Solar Power Australia

The cost of solar installations are cheaper than ever, and the available rebates only further these savings.

In 2022, the only real limitations to a solar installation are your budget, how many solar panels you can fit on your property, and the amount your local electricity network (DNSP – Distributed Network Service Provider) allows you to install.

For the average home, most experts will agree that the minimum you should consider buying is 6.6 kW of panels (approx. 18 in total) with a 5 kW inverter. This is a solid starting point. 

You should only really need to consider going larger than a 6.6 kW installation if:

• You use a large amount of electricity,
• You’re adding a battery storage system
• You plan to charge an EV vehicle and power your home. 

While prices will vary depending on the product brands you choose, here’s what you can expect to roughly pay for a standard solar installation:

• 5kW: $4,500 – $8,000
• 6.6kW: $5,500 – $9,000
• 10kW: $8,500 – $13,000

These estimates include the average cost of the products and the solar installation itself, and you may find solar quotes higher or lower than the above estimates based on your specific needs.

The main way home solar power saves you money is by offsetting your grid electricity usage:

• You pay 33c per kWh
• You generate 3 kWh to offset your usage. 
• You save 99c. 

If your system generates any kWh that you don’t use, it’s sent back into the grid, and your retailer pays you a feed-in tariff. Nice!

Exactly how much money solar power will save you depends on a few things:

• The size of your system in kW - generation capacity
• The output capacity of your system - total generation and storage
• Your Energy Consumption Ration (ECR) - how much you generate vs how much you sell to the grid.
• Your feed-in tariff - the amount you earn per kWh sold to the grid.
• Your usage tariff - the amount you pay for grid electricity.

On average, it will take around five years for a standard solar energy system to provide payback costs equal to installation.

Here are some payback calculation examples for a 6.6 kW system:

• Sydney: 4 years, 7 months
• Brisbane: 4 years, 9 months
• Canberra: 4 years, 11 months
• Perth: 5 years, 11 months
• Melbourne with VIC rebate: 4 years, 2 months
• Melbourne without VIC rebate: 5 years, 5 months
• Adelaide: 4 years, 6 months
• Darwin: 5 years, 4 months
• Hobart: 6 years, 2 months

With most solar products guaranteed to last decades before they need replacing, by the time you need to revisit any installations or upgrades, you’ll have earned the money to afford them through your existing system. 

Yes, although who you choose to get finance with will largely depend on your personal circumstances.

While entire websites are devoted to comparing and analysing financial products, one quick word of warning is to avoid any ‘installer finance’ that can often turn out to include high fees or higher interest repayments.

Similar to buying a car, don’t just grab your finance from the dealership - take your time to compare your options, speak to a financial adviser, and make an informed decision about your future.