar and help them help themselves.

Until next time,
Marcus