Australia leads the world in rooftop solar adoption, with over 3.7 million households now generating their own electricity. The average solar panel installation cost in Australia sits between $5,000 and $10,000 for a standard 6.6kW system after the federal STC rebate, but your final bill depends on system size, panel quality, roof type, battery storage, and where you live. With electricity prices continuing to climb and the federal rebate shrinking each year until it ends in 2030, understanding the true cost of going solar has never been more important. This guide breaks down every cost component so you can budget accurately before contacting a licensed solar installer.
How Much Does Solar Panel Installation Cost? The Short Answer
The total solar panel installation cost in Australia ranges from roughly $4,500 for a small budget system to $20,000 or more for a large premium installation with battery-ready wiring. All prices below are after the federal STC rebate, which most installers apply as an upfront discount on your quote.
| Budget Tier | System Size | Total Cost Range (After STC) | What You Get |
|---|---|---|---|
| Budget | 6.6kW | $4,500–$6,000 | Tier-2 panels, string inverter, standard racking, basic monitoring. Suits small to medium households using 15–25kWh/day. |
| Mid-range | 6.6–10kW | $6,000–$12,000 | Tier-1 panels (Jinko, Trina, Canadian Solar), hybrid inverter (battery-ready), optimised panel layout, app-based monitoring. Most popular choice. |
| Premium | 10–13kW | $12,000–$20,000+ | Premium panels (SunPower, REC Alpha, LG), Enphase microinverters, full roof optimisation, battery-ready wiring, extended 25-year performance warranty. |
A budget system generates solid returns but offers fewer upgrade options later. A mid-range system balances cost with quality, using Tier-1 panels and a hybrid inverter that accepts a battery down the track. A premium system maximises output on complex or shaded roofs with high-efficiency panels and microinverters.
Cost by System Size
System size is the single biggest factor in your solar panel installation cost. Here is what each size costs across the three quality tiers.
| System Size | Budget | Mid-Range | Premium | Daily Output (Average) | Best For |
|---|---|---|---|---|---|
| 6.6kW | $4,500–$5,500 | $5,500–$7,500 | $7,500–$9,500 | 22–28kWh | 2–3 person household, moderate usage |
| 10kW | $7,500–$9,500 | $9,500–$12,000 | $12,000–$15,000 | 35–42kWh | 4–5 person household, pool or ducted AC |
| 13kW | $10,000–$13,000 | $13,000–$16,500 | $16,500–$20,000+ | 45–55kWh | Large household, EV charging, future battery |
The 6.6kW system remains Australia’s most popular residential size because it maximises the STC rebate relative to cost and fits comfortably on most roofs. Larger 10kW and 13kW systems suit homes with high daytime consumption, EV charging, or plans for battery storage.
Understanding the STC Rebate
The federal STC (Small-scale Technology Certificate) rebate significantly reduces your upfront cost. Most installers claim the STCs on your behalf and apply the discount directly to your quote, so the prices throughout this guide already reflect the rebate.
How STCs are calculated. The number of certificates equals your system size (kW) multiplied by your postcode zone rating (zones 1 to 4) multiplied by the deeming period (years remaining until the scheme ends in 2030).
Practical rebate values for a 6.6kW system installed in 2025:
| Location | Zone | Approximate STCs | Rebate Value (at ~$39/STC) |
|---|---|---|---|
| Brisbane / Perth | Zone 2 | ~61 | ~$2,400 |
| Sydney / Melbourne / Adelaide | Zone 3 | ~55 | ~$2,150 |
| Hobart | Zone 4 | ~47 | ~$1,830 |
| Darwin / Central Australia | Zone 1 | ~65 | ~$2,535 |
The rebate drops each January as the deeming period shortens by one year. In 2025, the deeming period is 6 years. In 2026, it drops to 5 years, reducing the rebate by roughly 15 to 17 percent. The scheme ends entirely on 1 January 2031. Installing sooner means a larger rebate. These rebate values are already reflected in the system prices quoted throughout this guide.
Regional Cost Comparison
Your solar panel installation cost varies across Australian capital cities due to differences in labour rates, market competition, and STC zone ratings.
| City | 6.6kW Mid-Range Cost | Compared to National Average |
|---|---|---|
| Sydney | $5,500–$8,500 | 10–20% higher |
| Melbourne | $5,500–$8,000 | 10–15% higher |
| Brisbane | $5,000–$7,000 | Close to average |
| Perth | $4,800–$7,500 | Close to average |
| Adelaide | $5,000–$7,500 | Close to average |
| Hobart | $5,500–$8,500 | 10–15% higher |
| Canberra | $5,500–$8,000 | 10–15% higher |
| Darwin | $4,500–$7,000 | 5–10% lower (Zone 1 STC benefit) |
Sydney and Melbourne command higher prices due to elevated labour costs. Darwin benefits from Zone 1 STC ratings (the highest rebate) which partially offset its smaller installer market. Brisbane and Perth are among the most competitive solar markets in Australia. Regional areas are typically 5 to 15 percent more expensive than the nearest capital city.
Factors That Affect Solar Panel Installation Cost
Every solar project is different. These eight factors drive the biggest price variations.
1. System Size
A larger system costs more upfront but delivers a lower cost per watt. A 6.6kW system averages $0.83 to $1.14 per watt installed. A 13kW system averages $0.77 to $1.00 per watt. If your roof space and budget allow, a larger system usually delivers better long-term value.
2. Panel Quality and Brand
Budget Tier-2 panels (Risen, Leapton) cost 20 to 30 percent less than Tier-1 panels (Jinko, Trina, Canadian Solar) and 40 to 50 percent less than premium panels (SunPower Maxeon, REC Alpha). Premium panels offer higher efficiency (22 to 24 percent vs 20 to 21 percent), longer product warranties (25 years vs 12 to 15 years), and better low-light performance.
3. Inverter Type
String inverters ($1,000 to $2,000) are the most affordable option. Hybrid inverters ($1,800 to $3,500) add battery readiness. Microinverters ($2,500 to $5,000 for a full set) sit behind each panel and are ideal for partially shaded or complex roofs but add significantly to the overall project cost.
4. Roof Type and Condition
Tin (Colorbond) roofs are the cheapest to install on. Tile roofs require grinding and sealing around brackets, adding $300 to $600. Flat roofs need tilt frames ($500 to $1,000). Asbestos-containing roofs require re-roofing first. A licensed roofer should inspect older roofs before installation. If your roof is near end of life, a licensed builder can coordinate both re-roofing and solar projects to avoid double-handling costs.
5. Roof Orientation and Shading
North-facing roofs generate the most energy. West-facing roofs produce more afternoon power (useful with time-of-use tariffs). South-facing panels produce 25 to 30 percent less than north-facing and may require a larger system to compensate. Shading from trees, buildings, or antennas reduces output and may require microinverters or optimisers.
6. Switchboard and Electrical Upgrades
Older homes with ceramic fuse boards or insufficient circuit breaker capacity need a switchboard upgrade ($800 to $1,500 for single-phase, $1,500 to $3,000 for three-phase). A licensed electrician handles this work, and the cost is often quoted separately from the solar installation.
7. Battery Storage (Add-On)
Adding a battery at installation is cheaper than retrofitting later. Battery costs range from $6,000 to $16,000 installed (before rebates) depending on brand and capacity. See the battery section below for detailed pricing.
8. Network and Grid Connection Requirements
Some electricity networks cap solar export capacity. WA’s Synergy limits single-phase exports to 5kW. SA Power Networks may require export limiting devices ($200 to $500). These requirements vary by location and can affect system design and cost. If you are adding solar alongside a new ducted air conditioning system, a larger system with dedicated circuits may be needed.
Battery Storage Costs
Adding a battery increases your solar panel installation cost but lets you store excess daytime generation for evening use. Battery costs have dropped significantly, and the federal Cheaper Home Batteries Program (launched July 2025) provides an upfront discount of approximately 30 percent on eligible systems.
| Battery | Usable Capacity | Installed Cost (Before Rebates) | After Federal Battery Rebate (~30%) | Warranty |
|---|---|---|---|---|
| Tesla Powerwall 3 | 13.5kWh | $12,000–$16,000 | $8,400–$11,200 | 10 years |
| BYD Battery-Box Premium | 12.8kWh | $7,500–$10,500 | $5,250–$7,350 | 10 years |
| Alpha ESS SMILE | 10.4kWh | $6,000–$9,000 | $4,200–$6,300 | 10 years |
| Sungrow SBR | 12.8kWh | $7,000–$10,000 | $4,900–$7,000 | 10 years |
The Cheaper Home Batteries Program provides a discount of approximately $330 to $372 per usable kilowatt-hour, capped at 50kWh per system. The installer claims this on your behalf, similar to STCs. A solar-plus-battery system typically adds 3 to 5 years to the payback period compared to solar alone. For households with time-of-use tariffs or low feed-in rates, batteries make financial sense sooner.
State-Specific Solar Schemes and Considerations
Beyond the federal STC rebate and battery program, several states offer additional incentives that reduce your upfront cost.
Victoria: Solar Homes Program. Eligible owner-occupiers can receive up to $1,400 off their solar installation plus an interest-free loan of up to $1,400. Requirements: combined household income under $210,000, property value under $3 million, and no previous Solar Homes rebate. Victoria’s regulated minimum feed-in tariff was effectively removed from July 2025, making battery storage more important for Victorian households.
New South Wales. NSW offers up to $1,500 for households installing a battery and connecting to a Virtual Power Plant (VPP), stackable with the federal Cheaper Home Batteries Program. Verify your installer holds an NSW electrical contractor licence through TradieVerify.
Queensland. No current state-specific solar rebate, but QLD benefits from Zone 2 STC ratings (higher federal rebate) and strong solar irradiance that delivers faster payback periods. The QLD Battery Booster program closed in October 2025.
South Australia. No state solar rebate, but SA has Australia’s highest electricity prices, delivering fast solar payback periods. SA Power Networks may require export limiting on systems above 5kW single-phase.
Western Australia. Synergy’s Distributed Energy Buyback Scheme pays 10c/kWh during peak (3pm to 9pm) but only 2c/kWh off-peak, strongly favouring battery storage. WA caps single-phase exports at 5kW. A licensed electrician can advise on system sizing for WA network requirements.
ACT. No territory-specific solar rebate. ACT has committed to 100 percent renewable electricity, so feed-in rates remain relatively competitive at 5c to 8c/kWh.
Tasmania. Lowest solar irradiance in Australia, resulting in the longest payback periods (8 to 12 years for solar alone). Aurora Energy is the primary retailer, offering 4c to 8c/kWh feed-in rates.
Northern Territory. Zone 1 STC ratings provide the highest federal rebate. Darwin’s tropical climate delivers strong generation but panels must withstand cyclonic conditions with additional mounting requirements.
Payback Periods
Understanding how quickly your system pays for itself helps justify the solar panel installation cost. Payback depends on system cost, energy consumption, self-consumption ratio, and feed-in rates.
| City | 6.6kW Payback (Solar Only) | With Battery Added |
|---|---|---|
| Perth | 3.5–4.5 years | 6–8 years |
| Adelaide | 4–5.5 years | 6.5–8.5 years |
| Brisbane | 4.5–5.5 years | 7–9 years |
| Sydney | 4.5–5.5 years | 7–9 years |
| Melbourne | 5.5–7 years | 8–10 years |
| Canberra | 5.5–7 years | 8–10 years |
| Darwin | 4–5 years | 6.5–8 years |
| Hobart | 8–12 years | 12–16 years |
The national average payback for a 6.6kW solar-only system is approximately 4 to 6 years. After payback, the system generates free electricity for the remaining 20 or more years of its lifespan.
How to Get Accurate Quotes
Getting the right price starts with good preparation. Follow these steps to compare quotes fairly.
Get at least three quotes. Three quotes from CEC-accredited installers gives you a realistic price range. If one quote is 40 percent below the others, check what is being excluded or whether lower-quality components are being used.
Check CEC accreditation. Every installer must hold current Clean Energy Council accreditation to create STCs. Also confirm they hold a state electrical licence. Search for a licensed solar installer on TradieVerify.
Compare like for like. Ensure each quote specifies the same panel wattage, brand, inverter type, and system size. A 6.6kW system using 370W Tier-2 panels is not comparable to one using 440W Tier-1 panels.
Ask about inclusions. Confirm whether the quote includes the smart meter upgrade, switchboard work, roof repairs, conduit runs, and the compliance certificate. Hidden extras can add $500 to $2,500.
Request performance estimates. Reputable installers provide site-specific generation estimates based on your roof orientation, pitch, and shading. Compare estimated annual output in kWh across quotes.
Hidden Costs and Exclusions
Budget blowouts happen when unexpected items inflate your solar panel installation cost. Watch for these common additions.
Smart meter upgrade. Older analogue meters cannot track solar exports. Your distributor replaces the meter, costing $200 to $600 in most states (free in some WA areas).
Switchboard upgrade. Homes with old ceramic fuse boxes or insufficient capacity for a solar circuit breaker need upgrading. Budget $800 to $1,500 for single-phase or $1,500 to $3,000 for three-phase. Your licensed electrician handles this work.
Roof repairs. Cracked or damaged tiles, deteriorated flashing, or rusty roofing sheets should be fixed before panel installation. A licensed roofer can assess your roof. Budget $500 to $3,000 depending on the extent of repairs.
Tilt frames for flat roofs. Panels on flat roofs need tilt frames for the correct angle, adding $500 to $1,000.
Long cable runs. If your switchboard is far from the roof (common in split-level homes), additional cable runs add $200 to $1,000.
Network application fees. Some distributors charge connection fees of $100 to $300, particularly for systems above 5kW or those requiring export limiting.
Tips to Save Money on Solar Installation
Reducing your solar panel installation cost does not mean accepting poor quality. These strategies deliver genuine savings.
Install before the STC rebate drops further. The rebate decreases each January. Installing in 2025 rather than 2026 saves roughly $350 to $500 on a 6.6kW system. The rebate ends entirely in 2031.
Go battery-ready now, add the battery later. A hybrid inverter costs only $500 to $1,000 more than a standard string inverter but saves $1,000 to $2,000 on future battery retrofitting. Battery prices continue to fall, so waiting 2 to 3 years often makes financial sense.
Choose the right system size first time. Adding panels later costs more per watt than installing a larger system upfront. If your roof and budget allow, size up now.
Maximise self-consumption. Run dishwashers, washing machines, pool pumps, and hot water systems during daylight hours. A licensed plumber can install a heat pump hot water system to boost daytime consumption. Every kilowatt-hour you consume saves 25 to 40c versus 3 to 10c for exports.
Stack rebates. Combine the federal STC rebate with state schemes (VIC Solar Homes, NSW VPP incentive, federal Cheaper Home Batteries) and check for local council incentives.
Bundle with electrical work. If your home needs a switchboard upgrade or additional circuits, bundling this work with the solar installation saves on call-out fees. Discuss with your licensed electrician.
Frequently Asked Questions
How many solar panels do I need for my home?
A standard 6.6kW system uses 15 to 18 panels (typically 370W to 440W each) and suits a household using 15 to 25kWh per day. A 10kW system uses 23 to 27 panels and suits larger households with pools, ducted AC, or EV charging. Your installer designs the system based on your energy bills and roof space.
How long do solar panels last?
Most panels come with a 25-year performance warranty guaranteeing at least 80 percent of original output at year 25. High-quality panels regularly last 30 years or more. Inverters typically last 10 to 15 years before needing replacement ($1,000 to $3,000). Budget for one inverter replacement over the system’s lifespan.
Is solar worth it in Melbourne or Hobart?
Melbourne receives roughly 20 percent less solar irradiance than Brisbane, extending payback to 5.5 to 7 years. The VIC Solar Homes rebate ($1,400) and interest-free loan ($1,400) help offset this. Hobart has the longest payback (8 to 12 years) but also Australia’s lowest electricity prices. Solar still delivers a positive return in both cities over 25 years.
What happens to my solar panels if I sell my house?
Solar panels stay with the property and are considered a fixture. Research by Origin Energy and Domain found that homes with solar sell for 3 to 5 percent more than comparable homes without. Ensure all warranty documentation, compliance certificates, and CEC paperwork are included in the property sale.
Do I need to upgrade my switchboard for solar?
Not always. If your switchboard has modern circuit breakers, safety switches, and a spare slot for a solar breaker, no upgrade is needed. Homes with ceramic fuse boxes or switchboards at full capacity need an upgrade ($800 to $3,000). Your installer assesses this during the site inspection.
Should I add a battery now or later?
For most homeowners in 2025 to 2026, installing a hybrid inverter now and adding a battery in 2 to 3 years is the best financial strategy. Battery prices continue to fall, and the federal Cheaper Home Batteries Program provides approximately 30 percent off. If your tariff is time-of-use with expensive evening rates, or if your feed-in tariff is below 5c/kWh, adding a battery at installation may make sense immediately.
Related Guides
- How to Hire a Licensed Solar Installer — Our solar installer hiring guide
- How to Hire a Licensed Electrician — Our electrician hiring guide
- End of Financial Year: Tax Deductions for Home Renovations — Our tax deductions guide
Sources
- Clean Energy Regulator. Small-scale Technology Certificates. cer.gov.au
- Solar Accreditation Australia. CEC Accredited Installer Directory. solaraccreditation.com.au
- Solar Victoria. Solar Homes Program. solar.vic.gov.au
- Department of Climate Change, Energy, the Environment and Water. Cheaper Home Batteries Program. energy.gov.au
- SolarQuotes. Solar Panel Cost in Australia 2025. solarquotes.com.au
- Solar Choice. Solar Power System Prices. solarchoice.net.au
- Australian Energy Regulator. Default Market Offer and Feed-in Tariffs. aer.gov.au
- Clean Energy Council. Clean Energy Australia Report 2025. cleanenergycouncil.org.au