How much does solar panel installation cost?

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$2,500 - $11,000







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How much does solar panel installation cost?

On average, a 10kW solar panel installation in Sydney can start at around $8,900 for a good quality system fully installed. A Smart Solar System from Enphase in the same size range may begin around $12,500. With a 10kW system producing approximately 40kWh daily, you can save around $3,200 to $4,000 on your annual power bills. 

Solar panel installation prices in Australia

Check out the table below to compare the costs of installing a solar panel in various states:


Estimated cost (5-kW system)

New South Wales

$4,400 to $5,000


$4,500 to $5,400

South Australia

$4,300 to $4,700

Western Australia

$3,600 to $3,900

Australian Capital Territory

$4,100 to $4,600


$4,500 to $5,000

Different solar panels and their costs

System type (PV)

Estimated cost

Estimated household size

1.5-kWp (4 panels)

$2,500 to $4,000


2-kWp (6 panels)

$3,000 to $4,500


3-kWp (9 panels)

$3,500 to $5,000


4-kWp (12 panels)

$4,000 to $6,000


5-kWp (20 panels)

$4,500 to $8,000


Factors affecting the cost of solar panel installation

an electrician installing solar panels

System size

The cost of a solar panel differs per system size. A solar panel system is usually measured by kWp or kilowatt peak. This pertains to the amount of energy produced by the cell during summer. The lower the kWp, the fewer panels are needed and the lower the final cost.

The number of solar panels

Solar panel costs vary depending on the number of solar panels needed. For a household of two, six panels (a 2-kWp system) are the best. This costs around $3,000 to $4,500. For bigger homes with more than four occupants, 12 panels with a 4-kWp system are ideal and cost around $4,000 to $6,000.

Solar panel type

The type of solar panel to be bought will also affect how much solar panels cost. The three most popular types are monocrystalline solar panels, polycrystalline solar panels, and thin-film solar panels. Monocrystalline solar panels are the most expensive but durable and efficient. Thin-film solar panels are the cheapest but take up the most space and have lower durability.

Solar panel efficiency

Aside from size and type, efficiency determines how much solar panels cost. The higher the efficiency rate, the lower the number of panels needed to provide your household's energy. 

With this, the cost of high-efficiency solar panel systems is also higher. Of all the three types, monocrystalline has the highest efficiency level, at 15% to 23%, followed by polycrystalline around 13% to 16%. Thin-film is the least efficient, at 11% to 114%.

Labour costs

Labour can account for 15% to 50% of your total solar panel prices. Often, it's included in the final quote when buying a solar panel. When installing a solar panel, the average labour cost is around $110 to $300. This can still go higher or lower depending on your location, the date of installation, and the size of your system.

Installation method

How much solar panels cost also depends on the method of installation. Although solar panel installation may seem straightforward, it requires strategising and planning to get it right. Once you hire an electrician or tradesman, they need to consider the house's structure, the size and number of panels, and the angle of the panels. The more complex the situation is, the higher the cost.

Other factors affecting solar panel installation costs

While installing your new solar panels, you might encounter some issues or upgrades that can increase your expenses. To help you avoid surprises, we’ve listed other things affecting the cost of installing solar panels:an electrician performing solar panel installation

Roof replacement 

Solar panels can last around 25 to 30 years. If your roof has been installed longer than 30 years, you might need to consult with a specialist to have your roof replaced. Roof replacements cost around $6,000 to $10,000 on average and will help you save on replacing, repairing, and reinstalling your solar panels in the long run.


Your solar panels can be an attractive home to some animals like pigeons. This can become an issue moving forward as they can cause dirt to accumulate and damage your solar panels. Pigeon proofing costs around $500 to $3,000 and will help save you and the pigeons future stress and inconvenience.

Solar batteries

Adding solar batteries can increase costs by $2,000 to $12,000 but can be a lifesaver at night or during gloomier, cloudier days.

The benefits of installing solar panels

Lower energy bills

Since you're not relying on the National Grid for power, installing a solar panel helps you save $700 to $4,000 annually on your energy bills. Your savings depends on your energy usage and the efficiency of your solar panels. Use heavy-duty duty appliances, like washing machines, vacuum cleaners, or dishwashers, during the day when the sun is at its peak.


After installation, there is little to no maintenance on your solar panels. The only thing you need to do is replace the inverter, which takes place every 25 to 30 years and costs around $700 to $3,000. 

It just needs a little cleaning from time to time, and it’s good to go for another decade. No more queueing up to pay electricity bills and no more credit card charges that add up to your expenses.


Aside from savings and convenience, installing solar panels is environmentally friendly. They use clean and sustainable energy from the sun. In addition to this, solar panels reduce your carbon footprint and do not produce harmful by-products in the process.

Government rebates

As more countries become more conscious of their carbon emissions, more programs are implemented to help citizens live more sustainably. In Australia, different states have different rebate programs and schemes to help encourage the public to adopt more solar-powered systems. Feed-in-tariffs are also given to households who can export unused renewable energy to the National Grid.

Higher home value

Lastly, solar panels can also increase the value of your home. Having an energy-efficient house appeals to consumers who want to save on energy costs while maintaining a more sustainable lifestyle. Who wouldn’t want free electricity when you move into your new home, right?

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Each state in Australia has different guidelines and rules on planning permissions and building regulations when installing solar power. You won’t need planning permission in New South Wales if your building is not heritage listed or facing the street. Make sure to consult your local council on guidelines that apply to your area to avoid any inconvenience.

In dustier and drier countries, dirt can accumulate in the solar panels and will need regular cleaning. The cost to have solar panels cleaned is around $10 to $30 per panel.

Solar panel installation takes around one to two days to accomplish. However, this could still change depending on the type of your house, the size of the solar panels to be installed, and additional roof repairs that need to be done.

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