The cost of solar panel installations has never been more affordable than it is now. But that still doesn’t mean you can simply buy any old set of solar panels without understanding the costs involved!
Solar panels can save you tens of thousands of dollars over the decades. And the wrong decisions can cost you tens of thousands of dollars. So research is necessary for you to end up with a wise investment.
This guide will break down all aspects of solar panels so you know how much they cost and which ones to purchase. Generally, you can expect to pay around $5,500 for a 5kWh solar panel system including supply and installation. If you crave more power, a 6.6 kWh system will cost closer to $7,000.
Obviously, it’s a moving equation that depends on quite a lot of variables. Let’s dive right in to get familiar with all of them so you can make smart decisions that save you money.
The solar panel economy
It’s helpful to understand what we mean when we say solar panel installation cost. The most relevant fact to keep in mind is that the solar panel installation cost and the cost of supply are one and the same in this context.
In other words, you never pay for installation separately. You purchase the panels along with the installation for a CEC-certified installer (nobody but a CEC-certified installer can install the panels).
When you see a price advertised or you get a quote, it is inclusive of:
- Installation cost
- Panels and hardware
- Local government rebate (known as STC)
This actually makes things a whole lot easier for you as the consumer. You get the end cost all wrapped up in one, and this allows you to budget more accurately. You know exactly what you’re going to pay upfront without worrying about hidden fees.
Given that you also know the average annual hours of sunshine along with the price of electricity and the feed-in-tariff rate in your area, this allows for some pretty cool financial forecasting on your part. You can’t predict the future exactly, but you do have a pretty strong indication of rates of return.
The feed-in-tariff rate is the rate you get back when you supply energy to the grid. This is always less than the current rate of electricity, so you save more money through the reduction of your energy consumption through solar, not through selling it back.
With this in mind, the first step in choosing a solar panel system is finding one that meets your energy capacity. This is typically between 5kWh and 7kWh for a standard household.
Factors affecting solar panel installation cost
While quotes for solar panels contain both supply and installation, the fact remains that your solar panel installation cost can still increase depending on various criteria. Until the service provider actually sees your home and gauges the complexity of installation, you are really getting a quote instead of an estimate. Factors that affect solar panel installation will include:
- Height – If you have a high roof, it will be harder for an installer to access.
- Slope – The greater the pitch, the more danger and complexity involved. Flat roofs are the easiest.
- Components – You might need mounting brackets, scaffolding, wires, cables, microinverters, switches, and circuit breakers, to name a few. This will contribute to the total cost.
- Quantity – When you have more panels to install, you’ll pay more for labour. However, there are other indirect effects here. You tend to get a cheaper price for a larger number of panels on average, and this can also save you more over the long run.
- Hourly Rate – If you’re charged an hourly rate, then the installation cost will be affected. You can expect to pay between $75 – $110 per hour for solar installation experts.
In the larger scheme of things, the installation cost is not major. Sure, it might be between $1,000-2,000 for typical installations. But if you are paying more for installation, it simply means you are paying more to reduce energy bills in the long term. Provided you have done your math correctly, you’ll still save quite a bit in the end.
The thing to keep in mind with solar panels is that you must always take the upfront cost in tandem with the expected savings. You have all of the data at your fingertips. It’s simply a matter of crunching the numbers and reaping the rewards.
The cost of solar panel installation in Sydney
While the upfront cost might seem steep, it is something of an illusion because you start saving money immediately. You can reduce your energy bill to near zero, and the system should repay itself within 4-5 years depending on how much you export back to the grid. In addition, most companies offer flexible payment options so even the initial sting is taken out.
The following table reflects the overall cost for solar panel supply and installation in Sydney. However, you should always contact your local installer for specific details. You might need a specialised install which could increase the cost.
| System Total Capacity |
Number of Solar Panels | Low End Solar Panels | Medium End Solar Panels | High End Solar Panels |
|---|---|---|---|---|
| 3kW | 9 x 370W Panels | Less than $4,000 | ~$5,000 | From $6,000 |
| 5kW | 14 x 370W Panels | Less than $4,500 | ~$5,500 | From $6,500 |
| 6.6kW | 18 x 370W Panels | Less than $5,000 | ~$7,000 | From $7,500 |
| 10kW | 28 x 370W Panels | Less than $7,000 | ~$8,500 | From $10,000 |
| 15kW | 41 x 370W Panels | Less than $10,000 | ~$11,500 | From $13,000 |
How much will a solar panel installation save me in Sydney?
It’s practically impossible to precisely gauge how much a solar panel installation will save you. This is because it’s something of a dynamic equation based on how much energy you use, what you pay for electricity now, and how much energy your system produces. In more detail you can see these contributing factors:
- Shade over the solar panels
- Tilt of the solar panels
- Direction of the solar panels
- Size of the system
- Unique energy requirements
- Electricity rates (current and future)
- Feed-in-tariff rates (current and future)
- Inclusion of a solar battery.
- Amount of energy exported to the grid
- Use of standard or specialised inverters
- Financing options and rates
- Quality of the installation.
- Required or added upgrades
At the same time, we can give you an indication based on statistical averages. The latest data indicates that it takes between 4-5 years for a 5kWh system to pay for itself in Sydney. You can save between $900-1,000 per year until payback.
After this, it is all pure profit, and you will be helping the planet in the meantime. It’s a win-win, even if you don’t get the perfect solar panel system (though this always helps). Even with repairs or maintenance (inverters can need replacing every 10 years or so), it’s an unparalleled investment opportunity.
How do I get the most out of my solar panel installation?
It’s a lot more streamlined than you’d imagine. Work out your energy requirements so you know what size of system is the most appropriate (often 5kWh – 7kWh for typical sized families). This narrows down the range considerably. A professional installer can also help you calculate this.
The next step is simply to contact a local CEC-certified installer that has significant experience for a quote. They can cut to the chase and tell you if you need a specialised install and will be able to answer any queries you will have.
There is little you need to do for maintenance, apart from washing the solar panels with some lukewarm water every few months to remove any dust or debris. The beauty is that if you get the calculations correct from the beginning, you are literally just sitting back and reaping the rewards. It’s a mathematical equation where the figures are pretty well-known in advance.
Another thing you can do is opt for higher quality solar panels with stronger warranties. There is little sense in trying to save a couple of hundred dollars with inferior panels. The solar panel industry is one where it really makes no sense to go for the low end range.
Can I install solar panels myself?
Nope. This makes no sense whatsoever. You won’t be able to take advantage of government rebates, costing you thousands of dollars. This requires that you work with a Clean Energy Council (CEC) certified installer. You also won’t be able to feed energy back into the grid, costing you even more money, since this requires you to use a licensed electrician.
Of course, there is also the fact that working with solar panels is incredibly dangerous unless you know what you’re doing. There is the risk of death by electrocution as the solar panels are responsible for converting the DC to AC by means of an inverter. It requires specialist training to work with these kinds of renewable energy systems. You’ll also be doing quite a balancing act on your roof with quite a lot of equipment, which is simply unsafe.
Finally, it takes expertise to install the solar panels correctly. They need to be sloped at a particular angle and faced in a particular direction to absorb the sun’s rays, depending on the latitude and longitude of your location and the slope and direction of your roof. Even if you could install the panels safely and take advantage of the rebate, you would lose money without understanding the science behind the solar panels and what makes them as energy efficient as possible.
To sum up, it’s illegal, expensive, dangerous, and nonsensical to install solar panels by yourself.
Is Sydney a good place to install solar panels?
Sydney is an excellent place for the installation of solar panels. It’s not quite as suitable as Perth, the sunshine capital of the world. But it still ranks very highly due to its geography and the various government rebates available.
While it might take around four years to pay back a system in Perth, it will take closer to five in Sydney. And while it might cost you around $6,000 for a 5kWh system in Sydney, it’ll cost you closer to $7,000 in Melbourne, $8,000 in Hobart, and $9,500 in Darwin.
New South Wales also tends to have electricity prices that are a little on the high side, which makes solar panels a better bet. The government rebate system here is also pretty generous. Ultimately, the main factor to keep in mind is the time it takes to break even on the solar panel system, which is short in Sydney. This takes into account many of the other variables (electricity rates, feed-in-tariff rates, upfront costs, and government rebates) and streamlines all of the technical details into one metric. Sydney ranks highly as a solar panel installation location.
Where can I get the best solar panel installation in Sydney?
If you want a customised solar panel installation at a reasonable rate, look no further than Roland Lawrence Electrical. As expert electricians, we understand how to best optimise solar panels for your exact location, roof, and structure. Your specialised solar panel installation will be tailored precisely to meet your needs.
We’re five-star rated on Google for a reason, and our premium solar panels come with a 10 year warranty. You’ll benefit from 40 years of combined experience and a business that is centred around client satisfaction and a philosophy of professionalism and expertise.
Call now for a 100% fast and free quote on 02 9567 5886.
