The cost of solar panels
in Australia
Last updated: January 2026
Estimated cost of your solar panels
Disclaimer
This calculator is indicative only. It provides average solar panel cost figures based on your location and system size.
The cost of solar panel installation in Australia averages around $1,000 per kW. For a popular 6.6kW system, expect to pay between $5,000 - $8,500 for good components and an installation that will last.
Over their lifetime, our analysis shows that rooftop solar panels can produce electricity at close to 4c per kilowatt-hour.
Consumers researching solar often fall into the trap of purely looking at the costs as opposed to the potential savings and benefits of solar panels. Consider this, for every dollar spent on new solar panels can deliver up to $7 in savings over the lifetime of the system.
Similarly, comparing solar quotes on price alone, is something we recommend you avoid.
Many variables impact the cost of installation, by reading on you can get far more accurate estimates on the cost of solar panels for your home.
Alternatively, you can use our solar payback calculator to estimate system savings and returns.
Solar system prices
Quoted prices for solar panels include everything: full installation, GST, an inverter, cabling, racking and the solar panel rebate.
The prices published on our website represent the average price you can expect to pay for a decent quality system that will perform as expected for its warranted lifetime.
| System size | Average cost |
|---|---|
| 3kW | $4,034 |
| 5kW | $5,298 |
| 6.6kW | $6,366 |
| 8kW | $7,717 |
| 10kW | $9,646 |
| 13kW | $12,540 |
Cost of solar panels in NSW
The table above shows average costs for solar panels in NSW. No allowance has been made for variances in the quality of the components.
| System size | Average cost |
|---|---|
| 3kW | $4,110 |
| 5kW | $5,400 |
| 6.6kW | $6,488 |
| 8kW | $7,864 |
| 10kW | $9,830 |
| 13kW | $12,779 |
Solar panel installation cost in Victoria
Installation costs in Victoria are marginally higher than those in NSW and Queensland. However, our average costs do not include the Victorian state government rebate which can reduce costs for eligible residents by a further $1,400.
| System size | Average cost |
|---|---|
| 3kW | $4,016 |
| 5kW | $5,298 |
| 6.6kW | $6,380 |
| 8kW | $7,733 |
| 10kW | $9,666 |
| 13kW | $12,566 |
| System size | Average cost |
|---|---|
| 3kW | $4,091 |
| 5kW | $5,398 |
| 6.6kW | $6,498 |
| 8kW | $7,877 |
| 10kW | $9,846 |
| 13kW | $12,800 |
| System size | Average cost |
|---|---|
| 3kW | $4,007 |
| 5kW | $5,253 |
| 6.6kW | $6,307 |
| 8kW | $7,645 |
| 10kW | $9,556 |
| 13kW | $1,223 |
| System size | Average cost |
|---|---|
| 3kW | $4,239 |
| 5kW | $5,640 |
| 6.6kW | $6,818 |
| 8kW | $8,264 |
| 10kW | $10,330 |
| 13kW | $13,429 |
| System size | Average cost |
|---|---|
| 3kW | $4,121 |
| 5kW | $5,443 |
| 6.6kW | $6,558 |
| 8kW | $7,949 |
| 10kW | $9,936 |
| 13kW | $12,917 |
| System size | Average cost |
|---|---|
| 3kW | $6,002 |
| 5kW | $8,584 |
| 6.6kW | $10,704 |
| 8kW | $12,974 |
| 10kW | $16,218 |
| 13kW | $21,083 |
The rebate lowers the cost of panels
The Australian government solar rebate varies according to your location, this impacts prices in different states. The rebate ends on 31st December 2030 and each year its value decreases. For example, the rebate is worth more in Queensland as opposed to Tasmania, therefore, solar panel prices in QLD are marginally lower by comparison.
It's worth considering that the rebate decreases in value at the end of each calendar year. Fortunately, solar costs decrease at roughly the same rate that the rebate value decreases. However, the decline in the rebate is likely to be greater than than the decrease in solar prices in future years.
Adding batteries increases the system cost
Buying solar panels with a home battery will increase savings and lower your electricity bill, but the upfront cost is much higher - even with the new nationwide battery rebate.
The table below shows average system prices for solar panel and battery (13.5 kWh) systems:
| Solar panels | Battery size | Total system cost |
|---|---|---|
| 6.6kW | 13.5 kWh | $16,914 |
| 8kW | 13.5 kWh | $18,314 |
| 10kW | 13.5 kWh | $20,314 |
Payback times on hybrid systems have declined with the rebate. Solar panel systems last longer and typically payback faster, but the gap is closing.
Why solar costs vary
Two key variances that impact the cost of a solar system are the size of the system and the rebate. Once you have decided on a system size and how many panels you need, several variables will impact the price of that system.
Premium panels cost more
One of the significant variances in solar panels cost is the quality of components you select. Better quality solar panels cost more, last longer and are more efficient. The cost of the inverter varies depending on the quality too, the better it is the more you’ll pay.
Quality of installation impacts the cost
The solar panel company you engage to perform the installation is another price variable. A company that employs their own installation team will likely cost more, and may well provide a better installation. A company that has been in business for a long time with a reputation for installing high-quality systems will inevitably cost more – though this is a cost most likely well worth paying extra for.
An explanation of how quotes can vary
When you are comparing solar quotes, you may receive estimates for the same size system that are wildly different. A price for a 6.6kW solar system can vary from $5,000 – $8,500. Use the toggle below to see explanations for the possible price differences:
| Price range: | Below $4,000 |
|---|---|
| Overview: | A cheap system and reliability may become an issue |
| Panels | Make sure they are CEC approved |
| Warranties: | Will your company be around to honour the warranty? |
| Installation: | Are your installers SAA accredited? |
Cheapest solar panels
Check to see that the components appear on the Clean Energy Council's approved lists. Don’t expect these panels or the inverter to last their allotted lifetime, your inverter may fail before anything else goes. Ask yourself these questions about the installation:
- Who is performing your installation?
- Are they accredited?
- What warranties are they providing?
| Price range: | $4,000 - $5,000 |
|---|---|
| Overview: | A budget system you hope is reliable |
| Panels | Ensure they are approved modules |
| Warranties: | You are likely not getting the best warranties |
| Installation: | Will your installation company be around in 5 years? |
Below average
Check to make sure the Clean Energy Council approves your panels and inverter, if they aren’t approved, you won’t get a rebate. Somewhere in the buying decision process, you decide to skimp on quality, is it:
- The panels?
- The inverter?
- Or the installation company?
As a result, longevity may be an issue with this system affecting your payback and savings calculations. Also, consider how likely your panel manufacturer or installer company will be in business should you have a warranty claim
| Price range: | $5,000 - $6,000 |
|---|---|
| Overview: | Good components installed by a reputable company |
| Panels | Approved 'middle of the range' modules |
| Warranties: | Competitive |
| Installation: | Is an entire system warranty provided? |
Average
You have chosen to install a good system with competitive warranties. Consider if an entire system warranty is important to you as you may have to pay more for this.
| Price range: | $6,000 - $7,500 |
|---|---|
| Overview: | Good system installed by a top company |
| Panels | Good panels that are long-lasting |
| Warranties: | Highly competitive |
| Installation: | Installation by a professional team |
Above average
You are selecting a high-quality system from a reputable installer company. It may be that site issues increase the cost of installation, or you have opted for microinverters or power optmisers that have increased the cost of your solar panels. Take comfort in the extended warranties that cover the entire system and high performance of your solar panels.
| Price range: | Above $7,500 |
|---|---|
| Overview: | The best quality panels and installation |
| Panels | High efficiency long-lasting |
| Warranties: | Industry best |
| Installation: | Performed by a highly reputable company |
Best
You select the best quality panels and installation service. Site-specific issues that have added to the overall cost. Take comfort in your minimum five-year full system warranty.
Why it's worth paying a bit more
There are numerous reasons why you should consider paying more for a better quality system.
- 1. Value vs cost
- 2. Don’t risk your solar rebate
- 3. Cheap inverters fail
- 4. Check the warranties
- 5. Substandard installs
1. Value vs cost
Buying solar panels is an investment that delivers returns in the form of electricity bill savings. It is not simply a cost purchase. When deciding if solar panels are worth it, you should consider the savings potential over 25 years and not the number of years it will take to pay back the system. A system that pays back in four years but underperforms for 20 years is not a good investment.
2. You risk losing your solar rebate
If you skimp on the price of your system, you need to ensure that the Clean Energy Council has approved the panels and inverter you buy. If you are not buying CEC approved products, you will not receive your solar rebate, this could instantly add between $1,100 – $1,500 to the cost of a 5kW system.
3. Cheap inverters are more likely to fail
The component of your system most likely to break down is the inverter. You may find that a cheap inverter breaks down far earlier than anticipated, perhaps around the 5-year mark. The cost to replace the inverter could range between $1,000 - $2,500 depending on its quality.
4. Consider warranties
You need to check the solar warranties that come with your system. Pay particular attention to the product warranties, as these vary with the quality of the module.
5. Substandard installs
Solar companies that cut corners on installation are more likely to offer you a cheaper system. The Clean Energy Regulator’s recent inspection report revealed that 18.6% of all installs were substandard. The risk of poor installation decreases if you pay a little more and do your homework on your solar company.
Additional solar installation costs
Not every solar install is straightforward, there might be additional features that can add to the overall cost of your solar panel installation. It may also be that your house is double storey or is impacted by shading. Typical add-on costs include:
- Microinverters
- 3 Phase inverter
- Meter upgrade
- New switchboard
- Smart monitoring
- Double storey installation
Microinverters
Microinverters can increase the total cost of your system by up to 20%. You will likely reap the benefits of the additional cost in efficiency improvements.
Double-storey house
A double-storey house can increase the cost of your solar power system as can any access issues to your property.
Smart monitoring devices
You can decide to purchase a smart monitoring unit with your solar panels to ensure that your system is performing adequately. Smart monitors cost between $250 – $350. These devices often pay for themselves as you are far more aware of your energy consumption and your solar production.
Cost of solar power to produce 1 kWh of electricity
Using the solar system prices above, we can calculate the solar energy cost to produce 1 kWh of electricity for rooftop solar installations. Solar panels are built to last and perform over 25 years, if we take a standard 6.6kW system installed in Sydney, NSW as an example, it will produce on average 232,657 kWh of electricity over its lifetime.
We need to factor in a new inverter ($1,500) and some maintenance costs (cleaning, performance checks etc.).
If the panels last 25 years, the cost to produce electricity from the solar is 4.1c per kWh. At the time of writing, the average cost to buy electricity from the grid in Sydney is 36.73c per kWh.
The table below shows the solar energy cost of electricity per kWh according to the life of the system:
| System longevity | Electricity cost per kWh |
|---|---|
| 10 years | $0.080 |
| 15 years | $0.064 |
| 20 years | $0.051 |
| 25 years | $0.041 |
The analysis highlights the importance of buying a good system. The cost to produce electricity from solar panels decreases the longer the system operates.
Getting accurate costs for your property
Not only will you receive an accurate price of the cost to install, but you can compare three highly reputable companies that will recommend quality components and provide warranties that ensure your system performs as it should.
