Many Australians are planning to install a solar power system in their home but are not sure about solar panel prices. This is not only contributing to reducing your carbon footprint, but it may also be extremely cost-effective. Even though the initial cost is rather high, you will be able to save money in the long run.
Today, one out of five households in Australia have installed solar panels on their rooftops – which makes the Aussies world-leading when it comes to utilizing solar power. If you are planning to contribute to the trend, you probably have the following question:
How much does a solar power system cost?
In this guide, we will give you a price estimate based on what type of solar system you are planning to get. Additionally, we will look at different factors that might affect the total costs.
How expensive are solar panel prices in Australia?
In 2024, the cost of a solar power system in Australia is nearly $6,200 on average. This is what you might expect to pay for a common 6.6 kWh system – including the rebate given by the government. The installation cost is also included.
Remember that solar panel prices will be affected by many factors, including what area you live in and the size of the system. If you are installing a smaller system, the cost will usually reduce significantly.
The rebate depends on your location
In Australia, the government rebate can differ from area to area. The different states give different financial rebates. The reason for this is the differences in expected sunlight amounts across the country.
For instance, you can expect a different amount of daily sunlight if you live in Tasmania or Victoria, compared to those who live in Queensland, New South Wales, Western Australia, Northern Territory or South Australia.
In general, the costs are higher in areas like TAS and VIC, compared to ACT, QLD, NSW, WA, NT and SA. The $6,200 cost example is for the latter. If living in VIC or TAS, the average cost will likely be a bit higher – around $6,200 to $6,650.
In comparison, a 1.5 kWh system will cost around $3,000 or $3,150 on average. A big 100 kWh system, on the other hand, will usually cost as much as $63,000 to $71,000.
How much does the installation of a solar power system cost?
In many cases, the installation price is included in the solar power system price the companies are using in their advertising. For instance, if a company is marketing a solar panel system price of $6,200, you should expect that it includes installation services.
However, you should be aware that not all solar panel prices include installation in the price. Make sure to get a written offer where all the costs are specified and use only CEC-approved installers to avoid scams or negative surprises.
The size of your home might affect the solar panel price
As we have already mentioned, the system size will greatly affect the price of a solar power system. So, what size do you need? This is usually depending on the size of your house. The bigger the house, the bigger the solar power system you will need.
For a small house, a 1.5 kWh system will often be sufficient. If you are living in a large house, on the other hand, you will probably need a 6 or 7 kWh system.
In general, you are going to need a bigger sized system if you use big amounts of power. A big house will typically have more fridges, lamps, computers, televisions and so on.
How long does it take to cover the costs?
Installing a solar power system is a significant one-time cost for most people, but in the long run, you will usually save money. So, how long does it take for the solar panel system to pay for itself?
In Australia, this process will usually take about four years. However, remember that the payback period can be affected by different factors – like the effectiveness of the system and the electricity costs.
The average yearly saving amount for a 6 kWh solar panel system is nearly $3,000. If you have the system for a lifetime, you can potentially save as much as $67,000.
Remember that the rebate amount will decrease
If you are considering getting a solar panel system for your house, it is worth knowing that the government rebate is decreasing every year. By 2030, the rebate will no longer exist. Until then, the rebate will be reduced gradually.
In other words, you might save some money if you install the solar panel system sooner rather than later. Using a quoting service to find qualified installers in your area is a simple fuss-free way to start.
Do you want to learn more about solar energy systems? Feel free to take a look at some of our other handy guides!