With so much sun to soak in across Australia, there’s no doubt that solar panels are a great choice for many households. So what’s the barrier that’s prompting some Aussie homeowners to delay their solar investment?
The answer, of course, is the cost of solar PV solutions. Although prices have been steadily dropping since rooftop solar solutions were made commercially available over two decades ago, solar panel systems can still cost upwards of thousands of dollars, which is an upfront cost that not all Aussie homeowners can afford.
Thankfully, both the Federal and State Governments do provide solar rebates that are tailored to residential property owners and their current and projected energy needs. Alongside that, reputable solar providers like our team at Solargain also provide special offers on solar, with the aim of making solar investments more affordable and accessible for everyday Australians.
Even with these concessions and special offers, savvy consumers can still greatly benefit from understanding just how much solar costs in Australia and how they can calculate their estimated ROI and payback period on their solar investment. Today, we’ll be breaking down exactly how much solar costs in Australia, and walk you through all the different contributing factors that can affect the total price of your solar investment, as well as considering your cost-benefit savings over time.
What’s the Average Cost of Solar Installations in Australia?
In 2025, the average cost of solar installations in Australia for a 10kWh system is around $10,000 (or $1,000 per 1kWh). That figure has decreased from $1,300 in 2023, despite national rebates being reduced every year – with the current scheme projected to end in 2030. So, now is certainly a good time to invest in solar power if you’ve been considering it for a while.
However, that’s an average figure – and real rates range from $7,000 to $20,000, which ultimately demonstrates that that $1000/1kWh rule only applies to most entry-level solar solutions, and the higher the energy output (i.e. approaching 20kWh commercial solar solutions), the steeper the price.
Wondering why? Keep scrolling, as we’re going to explain all the different factors that can reduce, increase and influence solar set-up and installation costs for Australian homes, to help you figure out what you should, and shouldn’t, be spending on this investment.
Key Factors that Contribute to Solar Costs
Solar Panel Array Size
Your solar panel array size refers to not just the physical dimensions of your solar panels, but crucially, how much energy they are able to produce. Different brands will charge different amounts for solar panel models, depending on factors such as their shape, efficacy, and durability. If you commit to a 6.6 kWh solar panel system, this doesn’t mean you’ll need exactly 20 panels, even if your friend in a different part of town has the same 6.6kWh system. If you want to learn more about array sizes and what they mean, read our blog dedicated to understanding how to choose the right solar array size for your property.
Average Solar Panel Array Size in Australia
The average solar panel array size in Australia is 9.3 kWh, however, many households still opt for the most widely and commonly installed size of 6.6 kWh (and this is what many suppliers refer to when breaking down cost differentials). Most residential system sizes are between 3 kW and 20 kW. Keep in mind that your system must be under 100 kWh to qualify for the household solar rebate scheme.
Solar Battery Size
You’ll also have the option to buy your own solar battery with your solar panel system, which will likely boost your savings in time, by further lowering your electricity bill. However, this does significantly increase the upfront cost – potentially even doubling it, so it’s only worth it if you’re going to generate enough excess energy to store, and if you’re able to generate enough energy to do so. You can also opt to install a solar battery in a few years, though this will generally cost more, and the government battery rebate may no longer be in effect.
Average Solar Battery Size in Australia
The average and most popular battery size for homes in Australia is 13.5 kWh. This battery size can operate solar panels operating at 6.6 kWh, 8 kWh and 10 kWh. If you’re consuming significantly more energy than the average household each day, however, you may still be able to maximise your energy savings and electricity bill with a smaller battery size of around 10 kWh.
Solar Manufacturer Brands
We stock solar panels from our trusted manufacturers, including Jinko, DMEGC Solar, Seraphim, Aiko, SunPower and Trina Solar. Whether you’re looking for reliable budget options or are willing to invest in high-end models with other integrated technologies, including WiFi connectible inverters, make sure you check thoroughly with any solar power supplier to ensure you aren’t being ripped off, nor paying for products which are sub-par.
Don’t forget, our customer service team can help you along the journey. With over twenty years in the solar industry, we’re pretty clued up on which brands to trust, and can help pair you with the right supplier for your household needs, electricity usage, roof specifications, and budget.
Benefits of Investing in Premium Solar Panel Brands
The main benefit of investing in premium solar panel brands is the long term efficacy of your solar energy system. While they may take longer to pay back, they will often end up saving you more money in the long term. Look out for longer performance guarantees and product warranties (upwards of 25 years). Premium solar panel brands also tend to benefit from better heat tolerance when exposed to extreme temperatures alongside slower degradation. Look for positive customer reviews, and third-party recommendations from companies like us!
Property Location
Why is Solar Installation more Difficult for Regional Properties?
Solar installation can be more difficult, and therefore more expensive, for regional properties. Installers may charge an additional travel fee for properties outside a certain range, so these fees must be factored into your overall quote and final cost.
In areas where the electricity grid is less stable or unreachable, it can be difficult to sell energy back into the national system, which will affect your savings potential. In some cases, mains supply and switchboard upgrades may be required before you’re able to safely install any solar panels, as monitored by local regulations.
On the plus side, however, regional properties may be able to benefit from better rebates. Additionally, feed-in tariff rates are better in regional WA than Perth, and homes in regional Queensland receive flat rates (rather than set by individual electricity retailers). If you want further information on these particulars, you can reach our offices in both states, where we have dedicated teams who can provide accurate, specific information relevant to your local government and state regulations.
Factoring in Solar Payback to your Cost Calculations
What is Solar Payback?
It’s easy to be put off by higher upfront costs in favour of saving money in the short term. But it’s crucial to consider the long-term payback of your solar installation when considering your cost calculations.
Solar payback is the time it takes for your solar power system to generate enough energy to save enough money on your electricity bills that it cancels out what you spent on installation. Essentially, it’s how you ‘break even’ on the initial investment of your solar panels, solar inverters, solar battery and any other costs, including installation and back-up equipment. Use our solar savings calculator to get a brief idea of how you could save, depending on the approach you take.
Basic Formula for Solar Payback Calculations
The basic formula for calculating your solar payback is to divide the total cost of your solar panel system by your average yearly savings. Most capital cities have a payback period between 5 and 7 years, with outliers Melbourne, Canberra and Adelaide with extremes of 8 years and 3-4 years respectively, due to lesser and greater sun exposure.
This payback isn’t exhaustive, though. Solar panels may add market value to your property, you can sell excess energy back to your local government at competitive rates, and solar panels require fewer ongoing maintenance costs than traditional forms of energy generation, such as old coal fires.
What Solar Rebates are Available for Australian Homeowners?
The Australian Government introduced a solar rebate for Australian homeowners in 2011 to encourage households to invest in this renewable energy source. There are some differences on the rebate amount depending on your locations – sunnier states such as Queensland have higher percentages than Victoria, for instance. This rebate is available until the end of 2030, and you’ll pay the installer the net difference, but keep in mind that its value decreases each year.
In July 2025, the Federal Government also introduced their home solar battery rebate program, which you can claim alongside the solar panel rebate. This rebate is eligible for any new solar panels subject to eligibility requirements, and can reduce your costs from $1,500 - $3,000.
Use a solar rebate calculator to work out how much you could be eligible to save based on your model and location.
Save on your Solar Panel & Battery Costs with Solargain
Familiarising yourself with the different ways to save on your solar panel and battery costs can help keep expenses as low as possible, whilst getting the best bang for your buck.
At Solargain, our solar energy specialists can help pair you with the right solutions for your energy needs, and find an option that fits comfortably within your budget. After being awarded for the most satisfied customers by Canstar in 2021, 2022, 2024 and 2025, we’re confident we can add you to our long list of happy, sun-soaked homeowners.
Reach out to the Solargain team and say hello wherever you are in Australia. We can help you find the most cost-effective solar investment for your property today. Use the form below to connect.
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