Solar panel cost in Australia
A 6.6kW system runs $4,000–$8,500 after the federal rebate. Here's why almost every Australian quote is 6.6kW, how the STC rebate works — and why waiting for prices to fall now costs you money.
What solar costs in Australia
Australian solar pricing is quoted after the federal rebate, because installers claim it on your behalf and discount it at the point of sale. The figures below are what you actually pay.
- 6.6kW — roughly $4,000 to $8,500, with most quality systems landing $5,000 to $6,500
- 10kW — roughly $7,000 to $12,000
- 13kW — roughly $7,500 to $13,000
- 6.6kW with a 10kWh battery — roughly $13,000 to $18,000 after solar and battery rebates
The industry benchmark is $0.88 to $0.95 per watt installed, including GST and after the rebate. That figure is more useful than headline prices because it standardises across system sizes.
Cost per watt falls as systems get larger, because labour, scaffolding, wiring and metering are largely fixed — commonly $1,500 to $3,000 regardless of how many panels you're putting up. A 13kW system costs roughly two and a half times a 5kW system, not two and a half times the panels.
Why almost everyone gets 6.6kW
The dominance of one system size in Australia isn't a coincidence, and understanding it explains most solar quotes you'll receive.
Most single-phase Australian homes are limited to a 5kW inverter. But the rules permit panel capacity up to 133% of inverter capacity — the oversizing rule — which works out to 6.6kW of panels on a 5kW inverter.
That combination is the sweet spot: you capture meaningfully more generation in the morning and afternoon shoulder hours, when panels aren't producing at peak, without paying for a larger and more expensive inverter. It also keeps you inside the export limit most distributors approve as a matter of course.
If you're being quoted 6.6kW, that's why. If you want more than that, the conversation becomes about three-phase supply or a larger inverter, and a more involved approval from your distributor. Worth being clear on one point: every grid-connected system needs a connection agreement with your network distributor, whatever its size. Your installer normally lodges it. What a 5kW inverter avoids is the extra scrutiny and possible export limiting that comes with a larger one, not the connection process itself.
Bigger isn't automatically better value, because export feed-in tariffs are now low — commonly around 5c per kWh against peak retail rates that can exceed 40c, though both vary materially by retailer, plan and state. On those figures power you use yourself is worth several times what you get for exporting it — check your own bill rather than relying on a rule of thumb. If you're running air conditioning, a pool pump or charging an EV, stepping up genuinely pays. If you're out all day and use little, a larger system mostly sells cheap electricity to your retailer.
How the rebate actually works
The federal Small-scale Renewable Energy Scheme issues Small-scale Technology Certificates (STCs) based on your system size and location. Your installer claims them and applies the value as an upfront discount, which is why quoted prices are usually post-rebate.
For a 6.6kW system that's currently worth roughly $1,500 to $2,000. A 10kW system attracts around $2,000 to $3,000.
To be eligible, the system must be installed by an accredited professional and use approved panels and inverters. Residential systems sit in the small-scale category, which covers anything under 100kW; from 1 October 2026 the scheme also extends to mid-scale systems up to 1MW, which is a commercial rather than household concern. This is not a formality — using a non-accredited installer forfeits the rebate entirely.
Several states add their own incentives on top, and these change frequently. Victoria, South Australia, Queensland and NSW have all run solar or battery programs with different structures and eligibility. Check your own state's current offering rather than assuming.
The STC scheme steps down annually until it ends around 2030, and the deeming period shortened by a year at the start of 2026 — cutting roughly $340 to $365 from a typical 6.6kW rebate compared with the previous year. The rebate is calculated as system size × your zone rating × years of deeming remaining, and certificates trade at roughly $37 to $40 each. Newcastle and Sydney sit in Zone 3, rated 1.382, so a 6.6kW system earns about nine certificates for each year of deeming — which is what losing a year costs you. Further inland and further north the zone rating is higher, so the annual loss is larger: closer to $400 in Zone 1. The usual advice to wait for technology to get cheaper doesn't hold here. The subsidy is falling faster than hardware prices are.
Batteries have changed the maths
Batteries were hard to justify financially for years. That has shifted, for two reasons.
First, the gap between what you're paid to export and what you pay to import has widened dramatically. Storing your own daytime generation for evening use is now worth far more than selling it.
Second, there's now a federal battery discount — roughly 25 to 30% off installed cost, applied automatically at point of sale, working out around $250 to $310 per usable kWh. On a typical 11kWh battery that's approximately $3,000 off. Like the solar rebate, it steps down over time, so earlier installations capture more.
A battery still roughly doubles the cost of a solar installation, and the payback period is longer than for panels alone. It makes most sense for households with high evening consumption, or where reliability during outages matters.
What it actually returns
A well-sized 6.6kW system typically saves $1,500 to $2,500 a year, which puts payback somewhere around three to five years depending on your consumption pattern, tariff and how much you self-consume.
After that, the system continues producing for twenty-plus years. The variable that matters most isn't panel efficiency — it's what proportion of your generation you use yourself rather than export.
Practical implications: run the dishwasher, washing machine and pool pump during daylight. If you have a timer on your hot water system, move it to the middle of the day. These changes cost nothing and materially improve the return.
Choosing an installer
Solar is a category where the cheapest quote frequently isn't the best value, because the hardware carries 20 to 25-year warranties that are only worth anything if the installer is still trading.
Check accreditation and that components are on the approved list — both are rebate conditions anyway. Ask who handles the warranty claim if a panel or inverter fails in year eight, and whether that's the installer or the manufacturer. Ask whether grid connection paperwork and metering changes are included.
A system costing $1,500 more with better components and an established installer will generally outperform the cheapest quote across a 25-year life.
Frequently asked questions
How much does solar cost in Australia?
After the federal rebate, roughly $4,000 to $8,500 for a 6.6kW system, $7,000 to $12,000 for 10kW, and $13,000 to $18,000 for 6.6kW with a 10kWh battery. The industry benchmark is $0.88 to $0.95 per watt installed including GST.
Why is 6.6kW the standard system size?
Most single-phase Australian homes are limited to a 5kW inverter, and the rules allow panel capacity up to 133% of inverter capacity. That works out to 6.6kW of panels — capturing more generation in the shoulder hours without a larger inverter or the extra distributor scrutiny that comes with one. A connection agreement with your distributor is still required at any size.
Should I wait for prices to drop?
Generally no, and this is where solar differs from most technology purchases. The STC rebate steps down each year until the scheme ends around 2030, and the deeming period was cut at the start of 2026. Waiting costs roughly $340 to $365 a year in lost rebate on a 6.6kW system in the Newcastle and Sydney zone — typically more than hardware prices fall.
Is a battery worth it?
More than it used to be. Export feed-in tariffs are now around 5c per kWh against peak retail rates above 40c, so storing your own generation is worth far more than selling it. The federal battery discount takes roughly 25 to 30% off installed cost. It still roughly doubles the project cost and has a longer payback than panels alone.
How long until solar pays for itself?
Typically three to five years for a well-sized 6.6kW system saving $1,500 to $2,500 annually, then twenty-plus years of production. The biggest variable is self-consumption — running appliances during daylight rather than exporting materially improves the return.
Sources & further reading
- Rebate, tariff and program figures change. Confirm current settings with the Australian Government: Electricity feed-in tariff, Cheaper Home Batteries Program, and electricity pricing plans and tariffs. Feed-in and retail rates vary materially by retailer and jurisdiction.
- Australian solar pricing cross-checked against 2026 published data including the Solar Choice Price Index, What's The Damage, and Australian solar installers and industry sources.
- Small-scale Technology Certificate values, deeming periods and eligibility are set under the federal Small-scale Renewable Energy Scheme and change annually. Confirm current values before purchasing.
- Battery incentives, state-based solar programs and feed-in tariffs vary by state and retailer and change frequently.
- Rebate eligibility requires accredited installation and approved components. Confirm your installer's accreditation directly.
These figures are planning estimates, not quotes — read how we build our ranges, then confirm real costs with local, itemised quotes.