Solar Panel Installation Cost
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Written by Tristan Cameron
Table of Contents
If you’re looking to reduce your carbon footprint, switching to solar power is an excellent choice. This form of renewable energy has numerous benefits, including very generous government rebates.
Installing solar panels will cost anything from $4,500–$10,000, but your electricity savings will pay that off quickly.
We’ll get into why the price range varies so much shortly, but first, let’s take a brief look at solar panels and their benefits.
What are Solar Panels
Solar panels are most commonly installed on a roof; they harness the sun’s rays and convert them into electricity or heat. They’re gaining in popularity as many people are concerned about greenhouse emissions and want to do more to save the planet.
A solar panel is typically made from a semiconductor material like silicon, encased in a metal frame with a glass casing. The glass collects photons from the sun’s rays, which are then converted into energy. A standard solar panel in Australia is 1.7m tall by 1m wide and weighs around 20kg.
Benefits of Solar Panels
While the primary benefit is that you get your power from an infinite resource — the sun — and not fossil fuels like coal, there are other benefits.
The Australian Government incentivises residents to install solar panels by providing rebates before installation. The amount is calculated on a sliding scale and is high enough to cover more than half the installation charge.
The rebate is calculated in the form of Small-scale Technology Certificates (STCs), currently $35 each in Sydney, considered zone 3. For example, a standard residential home solar panel system is around 6.6kW, equating to 100 STCs. So 100 x $35 is a generous $3,500 rebate.
Now is the time to switch to solar. The Australian Government incentive will disappear by 2030.
Lower Electricity Costs
The more power you get from the sun, the more your electricity bills will decrease. The savings can be considerable. Using the example above of a standard 6.6kW installation. This can generate 25kWh of energy daily, saving you over $1,000 annually.
If your solar panel system is connected to the grid and you send excess power back, you may be eligible for additional payments.
Low Maintenance Costs
Solar panels require little maintenance, only to be kept clean. This task can be performed a couple of times a year to keep them in proper working condition. Solar panels have no moving parts, so there’s zero wear and tear.
Some Minimal Downsides
With all good comes some bad. The challenge with solar panels is that they only work when the sun is out. That’s good news for Sydney, where the sun shines 300 days a year, but no power is generated during the night. Storing extra power in batteries to use later is expensive.
Installation Cost of Solar Panels
When choosing solar panels, there are two things to consider: the panels themselves and the inverter.
Most solar panels come from Asia and are produced in factories dominated by AI, so the quality is reasonably good. However, a premium product from Korea will last considerably longer than a churned-out panel from China.
With inverters, investing in a premium European model over a Chinese one will also guarantee more reliability and longevity. A premium product is around 20% more expensive but worth it in the long run.
Reasons for the Fluctuations in Price
The main reason that the price can change from electrician to electrician is because the solar panels come from overseas. Here are the ways the prices can vary:
- Wholesale arrangements: some electricians, like North Shore Electricians, have solid partnerships with worldwide suppliers, meaning we can pass those price savings on to you.
- AUD/USD: most solar panels come from abroad, and as both the Aussie and US dollars are fluctuating all over the place right now, there is often a buffer added to the price to allow for this. As a result, most quotes are only valid for 7 days.
- Competition: right now in Australia, 6,000 contractors are accredited by the Clean Energy Council to install solar; with that much competition, price matching and beating are rife.
- Incompatible roofs: not all roofs can have solar panels affixed; slate, for example, isn’t going to work. Additional labour costs may need to be applied for more complicated installations.
Considering all the factors we’ve covered, here’s the total average cost (as of 25 November 2023) for a residential installation in Sydney after applying the solar rebate, including GST.
Why Choose North Shore Electricians to Install Solar Panels
For over 20 years, North Shore Electricians have been assisting the people of Sydney with all their electrical needs. The installation of solar panels is one of those.
Because of our longevity, we’ve developed partnerships with suppliers worldwide. The benefit is that we have negotiated wholesale rates on products like solar panels and share any discounts we receive with you, our customer.
It’s time to switch to solar. Contact our team at North Shore Electricians today, and we’ll provide a free, no-obligation quote.