Solar Panel Cost Australia 2026

How they're calculated

STCs are based on your system size, your location (STC zone), and the years remaining until 2030. More panels + sunnier location + earlier install = more certificates.

The value is decreasing

The scheme reduces the number of STCs by 1/15th each year until it ends in 2030. Installing in 2026 gets you more value than waiting until 2027 or later.

You don't claim them yourself

Your installer handles the STC process. They either assign them at a fixed price (most common) or at the spot market rate. Either way, the discount comes off your invoice.

STC zones matter

Australia is divided into 4 STC zones. Zone 1 (QLD, WA, NT) gets the highest rebate because more sunshine means more expected generation over the system's lifetime.

System Size

Bigger systems cost more upfront but generate more savings. The sweet spot for most homes is 6.6kW.

Panel Quality

Tier 1 panels (LG, REC, Sunpower) cost more but last longer and perform better in real-world conditions.

Inverter Type

String inverters are cheapest. Microinverters cost more but optimise each panel individually.

Roof Complexity

Multi-story homes, tile roofs, or complex layouts add to installation labour costs.

Your Location

STC zone affects rebate value. Zone 1 (QLD, WA, NT) gets the highest federal discount.

Battery Addition

Adding battery storage can double the upfront cost but significantly boosts self-consumption.

Prices vary significantly between installers — sometimes by $2,000+ for the same system. Comparing at least 3 quotes ensures you're paying a fair market rate and helps you spot outliers.

The cheapest system isn't always the best value. Check panel and inverter brands, warranty terms (25-year panel + 10-year inverter is standard), and the installer's track record. A slightly more expensive system with better components often saves more over its lifetime.

Quality varies enormously. Look for Tier 1 panels and reputable inverter brands (Fronius, SMA, Enphase, Goodwe). Avoid quotes that don't specify brands — this is a red flag.

CEC accreditation is mandatory for STC eligibility. But beyond compliance, look for installers who are also Clean Energy Council Approved Solar Retailers — a higher standard that includes consumer protections.

Oversizing wastes money. Undersizing leaves savings on the table. Match your system size to your actual electricity consumption — our scorecard does this automatically based on your bill.

The federal STC rebate reduces each year until 2030. Installing in 2026 gives you more STCs than 2027. If you're planning to go solar, there's a real financial benefit to acting sooner rather than later.

Many installers offer interest-free payment plans over 12–48 months. Some states also offer government-backed interest-free loans (like Victoria's Solar Homes program). Don't let the upfront cost deter you if the long-term savings are strong.

Is solar really worth it in 2026?

For most Australian homeowners, yes. With electricity prices averaging 30–40c/kWh and continuing to rise, a well-sized solar system typically pays for itself in 3–5 years and then provides free electricity for another 20+ years. It's one of the highest-return investments available to homeowners.

What's the payback period for solar panels?

Typically 3–5 years depending on your system size, electricity consumption, tariff rates, and whether you add a battery. Homes with high daytime usage and expensive electricity rates see the fastest payback — sometimes under 3 years.

Are solar panel prices still dropping?

Panel prices have mostly plateaued after a decade of dramatic drops. The biggest remaining variable is the federal STC rebate, which decreases each year until 2030. So while panel costs are stable, the effective price to you increases slightly each year as the rebate shrinks.

Can I add a battery later?

Absolutely. Many homeowners install solar first and add a battery in 2–3 years when battery prices drop further or when their feed-in tariff is reduced. Just make sure your inverter is battery-compatible (hybrid inverter) or plan for a separate battery inverter.

What's the difference between cheap and expensive panels?

Cheap panels (budget Tier 2/3) typically have lower efficiency, faster degradation, shorter real-world warranties, and less reliable long-term performance. Quality Tier 1 panels cost 15–25% more but generate more electricity per panel, degrade slower, and have more robust warranties. Over 25 years, the difference compounds significantly.

Should I wait for prices to drop further?

Generally, no. While panel costs may edge down slightly, the annual reduction in STC rebate values means the net cost to you stays similar or even increases. Meanwhile, every month without solar is a month of electricity bills you're paying in full. The best time to go solar is usually as soon as you're ready.