As the Federal Governments’ incentives to install solar power have dropped off over the last few years and the South Australian solar feed in tariff has declined (though still very generous in comparison to most States) you might have thought the future for residential solar power installation in Adelaide may not be so bright. As we have reported, on the other side of the equation, the global oversupply in photo voltaic (solar panel) production has maintained a downward trend in prices making the cost of solar systems still competitive (in terms of viability and return on investment) without the relatively large Federal Government subsidy of a few years ago. The risk to the upside in pricing of solar systems in Adelaide is most likely to come from the drop in the Australian dollar. It has depreciated from its highs of around A$1.06=US$1.00 to levels (as of 18 May 2013) of A$0.98=US$1.00 an 8 percent decline in the value of the Aussie dollar. With forecasts (not always the best guide!) from the major banks predicting that the Australian dollar could slip back to the A$0.80=US$1.00 level, this would bring about a substantial price increase in solar systems in Adelaide.

Will the drop in value of Australian dollar = higher solar panel prices in Adelaide? May 2013

Decline Of The Australian Dollar