5kw Solar System Cost Guide

Updated: December 6, 2023

5kWh solar systems are the most popular system size installed in Australia as it suits an average 3 – 4 person home.

A 5kWh solar panel system will cost you between $5,366 and $6,045 installed. The average price for a 5kw system in 2023 is $5,655.

This is the price after the solar rebate has been applied. Rebates are claimed by your installer so this is the final amount you will need to pay. You will not need to chase the government for a rebate, it’s already priced in.

5kW Solar SystemPrice
National Average$5,655
Low Estimate$5,366
High Estimate$6,045

The government solar rebate varies by the state you live in. For a 5kW system in NSW, QLD, SA and WA you will get a $2,195 rebate. For VIC and TAS, the rebate is $,1,875.

This is not a fixed price and will go up or down by about 5% depending on the current price of STC’s.

rebate on a 5kW solar system 2023

5kW Solar System Price by State

TaskAvg. Cost% + / - Average
New South Wales$5,726-4.56%
Queensland $5,7266.79%
South Australia$5,7261.26%
Western Australia $5,486-12.72%
Aust. Capital Territory $5,726-2.20%

Australian Average


As you can see, prices do vary depending on where you live in Australia and mostly due to the government rebates being more generous in some states. As you can see Western Australia is a full 12.72% less than the rest of the country on average.

A 5kW system in Adelaide is about on par with the country-wide average and a system of the same size in Queensland will cost the most being 6.79% above the average.

How much money can I save per year?

Once installed you can enjoy an average yearly saving of $1,947 per year on a 5kWh solar system. That works out to be about $162,75 per month.

As solar panels have a warranty of 25 years on average, you stand to save a total of $48,675 over the lifetime of the system.

This will vary from state to state depending on the max output of your system based on light levels, orientation and output.

money saved with 5kW system

Whats the average payback period?

We already know the average cost of a 5kWh solar system is $5,655 and the yearly saving is $1,947.

The payback period will be 2.5 – 3 years.

Again this time will depend on the price you pay to install, your average yearly bill and the performance of your system month to month.

payback period 5kW solar system

Power a 5kW solar system produce per day

This actually depends on a number of factors such as time of year, local weather and a host of other factors. The short answer is your typical 5kw solar system will produce about 20kWh of energy in one day.

Most of that is produced during a 4 or 5-hour window when the sun is highest in the sky and your panels are getting maximum light exposure.

Power 5kW solar system generates daily

Average solar panel output = 320 watts

There are quite a few things that can affect how much power your 5Kw solar system produces in a day so we have written a whole article on just that topic.

In the above graph, you will see a visual representation of how much power is produced by solar panels on a typical day. They do start to trickle with power once the sun comes up, but they one really start pumping out some real energy between the hours of 10 am and 2 pm.


How much does it cost to install a 5kW solar system?

The price of the installation of a 5kw system is included in the price of their quoted price for a 5kw solar system.

Depending on the state you live in and the rebate you enjoy you can expect to pay about $5,655 Installed and after rebate.

It will depend however on the solar installation company you use. Every company uses different quality panels at different price points and add their own markup. Make sure you shop around before committing.

How many solar panels for a 5kWh solar system?

Each solar panel will produce 320 Watts of power at its peak. So to make 5,000 Watts per hour or 5kWh (kiloWatts per hour) you will need 16 panels.

5000 watts  /  320 watts per panel  = 16 Panels

Each panel is 1 X 1.6m in size. Refer to the image below for scale comparison.


What can I run with a 5kw solar system?

A 5kW solar system is designed for a medium-sized home with 3-4 people living in it. This would cover you for all your idle alliances such as your refrigerator, hot water and Wi-Fi, as well as other items you use at peak times such as a dishwasher, washing machine, toaster, TV, etc.

Your panels will only be useful to you during the day when they are generating electricity. Most households use most of their electricity at night, so it is worth considering installing a solar battery for your 5kW system to save power generated throughout the day for use later in the evening.


5kw solar system key numbers

DescriptionKey numbers
Number of panels15 – 20
System cost including install$5,000 – $7,000
Payback period4-5 years
Potential yearly savings$1,247
Suits home sizeMedium 3 – 5 people

Is a 5kW solar system worth installing?

If you live in a medium-sized home with 3-4 people then the answer is an enthusiastic yes! With the rising cost of electricity in Australia and no signs of it getting any cheaper, the price local solar installers able to charge with the help of government rebates means you will have it fully paid off in just 3-4 years and will enjoy up to 80% off your power bill for your troubles for the following 25 years minimum.

I would say it is only worth it if you plan on living in your current location for more than 10 years.

Ben McInerney head shotAuthor: Ben McInerney is a renewable energy enthusiast with the goal of helping more Australians understand solar systems to make the best choice before they purchase. Having an accredited solar installer in the family helps give Ben access to the correct information, which allows him to break it down and make it easily understandable to the average homeowner.