Solar ROI vs. Stock Market: The 2025 Analysis
The Tax-Free Advantage
When comparing solar to stocks or property, most people forget one massive factor: Tax.
- Stock Market Returns: If you make $2,000 profit, you pay capital gains tax or income tax on dividends.
- Solar Savings: If you save $2,000 on your electricity bill, that is money in your pocket. You don't pay tax on savings.
To get $2,000 in your hand from the stock market (assuming a 30% tax rate), you actually need to earn roughly $2,850. Solar only needs to save you $2,000 to be worth $2,000.
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The Numbers (2025)
Scenario: A $6,000 6.6kW system in Sydney saving $1,500/year.
- ROI: 25% per annum.
- Payback: 4 years.
- Risk: Extremely Low (Electricity prices are unlikely to drop to zero).
Compare this to the ASX200 historical average of ~9%. Solar offers a guaranteed, tax-free return that far outperforms most traditional investments, with far less volatility.
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