The Cost of Installing Solar Panels in New South Wales

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How much does it cost to install solar panels in NSW?

What affects solar panel installation costs?

Solar rebates available in NSW?

Are solar panels worth it?

Make the switch to solar simple with iSelect

Long story short

Solar energy costs in NSW depend on your setup

Your system size, panel quality, and choice of solar installer can help shape how much you’ll pay upfront for your solar power system.

Federal incentives can shave hundreds off your panel prices

The SRES gives a discount to homes wanting to install new solar panel systems, speeding up payback periods.

Solar can bring strong savings to homes over time

Most NSW households can see lower electricity bills and annual savings of up to $1,400 by getting solar.

How much does it cost to install solar panels in NSW?

In NSW, the cost of installing solar panels could land somewhere between $4,850 and $12,400, that’s without any government rebates. You could still see some variance in price depending on the quality of your panels and inverter, which solar retailer you choose, and system size.

To make your sun-powered decision a little easier, we’ve gathered some rough costs (with and without the federal government scheme) so you can get a feel for how far a solar system might stretch your wallet.

Solar panels installation costs in NSW

Note: These figures reflect typical solar panel pricing in NSW based on third‑party data, rounded where appropriate. Estimates include internal iSelect calculations applied to this data. Actual costs may vary depending on system size, installer, location, and eligibility for incentives. Data retrieved January 2026.

What affects solar panel installation costs?

Size of panels

The size of your solar panels not only drives your upfront costs but also how much energy your home will generate and how much you’ll be able to save long-term. Bigger systems may generate more power, but that might only be worth the extra expense if you’re able to consume it all. Looking at your home’s current energy usage can help you choose a setup that fits your needs, so you aren’t paying for more than your home can handle or dragging out your payback period longer than necessary.

Quality of solar panels and add-ons

You’ll find a wide range of solar panels with different price points, from more affordable yet limited designs to pricey, high-quality options. While the more affordable route might be tempting, it’s important to note that some of the more affordable panels might not be eligible for the solar Small-scale Renewable Energy Scheme (SRES) rebate. This is why a quick check that your panels are listed among the more than 1,500 on the Clean Energy Council’s list is a great idea, since it could mean the difference between you and a nice discount off your upfront panel costs. You should also account for any feature add-ons that catch your eye. Features such as microinverters (to help maximise each individual panel’s performance) and three-phase inverters (which allow for high capacity and bigger systems) are super useful in certain systems, but they could add up on your upfront bill.

For the best outcome, you could also hire an accredited company to install your solar panels. A top-level system installed by an inexperienced team could lead to underperformance in your system, reducing your potential solar savings.

Smart monitoring device

While going through the installation process, you might be offered a monitoring device to go with your solar panels. These devices use data from your smart meter and inverter to show how much energy you’re generating, using and exporting. They usually cost between $250 to $350. While they’re an extra option to your setup, they can help you keep an eye on your panel’s performance or help spot issues before they turn into bigger problems for your wallet later down the line.

Adding a battery

For some NSW homeowners, solar panels alone do the job well enough. But some homes have bigger dreams of less dependence on the grid or using up all the solar their panels generate. Achieving both means you’ll need solar batteries. And while batteries sound like a great upgrade, because they aren’t as common as solar panels, they can significantly increase your solar setup’s final price tag. For example, a 10kW battery for an established 6.6kW panel system could add an extra $10,700 to your upfront costs, which means a prolonged payback period. But if you bundle this into your initial panel setup, it could work in your favour by saving you an estimated $1,800.

Helpful tip

Your roof can shape your solar more than you think. If you’ve got limited space or heavy shading, you might not be able to install the number of panels you’d hoped for to meet your home’s energy consumption. It doesn’t mean you’ll miss out on the full benefits of solar power; you might just need a higher efficiency panel (which are usually pricier) to squeeze every last ray of sunshine into usable power for your home.

Julia Paszka

General Manager – Utilities & Credit Cards

Solar rebates available in NSW?

With more than a million NSW homes taking advantage of rooftop solar, it’s likely that plenty have brought a rebate or two along the way. While the availability of certain NSW solar rebates has changed over time, here’s what’s currently on the table as of Feb 2026:

Are solar panels worth it?

For many NSW homes, solar panels are well worth considering. Whether your goal is cutting power bills, reducing electricity grid reliance, or adding more value to your property come sale time, solar can tick more than one box.

Pros

Bill savings

While solar can feel expensive upfront, savings can start stacking up fairly quickly. The average four-person home in NSW can save an average of $1,400 a year by switching to a 6.6kW solar system. Which can make a noticeable dent in your electricity costs.

Short payback period  

Most solar panels generally pay themselves off over time. For a typical 6.6kW panel system, your installation costs could be paid back within four to seven years. With most panels lasting around 25 years, that leaves plenty of time for your savings to build.

Less reliance on the grid

Using your own solar during the middle of the day (peak solar generation) can mean you’re dipping back into the grid less and therefore have less to pay back to your energy provider. While it’s completely normal to rely on the grid during the night, prioritising solar can not only cut costs for your home but also ease pressure on the main grid.  

Cons

Upfront costs

Even with government incentives, solar panels can still come with a sizeable (and intimidating) price tag. Adding in a battery can push these costs even higher, making the decision to get solar a big one. 

Output is weather-dependent  

Shorter winter days and colder conditions can mean your panels’ generation could take a hit during colder months. In Sydney, the average daily output of a 6.6kW solar panel system is about 26kW, but in winter, this drops all the way down to around 15kW. This could mean higher bills and more reliance on the grid to keep your home comfortable. 

Falling solar feed-in tariffs

As solar becomes more common across Australian rooftops, incentives and feed-in tariffs start to drop. With the SRES ending in 2030 and NSW government rebates already being taken off the table, the financial return isn’t looking as strong as it used to. Falling feed-in tariffs also mean exporting energy isn’t as profitable, so to maximise savings, you’ll need to shift your usage to daytime self-consumption, a lifestyle that doesn’t suit everyone. 

Make the switch to solar simple with iSelect

If you’re starting to budget for a new solar power system for your home or are just curious about the pros and cons cost wise, knowing your options when it comes to energy plans can be a game-changer. By comparing, you can quickly scope out providers and get an idea of what your future energy bills could look like. Head online to iSelect to compare from our range of plans and providers or call our team of energy experts at 1800 664 532 for more help understanding your home’s energy needs.