If you’re looking at installing solar, the question of cost is undoubtedly on top of your list. The cost of solar has been steadily declining in Australia. Solar panels have never been cheaper!
Let’s look at the cost of solar panels in Australia.
Are all solar panels priced the same?
As with most things in life, solar panels have varying costs which are determined by varying factors. Here’s a breakdown of the factors that impact the cost of panels:
- Brand: The solar panel brand you select will often have the greatest impact on its price. Premium brands usually attract higher prices, but they also have the best technology, the greatest warranties, and fantastic customer support. Brands that prioritise quantity over quality will usually be cheaper – but often at the cost of longevity and efficiency.
- Model: Older models of solar panels will generally be cheaper – regardless of the brand. Newer models are manufactured after considerable investments in research and development. This will usually mean that these panels will attract higher prices.
- Size/Wattage: The greater the wattage, the higher the price. Packing more of a power punch into each cell will result in an increased price per panel – but the benefit of larger panels is usually the reduced need for extra panels on your roof. This means that you can maximise the space on your roof and enjoy a total greater output.
- Availability: If Covid taught us anything, we now know that scarcity equals greater costs. Australia currently has a surplus of solar panels available, meaning cheaper panels.
What is the current cost of a solar panel?
While there’s no set price for solar, we do have an average price for solar panels installed in Australia (including the inverter).
According to SolarChoice, the current national cost per watt to install solar is $0.94 (October 2023). This means that a 10kW system would cost around $9,400 to install on average (including the deduction of the value of STCs). Of course, prices vary from state to state. You can use our handy calculator to find out how much you might pay for a solar system on your home.
How much will I pay for solar panels?
What you can expect to pay for solar will be based on the following:
- The size of the system to be installed. The larger the system, the greater the expense. This also includes the addition of solar batteries and EV chargers.
- Installation requirements. A single-storey home is cheaper to install on than a double-storey. The type of roof you have can play a huge role in the cost – terracotta tiles are more expensive to install on than tin. There are many factors that will need to be considered by your installer and they all may impact the overall cost of the system and installation.
- Rebates and incentives. Your state may have generous rebates available or it may have none. These can all play a crucial role in your solar quote.
- The quality of the system chosen. A lower-quality system will often be cheaper than a higher-quality one.
- The installer. Not all solar retailers are the same. Every installer will have preferences for brands which will ultimately impact the price of the system you choose. The reputation of the installer might also play a role in the cost of your system. Larger solar retailers, that have many branches, might be cheaper than your smaller retailers. This might be due to the volume of installs they perform and the stock they have on hand. On the other hand, pop-up installers might bait their customers with absurdly cheap solar systems. These retailers often disappear as quickly as they appear. These retailers leave hundreds to thousands of Australians with poor installations and shonky solar systems.
How do I make sure I get the best deal on solar?
The formula is quite simple: Get at least 3 quotes from local solar installers and understand your current and future power needs.
One of the biggest mistakes homeowners make is stepping blindly into solar. Check your recent electricity bills (at least the last 2 or 3) and have a look at your average daily usage in kWh. This should give you a rough indication of how big of a system you will need. If you find that you use 18kWh a day, then a 5kW system (20-22kWh per day) would likely do the job.
We always recommend oversizing to futureproof your system. Your solar installer should be recommending the same.
We also recommend getting to know solar brands. Familiarise yourself with solar panels, inverters, battery storage, and the brands that are known for quality and longevity.
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