How Much Do Solar Panels Cost In Australia?

The Changing Cost Of Solar Installation In Australia 

Solar panel installation has come a long way in the past two decades as the push for cleaner, greener, more affordable renewable energy has accelerated. When it first became mainstream, high solar panel cost was prohibitive for a large portion of the market which also meant that the cost per watt was also very high too. 

Since then, solar panel costs in Australia have fallen considerably and now they are much more affordable, especially thanks to the numerous solar rebate programs offered by governments for both residential and commercial properties. The question of how much solar panels cost for a home or business requires looking closely at many factors which affect the price. 

The price of solar energy is determined by the size of the system you want to install, the prices charged by technicians to fit the panels and wire the system, where you live in the country, the cost of other components and the quality of the panels you wish to invest in. What’s clear is that untapped solar potential in Australia is costing Australians over AU$9bn per year with the savings they could be making instead of being connected to the grid. 

How Much Does Solar Panel Installation Cost In Australia?

With so many factors determining how much solar installation in Australia costs we can create a ballpark figure for the various types of installation for residential and commercial properties.

Cities like Perth, Melbourne, Adelaide and Brisbane have the overall cheapest costs to install solar photovoltaic panels, and Canberra, Hobart and Sydney have the highest prices. Darwin comes in as one of the most expensive places in Australia to install solar panels with overall rates up to 25% higher than the cheapest locations. In the lists below we provide an average for the prices across the country as of 2024, but it’s important to note that the state you live in can affect the price. 

Let’s take a look at the average solar panel costs of the most common installations for residential purposes which range from around 4kW for an average size home up to 10kW for larger properties with multiple occupants. We’ll also give the expected number of regular size panels you’d expect to need to deliver the stated kW if they have an output of 350-400W. 

Average Costs Of A Home Solar System Installation

3kW system with 7 panels: AU$4,000

4kW system with 10 panels: AU$4,700

5kW system with 12 panels: AU$5,250

6kW system with 15 panels: AU$5,950

7kW system with 17 panels: AU$6,900

8kW system with 20 panels: AU$7,600

9kW system with 22 panels: AU$8,500

10kW system with 25 panels: AU$9,250

The prices will vary by location, installer and the quality of the products used but this is a good guide to give you an idea of what you can expect to pay. Premium installations using high-quality monocrystalline panels and branded inverters will add around 15-20% to the price but are worth it in the long run. 

Remember that these are just guide prices and systems usually come in a range of popular setups which include 6.6kw, 10.3Kw and 13.3kW that are in line with the kind of panels and inverters available on the market. 

Average Costs Of A Business Solar System Installation

If you’re a business with a large energy output then you’ll need a solar panel setup anywhere from 10kW for a small retail outlet up to 100kW for offices that use HVAC. 

Take a look at the list below to see how much you can expect to pay depending on the size of the setup you require. Bear in mind that larger systems will require more panels so you need to have the roof space or an appropriate outdoor area at ground level to install them on.  

10kW system with 27 panels: AU$10,250

20kW system with 55 panels: AU$19,500

30kW system with 80 panels: AU$28,500

40kW system with 110 panels: AU$39,500

50kW system with 135 panels: AU$50,250

60kW system with 160 panels: AU$59,500

70kW system with 190 panels: AU$68,500

80kW system with 215 panels: AU$76,250

90kW system with 245 panels: AU$82,000

100kW system with 270 panels: AU$88,000

Price per watt can vary anywhere from AU$0.80 to AU$1.10 depending on the system you choose to install and the number of panels listed below is based on 350-400W panels. 

Factors Affecting The Cost Of Solar Installation In Australia

Installer Costs

There are now thousands of solar installers in Australia, with individuals, small teams and large companies offering their service for a range of prices. The price they charge can depend on multiple factors such as their experience in the solar industry, their availability, and the length of warranty they’re providing for the work. 

It’s always advisable to ask lots of questions as you’re getting your solar panel installation quotes to be sure they know their stuff. 

The Style And Shape Of Your Roof

A low roof makes it easy for the installers to create your solar array, but if your roof has multiple levels or is made from a material like slate or tile then installation could take longer and increase the costs. A flat metal roof may need to be supported to take the weight of the solar panels as they have to be placed and fixed to mounts. 

There’s also drainage to take into consideration and installers may charge more if they have to create the solar system in a way that won’t be affected by pooling water. 

The Size Of Your Solar System

It goes without saying that if you have a bigger system then it’s going to cost more, but it also means you may be entitled to a bigger solar rebate. What’s more, a larger system such as a 25 panel 10kW will bring greater savings and will pay for itself a lot faster than a small 3kW system with only a handful of panels to generate energy. 

It’s essential to determine how much power you need from your system before you ask for quotations as you don’t want to spend more than necessary on a huge solar system you don’t really need. 

Type Of Solar Panels 

Panels for solar arrays usually come in two types. Polycrystalline solar panels are less expensive than monocrystalline panels because they generate less energy and don’t function as well in low-light, cloudy conditions. 

Just like any other product, panels are branded and the premium quality brands like Panasonic and LG Solar will deliver a higher output but deliver better reliability and usually come with long warranties. Solar panel cost accounts for around a third of the total price of solar systems. 

Type Of Inverter

All solar systems in Australia rely on inverters to control and convert the flow of power into the home or business and which one you choose will affect the total cost. Microinverters will give a much better performance than the typical string inverter but will cost more. 

You can add a power optimiser to the string inverter to make it more efficient but that bumps up the cost too so you have to make a decision on which kind of inverter will suit your needs best. The position of your home and how much shading it has will affect your choice. 

Interconnection Fee

When solar panels are installed the electricity generated goes straight to your property for residential use, however if you want to earn money from feed–in tariffs by putting any excess you create back into the local grid then you’ll need to connect the setup to the grid. 

The costs cover the connection fee itself, the installation of a smart meter, and all of the application paperwork that goes along with it. Your solar installer should handle everything related to compliance, standards and solar permits for your grid connection. 

Other Components

In addition to the solar panels and inverters required, a solar setup also needs lots of other equipment to get it set up. A racking system for your roof is necessary to hold the panels in place and keep them stable in bad weather. A solar battery can hold excess energy the panels create for use on cloudy days, but it’s not essential to have one. 

If you do opt for the battery system then you’ll also need a charge controller to prevent the battery from becoming overcharged. All of the wiring should be included in the installer costs. 

How Much Can I Save With A Solar System Rebate?

The short answer which we’re sure you’ll be pleased to hear is thousands!

Whichever state you live in there will be some kind of solar rebate in Australia you can take advantage of to massively bring down the price of your installation. The rebate is, in essence, a subsidy paid by the federal government as part of their nationwide Small-scale Renewable Energy Scheme to make solar more affordable but it can vary from state to state. 

There are some key criteria you need to meet including being the owner of the property, the property is valued under a certain amount and taxable income is often required to be below a certain figure per year. 

Let’s take a look at the average installation prices for a cheaper system capable of generating around 6kW and then add the potential rebate on to see how much you could be saving:

The solar panels on their own would come in at AU$3,000 with another AU$600 for a basic inverter. A roof mounting kit will be around AU$450 and installation for a project of this size could be around AU$2000 as it includes all of the racking and wiring setup. This comes in at approximately AU$6000 but once you take away the rebates of AU$3,400 you’ll be looking at a cost of just AU$2800. 

For a premium 6kW system including the best quality solar panels, inverters, storage batteries and everything else the solar installation entails you’d expect to pay around AU$5,000 after rebate which is a massive saving. 

The amount of the solar rebate you receive all depends on something called Small-scale Technology Certificates, also known as STCs. If you have a large generation potential for STCs, such as if you have a big system or living in a very sunny part of the country, you can expect a bigger discount. 

On top of the regular federal rebate there are also additional incentives. Victoria, for example, gives owners an additional AU$1,400 to install solar and South Australia gives a massive AU$2,000 to cover a battery rebate. You can read more about the NSW solar rebate and STCs here.

Ways To Finance Your Solar System Installation

Pay Cash Upfront

If you have the available capital to spend directly on solar panel prices which can range up to AU$400 you can pay cash upfront to the installer. As they install it you’ll be able to receive the tax incentives from the government scheme and you’ll own the panels and equipment from the start. The money will be recouped if you sell the property too. 

Power Purchase Agreement 

Choosing a Power Purchase Agreement (PPA) lets you pay for the amount of electricity your system generates per kW. In effect, the solar panel installer becomes your power company and you pay them a reduced rate for the power generated instead which saves money. It’s a great way to get solar power installation but you’re not really in control of your bills as if it were your own system. 

DIY Solar Installation

You can do it yourself with a solar panel kit installation purchased from a retailer. Unless you are an experienced electrician we don’t advise this route as you could end up damaging the equipment, your property or even yourself. You won’t be able to claim the solar rebate as the installation must be done by a professional. 

Solar Leasing 

Solar leases are a good option if you don’t want to pay upfront for the entire cost of a solar installation which could run over AU$10,000 depending on the setup you require. A solar company installs the panels and other components on your property and you rent it from them for a fixed amount. 

Solar Financing

Banks and lending companies now offer specific loans for solar financing so you can purchase the solar setup and have it installed on your home, receive the multiple tax incentives that come with solar installation in Australia, and then pay it back over a certain time frame. 

Solar Installation In Australia FAQs

Can I get a solar rebate or other incentives to install solar panels on my home?

Yes, the Small-scale Technology Certificate scheme run by the federal government offers large rebates for residential solar panel installation. Many factors such as the size of the array you want and where it’s going to be placed can affect how much you will receive. There are also extra incentives provided on a state level which can vary, check them here. 

What finance options are available for a solar power installation?

Solar systems can be expensive and require a large upfront cost, but there are many options for financing a solar installation including Power Purchase Agreements (PPAs) where you only pay for the electricity that’s generated, specific loans from banks, and you can even lease your system. Many solar companies also provide loans for solar systems. 

How much is solar energy saving me over time?

No matter the cost to solar power your home, over time the electricity it generates will pay the cost off as you’ll be saving on your monthly bills, especially if the cost of electricity from the grid increases. The bigger the system, the more energy it creates, the faster it will be paid back. It will usually pay for itself within 3-7 years, but continues to generate for 20+ years. 

How long will my solar installation last for?

When you build a premium solar system with high-quality materials and components, it should last for at least 25 years and generate electricity for the life of the panels. It will require maintenance to keep everything in good working order and you may need to buy smaller components such as inverters every 7-10 years.

How much does it cost to get solar panels?

The cost of a solar panel is directly related to its construction quality, how much energy it can generate, and how long it will last for. Cheaper polycrystalline panels can be purchased for around AU$150-AU$250 whereas premium panels by well-known brands that are more efficient can cost anywhere from AU$250-AU$500 but will last longer. 

What is the average cost of solar panel installation in Australia?

For a typical solar setup on a home in Australia the price is going to be in the region of AU$3000-AU$5500 for a basic system generating around 6kW. For a premium solar system with top-of-the-range components fully connected to the grid you can expect to pay a little more, in the region of AU$6,000-AU$9,500.

Does my location affect how much solar installation costs?

Solar panel fitting costs in Australia can fluctuate from state to state. This is because in some larger cities like Sydney or Brisbane there are more installers competing with each other which brings prices down, but if you are living in a more rural location where it costs more to transport and connect the system overall prices are going to be higher. 

Will my home be worth more with a solar panel installation?

Homes in Australia with solar panels already installed are more attractive to buyers as they are instantly getting savings on their electricity bills. Homes could be worth 5% more thanks to the solar installation and with average home prices at around AU$800,000, that equates to around AU$40,000 added onto the price.

How much is solar energy maintenance?

Once the setup is complete solar panels don’t need much maintenance at all. To keep them efficient it’s advisable to have them professionally cleaned and inspected every year. This removes the buildup of any dirt or dust that has accumulated on them and prevents them from converting sunlight to electricity and only costs around AU$200 per year.