How Much Does Solar Panel Installation Cost In Australia? (2023)

How Much Does Solar Panel Installation Cost In Australia

Many Australians are interested in installing solar panels to support green and clean energy but are unsure of the costs. Besides, many people are unaware of how much it costs to install solar panels. Australia has a high rate of installed solar panels per capita as per the International Energy Agency report. Hence, it is imperative to share a detailed article that will inform the people about the expenses, benefits, and all associated details about solar panel installation.

Solar panels convert solar energy into usable electricity which is clean and environmentally friendly. It has exciting possibilities of providing virtually free and clean energy. However, it is very important to conduct research on pricing and various other details before deciding to invest in it. As one needs to know about the cost of installing panels, one must be aware of how much money solar panels save to have a clear idea about return on investment. Besides, investing in solar power not only saves money but reduces a household’s dependency on fossil fuels and reduces carbon emissions.

Here is all the detailed information one might need about buying and installing solar panels.

Installing Solar Panels: How Much Is Required To Spend? 

One should consider the installation charges of solar panels in Australia besides the advertised power of the solar system. However, there are options where a person can get additional price benefits after applying for solar panel rebates.  So, the answer to the question of how much it costs to install solar panels includes the prices of installation for which the companies charge extra. But it varies from the prices quoted by the companies.

For example, if any installation company puts a quotation of around AUD 5000 for a 6.6Wh system, the customer will not have to pay the additional cost for installation. However, it is important to deal with or avail services from a company that is a certified installer. If they are not recognized or certified installers, the customer will not be able to get the rebate and the cost of installation might increase.

The area is a factor when considering the price of solar panel installation in Australia. Australian states have different rates of rebate based on their location and support of centers. The number of photovoltaic panels can produce different amounts of electricity in different regions. If a customer is from a place with average power generation, they might have to pay a higher cost per panel in comparison to areas that have high power generation capability.

Cost of Solar panels throughout the years in Australia 

Cost of Solar panels

The average cost of solar panels is around AUD 2500 to 8000. Pricing is determined by the size, power and capacity of the panels. How much solar panels cost is a valid question as there is a myth that panels can cost a fortune/ However, the fact is far from being true? The pricing of solar panels varies from one state to another in Australia. Here is a list of pricing of solar panels across various states in Australia.

State Established cost (5 kW system)
New South Wales AUD 4400 to AUD 5000
Victoria AUD 4500 to AUD 5400
South Australia AUD 4300 to AUD 4700
Western Australia AUD 3600 to AUD 3900
Australian Capital Territory AUD 4100 to 6400
Queensland AUD 4500 to AUD 5000

Various Solar Panels With Their Pricing

Various Solar Panels With Their Pricing

The pricing of solar panel systems depends on the power, number of panels and approximate size of the households. A larger household will need more panels than a smaller household. 

Type of System Approx Cost Approx size of household
1.5 – kWp (4 panels) AUD 2500 to AUD 4000 1
2-kWp (6 panels) AUD 3000 to AUD 4500 2
3-kWp (9 panels) AUD 3500 to AUD 5000 3
4-kWp (12 panels) AUD 4000 to AUD 6000 4+
5-kWp (20 panels) AUD 4500 to AUD 8000 6+

Factors Impacting The Cost Of Installing Solar Panel

Factors Impacting The Cost Of Installing Solar Panel

There are factors that determine the cost of solar panel installation. There are various factors that work in the scenario which will affect the pricing. Here are the factors discussed broadly to identify the factors.

  • Size Of The System
Size Of The System

Size is a prime determinant of the cost of solar panels. The solar panel system is measured in the unit of kWh or kilowatt pack. It relates to the amount of energy generated by cells during summer. With lower kWp, fewer panels will be needed which will lessen the final cost.

  • Number Of Panels
Number Of Panels

Pricing or costing of solar panels will be based on the number of solar panels required. Considering a household of two people, 2-kWp is best suited for the purpose. The pricing will come to around AUD 3000 to AUD 4500. However, a bigger house of 4 occupants will need 12 panels with a 4-kWp system which will cost around AUD 4500 to AUD 6000.

  • Type Of Solar Panel
Type Of Solar Panel

The type of solar panel is a major determinant of the price of the panels. There are three popular types of solar panels available in the market. Monocrystalline solar panels, polycrystalline solar panels, and thin-film solar panels are available variants.. The most expensive of the three is monocrystalline solar panels and is known for their durability and efficiency. The thin-film solar panels are among the cheapest but need huge space and have low durability.

  • The Efficiency Of Solar Panels
The Efficiency Of Solar Panels

Apart from the type and size of the solar panels, the efficiency of the panels is a factor that guides the pricing of the solar panels. Highly efficient solar panels need a smaller number of panels to support the household energy requirement.

High-efficiency solar panels are higher due to the same reason. Monocrystalline solar panels provide a 15 to 23 percent efficiency rate. The polycrystalline solar panel efficiency rate is anywhere between 13 to 16 percent. The least efficient thin-film solar panel with a rate of 11 to 14 percent.

  • Cost Of Labor
Cost Of Labor

The most common question for solar panels is how much solar panel installation costs.  Well, the answer lies in the cost of labor which adds up with the cost of solar panels. Labour adds up to 15 to 50 percent of the total pricing of the solar system. Average labor will cost around AUD 110 to AUD 300. It can cost more or less depending on the location, the day of installation, and the size of the solar panel system.

  • Method of Installation
Method of Installation

The cost of installing the solar panel depends on the method which will be used for the installation. Though solar panel installation can be a straightforward business, it requires strategy, planning, and implementation for effectiveness. The installation experts will be required to measure the house structure, size, number of panels, and the angles at which panels will be set. The complex architecture will increase the cost of installation due to more complex methods.

Additional Factors That Impact The Price Of Solar Panel Installation 

Another major determinant factor that will affect the price of the solar panel installation is highly driven by issues or upgrades which can increase the cost of installation. Here is a list of additional factors impacting the price of the expense of solar panel installation.

  • Replacing The Roof
Replacing The Roof

Solar panels have an age of around 20 to 30 years. In case the roof has been installed for more than 30 years, the best roofers have to be brought in to have a new roof placed. The cost of roof replacement is around AUD 6000 to AUD 10000. It will help to make savings on making replacement, repair, and reinstallation of the solar panels for the long term.

  • Pigeon-Proofing

Solar panels become easy to access for making homes by pigeons. It becomes a long-term issue as pigeon homes will accumulate dirt and damage the panels. Pigeon proofing is an option that costs around AUD 5000 to AUD 3000 and it will prevent pigeons from making homes and causing inconvenience.

  • Batteries
batteries

Solar battery installation is a must-have as solar panels are not of much use during any dark or gloomy day. However, installing batteries will raise the cost from AUD 2000 to 12000, but they are lifesavers when the scenario is not favorable for the solar panels to work.

Are Any Rebates Available In Australia?

Australian homeowners can avail of the rebate scheme for installing solar panels. Many solar rebate schemes were functional in Australia around a decade ago and have been phased out by the government through various stages. The same applies to tariff rebate schemes. When there will be high uptake the amount of rebate will eventually reduce.

In the New South Wales region, homeowners can swap their low-income household rebate for installing a 3-kilowatt solar panels system. However, there are conditions that apply but they are limited to a few areas.

Victoria hosts a Solar Home Program which includes different rebates. It includes a solar panel rebate of around AUD 1400 plus which comes with an option of an interest-free loan in case of rental properties. Besides point-of-sales discounts are also available for solar batteries.

The Northern Territory of Australia provides most of the generous solar battery subsidies. The homeowners or businesses who are eligible have access to the grant of AUD 450 per kWh of usable battery system capacity with a maximum value being AUD 6000.

How Much Money Solar Panels Can Save In Long Run?

It is one of the most common questions which arises when an individual decides to invest in solar panel systems. However, the amount of savings is guided by various factors. The number of panels exposed to sunlight, and the amount of financing provided by creditors are major determinants of how much a person can save from solar panels.

An estimate shows that an average household across five major Australian cities with a 6-kilowatt system that receives 5 hours of sunlight on a daily basis and exports half of the power to the grid can save between AUD 6000 to AUD 1000 every year.

Purchase of the batteries lead to higher up-front cost but on the other side, the savings will increase in the long term.

Are Cheaper Solar Panels Worth Buying?

Good quality systems have a lifespan of 25 years but low quality offers a shorter span and needs frequent servicing.

As per solar panel experts, cheap solar panels are not worth investing in as they have less durability and will increase the cost of replacement or repair in the long run.

The cheap solar panels need to be replaced within four years of their installation. Good quality solar panels, however, last for at least 25 years. The main issue with cheap solar power is that they have low durability towards rainwater which can kill the circuit. In a given situation of short circuit, there can be a fire problem. When safety and durability is concerned, it is not recommended to invest in cheap solar panels.

How To Pay For Solar Panel Installation? 

There are five ways that a customer can use to pay for a solar panel system. There are plenty of options but recognized solar system sellers are recommended.

  • Power Purchase Agreement or PPA
Power Purchase Agreement or PPA

PPA or Power Purchase Agreement helps to avoid any upfront costs. The companies will own the system and the customer does not need to pay a fixed amount. The charges are determined based on the amount of power hatch the solar system will generate. PPA rates are much lower than traditional power companies.

  • Do-It-Yourself Solar Panel Kits
Do-It-Yourself Solar Panel Kits

Installing solar panels using a DIY kit is not recommended. The DIY solar panel however does not come at a cheap price. It comes with huge tax incentives. The incentive is given out in case when a solar panel is installed by a certified installer.

  • Upfront Cash
upfront cash

There are wide benefits when upfront cash is used to pay for solar systems. The benefits include:

  • Customer receives all tax incentives
  • Maximum value of panel is received during resale
  • It provides an advantage over inflation as the bill savings will increase.
  • Customers will have complete ownership of the system.
  • No recurring bills will be generated for the customer.
  • Solar Leasing
Solar leasing

is like renting the installed parts which can provide an advantage to the customers. For example, any other company will install the panels, inverter, and all components, own it and the customer has to pay the rent.

The customer has to pay a fixed amount every month, which is not determined by the amount of power produced. But the problem is that the price or rent might not be the same throughout the years. There is no price-locking option when leasing a solar panel system.

  • Solar Financing
Solar Financing

Solar-Financing is a far more effective option than leasing due to the amount of money saved. Financing enables the customer to own the whole system and only pay once while buying it. The customer will be leased and they have to pay repeatedly unless the customer tries to buy it outright.

Solar Financing will enable the customer to get tax incentives. Besides, customers can save 26 percent to 60 percent on solar panel installation due to local tax incentive options.

Conclusion

Solar panels might seem costly for some individuals for installation and set-up. But in the long run, the return on investment will save a good amount. Besides, the user will have an independent source of power that is not chargeable. It is recommended to invest in a full set which might have a high up-front cost but the customer will be the owner and rebates will provide financial support. Developing a self-sufficient clean energy system is beneficial for the environment and it will provide a better environment for living.

Frequently Asked Questions

What Is The True Cost Of Installing Solar Panels?

Solar panel supply and installation varies and costs between 6000 to 10000 pounds for photovoltaic cells and 5000-7000 pounds for the solar thermal system. 

What is the cost of solar panels in 2022?

A 6.6. kW solar system is one of the most widely purchased solar panels. The system of the given size costs between AUD 5000-85000 for a quality product. It will help the customer to save around 1200 to 2000 AUD considering the amount of electricity used.

How Much Does A 10-Kw Solar System Generate Each Day?

Generally, an average 10-kW solar system can generate around 10,000 watts under good conditions. The daily production average is 30 and 45 kWh every day.

How Much Does A 10-Kw Solar System Generate Each Day?

Generally, an average 10-kW solar system can generate around 10,000 watts under good conditions. The daily production average is 30 and 45 kWh every day.

Is It Possible To Run The Whole House On Solar Energy?

A modern solar system with power storage can positively run an entire house. High-efficiency solar panels are available in the market and solar batteries have become cheaper than before which can power an entire house.

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