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What Actually Affects Solar Payback in Victoria?

7 min read · HEA Group

Solar payback estimates range from “5 years” to “15 years” depending on who you ask. Most of that variance comes from assumptions about the variables below. Here's what actually moves the needle — and what doesn't.

The Key Variables

Self-consumption rate

High impact

The most important variable. Electricity you use directly from your solar replaces grid purchases at ~30 cents/kWh. Electricity you export earns ~5 cents/kWh. A 10% improvement in self-consumption can reduce payback by 1–2 years.

System size vs your usage

High impact

An oversized system generates more electricity than you can self-consume, pushing more to the grid at low export rates. A right-sized system maximises self-consumption and improves payback. This is why sizing from your real data matters.

Feed-in tariff rate

Medium impact

Victoria's minimum feed-in tariff varies year to year. As of 2025, rates are generally 4–6 cents/kWh. Export earnings are significant if you have a large system and low self-consumption, but they'll never match the value of self-consumed solar.

Electricity purchase price

High impact

Higher electricity prices mean solar saves more money per kWh self-consumed. Electricity prices have risen significantly in Victoria over the last few years — this generally improves solar payback.

Roof orientation

Medium impact

North-facing is optimal in Australia. East/west orientations generate less total energy but spread generation more evenly across the day — which can actually improve self-consumption for households with morning and afternoon peaks.

Shading

Variable impact

Even partial shading on one panel can significantly reduce system output depending on your inverter/panel technology. A site assessment identifies shading issues before they affect your payback.

Solar resource (location)

Low-medium impact

Bendigo receives more solar irradiance than Melbourne. Regional Victoria generally performs well for solar. This is factored into our modelling using specific local data.

What HEA Targets

Our target on every installation is a payback period under 10 years. For many Bendigo households — especially those with significant daytime usage — payback in the 6–8 year range is achievable with a well-sized system.

We don't use industry average assumptions for our proposals. We use your real interval data, current Victoria feed-in tariffs, and your actual electricity plan rates. We tell you what the assumptions are — so if prices change, you can update the estimate yourself.

Get a payback estimate for your home

We build our proposals from your actual Powercor data and current Victorian rates. No generic averages. No assumptions you can't check.

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