If you’ve lived in Australia long enough, you might recall TV ads for incredibly cheap solar panels. These ads have likely found their way into your social feeds and you’ve probably wondered if it’s all just a scam. With some solar installers spruiking solar systems for pennies, and others advertising in the thousands – how do you know what you should expect to pay? Let’s take a look at why solar prices are so varied and what you should expect to pay for a decent system.
Is solar a scam?
Let’s address this one straight out of the gate! The answer is NO – solar is not a scam! Solar is an economically savvy way to save on your electricity bill while reducing your home or business’s carbon footprint. However, what can be a scam are the systems some installers will sell you.
Many of the ads you may have seen on TV were from solar installers who, essentially, scammed their customers. No solar retailer can consistently sell solar for next to nothing and maintain a profitable business. The modus operandi of many solar scammers is to install the cheapest components possible, hire or contract subpar installers, and then close up the business before anyone can make a warranty claim. The aim of the game is to make as much money as possible before anyone catches wind of the dodgy practices. These installers took advantage of generous rebates and of customers who were looking to make bank on high feed-in tariffs.
Thankfully, regulatory bodies and laws have mostly put this practice to bed. Solar scammers plagued the industry for over a decade – though there are still many dodgy installers out there.
So, no – solar is not a scam, but there are scammers out there that you need to beware of.
What should I expect to pay for a solar system?
It is important to first understand what you are paying for when you enlist a professional to install solar on your home:
- Solar components: Solar panels, the inverter, cabling, racking, and other necessary components, all make up the bulk of the overall cost. The cost of these will depend on the brand/model you choose as well as the purchasing power of the retailer. A larger retailer is more likely to have a warehouse to store bulk purchases of solar panels, thus reducing the cost price.
- Installation: Your solar system will be installed by a small team of licenced professionals. Many installations are straightforward, but just as many require additional work or changes to the home. The material your roof is made from might add complexity to the installation. A switchboard upgrade could add $1,000 to $3,000 to the installation price. Trenching for cabling could add thousands again. The more technical your installation, the more you can expect to pay.
- Installers: The number and type of installers will often influence the price. Solar retailers with in-house installers on the book will often be cheaper than those that contract externally. Complex installations might require additional installers; adding to the overall cost.
- Salespeople: The people employed or contracted to design your system will be factored into your installation price. Salespeople are trained to understand the needs of your home and use specialised tools to design your system. Salespeople are often referred to as solar specialists.
- Federal and state rebates and incentives: Your solar system should be eligible for Small-scale Technology Certificates (STCs), which will reduce the upfront cost of your system. The total reduction you can expect will vary on where you live and the size of your system. Some states have additional incentives, which might further reduce the upfront cost.
- Overheads: As with all brick-and-mortar businesses, some overheads will be factored into the cost of your system.
With these factors in mind, let’s have a look at what you can expect to pay, on average, in your state.
State breakdown of average solar installation costs
The following are the average retail costs for residential customers across Australia as of July 2024. The price includes the STC upfront discount as well as GST. It does not include state rebates and incentives. The prices listed are for a standard system installation. Premium solar panels and inverters may attract a 20-30% increase.
| 4kW | 5kW | 6kW | 7kW | 10kW | |
| VIC | $4,290 | $4,860 | $5,260 | $6,200 | $8,240 |
| NSW | $4,160 | $4,750 | $4,960 | $6,050 | $8,090 |
| ACT | $4,450 | $4,880 | $5,510 | $6,360 | $8,340 |
| QLD | $4,310 | $4,640 | $5,070 | $5,960 | $8,630 |
| SA | $4,140 | $4,800 | $5,460 | $6,230 | $8,660 |
| WA | $3,890 | $4,210 | $5,360 | $5,950 | $9,760 |
| TAS | $5,160 | $5,760 | $6,250 | $7,180 | $10,120 |
| NT | $6,780 | $7,760 | $9,320 | $10,060 | $13,060 |
| All | $4,650 | $5,210 | $5,900 | $6,750 | $9,360 |
How much should I expect to pay for solar battery storage?
Prices vary greatly for solar batteries. The brand, model, and size are all factors and will greatly shape the final cost of the system. When you have your battery installed will also heavily influence the cost of the system. A battery installed at the same time as your solar system will significantly reduce the overall cost. Conversely, a retrofitted battery might add a thousand or more to the installation cost. Typically, you can expect to pay between $1,000 and $1,300 per kWh of battery storage in Australia.
Let’s look at what you might expect to pay for a battery in Australia. The following prices include STCs deductions and GST but do not include any state incentives. Prices are for a fully installed unit.
| Battery Size | Battery* | Retrofitted Battery |
| 3kWh | $3,930 | $4,650 |
| 8kWh | $9,600 | $10,800 |
| 13kWh | $16,120 | $18,070 |
| 18kWh | $23,760 | $26,280 |
How do I know what is a good price for solar?
There’s a simple rule of thumb when choosing to go solar: choose the right solar retailer. The most important aspect of any solar installation is the business you choose to install with. A good solar installer will not only have experience and expertise but also an exemplary reputation.
A $5,000 solar system installed with a good installer will almost always be better in the long run than a $3,000 system with a not-so-good installer. A reputable installer will exhibit the following:
- Installation warranties you can rely on
- Quality workmanship from quality installers
- Work with reputable brands and models of solar panels, inverters, mounting systems, and batteries
- Design a system that will work for you now and into the future
- Provide honest insights – you may be talked out of adding battery storage if it won’t be beneficial for you!
You want to make sure that your installer will be around should anything go wrong with your system. Sacrificing this for a cheaper system might sound appealing in the short term but will usually come back to bite you in the long run.
Energy Matters wants to make sure that you can install solar with peace of mind! Get FREE quotes for solar, batteries, and much more from trusted and local installers. These no-obligation quotes will be personalised for your needs. Click the button below and get your free quotes today!
