Reviewed by Leigh McInerney
How much does a 2 kW solar PV system cost?
Factors such as location, type and brand of solar panels, panel quality, and type of inverter can affect the cost of installing a 2 kW solar system.
A 2 kW solar system offers an affordable and effective way for households looking to embrace sustainable energy and reduce their power bills.
The 2 kW solar system can power a small home of about 1–3 people and generate enough power to run a few lights, fans, a refrigerator, a television, and other small appliances. Let’s dive into the costs and benefits of a 2 kW solar system and learn how to unlock its potential for your home.
Cost of a 2kW solar system by state
The cost of a 2 kW solar system varies widely depending on your location. Find out how much a 2 kW system costs in your state in the table below.
| State | Gross Cost | Net Cost (rebate included) |
|---|---|---|
| New South Wales | $3,936 | $3,418 |
| Tasmania | $3,936 | $3,498 |
| Victoria | $3,936 | $3,498 |
| Australian Capital Territory | $3,936 | $3,418 |
| Western Australia | $3,936 | $3,418 |
| Northern Territory | $3,936 | $3,298 |
| Queensland | $3,936 | $3,298 |
| South Australia | $3,936 | $3,418 |
Government rebates and incentives for a 2kW solar system
The Australian government offers solar rebates to encourage the adoption of solar energy. The solar rebate is a government initiative called the Small-scale Renewable Energy Scheme (SRES). Homeowners and small businesses can now get a rebate of approximately $638 for a 2kW solar system.
These rebates and incentives can significantly reduce the initial cost of installing a 2kW solar system, making it a more affordable and attractive option for homeowners looking to switch to renewable energy sources.
Once you install an eligible 2kW solar system, you can get a rebate by claiming your STCs (Small-scale Technology Certificates). The STCs you can get for your 2kW solar system will depend on your STC zone and rating.
The following table shows the rebate amount for a 2kW solar system in each STC zone.
| STC zone | STC rating | Rebate Amount |
|---|---|---|
| 1 | 1.622 | $638 |
| 2 | 1.536 | $599 |
| 3 | 1.382 | $519 |
| 4 | 1.185 | $439 |
Learn more about solar STCs here.
2kW solar rebate per state in Australia
Let’s find out how much rebate you can get for a 2kW solar system in your state.
| State | Rebate Amount |
|---|---|
| New South Wales | $519 |
| Tasmania | $439 |
| Victoria | $439 |
| Australian Capital Territory | $519 |
| Western Australia | $519 |
| Northern Territory | $638 |
| Queensland | $638 |
| South Australia | $519 |
How much power does a 2kW solar system generate per day?
A 2kW solar system can generate a daily energy output of approximately 7.5 kWh to 8.5 kWh. This is enough to power a typical household for a day, depending on the size of the home and the amount of energy used. A retired couple with an average daily electricity usage between 6.1 kWh and 12.1 kWh would be an ideal candidate for a 2kW solar system.
The following table shows how much electricity a 2kW solar system generates in major regions of Australia.
| City/State | Daily Power Production (kWh) | Annual Power Production (kWh) |
|---|---|---|
| Brisbane, QLD | 8.40 | 3,066 |
| Sydney, NSW | 7.80 | 2,847 |
| Perth, WA | 8.80 | 3,212 |
| Melbourne, VIC | 7.20 | 2,628 |
| Adelaide, SA | 8.40 | 3,066 |
| Hobart, TAS | 7.00 | 2,555 |
| Canberra, ACT | 8.60 | 3,139 |
| Darwin, NT | 8.80 | 3,212 |
The optimal performance of your solar system depends on factors such as the direction in which it is installed, location, weather, temperature, and solar radiation. By understanding these factors and their impact on your solar system’s performance, you can optimise its energy output and maximise your savings.
Keep in mind that while a 2kW solar system can meet the daily energy needs of a small household, it is essential to consider your individual energy consumption habits and requirements when selecting the best solar system for your home.
Factors affecting the efficiency and output of a 2kW solar power system
The efficiency of a 2kW solar system may be influenced by factors such as:
- Shading
- Roof orientation
- Roof pitch
- Climate
- Solar panel efficiency, size and capacity
- Location
- Weather conditions
- Environmental factors
To maximise the performance of a 2kW solar system, it’s essential to ensure that your solar panels are installed in an optimal direction, which can vary depending on your location and the amount of sunlight received throughout the day.
Moreover, it’s vital to regularly maintain your solar system by cleaning the panels and monitoring their performance. This will help to ensure that your solar system is operating at peak efficiency and providing the maximum amount of clean, renewable energy to power your home.
How many solar panels does it take to make a 2kW solar system?
It takes 8 solar panels to make 2kW, depending on the panel size. The most common advice is to use 250-watt panels, meaning that 8 panels would make up a 2kW solar system. If you use higher-efficiency panels, like 400 W panels, you will need only 5 panels to make up to 2,000 W (2kW).
Here are common solar panel sizes that can make up a 2kW solar energy system:
- 250 W x 8 solar panels to make 2.00 kW
- 300 W x 7 solar panels to make 2.1 kW
- 350 W x 6 solar panels to make 2.10 kW
- 400 W x 5 solar panels to make 2.00 kW
- 420 W x 5 solar panels to make 2.10 kW
Roof space requirements for a 2 kW solar system
The size of residential solar panels can range from 1.6m x 1.0 m (1.6 m2) to 1.7m x 1.0m (1.7 m2).
A 2kW solar system with 8 panels will therefore require 12.8 to 13.6 square metres of roof space.
Calculations:
1.6 x 8 (panels) = 12.8m2 of roof space
1.7 x 8 (panels) = 13.6m2 of roof space
Higher-efficiency panels like the 400 W and 500 W will require about 8 and 6.4 square metres of roof space, respectively.
Financial benefits of a 2kW solar system
Investing in a 2kW solar system can provide significant financial advantages, including cost savings on electricity bills, earnings from exporting surplus energy, and a strong return on investment. With feed-in tariff rates of approximately 8 cents per kWh, homeowners can potentially save hundreds of dollars on their quarterly power bills.
Cost savings on electricity bills
It is estimated that a 2kW solar system can save up to approximately $200 per quarterly power bill, or $800 to $1,000 annually if all of the solar power is used in the home. However, actual savings depend on the location and average electricity rates in that area.
Return on investment/payback period
Research indicates that a 2kW solar system has a return on investment of approximately 7.5 years. However, the return on investment may vary based on the location and cost of electricity in the respective area. The estimated payback period for a 2kW solar power system is between 4 and 5 years.
2kW solar system with battery price
A 2kW solar system would require a battery system with a capacity of 5.6 kWh.
Such a battery would cost between $4,480 and $11,200, or between $800 and $2,000 per kWh. The exact cost will depend on the type and quality of the battery system.
So, the overall cost for a 2kW solar system with a battery system would range from $7,980 to $14,700.
A battery system helps you store excess energy to use later at night when the panels are not working or during overcast days.
What can a 2kW solar system run?
A 2kW solar system is an excellent option for small homes with 1–3 people or small businesses. The system can run a few lights, a television, a refrigerator, and other small electrical appliances. However, this will depend on how much solar radiation your location gets.
If you want to run larger appliances such as the air conditioner, dishwasher, washer, and dryer, you should consider a bigger system, like a 6.6 kW solar system.
Is a 2kW solar system enough to run a house?
An average household in Australia uses between 16kWh and 18kWh of energy per day. Therefore, a 2kW solar system would cover at least half of the electricity needed to cover the energy needs of an average home.
Although this is not enough to run the entire house, as you will still need to draw electricity from the grid, it will help reduce your power bills.
Is a 2kW solar system worth it?
Yes, a 2kW solar system is a worthy investment. Besides generating energy to reduce your energy bills, you will also contribute positively to the environment by lowering CO2 emissions. Therefore, your home will be more energy-efficient and environmentally friendly.
More so, 2kW solar systems are affordable, and if you include the rebate you get from the federal and state governments, the upfront installation costs will be significantly low. And if you use more than 60% of the power your system generates, you can save up to $800 per year.
