How fast you can pay back the cost of installing solar panels will depend on the size of your solar system, feed-in tariffs and how much you're currently paying towards your energy bill.
On average, it can take between 4 to 6 years to recover costs. However, with energy prices predicted to go up by 50% over the next 2 years, your payback period could likely shorten.
Not keen on rough numbers? You can add in your details in the solar power payback calculator for a more precise estimate.
You can use the solar payback calculator to estimate how soon you'll get your money's worth.
There are some aspects that go into calculating your payback period such as:
Your savings from installing solar panels will vary depending on:
As a general rule of thumb, you could save $400 per year per kW by installing solar. If you install a 6kW solar system, you could be looking at $2,400 in savings each year.
However, it's best to calculate saving estimates based on your household and a solar payback calculator can help you do just that.
It can take between 4 and 8 years on average to pay back the cost of your solar system.
There's reports that solar payback periods could go down with energy prices predicted to go up in the next 2 years. We spoke with an expert to discuss these claims.
"Although electricity prices are forecast to increase significantly between now and 2024, this will have a limited impact on rooftop solar payback periods as strong global demand will put continuous upwards pressure on solar pricing and increasing solar in the grid will push down feed-in-tariffs. In the best case, consumers might be able to expect that payback periods will stay the same or reduce slightly. Keep in mind, solar panel manufacturers continue to warn that demand in the US and Europe will see prices increase in Australia."
A normal sized 6kW Solar PV System can cost between $4,000 and $6,000 in most states in Australia and a 10kW system can cost between $7,500 and $10,500.
Here's a city specific breakdown of total retail prices of a solar system. This will help you with solar panel estimates for your state.
Costs include both the up-front incentive available for small-scale systems (STC discount) and GST.
| 3kW | 4kW | 5kW | 6kW | 7kW | 10kW | |
|---|---|---|---|---|---|---|
| Adelaide, SA | $3,850 | $4,070 | $4,610 | $5,290 | $6,340 | $8,480 |
| Brisbane, QLD | $3,800 | $4,380 | $4,760 | $5,140 | $6,240 | $8,400 |
| Canberra, ACT | $4,240 | $4,480 | $4,940 | $5,490 | $6,460 | $8,270 |
| Darwin, NT | $4,730 | $6,780 | $7,600 | $9,320 | $10,060 | $13,060 |
| Hobart, TAS | $4,490 | $5,310 | $5,940 | $6,580 | $7,290 | $10,300 |
| Melbourne, VIC | $3,720 | $4,150 | $4,630 | $5,200 | $6,070 | $7,850 |
| Sydney, NSW | $4,070 | $4,300 | $4,920 | $5,240 | $6,200 | $7,980 |
| Perth, WA | $3,580 | $4,170 | $4,480 | $5,440 | $6,360 | $9,650 |
| All | $4,060 | $4,710 | $5,240 | $5,960 | $6,880 | $9,250 |
Credit: Solar Choice (Oct 2024)
The key factor in determining how many solar panels you'll need is to figure out your electricity consumption.
The easiest way to check this is to look at past bills over 12 months, taking into account seasonal variations in power usage.
Most households in Australia will consume around a maximum of 24kWh of electricity per day.
A 5kW solar system consists of 15 to 20 panels and can produce 20kWh of power daily. That should be sufficient to run your home efficiently.
Most states across Australia will offer some sort of solar rebate or concession.
Navigate our state-specific guides to see if any are available to you.
If the upfront cost of installing solar won't put a burden on your finances then yes, going solar will benefit your budget in the long run.
This is keeping in mind the rising cost of energy bills in Australia as well as on a global scale.
Plus, you'll be doing your part to help the environment too. After all, energy efficient homes are all the rage these days.
| Response | |
|---|---|
| Reduce electricity bill | 70.03% |
| Environmental sustainability | 14.29% |
| Solar rebates | 8.71% |
| Other | 5.92% |
| None | 1.05% |
Our energy guides can help you compare and understand what plan is best for you.
Best energy plans: 5 plans selected by our experts, assessed and updated regularly
Cheap energy plans: Find the cheapest energy plans available this month
Solar power plans: Got rooftop solar? Compare your options and save even more
Average energy bill: Find out how your energy bill compares to the rest of Australia
Have you considered investing in a solar air conditioner? Here’s everything you need to know to make that decision a bit easier.
Terms like on-grid, off-grid and grid-tied can lead to confusion. They essentially refer to whether or not you want to access the grid alongside your solar power service.
Net metering lets you make the most of your solar energy system if it produces surplus power.
A finder.com.au guide to solar panels and building permits and regulations.
State-based rebates and incentives can help you with the hefty upfront costs of installing solar.