Typical cost in 2025
Most homeowners pay around $6,000 for a 6.6kW system with quality panels, after STCs applied
What affects the price?
System size (kW)
A 6.6kW system (20 panels) suits most 3–4 person households and is the most popular size. Larger homes or those with pools may need 10kW+. Bigger systems cost more but generate more savings.
Panel and inverter brand
Budget systems (entry-level brands) start around $3,500–$5,000. Quality systems with Tier 1 panels and a reputable inverter (Fronius, SMA, SolarEdge) run $6,000–$9,000. Premium systems with microinverters or optimisers cost more.
Roof type and pitch
Tiled roofs with a suitable pitch and orientation are cheapest to install on. Metal roofs, flat roofs, or multi-level homes add complexity and cost. North-facing roofs at 20–25° tilt are optimal in Australia.
Battery storage
Adding a home battery (e.g. Tesla Powerwall, SolarEdge) adds $10,000–$15,000 to the system cost. Batteries make sense if you're on high time-of-use tariffs or want energy independence.
STC rebate
The federal Small-scale Technology Certificate (STC) scheme provides a significant upfront discount — typically $2,000–$4,000 for a 6.6kW system depending on your location. This is usually deducted from the quoted price.
Typical cost breakdown
Estimates are based on Australian average rates in 2025. Prices in Sydney and Melbourne are typically 10–20% higher than other capital cities.
Frequently asked questions
How much can I save on electricity with solar?
A 6.6kW system can generate 24–28kWh per day in most Australian cities. If you self-consume most of that generation, you could save $1,500–$2,500 per year on electricity bills, giving a payback period of 3–6 years.
What is the solar rebate in Australia?
The federal STC (Small-scale Technology Certificate) scheme provides an upfront point-of-sale rebate. The amount depends on your postcode, system size, and the current STC price. For a 6.6kW system in Sydney or Melbourne, this is typically $2,500–$3,500.
Do I need council approval to install solar panels?
In most cases, no — solar panel installation is exempt from development approval across Australia under national guidelines. However, some heritage areas or strata properties may have restrictions. Your installer should confirm this.
How long do solar panels last?
Quality solar panels carry a 25-year performance warranty and typically degrade less than 0.5% per year. Inverters typically last 10–15 years and are the most common component to replace.
Should I get a battery with my solar system?
A battery makes financial sense if you have high time-of-use tariffs, are on a low feed-in tariff, work from home, or frequently experience grid outages. For most households on standard tariffs, the payback period for a battery alone is still 8–12 years.