Buying solar panels for your home

Nearly two in every five homes in Australia owns a solar panel system. In 2026, solar can cut electricity bills significantly, and many homeowners are now investing in a solar power system with a battery.

Our guide to buying solar panels for your home will help you:

• Understand the cost, savings and payback potential of solar
• Discover what rebates are available to you
• Evaluate solar and batteries for your property
• Find the right system for your home
• Ensure you buy good products and get a foolproof installation

We provide reliable information on how to get solar power for your home and connect you with accredited installers that we trust.

Is solar really worth it?

There are many benefits to installing solar at your home. Solar panels can:

• Deliver great savings
• Pay themselves back within 4 – 7 years and,
• Go a long way to reducing your carbon footprint

Buying solar panels is a long-term investment. Whether it’s financially worthwhile is dependent on the cost, savings, and payback time of your system. In 2026, solar panels are worth buying for most Australian homes.

Use our solar calculator

Our solar calculator displays accurate cost, savings and payback results, based on your electricity usage and property details. It is the perfect complement to this guide and will empower you to speak to any solar company with confidence. It is the best way to see if solar is financially worth it for your home or business.

Solar payback and savings

It’s not uncommon for an average home solar system to deliver annual savings in excess of $1,200 and payback the cost of the unit within 4 – 7 years. Payback times vary according to several variables including: system cost, electricity rates, feed-in tariff rates, how much power you use and, when you use it.

The table below shows the typical system payback time for a 6.6kW solar panel system in major Australian cities.

Average system payback times:

You’ll receive a far more accurate assessment of what solar can do for you when you input your details into our online calculator.

How many panels do I need?

The most most popular household system sizes in Australia are a 6.6 kW system and an 8kW solar system. However, there are advantages to installing a system size larger than your current needs, as electric vehicles (EVs) and the possible future electrification of your home will increase electricity consumption.

The average Australian household uses 15.31 kWh of electricity per day, though this varies considerably based on the number of occupants and the size of the house.

The table below shows the number of panels and the electricity produced by them according to the size of the system:

Each of these systems produce enough electricity to power a home and in most cases charge a battery too. Your personal circumstances will influence the best system size for your household.

System size considerations

There is a lot to consider when it comes to figuring out the optimal system size for your home, including:

• Your budget
• Your available roof space
• Electric vehicles
• Future electrification of your home

Bigger is better

It’s likely that our future electricity needs will increase with electric cars and the likely electrification of our homes. Therefore, we recommend that you install as large a system as your roof and budget can handle. There are also cost advantages associated with installing a larger system.

Start by considering a 6.6kW system, if you can go bigger, then do so. If you don’t have the roof space or budget, then look to a 5kW system.

Our system size guide and calculator can help you decide how many panels you need for your home.

How much roof space do you need?

In terms of physical size, the dimensions of each solar panel are roughly 1.0 x 1.7m². Therefore, you’ll need around 23.8 – 28.9m² of suitable roof space to house a 6.6kW system.

Solar system costs

The below table indicates the average industry cost for the full installation of a solar power system. These prices are a good starting point before delving further into comparing the quality of different brands and installers. When you see quoted prices for systems they include all rebates and the full cost of installation.

Average cost of solar panels

The cost price range explained

Prices vary for solar panels depending on a number of factors. The two main variables are the quality of components (panels and inverters) and the company you select to perform the install. Outside of these factors, expect to pay a little more if:

• You need a switchboard upgrade
• Have a complicated roof structure
• Have a double storey house
• You use microinverters
• You add a battery

While the cost of installation is important, you should consider the annual savings that your investment in solar power can bring and the longevity of the system.

Paying for your solar system

Investing in a solar power system can involve a significant financial outlay. If you’re not in a position to pay cash upfront for a unit, it’s possible to take out a green loan for solar.

Financing will add to the overall cost of the system, increase your payback period and reduce your savings slightly. For these reasons, it’s important to consider how you plan to buy the system in the solar power evaluation stage.

Rebates and incentives

There are four forms of solar incentives that can reduce the cost of a system for your home:

• Federal solar panel rebate
• Federal home battery rebate
• State government solar schemes
• Feed-in tariffs

Federal solar panel rebate

If you buy new solar panels, you will receive a solar rebate from the Australian government even if you have previously claimed the rebate for another energy system. All advertised prices, and those published on our website, include the solar rebate. Typically, your installer clams it on your behalf and you pay them the net cost of the system.

The federal rebate varies depending on where you live and the size of your system as it is calculated based on how much solar energy your system is estimated to generate. The table below shows the typical rebate value of different system sizes.

Value of solar rebates in Australia

Federal home battery rebate

In July 2025, the Australian government launched the home solar battery rebate.

The battery rebate is set to reduce from May 2026 and then at regular 6-month intervals. Once administrative costs have been deducted, the battery rebate can deliver savings of around $311 per kWh of storage. For a 13.5 kWh battery, that's a saving of around $4,196.

The table below shows the rebate value for popular battery sizes:

Rebates are being phased out

Both the federal solar panel and battery rebates are slowly being phased out over the next five years. To receive the federal government rebates:

• Your system components need to be approved by the Clean Energy Council and,
• Your system needs to be installed by a Solar Accreditation Australia (SAA) accredited installer.

State energy incentives

In addition to the two federal government rebates, you may be able to secure a further rebate from your state government. State solar incentives are currently available in :

• New South Wales
• Victoria
• Western Australia

If you plan to install a battery in NSW, you can receive a rebate for connecting it to a Virtual Power Plant (VPP). The VPP rebate is worth up to $1,500, but most household batteries will qualify for the smaller $550 VPP rebate.

If you live in Victoria, and you meet the eligibility requirements, you can receive a $1,400 rebate on the purchase of a new solar system.

WA residents looking to install a battery can receive further savings in addition to the federal battery rebate. The WA battery rebate can save an additional $1,300 for Synergy customers and $3,800 for Horizon customers.

Solar and energy incentives by state

We closely monitor rebates schemes from all states and you’ll find this information is regularly updated:

• NSW solar rebate
• QLD solar rebate
• WA solar rebate
• SA solar rebate

Solar feed-in tariffs

Once your system starts generating solar power, you’ll receive a financial credit from your electricity retailer for any excess solar energy that you export back to the electricity grid. The financial credit is called a feed-in tariff and should not be confused with the solar rebate. The credit amount is subject to state regulation but is ultimately determined by your electricity retailer. We list the average feed-in tariff rate by state below:

Average feed-in tariffs by state

Feed-in tariffs play a crucial role in determining your solar savings, though they are decreasing in value each year. The more you can self-consume your solar energy, the greater your savings will be.

Your rooftop and property

Location and property-specific factors impact the amount of solar energy that your system can generate for your home or business. However, most houses and rooftops, are fine just as they are for installing solar panels.

While property variables may not impact your purchase decision, they will affect the output of your solar panels.

What impacts solar power output

Factors that affect the amount of electricity a solar power unit can produce, include:

• 1. Panel orientation
• 2. Panel angle
• 3. Panel temperature
• 4. Shading or obstruction

1. Panel orientation

A northern orientation is best in the southern hemisphere for maximising solar output. However, a rooftop will still likely be suitable even if it doesn’t face north. Consider your roof’s orientation in conjunction with your consumption habits. An east / west orientation may suit your household if you use power at either end of the day, as the east facing modules generate electricity in the morning while the west facing panels do so in the late afternoon.

The table below shows output losses based on panel orientation for a typical Australian rooftop (25° pitch):

Panel output losses due to orientation

2. Panel angle

The pitch or angle of your rooftop is also a factor that affects solar output. Year round, the optimum panel angle is equal to the latitude of your location, e.g. Sydney 33.87°. However, so long as your rooftop is pitched, it will be suitable. To give you some idea, if your rooftop is 15° out from the optimum angle, you’ll only forgo between 1 – 1.5% of output.

It’s really only if you have a flat roof that you need to install panels on an incline to achieve better output and to ensure your panels don’t suffer from water ingress.

3. Panel temperature

The hotter your system gets, the less efficient it becomes. Higher quality panels are more effective at dealing with the effects of temperature.

4. Shading or obstruction

If your system is subject to shading or obstruction throughout the day, solar output will be impacted. If only some of your modules are obstructed from sunlight, the use of micro inverters or power optimisers will allow your system to perform better when some panels are shaded.

The different types of solar systems

There are different types of solar power systems available for domestic and commercial use:

• A solar panel system
• A hybrid system (panel and battery system)
• An off-grid system (stand-alone)

If you already own a solar panel system, you can upgrade by adding a battery to form a hybrid system.

A battery ready system comes with a hybrid inverter so that a battery can easily be added at a later. However, with battery technology and adaptability improving, they are less common nowadays.

How to select the best solar energy system for you

For most people, choosing a system type is based on consumption and usage habits, savings goals and of course, budget. We review each of the solar power systems:

1. Solar panel system

A grid-connect solar panel system is still the most suitable financial option for most consumers. A panel system consists of:

• Solar panels
• Inverter
• Cabling
• Mounting / racking

Solar panels have the lowest upfront cost of the systems. Try to install at least a 5kW solar system, even larger if you can. Solar panel systems typically payback within 4 – 7 years.

Solar panel lifespan

Choosing good components is important as quality solar panels are expected to have a lifespan of 25+ years. The inverter and the quality of the install are also important and can seriously impact the performance of the system.

2. Panel and battery systems (hybrid systems)

Hybrid systems, also called, panel and battery systems, are grid-connect units that include solar panels, an inverter and a battery. Excess energy charges the battery so that it can supply electricity to your property when the sun is not shining.

Hybrid systems are far more expensive

Hybrid systems are far more expensive due to the high cost of solar battery storage in comparison to solar panel systems. As a guide, a 6.6kW solar system with a 10kWh battery may cost between $13,000 – $17,000 while a larger 10kW solar system with a 13.5 kWh battery can set you back between $18,000 - $23,000.

Payback on panel and battery systems is often longer than for solar panels and times vary significantly depending on your electricity consumption. Bear in mind, the battery storage component of the system will likely only last ten years.

Backup power

Hybrid systems can provide backup power in the event of a blackout. Backup capability is one of the big advantages of owning a battery and the added functionality typically adds to the cost of the system.

Adding a battery

If you already have solar installed, you can add a storage solution to it and convert it to a hybrid system. We have developed a solar battery storage calculator that calculates the energy and financial impact of adding a solar battery to your existing system.

3. Off-grid systems

An off-grid system is a stand-alone unit that does not have a connection to the electricity grid. Typically, off-grid systems involve solar modules and a large amount of battery storage, as they need to power your entire home in even during winter seasons.

Off-grid systems are significantly more expensive, and we only recommend you go off-the-grid if the cost of connecting your property to the grid is prohibitive. As a guide, it may cost anywhere between $30,000 – $50,000 for an off-grid system to power the average household.

Batteries and other components

The high cost of installation has meant that battery uptake in Australia has been relatively slow. All indicators suggest this is likely to change with the new federal battery rebate. Home battery storage is now more affordable and, importantly, a better investment than ever before.

Is it worth getting a battery?

One of the key decisions to make when purchasing a solar power system is whether to add a battery. While solar battery costs remain high, their appeal is increasing due to:

• Federal battery rebate
• Faster payback times
• Higher electricity costs
• Lower feed-in tariffs
• State-level incentives

The federal battery incentive significantly improves the financial case for installing home storage. Backup power is another popular reason why batteries are increasingly popular.

Is a battery suitable for your home?

A battery is likely a good solution for your home if:

• You are a high electricity user
• You live in NSW or WA
• You want backup power
• You really want to crush your electricity bills
• You want to reduce your household emissions

Other system components

We take a look at other system components that you may select when purchasing a system:

• Inverters
• Microinverters

Inverters

Inverters are a necessary component of every type of solar system. They convert the direct current (DC) generated from photovoltaic modules into alternating current (AC) that you can use in your home or business. The quality of the inverter you select can have an impact on the performance and longevity of your system. As such, there can be significant price discrepancies between cheap inverters and premium models. A good inverter will generally last about 10 – 15 years.

Microinverters

If shading is an issue at your property, or you want a multi-orientation installation, you should strongly consider microinverters or power optimisers. A typical string inverter will shut down if one panel in a series stops generating power, whereas microinverters allow each module to operate independently.

Microinverters are more efficient, but also more expensive, and you can expect to pay around 15 – 20% more for the system.

Comparing quotes and getting a quality install

The installation of your solar power system is the most important step in the process. Finding and selecting a reputable installer company is critical to the safety and ongoing performance of your system.

Getting quotes

We recommend comparing solar quotes from different companies before making a purchase decision. If you use our quote service, you are guaranteed to receive quotes from Solar Accreditation Australia (SAA) accredited installers. We vet all of the installer companies that offer quotes to customers through our website and turn many companies away.

Quality of the installation

The quality of the solar installation is essential to the performance of your system. Installing a solar panels is not as simple as connecting a new TV. Installation involves connecting a live power plant to your roof that is expected to perform without fail for 25 years.

The Clean Energy Regulator carries out routine inspections of solar installations; their recent report reveals that 18.6% of systems inspected were substandard.

Safety

Poor installation increases the safety risk. The Clean Energy Regulator reports that of the systems they inspected in 2024, 0.4% were found to be unsafe, down from 0.8% in 2023. The most common safety risk is water infiltration of the DC isolator, which can cause a fire.

It doesn’t just come down to price

Comparing solar quotes is not strictly a price comparison exercise; you are comparing: different products, warranties, reputation, level of accreditation and the quality of the proposed install.

The price of each quote will likely differ depending on:

• The quality and size of the system
• The quality of the solar panels
• The quality and size of the inverter
• Type and quality of other components, i.e. mounting, cabling, etc.
• Height and accessibility of the rooftop
• The type of roof, i.e. tiled, tin, slate etc.
• Performance, product, service and entire system warranties
• After sales service and code of conduct

Best value for money

When comparing solar quotes, you will need to factor in the price, but more importantly, you should consider value for money. A cheap system may have a faster payback, but the risk of it failing within five years may be far greater, and; it is likely to deteriorate faster. Better value for money is likely in the long term with a good quality system installed by a reputable company.

An accredited solar PV installer

The solar company you select to supply and install your solar panel system is just as important as the system itself. You should ensure that Solar Accreditation Australia accredits the people installing your system. If you don’t use SAA accredited installers, you won’t be entitled to a government solar rebate.

Consider the system warranty

When comparing solar quotes, you must pay careful attention to the different warranties within the quotation. What is the process if the system stops functioning as it should? The solar company should also provide you with some comfort as to the longevity and sustainability of their own business; if they’re no longer around, your system warranty may become null and void.

How solar works in your home

Solar panels only generate electricity during daylight hours, they do not work at night. The solar energy generated by your panels is used to either:

• Power electrical appliances directly, or
• It gets exported back to the grid

If you have a battery, then excess solar energy can be stored in the battery rather than send it back to the grid. Understanding how solar works will help you to lower your electricity bills.

Self-consumption

Solar self-consumption is when you use solar energy directly to power your electrical appliances. If you pay 33c per kWh for electricity, then this is how much you will effectively save when you use your own solar electricity.

Further reading: How to use your solar panels for maximum savings.

Grid exports and feed-in tariffs

When you export your excess solar energy, which is bound to happen, you receive a feed-in tariff from your electricity retailer. The tariff varies but is generally somewhere between 2 – 10c. You are far better off using your own solar and saving 33c per kWh, as opposed to receiving 6c for sending it back to the grid.

Will I still need to pay for electricity?

Yes, you’ll still likely have electricity bills, especially in the winter months. Not only do you have to pay a daily supply charge to remain connected to the grid, but at night, or when it’s cloudy, you have to buy your electricity from the grid, just as you do prior to installing solar panels.