Solar Panels in Melbourne, VIC - Cost and Rebate Guide 2026
Reviewed by Leigh McInerney
2025 is the ideal time for people in Melbourne, Victoria, to get on board with solar energy! Thanks to sizeable rebates, the falling prices of solar panels, and the rising cost of electricity, you could witness notable reductions in your electricity expenses.
Here’s a guide on how much you should expect to spend and save on solar panels in Melbourne.
Table of contents
Solar panels cost in Melbourne
There are numerous factors that influence the overall cost of solar panels. This ranges from the size of the solar system, the brand of the panels, and the angle and inclination of the panels on your roof.
However, the most popular solar system among Melbourne residents (the 5kW solar system) goes for an average of $5,892. This is inclusive of taxes and total rebates offered.
It’s worth noting that Melbourne solar owners enjoy two generous rebate programs; the federal rebate initiative and the state-level rebates.
There’s also a feed-in tariff program that you can take advantage of to improve the ROI of your solar system.
Here’s a breakdown of how much you can spend on solar systems of different sizes in Melbourne.
| Service/ system | Size | Cost |
|---|---|---|
| Solar cost per KW Melbourne | 1.5 kW | $3,437 |
| National average cost per KW | 1 kW | $1,892 |
| 3kW solar cost Melbourne | 3 kW | $4,137 |
| 5kW solar cost Melbourne | 5 kW | $5,892 |
| 6.6kW solar cost Melbourne | 6.6 kW | $7,242 |
Government solar panel rebate in VIC
Under the federal government’s Small-scale Renewable Energy Scheme, all solar owners, including those in Victoria, are eligible to apply for the government rebate program.
In this scheme, the solar owner exchanges his/her Small-scale Technology certificates for a point-of-sale discount on their solar panels.
Typically, owners with bigger solar systems receive higher rebate amounts since they receive more STCs.
This program will end in December of 2030 – Every year the rebate amount reduces by 1/15th until the entire scheme becomes phased out.
| System Size | Rebate Amount |
|---|---|
| 2kW | $439 |
| 3kW | $678 |
| 4kW | $918 |
| 5kW | $1,157 |
| 6kW | $1,397 |
| 10kW | $2,354 |
VIC Government State Rebates
Besides the federal rebate, the Victorian state government also runs a rebate program for its residents. Under this program, you can receive up to an extra $1,157 in rebates for a 5kW solar system.
This rebate is, however, capped at around $4,838. It’s set to end in 2030, and the rebate amount gradually decreases each year.
VIC rebate on battery storage
To promote the use of solar power in Victoria, the state government also offers rebates on solar batteries. The initiative was started in 2019, and it aims to support 4,000+ homes to acquire the batteries.
The requirements for this program include:
- Home should have a solar system greater than 5kW
- System should be in an eligible postcode
- Owner should demonstrate battery safety compliance for their installation
- Home shouldn’t have an existing power storage device.
- House should be worth less than $3million and a combined income of less than $180,000.
- This should be your first solar rebate application.
If you’ve met these requirements, obtain a quote from an authorized seller, and apply online.
Keep in mind; the federal government rebate program doesn’t cover any solar battery rebates.
Solar system output in Melbourne
Melbourne receives one of the highest sunlight intensities in Australia. This translates to a high power output compared to other cities.
On average, a 6kW solar system generates around 24.5kWh daily, which is enough to run a home.
However, several factors affect the efficiency of a solar panel and hence, its output. One such factor is the angle and orientation of the solar panels.
Research has shown that solar panels in Australia have the highest output when facing the North direction. Panels facing other directions suffer greatly due to efficiency losses.
Solar panels inclined at around 28 degrees are also said to be more effective than flat roofs.
The table below shows the average output of solar systems in Melbourne.
| System Size | Output |
|---|---|
| 1kW | 4.3kWh |
| 1.5kW | 6.45 kWh |
| 2kW | 8.6 kWh |
| 3kW | 12.9 kWh |
| 4kW | 17.2 kWh |
| 5kW | 21.5 kWh |
| 6kW | 25.24 kWh |
| 10kW | 38.5kWh |
STC zone in Melbourne
When the government was deciding how to provide solar rebates efficiently, they opted to divide the states into four zones.
Each zone was then given a rating that determines how many STCs owners in those zones can receive. Zones which have a higher sunlight intensity receive higher ratings and more STCs than other zones.
Melbourne lies in zone 4, which receives the lowest rating, 1.185, and receives the lowest number of STCs.
Despite these ratings, the rebate amounts offered in this city are still substantial to offset most solar panel costs.
Solar Feed-in tariffs VIC
In Victoria, like all other Australian states, there’s also an incentive program among solar owners known as the feed-in tariff.
The feed-in tariffs in Victoria are essentially cash incentives that you receive by reselling your excess power to the grid. Most utility companies across Melbourne, including Origin Energy and AGL, all offer this initiative.
But since the program is still in development, every utility company offers a different feed-in rate for your surplus energy.
In Melbourne, the average tariff rates stand at around 17.0cents/kilowatt. Origin Energy has the best rates at 25.0c/kWh, but their rates go as low as 7.1c/kWh during off-peak periods.
Other popular feed-in tariff rates for Victorians come from Click Energy and Dodo companies. Like the federal rebate program, the feed-in tariff program is also set to end in 2030.
However, since it’s not a government initiative, this scheme can continue running even past 2030.
Is Melbourne a good climate for solar?
Yes! Melbourne enjoys a relatively sunny climate that’s good for solar power. According to the Australian Bureau of Meteorology, a regular rooftop receives around 4.8kWh of sunshine per square meter daily.
During summers, the area experiences an extra hot day, which increases the output of the solar panels to around 6kWh per sq. m daily.
During the cool winters, the output significantly drops daily to around 1kWh per sq. m. This goes to ensure that you receive adequate sunlight every day.
Percentage of Melbourne households with solar installed
Based on the data from the Clean Energy Regulator, only 15% (375k) of homes in Melbourne have installed the systems on their homes.
Note: This data was collected in 2018, so, this percentage is expected to be much greater in 2025.
Optimal solar panel orientation and angle in Melbourne
As aforementioned, solar panel orientation plays a crucial role in determining the output of a solar system. For regions in the southern hemisphere, north-facing solar panels tend to perform better.
Solar panels in the East-West direction are also quite reliable, even though they lose a significant amount of efficiency.
In terms of roof angle, it’s obvious that tilted roofs have a better advantage compared to flat roofs. Most Melbourne solar owners prefer tilting the home roofs between 20 – 30 degrees for better power generation.
Want a shortcut?
The fastest and easiest way to get connected to three of the most reliable and affordable solar installers in Melbourne would be using this FREE service.
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- Scroll up to the top of the page and enter your ZIP Code in the blue form at the top of the page.
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FAQs
Can I get solar panels for free?
Not really! Unless someone is giving out solar panels like handouts, you’ll have to dig into your pockets and spend some money. The good news, however, is that you won’t have to spend a lot of cash.
Owing to the numerous generous rebate and loan programs available, you can easily afford solar panels without breaking the bank.
You can also take advantage of the many financing options available like solar leasing and Power Purchase Agreements, which appear free upfront but you’ll still incur some long-term costs!
What is the warranty period on solar panels?
Most solar panels usually come with 10 – 15 years product warranty and a 25 – 30 years performance warranty. Each of these warranties acts as a guarantee that the manufacturer will cover any repairs in case of any defects.
Nevertheless, different manufacturers will have different warranties for their products.
Who is the best installer?
It depends. When looking for a solar installer, the first thing you should know is that there’s no perfect company. The ‘best’ installer is essentially one who understands your solar requirements and can customize their solutions to suit your needs.
If you’re still having trouble finding an installer, try our free service on GoSolarQuotes.com. In just three simple steps, you’ll be matched with three of the best local installers in your area!
Solar panel prices by city
