Sun-Powered Savings: How Much Do Solar Panels Really Cost?

With the continued surge of electricity costs, solar energy is turning into a practical solution. While you’ll shell out a substantial amount of money during purchase and installation, the long-term benefits of powering your home with solar energy clearly outweigh  the upfront costs. Solar power is pretty much an investment with financial benefits through savings in the long run. Shifting to solar power also paves the way for a greener, more sustainable lifestyle. 

If you’ve already set your mind to getting your house powered by solar energy, the next step would be to work out your budget. But, how much do solar panels cost in Australia?  We discuss approximate costs below. 

How much do solar panels cost in Australia? 

Depending on the solar system and quality, solar panel prices vary in Australia. You can have a rough estimate of costs once you’ve determined some factors that directly impact pricing, such as your chosen solar power system. But how do you know what system is right for you? You’ll have to take a closer look at your energy needs. 

Simply put, understanding your average monthly energy consumption can help you determine the system size that fits your household (e.g., 5kW, 6.6kW, 10kW). By discovering the system size that’s right for your home, you’ll have your cost estimate. 

To give you an idea of how much you will spend upfront, the commonly used 6.6 kW solar system, which is enough to power an average Australian household, ranges from $6,000 to $8,500, or around $5,530 to $6,350​ after rebates. To reiterate, these are just some ballpark figures, and government incentives play a crucial role in providing price reductions, significantly lowering the upfront cost of solar panels

What are the financial benefits of solar power? 

Choosing solar energy over traditional electricity is more than an eco-friendly solution. When you think about the savings you’ll gain in the long run, solar power is a wise investment with a corresponding range of financial benefits. We list these benefits below: 

Reduced reliance on the grid means lower energy bills

The main appeal of solar energy is the promise of lower monthly energy expenses. Solar power, which reduces your dependence on the grid, really delivers when it comes to savings. For instance, a typical solar-powered household using the 6.6 kW system can save you around $1,000  to $2,400 annually. You can calculate your saving estimates using a solar payback calculator. 

Generate income through feed-in tariffs 

More than cost savings, homeowners with solar systems can generate income through feed-in tariffs, a scheme designed by governments to support renewable energy. Under this policy, you can earn money back for any surplus energy exported to the grid. For the 2023-24 financial year, the feed-in tariff rate has been set at 13.4 cents per kilowatt-hour, a significant increase from 2022-23’s 9.3 cents per kilowatt-hour. Rates can also vary by provider and plan. 

Government rebates and incentives

Rebates and incentives significantly reduce the initial cost of solar panels. Such support fully displays the government’s efforts to alleviate the high costs associated with solar panel installations. Taking rebates and financial incentives into consideration, shifting to solar power becomes a more realistic and accessible option for many homeowners. 

How to maximise your solar savings?

There are certain practices you can do to further enjoy the financial benefits of having a solar-powered home. Find out more here: 

A solar power system that meets your requirements

By installing a system that perfectly matches your household’s needs, your solar power system works in its utmost efficiency. In the solar industry, better performance translates to savings. 

High-quality solar panels are valuable investment

Choosing solar panels from leading brands may have a higher initial cost, but solar panels with excellent quality ensure that your investment in solar energy pays off for years to come. 

Solar panel maintenance and cleaning to ensure lengthy lifespan

Regular maintenance is crucial to optimise the efficiency and performance of your solar panels. By cleaning and doing routine checks, you can prevent potential issues so your solar power system can work at its highest capacity. 

about the author
Marcin Hernik

Marcin Hernik

Marcin Hernik is the Managing Director at Volteam Electric Pty Ltd, leveraging his expertise honed from TAFE Queensland's Electrical and Electronics Engineering, following his graduation from the University of Technology and Humanities in Radom. His career is marked by a commitment to excellence in electrical engineering and leadership in the industry.