Solar panels in Australia
A 6 kWp system on a typical roof in Australia generates 6,028 kWh a year, worth A$800 in the first year against A$6,522 spent up front. Everything below shows how that is worked out, on real climate data and this year's actual tariffs.
Where the money comes from
5,968 kWh in year oneEvery kilowatt-hour your roof makes is worth one of two very different amounts. Power you use as it is generated replaces power you would have bought, so it is worth the full retail price. Power you do not use goes to the grid at the export rate, which is far lower. The balance between those two is what actually decides whether solar pays here.
- Used in the house
- 1,790 kWh (30% of output) at 0.330 AUD/kWh, the retail price you avoid paying.
- Sold to the grid
- 4,178 kWh (70% of output) at 0.050 AUD/kWh, the export rate your supplier pays.
Averaged out, each kilowatt-hour is worth 0.134 AUD/kWh. That blended figure, not the headline retail price, is what drives every number on this page. Using more of your own power (an EV, a heat pump, a battery, or simply running appliances by day) shifts output from the lavender side to the mint side and raises it.
A year on the roof
1,005 kWh per kWp · PVGIS-ERA5Output is not spread evenly. December is the strongest month at 938 kWh, 8.9× what June manages at 105 kWh. Annual totals hide that swing, which is why a system sized purely on your yearly bill tends to overshoot in summer and undershoot in winter.
The 25-year picture
- Everything the system saves and earns
- A$19,952
- What you pay up front
- − A$6,522
- Left over
- A$13,430
25 years of avoided bills plus export payments, after maintenance and one inverter replacement.
Install cost after A$1,578 of grant.
Straight subtraction, ignoring the fact that money arriving 25 years from now is worth less than money today.
Same result, in today's money
A$5,618A$13,430 spread over 25 years is not worth A$13,430 today, because you could have done something else with the money in the meantime. Discounting future savings at 4% a year gives A$5,618, the net present value. It is the honest number to compare against another investment, and the equivalent annual return is 10.6%.
On the same discounted basis the system pays for itself after 10.7 years.
When you break even
Your position starts at minus A$6,522 on install day and climbs as the system earns. The line crossing zero is the payback point.
Cumulative cash position
Break-even in year 9Net position after each year (−net capex up front, then cumulative savings). Crossing the dashed line is payback.
How that figure is built
No step here is a rule of thumb. Every one of them is the same code path the calculator runs on your own address.
Start with the weather, not a brochure
PVGIS-ERA5 holds satellite-measured irradiance for this location. For a 6 kWp array at 35° facing south it works out to 1,005 kWh per kWp per year. That is the number a brochure would round up.
Scale it to the system
6 kWp × 1,005 kWh/kWp = 6,028 kWh a year. Panels lose about 1% in year one and 0.4% a year after, so year one is modelled at 5,968 kWh.
Price each kilowatt-hour twice
30% is used in the house at 0.330 AUD/kWh, the rest exported at 0.050 AUD/kWh. Together: A$800 in year one.
Subtract what you actually hand over
A 6 kWp install in Australia runs about A$8,100, less A$1,578 of grant, so A$6,522 out of pocket.
Run it for 25 years, honestly
Electricity prices rise 2% a year, panels keep degrading, maintenance costs about 1% of the system price annually, and the inverter gets replaced once. Total savings come to A$19,952, clearing the upfront cost after 8.7 years.
What we assumed for Australia
Change any of these and the answer changes. They are published so you can check them against your own bill and your own quote.
| System size modelled | 6 kWp at 35° facing south |
| Install cost before any grant | A$8,100 |
| Grant or incentive | SRES STC point-of-sale rebate (~263 AUD/kWp: Zone 3 1.382 x 5-yr deeming (2026) x ~38 AUD/STC); declines one deeming year each 1 Jan to 2030 |
| Net cost to you | A$6,522 |
| Electricity price you avoid paying | 0.330 AUD/kWh |
| Export rate paid to you | 0.050 AUD/kWh |
| Share used in the house | 30% of output |
| Electricity price inflation | 2% a year |
| Panel degradation | 1% in year one, then 0.4% a year |
| Maintenance | 1% of system cost a year, plus one inverter replacement |
| Discount rate for present value | 4% a year, real |
| CO₂ avoided | 3,617 kg a year · 85,354 kg over 25 years |
Estimate only, not a quote. Tariffs and grants change; figures use the rates on file for 2026 and an installer's survey will produce the exact number.
Questions people ask about solar in Australia
- Is solar worth it in Australia?
- A 6 kWp system in Australia pays for itself in about 8.7 years and returns A$19,952 of savings over 25 years against A$6,522 spent up front. Your roof, orientation and shading move the result, which is what the calculator works out for your exact address.
- How much do solar panels cost in Australia?
- About A$8,100 for a 6 kWp install, less A$1,578 of grant, so A$6,522 out of pocket. Installers quote against your specific roof, so treat this as the middle of the range.
- What do you get paid for exporting solar power in Australia?
- Exports are modelled at 0.050 AUD/kWh against a retail import price of 0.330 AUD/kWh. Because exporting is worth much less than using the power yourself, how much you consume during daylight matters more than the size of the array.
Your roof is not the average roof
Orientation, pitch, shading and how much power you use by day move these numbers more than anything on this page. The calculator runs the same model on your actual address.
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Solar by city in Australia
Same model, run on each city's own climate data.
For the incentives, tariffs and the 2026 rule changes in detail, read our Australia solar guide.