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How much does solar cost?
How much solar costs will vary greatly depending on your location, the size of solar system you install and the quality of products used in the installation. Solar costs are generally broken out into the solar panel cost, solar inverter cost and the overall solar installation cost. If you add a solar battery to your solar system, this will be an additional cost.
Some solar installers may offer all components of a solar system as an all- inclusive package, whereas others may break out the costs of each component in your quote. Solar installation costs also factor in discounts from the Federal Government’s Small-scale Renewable Energy Scheme, which offers incentives for households to install eligible renewable energy systems. These incentives are provided in the form of small-scale technology certificates (STCs).
How many STCs your solar system is eligible for depends on your location, date of installation and how many megawatt hours (MWh) of electricity it generates over a predetermined period. You might choose to assign your right to the STCs earned by your solar system over to your installer or system retailer in return for a lower purchase and installation cost.
Generally speaking, STCs can cut the cost of getting solar by a considerable amount. The Clean Energy Regulator has plenty of information on STCs, including on how you can assign your right to them in return for savings on a system.
As you can tell, there are many variables that can impact the cost of solar, from solar panel price to how easy it is to install them on your roof. Canstar Blue’s consumer surveys allow us to calculate the average costs of solar panels, solar installations, solar packages and solar batteries in Australia. For a solar cost estimate for your home, it’s advisable to get a detailed quote that’s specific to your property and electricity needs from an accredited, licensed solar installer.
Average cost of solar panels
The average cost of solar panels in Australia was $5,667, according to a Canstar Blue survey of more than 1,300 adults in December 2022. Respondents came from a variety of household sizes and had purchased a variety of system sizes. The costs reported were from survey respondents who bought their solar panels separately, not as part of a solar package. Only states and territories that received more than 30 survey responses have been included in the table below.
| State/Territory | Average Solar Panel Costs |
| Queensland | $6,212 |
| South Australia | $6,069 |
| Victoria | $5,627 |
| New South Wales | $5,307 |
| Western Australia | $4,399 |
Source: Canstar Blue research, December 2022.
Queenslanders reported the highest average solar panel cost. Residents in South Australia and Victoria came next, while the lowest solar panel costs recorded in New South Wales and Western Australia. Your total solar panel price can be impacted by several factors, including the brand and type of solar panels and the size of solar system you choose.
Average solar installation cost
Canstar Blue found the average solar installation cost was $3,928. These costs were provided by survey respondents who did not buy an inclusive solar package. Again, the costs reported include a range of household sizes and solar system sizes. We’ve broken these costs down to state and territory level for those areas that received more than 30 responses.
| Queensland | $4,132 |
| New South Wales | $3,991 |
| Victoria | $3,753 |
Already got solar? See if you can find a better solar energy plan
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Ausgrid network in Sydney but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 3911kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Citipower network in Melbourne but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Energex network in Brisbane but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4613kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on SA Power network in Adelaide but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4011kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Average solar battery cost
A solar battery costs roughly $10,000 before installation, according to SolarQuotes, which cites a further $1,500 estimate for the amount a battery can add to solar installation costs – and both figures can be much higher depending on the brand of battery and complexity of installation. For e.g. the well-known Tesla Powerwall costs about $15,500 to buy and install. Whether this significant additional cost is worthwhile depends on what type of electricity tariff you’re on – single tariff or time-of-use tariff – and even whether you can access a battery rebate in your state or territory. Joining a Virtual Power Plant program can also be a way to get a discount on a battery. SolarQuotes has extensive info on how to get a payback on the cost of a solar battery.
Average solar package cost
The average solar package cost was $5,521, according to the same Canstar Blue survey conducted in December 2022. A solar package was defined in this survey as an all-inclusive package that included panels, inverter, battery and installation costs as a single cost, with the findings comprising a range of household sizes and system sizes. We’ve broken the average cost down to a state and territory level for areas that met the 30-response minimum.
| New South Wales | $6,029 |
| Victoria | $5,689 |
| Queensland | $5,466 |
| South Australia | $5,224 |
| Western Australia | $3,967 |
What factors impact solar costs?
How much solar costs varies significantly depending on the choices you make on solar panel, inverter and battery brand and solar system size, as well as the location of your home, type of roof and the local solar installation market. These are some of the biggest factors impacting the cost of buying a solar system and having a solar system installed.
- Solar system size: Solar panels come in different sizes, with different capacities, so a 10kW solar system will cost more than a 3kW solar system. The larger your solar system by a kilowatt hours (kW) measurement, the more electricity your system will generate but also the more appropriate roof space you’ll need to accommodate the required size of solar panels.
- Adding a solar battery: Solar battery storage systems are still relatively expensive in comparison to other elements of a solar system so including a battery will push your purchase costs up. You might consider how you intend to use the electricity you generate and how long you intend to remain at your current property when deciding whether to add a battery to your system.
- Inverter type: Whether you choose a string or micro inverter, as well as the brand of invert, will have an impact on the cost of getting solar. There are arguments for both types of inverter so it’s best to research which option will suit your homeland price range.
- Solar installation costs: It’s up to your installer to set their own rates and these may differ significantly from local or smaller retailers to chain retailers, as well as whether you pay for installation as part of a package, so as with all significant financial outlays, shop around for a minimum of three quotes.
- Installation challenges: The accessibility of your roof, your roof materials and condition – for example, you may need to repair an old roof before installing solar panels so it can bear their weight – the size of your solar system, whether you want to include more complex monitoring system, what local regulations are for solar installers and more. These are all factors that impact how difficult the job will be and what other costs you and the installer may face and therefore the impact the installation cost.
- Government solar rebates: If you’re eligible for a solar rebate in your state, it could substantially reduce the initial cost of installing solar panels.
- Installer demand: The usual economics apply to solar too! Installation costs can depend on supply and demand. In areas or at times where installers have a lot of work in the pipeline, they will tend to charge a higher price. Generally speaking, solar technicians are in lower demand, and therefore may lower their charges, in the early parts of autumn and spring.
- Solar panel quality: Not all solar panels are the same and their price differs as a result – as you’d expect. The brand of panel you choose also has an impact. Efficient solar panels are typically more expensive in the short term, but may save you more in the long term because they’re said to produce more electricity for their size.
- Finance packaging options: Solar financing options may come with an interest fee, while solar packages purchased from electricity providers may come with conditional agreements, such as that you must remain on a specific electricity plan with an electricity provider for X number of years. Read the fine print carefully before committing to a solar finance package because it can have an outsize impact on the total cost you end up paying.
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