How Much Do Solar Panels Cost in 2024
Reviewed by
Leigh McInerney
In Australia, the typical price range for installing solar panel setups can vary between $3,000 and $12,500 or above, depending on the system’s size, the installation spot, and how complex the installation is.
For instance, a 6.6 kW solar system, which is the most common system installed in 2024, costs between $6,500 and $8,500, rebate included. This is based on internal polled data from solar installers country wide.
This guide will give you a run-down of the cost of solar systems by size, rebate amount as well as the roll rebates and feed-in tariffs play. We also include some handy ways to save money on installation.
| Size | Cost (NSW, QLD, WA, SA, NT, ACT) | Cost (VIC, TAS) |
|---|---|---|
| 1.5kW | $3,286 | $3,364 |
| 2kW | $3,676 | $3,794 |
| 3 kW | $4,271 | $4,468 |
| 4 kW | $5,192 | $5,388 |
| 5 kW | $6,034 | $6,309 |
| 6.6 kW | $7,410 | $7,764 |
| 7 kW | $7,907 | $8,261 |
| 8 kW | $8,714 | $9,146 |
| 9 kW | $9,476 | $9,987 |
| 10 kW | $10,239 | $10,789 |
| 12 kW | $12,529 | $14,397 |
| 15 kW | $15,802 | $15,627 |
| 20 kW | $18,769 | $21,870 |
| 30 kW | $26,378 | $33,029 |
| 40 kW | $38,416 | $40,578 |
| 50 kW | $46,605 | $49,317 |
| 100 kW | $81,919 | $87,342 |
How Much Does Solar Panel Installation Cost?
The cost of installing a solar panel system is usually factored into the price of the solar system you want to install.
For example, if a company advertises a 6.6 kW solar panel system’s price as $7,410, this price includes installation after the rebate.
Some solar panel installations near you might try to pay an extra install price, but it’s a scam. Be sure to get everything in writing before they start.
Solar panel cost per watt
The average cost of solar panels per Watt in Australia ranges from $1.20 to $2.5.
However, the cost will depend on the size of the system and the local solar rebates.
Formula:Â
Calculating solar price per watt is quite simple. Typically, you divide the cost of the system by the size of the system (in watts).Â
For example, the cost per watt for a 6.6 kW solar system priced at $7,410 will be:
$7,410 divided by 6,600 Watts = $1.12
For a cost of a 10 kW solar system, the cost per Watt will be $1.02.
When you buy larger systems, the price per Watt comes down. Kind of like “buy in bulk and save.”
The reason is that the labour cost to install a larger system is about the same as installing a smaller one, so you are just really paying extra for the panels.
Solar panel prices by home size
We have created this table to quickly and easily show you the solar PV system prices for an average home. We have included the system’s size, the required roof size, the number of people per home this system can support, and the saving per year you will enjoy off your power bill.
Visit our homepage for links to more articles on the cost and ROI of solar panels.
| Suits homesize | System size | No. of panels | No. of People | Average yearly saving |
|---|---|---|---|---|
| Small | 1.5KW | 6 | 1 - 2 | $690 |
| Small - Med | 2KW | 8 | 2 - 3 | $986 |
| Medium | 3KW | 12 | 3 - 4 | $1,478 |
| Med - Large | 4KW | 16 | 4 - 5 | $1,971 |
| Large | 5KW | 20 | 5 - 6 | $2,364 |
| X Large | 6KW | 24 | 6 - 7 | $2,981 |
| XX Large | 7KW | 28 | 7 - 9 | $3,565 |
| Space Ship | 8KW | 32 | 9 - 12 | $3,952 |
Cost of solar for a 3 bedroom house
The cost of solar for a 3 bedroom house will depend on the size of the system you install. Generally, you would go for a 5 – 6.6 kW system depending on your home’s specific power needs.
That means you will pay $5,500 to $8,500 on average. If you have any kids and a pool, you might be better going for a 6.6.kW system. If you are just a couple living there then a 5 kW system would be ideal.
Factors affecting solar panel installation cost
Electricity consumption of your home
Basically, if you use more power, you are going to need a bigger system to keep up with demand. It kind of cons with the territory with larger families. More lights, televisions, fridges, etc. The more power you need, the more your solar power system will cost.
Home location
Where you live in Australia will have an effect on the price of installing your solar PV system. Different states have different rebates, so this affects the overall cost of system installation.
Also, the amount of sunlight you get in Tasmania will be different from that in Darwin, so the number of panels can vary to produce the same amount of power.
The quality of panels and inverter you invest in
If you don’t do your research, you can end up paying twice as much for the same quality solar system, depending on the brands of the panel and inverter your installer talks you into. If you are paying more, be sure it’s with a tier 1 branded panels and inverter combo.
Ease of installation
Some homes are a bit of a nightmare to install panels on and it simply takes longer.
For example, a 2 story house with a flat roof is going to take longer than a single-story home with a pitch that requires less work. Labour costs are a factor, but not as much as the hardware itself.
The Australian dollar
Most solar panels are imported so if we have a weak Australian dollar, it can affect the cost of imports. Even though the dollar is currently strong, current world wide inflation levels are likely to have an effect on solar panels. That being said, it is still not really worth it to wait as the solar rebate is reduced every year.
Rebate amount reduces every year
The solar rebate is not here to stay forever, it is going to phase out completely by 2030. Each year the rebate gets smaller and the cost of installing solar increases. The ROI however, remains relatively the same as electricity costs seem to creep up each year with the cost of installing solar.
How long will it take for solar panels to pay for themselves?
On average, it will take you about 3–6 years for the system to have generated enough value in electricity production to have covered its own cost outright.
This payback period or ROI for your solar system can be a little longer for small units and for households that consume less power.
How much will I save each year?
Below is a table that outlines the yearly saving per system size, as well as the life time saving for the same system.
Savings are based on an electricity price point of 3.09c/kWh from the report Residential Electricity Price Trends 2021 by the Australian Energy Market Commission (AEMC).
| System size | No. of panels | Average yearly saving | Lifetime Saving |
|---|---|---|---|
| 1.5KW | 6 | $690 | $15,525 |
| 2KW | 8 | $986 | $22,185 |
| 3KW | 12 | $1,478 | $33,255 |
| 4KW | 16 | $1,971 | $44,437 |
| 5KW | 20 | $2,364 | $53,190 |
| 6KW | 24 | $2,981 | $67,072 |
| 7KW | 28 | $3,565 | $80,212 |
| 8KW | 32 | $3,952 | $88,920 |
How much is the solar rebate
The government solar rebate initiative reduces the cost of solar by a whopping 30 – 40% depending on the state.
The rebate is based on the size of the system you install and the current Small-scale Technology Certificate price (STC). The price usually hovers around the $39.30 price.
You are awarded a certain number of STCs depending on which of the 4 UV zones you live in Australia.
| System size | STC’s | States | Rebate |
|---|---|---|---|
| 1.5 kW | 14 12 | NSW, QLD, SA, WA, VIC, TAS | $550 $472 |
| 4 kW | 38 33 | NSW, QLD, SA, WA VIC, TAS | $1,493 $1,297 |
| 5 kW | 48 41 | NSW, QLD, SA, WA VIC, TAS | $1,886 $1,611 |
| 6 kW | 58 49 | NSW, QLD, SA, WA VIC, TAS | $2,279 $1,926 |
| 7 kW | 67 58 | NSW, QLD, SA, WA VIC, TAS | $2,633 $2,279 |
| 10 kW | 96 82 | NSW, QLD, SA, WA VIC, TAS | $3,773 $3,223 |
Solar panel cost after rebates applied
Below are up-to-date prices of solar systems after the rebate has been applied based on the zone you live in. See map for zone details
Zone 1
Zone 2
Zone 3
Zone 4
Zone 1
| System size | Gross Price | Rebate | Net price after rebate |
|---|---|---|---|
| 1.5kW | $3,836 | $668 | $3,168 |
| 3kW | $5,411 | $1,336 | $4,075 |
| 5kW | $7,902 | $2,201 | $5,719 |
| 6.6kW | $9,886 | $2,908 | $6,978 |
| 7kW | $10,540 | $3,105 | $7,435 |
| 8kW | $11,740 | $3,537 | $8,203 |
| 9.9kW | $12,895 | $4,628 | $8,267 |
| 10kW | $14,012 | $4,441 | $9,571 |
| 15kW | $20,500 | $6,681 | $13,819 |
| 20kW | $28,354 | $8,921 | $19,433 |
Cities include: Darwin, Cairns, Townsville, Mackey, Rockhampton, Hervey bay
Zone 2
| System size | Gross Price | Rebate | Net price after rebate |
|---|---|---|---|
| 1.5kW | $3,836 | $629 | $3,207 |
| 3kW | $5,411 | $1,258 | $4,153 |
| 5kW | $7,920 | $2,083 | $5,837 |
| 6kW | $9,342 | $2,515 | $6,827 |
| 7kW | $10,540 | $2,948 | $7,593 |
| 8kW | $11,740 | $3,380 | $8,360 |
| 9kW | $12,895 | $3,773 | $9,122 |
| 10kW | $14,012 | $4,205 | $9,807 |
| 15kW | $20,500 | $6,327 | $14,173 |
| 20kW | $28,354 | $8,450 | $19,905 |
Cities include: Alice Springs. Darwin, Mt Isa, Longreach
Zone 3
| System size | Gross Price | Rebate | Net price after rebate |
|---|---|---|---|
| 1.5kW | $3,836 | $550 | $3,286 |
| 3kW | $5,411 | $1,140 | $4,271 |
| 5kW | $7,920 | $1,886 | $6,034 |
| 6kW | $9,342 | $2,279 | $7,063 |
| 7kW | $10,540 | $2,633 | $7,907 |
| 8kW | $11,740 | $3,026 | $8,714 |
| 9kW | $12,895 | $3,419 | $9,476 |
| 10kW | $14,012 | $3,773 | $10,239 |
| 15kW | $21,500 | $5,699 | $15,802 |
| 20kW | $26,354 | $7,585 | $18,769 |
Cities include: Brisbane, Gold Coast, Sunshine Coast
Zone 4
| System size | Gross Price | Rebate | Net price after rebate |
|---|---|---|---|
| 1.5kW | $3,836 | $472 | $3,364 |
| 3kW | $5,411 | $943 | $4,468 |
| 5kW | $7,902 | $1,611 | $6,309 |
| 6kW | $9,342 | $1,926 | $7,416 |
| 7kW | $10,540 | $2,279 | $8,261 |
| 8kW | $11,740 | $2,594 | $9,146 |
| 9kW | $12,895 | $2,908 | $9,987 |
| 10kW | $14,012 | $3,223 | $10,789 |
| 15kW | $20,500 | $4,873 | $15,627 |
| 20kW | $28,354 | $6,485 | $21,870 |
Citiesinclude: Melbourne, Hobart
Commercial solar panel cost by size and state
Commercial solar panels vary depending on the size of the system you install and the state you live in.
Below are the average costs of the most popular commercial solar system sizes.
| System Size | Average Rebate | Average Price |
|---|---|---|
| 15kW | $5,699 | 15,802 |
| 20kW | $7,585 | 18,769 |
| 30kW | $11,397 | 26,378 |
| 40kW | $15,170 | 38,416 |
| 50kW | $18,982 | 46,605 |
| 100kW | $38,003 | 81,919 |
Commercial solar panel cost per watt
The bigger the system, the cheaper the cost per Watt. For a 15 kW system you will pay about $1.05 per watt installed, while for a 100 kW system you will pay closer to $0.81 per Watt.
Prices for commercial systems do vary depending on the quality of equipment used and the installer, but the above prices are a great gauge to go by.
Is solar getting cheaper and should I wait?
Solar is getting cheaper as every year passes due to the large spike in Chinese production, and market hyper-consumption. This along with the Australian government’s Small-scale Renewable Energy Scheme (SRES) has meant that installers have struggled to keep up with the demand of the last few years, and for good reason.
Should you wait? Not really. With the cost of power steadily on the rise in Australia and the interest-free finance available specifically for solar installs, there is no reason why you should not get a solar system installed taking advantage now of this far cheaper form of energy production.
FAQ's
Yes, solar panels save you money in the long term. You will reduce or in some cases eliminate your electricity bills. If you want to understand how much money can the solar panels save you, you can make an easy calculation.
The average annual electricity use in Australia is 10,972 kWh per household. This amount multiplied with the cost of electricity will give you a total of approx. $1,409 per year. And the cost of electricity is increasing at approx. 2.2% per year, so also this total amount will increase.
You can fit a system to produce all or more of your power needs. The average payback period for solar is 3-5 years. After the solar panels will pay from themselves, you will have free electricity.
You cannot get solar panels for free. They are several companies that advertise this. They will install for free on your roof solar panels, but they will charge you for the energy they provide. Advertising refers to solar leases, this meaning that the solar panels don’t belong to you and the solar energy they produce it’s not free.
Yes, a house can run on solar power alone. But for that, it’s necessary to find a way to store the power during the night, when the sun won’t charge the solar panels. The systems that can help you store power are expensive. They can store energy in batteries for when the panels are not producing electricity i.e at night. Due to the technology improvements, in the future, this will become more affordable.
You need to get at least 3 quotations to make sure you make the best decision about your solar panels. The costs can vary, so by getting the 3 quotations, you can see if there are differences.
The feed-in tariffs are still available in most Australian states. You will need to refer to this article to read more about your state tariffs.
Yes, you will receive electricity bills when you have installed solar panels. But the solar panels will help you lower the monthly electricity bills charges. Electricity bills will reduce drastically. The more electricity will provide your solar panels, the less you will pay to your electricity bill. If you manage to store energy when the sun it’s up, you can eliminate entirely the electricity bill.
The solar panels will pay from themselves on average in approx. 4 years in Australia. The average cost of installing them is $4,325, but with rebates and other discounts. With an average cost of the annual electricity bill of $1.400, you will cover the original cost in approx. 4 years.