Solar Panels in Sydney - Cost and Rebate Guide 2026
Reviewed by Leigh McInerney
If you’re thinking about switching to solar energy, now’s the perfect time to dive in. The price of solar panels is steadily decreasing, and there are significant government rebates up for grabs. Why continue to struggle with rising energy costs when there’s an affordable solar solution at your fingertips?
Table of contents
Solar panels cost in Sydney
The average cost of the popular 6kW solar system is $6,671, inclusive of the government rebate. The cost per kWh is around $1,932.
The government rebate on a 6kWh system in 2026 is $1,636. This will however, slowly decrease each year until it is phased out in 2030.
The rebate is essential when installing your solar panels because it makes the process cheaper than installing the system without any FiT or rebate.
| Service/ system | Size | Cost |
|---|---|---|
| Solar cost per KW Sydney | 1 kW | $1,932 |
| National average cost per KW | 1 kW | $1,767 |
| 3kW solar cost Sydney | 3 kW | $4,018 |
| 5kW solar cost Sydney | 5 kW | $5,692 |
| 6.6kW solar cost Sydney | 6.6 kW | $7,003 |
Federal Government rebate in NSW
The solar panel rebate is an initiative governed by the Australian government. The initiative is called the Small-scale Renewable Energy Scheme, aimed at encouraging households to install solar systems.
Once you install a solar system, you can claim the STCs and receive your rebate from the government. The STCs vary from zone to zone, and they also depend on the type of solar you install. For instance, for a 6kW solar system, you will get 41 STCs, which gives you a rebate of $1,636. The rebate prices increase or decrease depending on the size of your system.
Because the ACT is nested in NSW, the solar rebate and overall cost of solar in Canberra is the same as the rest of 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
The STC price in NSW has been moving between $35 and $40 for the last few years. The current price when writing this article is $39.90 and has been steady for the last 12 months. The solar rebate awarded in NSW depends on the number of STCs and the size of the solar system you install.
For instance, a 6kW solar gets 41 STCs, which attracts a rebate of $1,636, while a 10kW solar system rebate is $2,753.
The rebate system in NSW starts in the 2019/2020 financial year. NSW expects about 300,000 households to receive the rebate for the next ten years.
Solar system output in Sydney
| 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 |
Solar Feed-in tariffs NSW
All Australian states receive incentives to install solar energy or any other renewable form of energy. Apart from the government rebates, renowned companies can also give you money for your system’s excess energy. This is known scheme as the feed-in tariff that helps you to reduce your solar system’s payback time.
Below is an example of the best FiTs you can get when installing your solar system.
Best Overall
| Min FiT | Max FiT |
|---|---|
| 15.0c | 59.0c |
Red energy is one of the most reliable companies that offer the best feed-in tariffs to households. Its minimum FiT is 15.0c, and it can go up to 59.0c. This company is also transparent and will give back every tariff you earn.
With such a high FiT, you can reduce your solar payback time and ensure no energy goes to waste.
Runner up
| Min FiT | Max FiT |
|---|---|
| 12.0c | 56.0c |
This company is also an excellent choice because it offers 12.0c per kWh minimum with a maximum of 56.0c. If you are looking for the best FiT provider, you can consider this company because it is also very reliable.
It offers transparent pricing and ensures you get the tariffs eligible for your solar system size. So, as long as they verify your system’s size, you will start receiving your tariffs immediately.
Great All-rounder
| Min FiT | Max FiT |
|---|---|
| 8.5c | 44.0c |
With dodo, you will receive a minimum feed-in tariff of 8.5c to maximum of 44.0c depending on your system’s size. This provider does not lock you into unwanted contacts, which gives you the freedom to stay or move to another company.
It also offers a flexible payment option that suits your needs. You can even monitor your solar usage using their online account management tool to know how much you can earn every month.
Is Sydney a good climate for solar?
The climate in Sidney is generally sunny all year round, which can comfortably support solar energy. Although most people think that solar panels work best in generally sunny places, a cold climate is ideal for optimal solar energy generation.
The heat may diminish the panels’ electricity production, while cold climates maintain the energy. So, as long as the sun hits the solar panels, you will have enough power to light your nights and run your household’s electronics.
Percentage of Sydney households with solar installed
About 24.6% of households in Sydney have solar energy, according to the Australian PV Institute. This means that many households are harvesting solar energy as the main source of energy in their homes.
Optimal solar panel orientation and angle in CITY
Most solar companies install solar panels facing south to capture the maximum amount of sunlight. The panels are tilted to an angle of about 30 to 40 degrees for maximum absorption. Tilting the panels is essential because it allows for self-cleaning when it rains.
FAQs
How long do solar panels last?
Generally, solar panels last for about 25 to 30 years. During the life of the Photovoltaic system, they may start showing a 20% decrease in inefficiency. The panels’ maximum decrease in efficiency is about 10% for the first 10 to 12 years. After 25 to 30 years, you may need to replace your panels if the system’s efficiency exceeds 80%.
Is 6.6kW enough?
A 6.6kW solar system produces enough energy to support your daily household use. It can, therefore, reduce your electricity bills to zero. With solar power, you can control how much energy you will use. Therefore, you will not worry about spikes in the power bills in case of unusual usages.
However, the amount produced by the system will depend on your location and where the panels are facing. It is advisable to tilt the panels at an angle of 30 to 40 degrees for optimal sunlight absorption.
Do solar panels last forever?
No, solar panels do not last forever. After about ten to twelve years, their efficiency will decrease by 10%. After 25 to 30 years, the panel’s efficiency will decrease by 20%. This means that you may need to replace your panels after approximately 40 years when its efficiency decreases below 80%. The industry standard lifetime of solar panels is approximately 25 to 30 years.
Is solar still worth it?
Yes, solar energy is still worth in almost all homes. This is because the prices of the panels continue to go down while their efficiency continues to increase. More so, with the feed-in tariffs, government rebates and the high electricity bills, solar panels provide a cheaper and reliable power alternative.
What is the ROI period of solar panels?
Typically, the return on investment for solar panels is about 10 to 15 years depending on the model and size. This is the time the panels start paying for themselves. The payback time also depends on your electricity usage, power rates and the solar’s compatibility to your roof. Incentives and rebates may make your ROI come faster.
Solar panel prices by city
