The size of the solar system you choose will affect its price. The cost of your new solar system will depend on how large it is.
Since I began over a decade ago, prices in Australia have fallen significantly. In fact, a $10,000 installation with just 1kW of solar panels was $10,000 back then! Pricing for larger systems is especially important. For the same amount of money, you’ll get a lot more capacity.
Contrary to what you might have heard, the cost of a solar system in 2021 is heavily subsidised through the Australian government-run rebate program.
The value of STCs is what determines the rebate. I have linked to a page that explains more about the subject. You can save up to $494 per kW by installing STCs at the current price as of November 2021.
This is how pricing works for a 6.6kW system.
These solar panel prices assume that quality components were used in the installation. For an accurate price quote for your situation, I recommend getting three quotes from installers that I have pre-vetted.
|The average pre-rebate cost for an installed system is:||$9,500|
|You pay 6.6kW for solar power||Approx $6.040|
It is important to consider whether a 6.6kW system would be a suitable size for your installation. It’s the minimum size I recommend that you install on your roof in 2021.
Solar Systems Costs After Rebate
Prices in Australia vary largely due to the quality and quantity of hardware used. As most people are more familiar than solar power brands with cars, the lower priced brands will be called “Kia”, while the higher-end brands will be “BMW”. You can decide for yourself if BMWs are more expensive than Kias.
Cost of a high quality solar system installation (fully installed) in Australia, November 2021:
|System size||Numbers of panels||Price Range (November 2021|
|1.5kW||4||$2,500 – $4,000|
|2kW||6||$3,000 – $4,500|
|3kW||8||$3,500 – $5,000|
|4kW||11||$4,000 – $6,000|
|5kW||14||$4,500 – $8,000|
|6.6kW||18||$5,000 – $9,000|
|7kW||19||$6,500 – $10,000|
|8kW||22||$7,500 – $11,000|
|10kW||27||$8,000 – $12,000|
Update: November 20,21 – Recently, there have been major disruptions in solar panel supply (especially Chinese-made modules), which has pushed prices for 6.6 kW systems up to about $1,000. The current prices of solar panels fluctuate daily so don’t be surprised that your quotes may not be valid for more than a few days.
The above assumes a use of 370W panels. Therefore, the final panel capacity could be slightly higher or lower than the figures.
Get Real-Time Australian Solar Pricing
These costs are based upon thousands of data points. You can see the average price paid for system installations in real time.
You can expect an additional 20% to the price of the above prices if you need a high-quality microinverter/optimiser system.
You may be able save up to $700 if you downgrade to a trusted budget inverter, such as Sungrow or Goodwe.
Finding the Money
You might be thinking, “Wow! That’s a lot to find!” even with the rebate. I agree. It is therefore important that Australians understand the cashflows and paybacks associated with solar panels so they can decide if it is worth the investment.
This is why I created the “no-BS” solar payback calculator. It allows you to test different options and compare the cash flow and solar energy savings over the life of your system.
You can also buy solar systems at lower prices than the ones listed above. If the price seems too good, I’d be cautious about the quality of the components and the installation.
You can finance your solar system via savings or adding it to your mortgage at current interest rates. Your system may even pay for itself right away. This means that your reduced monthly bills could outweigh the additional repayments or lost interest. This depends on many variables, so make sure to do your research.