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How much does it cost to install solar panels?

13th Jul '20 • By Rohit Mankame

Solar panels can be a large investment for your home, and making the right decision is imperative. To make things easier, we’ve put together a complete guide outlining the costs as well as some helpful advice.

solar panels on house

How much does solar panel installation cost?

The average installation cost for the solar panels is $88 / hr. Items like solar panel quality and labour costs may impact your overall expenditures, but rates vary from $77 / hr to $105 / hr in general.

Of course the price of the new solar energy panels would depend on how large the system is. And then to look at it another way – how many solar panel kiloWatts (kW) you want to install can influence how much it costs.

man installing solar panels

What are the costs involved?

The good news is that solar panel prices are coming down since their inception and are becoming more and more affordable. On average, a system will cost between $5000 and $15,000. 

The key cost contributors are:

Solar panel installations have many different costs involved including size, type, quality, inverters and installation.

Size and type of solar panels

Normally in Australia, a residential solar panel would vary between 1.5kW to 10kW with 5kW being the average size. The bigger the system, the higher the price. Apart from the size, the type of solar panels will play a huge part in determining the total cost with the two main options being thin-film and crystalline. 


There are plenty of companies out there that can cater for any budget. The most economical choice when it comes to installing solar panels isn't always the right one. You'll be electricity dependent on these solar panels and you're better off picking a model that's going to last a long time. Clearly it will be more costly but in the long term it will be worth it.


An integral part of the setup that connects the panels to the home. Before purchasing, the energy capacity needs to be kept in mind and the final decision needs to be thought out carefully. 


The installation of solar panels is usually an additional cost on top of the panels. That would probably depend on the kind of roof you have. There are many different types of roofs in Australia, and will require special frameworks which will keep the panels in place properly. Another type of auxiliary task is to replace old or broken solar panels before installing the new ones. This will cost more as it is more labour-intensive and you will need a professional roofer to get the job done.

If you’re not sure what size solar panel system will best suit your needs get advice from professional solar panel installers on They can also give you an accurate and up to date quote on how much a system will cost. 

big solar panel

Why to invest in solar?

Environmental friendly

Solar energy is a clean, reliable and renewable source of energy and is the best way to make your home more sustainable.

Renewable energy

The sun is an endless supply of energy, which we can use over and over again. The best part is you’ll be less vulnerable to energy price increases! 

Low maintenance required

Once installed, solar panels last for a long time. They don’t require much maintenance or cleaning and have virtually zero recurring costs. 

Energy savings 

Initially, installing solar panels is costly, but as you think about the long-term advantages, you can know that you're going to save a lot more down the way. Once you're transitioned from electricity to solar energy, you'll eventually see your energy bills fall significantly. Here are our 9 ways to reduce your energy bills this year.

Increases the value of your property

In recent years , the practise of a green lifestyle has gained a great deal of attention as more and more people have become mindful of attempting to save the environment. Installing solar panels in your house will increase the value of your property and is a very realistic means of securing prospective buyers should you plan to sell your property in the future.

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australian house with solar panel

Australia's solar energy rebate 

The STC scheme is called Australian solar rebate. STC means Small Scale Certificate of Technology. You can see that people like to say STC or simply call it the rebate.

To summarize the rebate, every kilowatt of solar energy generated in Australia generates STC certificates, which you sign over to your installer who trades them in for cash. The current value of STCs means that one kilowatt of solar on your roof attracts about $550 in rebates, which the installer passes on to you as a point of sale discount. So for example, a five kilowatt system generates about $2,750 worth of STCs.

The STC programme is scheduled to be phased out over a 15 year cycle ending in 2030. But on 1 January, the rebate's interest fell by 8.3%. But, the good news is the dropping cost of year-on-year solar panels means the decrease in rebate income is offset by the overall decline in solar power panel costs.

As for eligibility, there are a few restrictions on who can qualify for STCs but virtually everyone is eligible in practice.

In fact, in Victoria you have a second separate state-level rebate which you can claim in addition to the federal STC rebate. It's operated by Solar Victoria and is now consistently offering Victorian homeowners an extra $1,888 off the solar systems, after an incredibly bumpy launch.

However, you should not be hurried into purchasing a solar panel, we can suggest that you should consider going solar earlier rather than later cause, let's be frank, it will offer incredible savings on your electricity bills.

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Get quotes from our qualified and licensed tradies Australia wide.

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