A lot of people think solar is a scam. And honestly — we get it.
The industry is full of door-knockers, dodgy promises, and companies that disappear the moment something goes wrong. If you’ve been burned before, or if you’ve heard enough horror stories from neighbours, the scepticism is completely fair.
But here’s the thing: the people saying solar is a scam are usually the ones who got burned by a bad installer — not by solar itself. That’s a massive difference, and it’s the difference this episode is built around.
Jason and Dan from Source Energy Group break down the actual numbers so you can decide for yourself — is solar a scam, or is it the smartest financial move you haven’t made yet?
The Payback Period Myth
One of the biggest reasons people write off solar is the payback period. They’ve been told it takes 3–5 years to recoup their investment — but then the system doesn’t deliver, and they feel misled.
Here’s what’s actually happening: most of the time, the numbers were fudged from the start.
When Jason typed into Google “what is the average Australian’s understanding of return on investment from solar,” the AI summary came back with this: 70% of Australians believe solar delivers a 3–5 year payback with a 20–25% return on investment.
That made him laugh. Warren Buffett doesn’t even make 20% a year. And yet somehow a rooftop solar system is supposed to deliver that consistently?
The reality:
- Solar only (properly sized): 3–5 year payback, eliminating 70–90% of your bill
- Solar + battery: 6–8 year payback, 8–15% return on investment
Is 8–15% a bad return? Consider this: if you’ve got $20,000 sitting in an offset account at 6% interest, it’s still earning less than a well-designed solar and battery system. You could pull that money out, install the system, bring your power bill down to near-zero, and redirect that saving straight back into the mortgage. Not financial advice — but the maths are hard to argue with.
The Government Rebate Confusion
Another reason people think solar is a scam: the government rebate.
How it actually works: the Federal Government’s STC (Small-scale Technology Certificate) scheme provides a rebate based on your system size and location. That rebate gets processed upfront — the solar company applies it directly to your quote, so you never see it as a separate cheque. You just pay a lower price on day one.
Example: a system quoted at $30,000 might carry a ~$10,000 STC rebate. You pay $20,000 out of pocket.
The problem? Most companies don’t explain this clearly. Customers hear “government rebate” and assume there’s something fishy going on — money changing hands behind the scenes, strings attached, or a catch they’re not seeing. When it’s not explained properly, trust breaks down fast.
At Source Energy Group, how the STC works — including how it’s calculated and how we process it — is all documented on our website. No surprises.
You Don’t Need $20,000 Upfront
Even if the numbers make sense, a lot of people baulk at the upfront cost. And that’s fair — not everyone has $20,000 sitting around.
But here’s the reframe: if you’re already spending $1,000 a quarter on power, that’s roughly $385 a fortnight going straight to the energy retailer. Forever. With nothing to show for it at the end.
Solar finance breaks that same amount into fortnightly repayments — but at the end of the term, you own an asset that keeps generating savings. You’re not paying more. You’re redirecting what you’re already paying.
What About Insurance and Maintenance?
Two questions that come up in almost every conversation:
Will my insurance go up? Possibly a little. But will it go up by $1,000 a quarter — what you’re currently saving? Definitely not. Especially with the safety standards on modern battery technology. The maths don’t support avoiding solar over an insurance premium increase.
What maintenance does it need? Solar systems are low maintenance by nature. Panels typically need an occasional clean depending on your environment. Inverters and batteries are monitored remotely by your installer. A reputable company will have a clear servicing process and will be around to answer the phone when you need them — more on that below.
The Real Scam: Choosing the Wrong Installer
This is where the conversation gets direct.
The solar market has three tiers:
The low end: Multinational companies shipping containers of off-the-shelf gear, contracting out cheap labour, and disappearing when something goes wrong. You call the sales company — “not our problem.” You call the installer — “I didn’t sell it to you.” Blame game. No support.
The mid market: Skilled installers who’ve gone out on their own, doing quality work, but haven’t priced themselves to sustain a real business. The work is good. The equipment is fine. But 30% of solar businesses go under in the first two years — and three years later when your inverter needs attention, the number’s disconnected. The failure isn’t the quality. It’s the business model.
The mid-to-high end: Companies that have built for longevity — real overheads, in-house teams, systems for long-term support. Higher upfront cost, but someone answers the phone in year 15 the same as year one.
The question Jason and Dan put directly: is it the price you’re focused on, or the cost? Price is what you pay today. Cost is what you pay over 25 years — including the replacement system you’ll need when the cheap installer is gone.
How To Tell The Difference Before You Sign
A few things that separate genuine installers from sales operations:
- Energy audit first. A proper installer analyses your usage patterns and future needs before recommending a system size. An off-the-shelf quote is a red flag.
- Pre-site inspection. Do they come out before install day to confirm everything fits? Or do the crew rock up on the day and tell you they can only fit 20 panels when you were quoted 30?
- In-house installers. Do the people who sell you the system actually install it? Or are they a sales company contracting work out?
- Product knowledge. Can whoever you’re talking to actually explain how the system works, how it’s installed, and what happens inside your switchboard?
At Source Energy Group, every installation starts with a proper energy audit. We use in-house installers — no subcontractors. We do a pre-site inspection on every job. And we’ve been doing this long enough to have 20 detailed five-star reviews from the first three months of operating — not “thanks for coming” reviews, but paragraphs from customers who’ve watched their power bills drop to near zero.
The Bottom Line
Solar is not a scam. The technology works. The savings are real. The payback periods are achievable. The government rebate is legitimate.
What is a problem: an industry where too many companies prioritise the sale over the customer. Where numbers get inflated, systems get undersized, and the phone goes unanswered three years later.
The fix isn’t to avoid solar. The fix is to choose right.
Do your energy audit. Get a pre-site inspection. Ask who’s actually doing the install. Check reviews — not just the star rating, but what people actually wrote. And ask the company where they’ll be in 10 years.
If the answer to any of those is vague, keep looking.