How Much do Solar Panels Cost in Sydney?

There is no longer any question that solar panels are a great investment. The figures and statistics don’t lie. While the upfront costs can seem daunting, you’ll make your investment back between 3-7 years regardless of where you are in Australia.

To help you plan for this home improvement and understand the ins and outs of your investment, we’ve put together a review of the cost of solar panels in Sydney and as well as what you should look out for.

Keep in mind that the price of solar panels as advertised by providers includes all applicable government rebates and the installation. This makes it easier to know what you’ll be spending since the math has already been done for you.

How Much Do Solar Panels Cost in Sydney

Understanding solar panels and solar power

Before we go into the cost of solar panels in detail, we need to understand a few terms and how the process works. Solar power uses the power of the sun to create energy to run your home. The sun’s rays hit the solar panel as a direct current. This is sent to an inverter in the solar panel system where it is converted (or inverted) into alternating current, which is usable electricity for the household.

Most solar panels are either polycrystalline or monocrystalline, both of which are made of silicon. Monocrystalline solar panels are more expensive but are worth the money. They’re also the more popular option. They last longer (over 25 years) and are more thermally efficient (20-24%). Polycrystalline solar panels are cheaper but with less efficiency (14-18%) and a shorter lifespan (15-25 years).

The main consideration in terms of a solar system is its output, sometimes called capacity. Most confusingly, it is sometimes referred to as size. Many people in Sydney will be looking for a system between 5kWh – 6kWh. In Sydney, this should cost between $4,500-7,500. The exact cost will depend on many variables, explained in more detail below.

This system capacity holds for a typical household of five people. The first step in choosing a solar panel system is to first identify your energy consumption and find a system to match.

What impacts the price of solar panels?

The solar panels cost in Sydney is impacted by numerous criteria. It’s a dynamic and moving equation, so getting an exact estimate from a provider is the best way to know the expected costs for your own home.

For example, it might appear that the price for solar panels in Sydney is more expensive than other major Australian cities. But that price is meaningless unless you account for how much you save with the price of electricity in New South Wales being more than the price in Victoria and Queensland.

The feed-in-tariff rates will also differ. These are highest in Victoria and New South Wales compared to Western Australia and other states.

#1 – System capacity

The biggest factor impacting the overall solar panels cost in Sydney is the overall system capacity, or how much power the solar panels can generate compared to how much you need. This can range from 1.5kWh to 15kWh. As stated previously, 5kWh to 7kWh is an average. The bigger the system, the more you are going to pay for it.

This metric actually accounts for the number of solar panels your system will need as well. For example, a 10kWh system will have far more panels than a 1.5 kWh system.

#2 – Location

Where you are located will also affect the solar power panels cost. This is because different states have different feed-in-tariff rates and government rebates, which are known as State Technology Certificates (STCs). If you are in a jurisdiction with larger rebates, then you’ll likely pay less for your solar panel system.

#3 – Panel quality

The quality of the panel will also increase the solar panels cost in Sydney. Quality is determined by the percentage of thermal efficiency, the brand name, and the warranty offered. Better quality solar panels from a reputable manufacturer such as Longi, Sunpower, or Qcells will cost more.

Perhaps the best thing to look for here is longevity. A solar panel array that lasts 10 years longer than a lower quality model will save you more money for the long term. You’ll see this difference between a monocrystalline and polycrystalline solar array.

#4 – Installation

If your installation is particularly difficult, then you are going to pay more. This is one reason why you should always contact a local supplier for a precise quote instead of budgeting based on general estimates. They will be able to tell you how difficult the installation will be and how it will affect the cost.

Installation can be complicated when the roof is very high, angled, or otherwise difficult to reach. Another example is a solar array that’s far from a connection point, requiring additional wiring and labor. Other installation issues can include the need for mounting brackets or additional components.

#5 – Additional features

There are a number of other components that can add to the price of a solar panel system. A battery can vastly increase the overall cost of the system. This is generally not recommended as it is not financially viable, but there could be certain instances where it pays off.

Different inverter types such as microinverters or module level power electronics (MLPEs) can also be useful in certain instances, though they can cost more. They can optimise individual panels and increase efficiency.

How much should I expect to pay for solar panels in Sydney?

So, how much do solar panels cost in Sydney? It mainly depends on the system capacity. The table below should give you an indication of the costs per system.

Many people in Sydney will be looking for a system between 5kWh – 6kWh, which will cost between $4,500-7,500.

When investigating the solar power panels cost, you will also want to explore what you will save and how long it will take to break even on your investment.

Do you really save money with solar panels?

The answer to this is a resounding yes. You most certainly save money on solar panels. While the exact amount varies, you can expect to save $800-1,500 each year on electricity bills.

In one sense, the initial cost of the solar panels is less relevant. What you are really looking for is the time it will take for you to break even on your investment. A $10,000 investment where you break even in three years is superior to a $7,000 investment where you break even in seven years. It’s twice as efficient and will save you more over the long term.

This is a simple example, but you really do save money with solar panels. It’s just a question of choosing the right system and having it installed by an experienced provider.

How many solar panels are needed to power a house?

This question is commonly asked but does not make the most sense in the context of what solar panels for home cost. It can be better to ask what size system is needed to meet your energy requirements.

The answer to this is most likely a 5kwH – 7kWh system. And this system is likely to have between 14-20 solar panels to meet that power capacity.

The dimensions of solar panels can vary but are typically quite standardised. Many will have dimensions of 1600mm x 800mm with a thickness between 35-50mm. Remember that a solar panel is made up of cells (often 60, 72, or 96). And a number of solar panels will make up a solar panel system or a solar array.

As a very general rule of thumb, you will need around 1.5m2 of space per solar panel. The size of your roof can also dictate how many panels you can actually accommodate.

If you don’t have enough space, then you will need to look into module level power electronics or microinverters to optimise each individual panel. This could be enough to compensate for a reduced number of solar panels.

How long does it take for solar panels to pay for themselves?

This will depend on the system size and where you live. The solar panels cost in Sydney and the time to break even will be different from other locations.

Regardless, you should expect the solar panels to pay for themselves within seven years maximum.

The table below outlines how long it should take for solar panels to pay for themselves in major Australian cities. This is for a 5kWh system. In Sydney, it will take between 4-5 years for the solar panels to pay for themselves. The remainder of energy generated will represent a surplus on your investment.

What affects how long it takes to pay back solar panels?

Again, the factors here will vary. The reason why the payback period for the city of Adelaide is so short (three years for a 5kWh system) is because it enjoys lots of sunshine, low initial prices, great feed-in-tariff rates, and a high price of electricity. A higher price of electricity will mean that you earn more when you substitute it with energy you generate from your solar array.

In contrast, Hobart has a long repayment period mainly because it experiences much less sunshine. This is the ultimate factor. No sun means no energy generated! It also has fewer rebates meaning higher upfront costs. Available sunshine hours is the number one factor when it comes to payback times.

If uncertain, you can use an online solar panels cost calculator. Determine your electricity consumption level and plug in as many figures as you can. This will give you an accurate indication in terms of how long it will take to repay your solar panel array.

Are there any additional expenses?

The beauty of solar power is that they typically have few additional expenses. Once they are properly installed, very little is needed in the way of maintenance. They are durable and long lasting, which is why they come with such strong warranties.

You will need to wash them every 3-6 months to prevent the accumulation of dust. This can reduce their thermal efficiency. Never use car wax, rock salt, or hot water to clean the panels.

The cost of solar panels in Sydney: Is it worth it?

For a typical 5kWh – 6kWh system, the solar power panels cost will be between $4,500-7,500 in Sydney. This makes it an extremely worthwhile investment. You can expect a payback period of five years or so. But even if your repayment period is a bit longer, it’s still worth the money.

To find out what your exact solar power panels cost, consult the solar professionals at Roland Lawrence Electrical. We have 40 years of combined experience in licensed solar installation. We are qualified electricians offering customised solar power to Sydney residents.

To maximise your investment, we recommend an initial solar design consultation to ensure you’re getting the right system for your home in Sydney. By doing things correctly from the first day, you’ll be set for the next 25 years with a high-quality solar array that meets your power needs and pays for itself in time.

Call us at RLE now for a fast and free quote on 02 9567 5886.