Solar Panels in Newcastle, NSW - Cost and Rebate Guide 2026
Reviewed by Leigh McInerney
Australia is a staunch advocate for solar energy, positioning itself as a prime spot for the deployment of solar power setups. The move towards solar energy is increasingly evident each day, driven by significant government rebates, reducing costs of panels, and reliable feed-in tariffs.
Many households, businesses, and industries in Newcastle are installing solar power every day to reduce or eliminate power bills. The government’s Small-scale Renewable Energy Scheme aims at supporting homes to install solar panels and lower power bills.
Table of contents
Solar panels cost in Newcastle
The cost of solar panels is dependent mainly on the size of your solar panels. For instance, a 5kW system, the most popular solar system in Australian homes, goes for approximately $5,692.
The national average of solar systems of the same size is about $5,642, which means the cost of a 5kW system in Newcastle is on the lower end. This price is inclusive of the government rebate, which makes it affordable to install.
The table below shows the average cost of solar panels in Newcastle.
| Service/ system | Size | Cost |
|---|---|---|
| Solar cost per KW Newcastle | 1.5 kW | $3,357 |
| National average cost per KW | 1 kW | $1,892 |
| 3kW solar cost Newcastle | 3 kW | $4,018 |
| 5kW solar cost Newcastle | 5 kW | $5,692 |
| 6.6kW solar cost Newcastle | 6.6 kW | $7,003 |
Government solar panel rebate in NSW
All homes in Newcastle looking to install solar panels will receive incentives through the federal government’s rebate program. These incentives will be provided through the Small-scale Technology Certificates program. These STCs are tradable certificates that you or your installer can exchange for a discount on the solar panels you wish to install.
The STCs you receive depend on your solar system’s size. For instance, a 5kW solar system receives 34 STCs and a rebate of $1,357 in NSW. Since NSW is in zone 3, its STC rating is 1.382, and the STC spot price is $39.90. The rebate varies from system to system and increases as the solar system size increases.
The following table shows the average rebate amount for various solar panels in NSW.
| System Size | Rebate Amount |
|---|---|
| 2kW | $519 |
| 3kW | $798 |
| 4kW | $1,077 |
| 5kW | $1,357 |
| 6kW | $1,636 |
| 10kW | $2,753 |
NSW Government State Rebates
Besides the federal government rebates, NSW offers rebates on solar for low-income households. This scheme aims to reduce the electricity bills for low-income houses, supporting up to 3,400 homes. These people can forego the rebate and get a 2.5kW solar system installed at zero cost.
This scheme will work better than the federal government rebates because all the beneficiaries will save over $600 annually from the electricity bill cost.
NSW is also providing an appliance replacement scheme for low-income houses. It offers 50% off the cost of a new refrigerator and 50% off for a new TV if these appliances have a high energy rating. This means the residents do not need to wait for solar installations to save power bills.
Solar system output in Newcastle NSW
When looking to buy a solar system, it is essential to know the output of the system you intend to install. Below is a table illustrating the different power outputs for different solar system sizes in NSW.
| 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 Newcastle NSW
Newcastle is in zone 3, according to the STC zoning. This means it receives a rating of 1.382 for the STCs and a spot price of $39.90. Being in Zone 3 means the region gets a fair amount of sunshine but not as high as Zone 1 and 2 and not as low as Zone 4.
The STC zone matters a lot when calculating the rebates. The government uses the zone rating to provide rebates to all Australian residents. People in zone 1 thus get the highest rebates while those in zone 4 receive the least.
Solar Feed-in tariffs NSW
Solar feed-in tariffs are essential for all households with solar installations. This is because you may not exhaust all the energy your panels produce in one day. This means that the power you will not use will go to waste.
Instead of letting all that excess energy go to waste, you can translate it into money using the right feed-in tariff. You will feedback on all the surplus power and get incentives in return. Below are the best FiTs you should consider.
Best Overall
| Min FiT | Max FiT |
|---|---|
| 11.2c | 16c |
This FiT provider offers very high FiT rates for your surplus power. You will get 11.2c/kWh with a maximum of 16c/kWh. This is quite a reasonable offer, and the incentives you receive will drastically reduce your panels’ payback time.
Click Energy is very transparent in its operations and does not provide any lock-in contracts. This leaves you with the decision of whether to stay or leave.
Runner up
| Min FiT | Max FiT |
|---|---|
| 10.2c | 10.2c |
Red Energy is also a great FiT provider that offers very high rates per Kwh. You will get a minimum of 15.0c/kWh with a maximum of up to 16.0c/kWh. This means you can get high incentives for your surplus solar energy, especially if you have a larger system.
This company is highly reliable and transparent and ensures all its clients get quality services around the clock.
Great All-rounder
| Min FiT | Max FiT |
|---|---|
| 8.5c | 44c |
Dodo is another great provider that will offer high FiT rates with a minimum of 8.5c/kWh and a maximum of 44.0c. With Dodo, you will be able to monitor your account through an easy-to-use online account management system known as ‘my dodo.’
This management tool allows you to navigate your site and see how the operations are handled. This means this company is straightforward and will not take advantage of its clients.
Is Newcastle a good climate for solar?
Yes, Newcastle is a good climate for solar installation. The weather is relatively warm, with long sunny summers and moderate showers. It is warm all year round, which makes it an excellent climate for solar. The temperatures can reach 27 to 28 degrees Celsius and can go as low as 10 to 12 degrees during the cold months.
Percentage of Newcastle households with solar installed
According to the Australian PV, approximately 24.6% of homes in Australia have installed solar systems. This means that the New Castle alone has more than 20% of households with solar power because almost twice the homes in this city have solar power.
Optimal solar panel orientation and angle in Newcastle
Solar panels in Newcastle should have an orientation of about 17 to 27 degrees. The optimal range is 22 degrees if the panels face a northerly direction. At this angle, the panels absorb optimum sunlight and produce the most energy. To allow for self-cleaning during the rainy days, you should apply a minimum of 10 degrees tilt.
FAQs
Can I get finance on my solar system?
Yes, you can get finance from the NSW state government for your solar system. All eligible homes with an income of up to $180,000 will get interest-free loans of up to $14,000 for the solar and battery system. People looking to add another battery to the system will get an interest-free loan of $9,000.
Will I eliminate my power bill?
Going solar will eliminate your electricity bill up to a level it is no longer a significant aspect of your budget. With a reliable solar system and high-quality batteries, you can get enough solar energy to power your home. This means you will be able to eliminate electricity bills drastically.
Do solar panels make noise?
No solar panels do not make noise, but there are various reasons you can hear some noise. For instance, inverter fans produce some noise that may be disturbing to some people, while others will not find them disturbing.
Do I need battery storage?
Yes, battery storage is essential to your system as they store power produced by your solar system. If the grid goes down, you will have enough energy to power your home, especially during winter, when there is barely enough sunlight.
Solar panel prices by city
