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Are Solar Panels Worth It?
Are Solar Panels Worth It?
Written by
Rachel Gregg
Edited by
Ellie Garran
Reviewed by
Julia PaszkaCompare Electricity & Gas Plans
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Long story short
Big savings on energy bills
Over four million Aussie homes have solar, cutting energy bills by up to 80%, depending on how you use your solar power and your setup.1 GoSolarQuotes – Are solar panels worth it in 2025?
Government rebates available
There’s a range of state and federal government rebates, including the Small-scale Renewable Energy Scheme, that can help reduce upfront solar installation costs.2For more information, see Clean Energy Regulator – Small-scale Renewable Energy Scheme
Feed-in tariffs are dropping
Selling excess solar energy back to the grid can give you a little extra back, but feed-in tariffs are decreasing as more homes go solar.
Solar batteries can help you store excess power for your home
But they can cost as much as your panels and can take up to 12 years to pay off.
Solar panels pay for themselves
Most solar setups pay for themselves in three to six years, depending on your setup. After that, those energy savings are all yours.
Are solar panels still worth it?
Australia and solar power make about as much sense as a summer BBQ by the beach (so a lot). With just over four million homes already aboard the solar ship and enjoying about an 80% cut to their energy bill (depending on how you use it), you can see why so many people find solar worth it.3GoSolarQuotes – Are solar panels worth it in 2025?
For some, it’s all about cutting down those eye-watering power bills. For others, it’s about living a little greener without giving up their modern-day luxuries. But with any big life expense, there are a few decisions to make before leaping in headfirst. So, to help with your deliberation on the worth of solar panels, we’ve made a little list of pros and cons to make your decision a little bit easier.
The benefits of solar
Incentives and rebates
There are plenty of federal and state solar rebates and incentives to make that first installation bill less off-putting. From the federal government’s Small-scale Renewable Energy Scheme (SRES) that helps take a decent chunk off your initial costs, to state-based interest-free or low- interest loans and rebates to help pay for your new solar setup, there’s a good chance you won’t have to pay full price for a new shiny solar setup.4For more information see Clean Energy Regulator – Small-scale Renewable Energy Scheme Keep in mind, many have eligibility requirements such as a maximum household income.
Short payback periods
While your solar panels will be a big payment, with the help of some rebates and incentives they can pretty much pay for themselves after a handful of years (usually about three to six years depending on the size). On average, a 6kW solar panel system can save you about $2,981 on your bills a year, which can all go towards paying off the costs of installation.5GoSolarQuotes – How much do solar panels cost in 2025 While this payoff period does take a little while to roll your debt back to zero, it can still happen (with a bit of patience). Then all those savings will go straight into your pocket instead.
Financial benefits
Solar panels don’t just lower your bills, they can help pay you back for them. If your panels give you too much juice, using a feed-in tariff (FiT), which lets you sell any excess solar power back into the main grid, will add another bonus to your solar setup. This works as a credit on your bill. But make sure to check out your FiT plan beforehand, since these rates are steadily dropping as more solar starts to flood the main grid.
Environmental payoffs
Running your home on a renewable source is a guaranteed better option for the planet. Unlike coal and gas, which are non-renewable sources and spit out a huge amount of CO2 in the atmosphere, the sun provides endless power with no pollution and no catch. Switching to solar means cutting your carbon footprint and using a renewable source that won’t run out in a few hundred years.
Energy independence
Want to break up with your power company (or at least make the relationship less co-dependent)? Since you’ll be powering your home with solar power, you can take a nice big step away from the main grid. While you won’t be completely removed, if you switch your habits and use most of your energy usage during the day when your solar is at its strongest, then you won’t have to rely as strongly on the grid at night. Shifting your usage habits can mean lower bills and less stress when electricity prices spike.
Helpful tip
Think solar panels are only useful in summer? Think again! Solar panels generate their power from sunlight, not heat, so even on cloudy days, there’s still enough sun shining to keep things ticking along. Sure, shorter days and weaker sunlight mean lower output compared to summer, but you can still make the most of your solar panels by using high-energy appliances during peak daylight hours. Just keep in mind that your savings might not be as impressive in winter as they are in the sun-soaked months.
Julia Paszka
General Manager – Utilities & Credit Cards
The drawbacks of solar
As great as solar is, it’s not all sunshine and rainbows. There are some things to consider to make sure it’s a match made in heaven, not a blind date set up by your mum.
Costs
Solar panels aren’t cheap. While the exact cost depends on the size and brand of your panels, they can still rack up to about $6,284 (5kW panel system), and that’s after you take out any government rebates and incentives.6GoSolarQuotes – Pros and cons of solar energy While prices have dropped over the years, it’s still a pretty high cost for most low- and middle-income households to think about. So, it’s worth crunching all the numbers to make sure solar fits your budget.
But it’s not just the size of your panels that will determine the cost; you’ll also need to look at things like your location and your home’s usage patterns. If you live in a large household that uses a lot of power, you’ll need a bigger solar power system, which means a bigger up-front installation cost. Where you live will also come into play, since different states have different rebates and schemes available. The weather and amount of sunlight you get on average at your home will also change from state to state.
Weather dependency
Your panels need sunlight to generate power. While you can still use your panels throughout the year, their output will depend on the weather. That means you’ll get plenty of juice in summer, while winter will come with more cloudy, low-light days. During winter, solar will be strongest between 11 am and 2 pm, so, you’ll need to plan your energy use around that to make the most of it.
Expensive storage
Solar panels by themselves aren’t able to store excess power. So, if you want to be more self-sufficient and get more from your panels, you’ll need to add a battery to your setup, which (bad news) is an expensive addition. Even with rebates, a battery can cost as much as your panels could, and the payback period can stretch to around 12 years to pay back on top of your solar panel system. Unless you’re dead set on energy independence, it might not be worth the investment just yet.
Ongoing maintenance costs
Solar panels aren’t a ‘set and forget’ deal. While the rain can wash off some dirt, they’ll need regular maintenance at least every two years for a proper clean. This means calling in an accredited solar installer or electrician to clean and inspect everything. So, you’ll need to factor those long-term costs in too.
Solar myth busting: If I get solar, I won’t have to pay power bills anymore
If only! While your energy bill will most probably be smaller than before, solar panels won’t make them disappear completely. Even if you’re soaking up all the sun’s goodness, there will still be times, especially in winter, when you’ll need some juice from the main grid. So, while you’ll be waving goodbye to sky-high bills, you’re not breaking up with them just yet.
What should I think about when getting solar?
You’re likely going to have lots of questions running through your head when you start thinking about installing solar. Here are some starting points to help you see if solar is worth it for your home.
How much will it cost to install solar panels on my house?
While solar panel system prices have dropped by about 75% in the last five years, it’s still an expensive up-front cost for many. It’s important to look at the rough price for your solar panels and see if there are any rebates or incentives you can use to make the cost a little less scary. You should also get some rough estimations on how much you could save once the panels are up and running to get a sense of the cost benefit in the long run.
Should I wait a bit more to install solar panels?
The best time is now. While there are still rebates and incentives available, they won’t be here forever. We’ve already seen some solar cuts for feed-in tariffs as more people make the switch. Solar panels themselves are becoming more affordable, but if you want to take advantage of all those incentives, there’s no time like the present.
How long will it take to pay off my solar panels?
After rebates like the Small-scale Renewable Energy Scheme (SRES), most solar panels take an average of three to six years to pay off. Once that’s done, those energy bill savings go straight back into your pocket.
Is it worth getting a battery too?
A battery lets you store excess energy to use later in the day, which is handy, but it’s a big up-front cost. Since they can make it longer to pay off your solar setup, you should consider whether it’s the best fit for your home’s usage before making any decisions.
What size solar panels should I get?
The larger your panels, the more savings, but you don’t want to go overboard (unless you want a bigger up-front bill). Installing solar panels that create roughly the amount of power your household uses means that you can use every last drop without running the bank clean with those installation costs. For most households, a 5kW or 6.6kW system does the trick.
Do I have north or east/west space on my roof for panels?
North-facing panels in Australia create the most energy over the day, but not all homes get the best sun from the north. If that’s not an option, the best alternative is to use east- or west-facing panels. This will give you solar power in the morning and later afternoon. So, make sure to check out how your roof comes into play.
Turn that Aussie sunshine into savings for your home
Ready to redefine your roof? Whether you’re new to solar or looking to level up your setup, now’s the time to let your roof shine. While you might be thinking about those smaller bills, reduced grid reliance, or those sweet incentives, the key to making every ray count is having the right energy plan.
At iSelect, we help you compare a range of energy providers to find a plan that keeps your panels pulling their weight. You can start comparing online or jump on the phone and talk to one of our comparison experts at 1800 664 532 to make every ray worth it.
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