Is Solar Worth It in Australia? The Honest 2025 Numbers
Is solar worth it in Australia? Honest 2025-26 numbers on costs, payback periods, batteries and rebates, without the sales pitch.
By Timothy Hirou GaschereauPublished 12 min read
Short answer: for most homeowners, rooftop solar is one of the better financial decisions you can make in 2025, with payback periods typically 3 to 6 years and lifetime savings of $30,000 to $60,000+. But the maths has changed a lot in the past decade, and if you are still thinking about solar the way people did in 2015, you might be disappointed.
Here are the honest numbers on costs, payback, batteries and rebates, without the sales pitch. General information only, not advice, and rebates, feed-in tariffs and prices change and vary by state, so get multiple quotes for your own situation.
🎯 The essential: Yes, for most homeowners. A 6.6kW system costs about $4,500 to $7,000 after the federal STC rebate and pays back in roughly 3 to 6 years. The big shift: feed-in tariffs have collapsed to 3 to 10c/kWh, so the value is now in self-consumption (using your own power during the day), not exporting. Batteries are getting more viable with the 2025 Cheaper Home Batteries Program, but payback is still longer (6 to 12 years). Use Clean Energy Council approved installers and get at least three quotes.
Is solar worth it right now?
Back in the early 2010s, generous feed-in tariffs let you sell surplus power back to the grid for 40 to 60 cents per kWh, so solar paid off even if you were out all day. Those days are gone: in most states feed-in tariffs now sit at 3 to 10 cents per kWh.
The good news is the other side of the equation has improved dramatically. Grid electricity now costs 25 to 40 cents per kWh, so every unit of solar you use yourself instead of buying from the grid saves you that full amount. That is where the value is now: self-consumption. Which changes the advice: run your dishwasher, washing machine, pool pump and EV charger during daylight, and you will get far more out of your system than by exporting it cheaply.
What solar costs after the STC rebate
The federal STC scheme (Small-scale Technology Certificates), run by the Clean Energy Regulator, is the main incentive. Your installer claims the certificates and passes the discount on upfront, so you never deal with it directly; it just comes off the quoted price. The rebate depends on your location, system size and how many years remain until the scheme ends in 2030, so it shrinks a little each year. Realistic installed costs for 2025, after the rebate:
| System size | Typical installed cost (after STC rebate) |
|---|---|
| 6.6 kW | $4,500 to $7,000 |
| 10 kW | $7,500 to $11,000 |
| 13 kW | $10,000 to $14,000 |
Sunnier zones (Queensland, WA) often cost a little less for the same size thanks to higher STC values. Get at least three quotes to see what is realistic in your area. Because the rebate phases out by 2030, sooner is generally better on that front.
Payback period and lifetime savings
Payback is how long your savings take to cover the upfront cost; after that you are essentially generating free power. The figures below assume grid power around 30c/kWh, a self-consumption rate of 30 to 40%, and a feed-in tariff around 6c/kWh for the rest:
| System size | Cost after rebate | Annual saving | Payback | 25-year saving |
|---|---|---|---|---|
| 6.6 kW | $4,500-$7,000 | $1,400-$1,800 | 3-5 years | $30,000-$40,000 |
| 10 kW | $7,500-$11,000 | $2,000-$2,800 | 4-6 years | $40,000-$55,000 |
| 13 kW | $10,000-$14,000 | $2,500-$3,500 | 4-6 years | $50,000-$70,000 |
If you are home during the day and can shift usage into solar hours, self-consumption rises and payback shortens. Quality panels carry a 25-year performance warranty (inverters usually 10 years), and a well-installed system should keep generating for 25 to 30 years, which is why the lifetime savings are so large. This is not a short-term play.
Why exporting pays so little now
Today's feed-in tariffs are set by retailers, not government, and are much lower than the old premium schemes. In 2025 they typically sit around 3 to 10c/kWh depending on state and retailer. Compare that with the 25 to 40c/kWh you pay for grid power, and the maths is stark.
This is why the advice has changed. Shift energy use to daylight: timers on appliances, the pool pump during the day, charging an EV from solar, pre-cooling or pre-heating before peak rates. These habits can meaningfully improve your payback. Compare plans and feed-in rates on a good electricity plan before and after you install.
Is a home battery worth it yet?
The honest answer: it depends, and it is getting better. A battery of 10 to 13 kWh usable storage adds roughly $10,000 to $15,000 on top of the panels in 2025. The federal Cheaper Home Batteries Program (from 1 July 2025) works like the STC scheme, knocking roughly $1,000 to $4,000+ off eligible batteries at the point of sale, with several states running their own rebates on top (which change often, so check your state).
A battery tends to stack up when:
- You are on a time-of-use tariff with expensive peak rates (roughly 5pm to 10pm).
- You have frequent outages and want backup power.
- You have an EV, or a large system generating more than you use by day.
- You plan to stay in the home for at least 10 years.
It probably does not yet when:
- You are on a flat tariff with no peak pricing.
- Your usage is low and your panels already cover most of it.
- You may move within a few years, or the budget is tight.
Without incentives, battery payback is often 8 to 12 years or more; with the federal program and state rebates it can come down to 6 to 10 years for well-matched homes. Panels alone still make excellent sense either way.
What changes the answer for your home
- Roof orientation and tilt: north is ideal, east and west still good, south poor.
- Shading: trees, chimneys and neighbours can cut output more than you expect. Ask for a proper shading analysis, not a glance from the street.
- How much power you use and when: high daytime users (pools, ducted air-con, EVs) get the most value.
- Whether you are home during the day: retirees and work-from-home households consistently get better returns.
- Your tariff: the higher your grid rate, the more each self-consumed unit is worth.
- System and installer quality: use tier-1 panels and a well-regarded inverter, and a Clean Energy Council approved installer (required for the STC rebate). This is a 25-year asset, so quality matters.
Renters and apartments
Worth being honest here: if you rent or own an apartment, rooftop solar is generally not an option. Landlords own the roof and get no benefit from a tenant's savings, and strata rules make apartment installs complex. A few limited alternatives exist: community solar schemes (buy into a solar farm for bill credits), virtual power plants (usually need a battery) and green-power plans (no saving, but lower emissions). The options are improving, just slowly.
How to get it right
- Get at least three quotes; price and quality vary more than you would expect.
- Use only Clean Energy Council approved installers (required for the STC rebate).
- Ask for a production estimate modelled on your actual roof, not a generic figure.
- Give the installer your last 12 months of bills so they can model payback on your real usage.
- Check your electricity plan before and after on Energy Made Easy.
- Confirm current federal and state rebates before signing; they change.
- Do not just buy the cheapest system; saving $500 now can cost thousands in lost output later.
- Future-proof: if an EV or battery is likely soon, discuss a battery-ready inverter now.
❓ Frequently asked questions
Is solar worth it in Australia in 2025?
+
For most homeowners with a suitable roof, yes. Payback periods of 3 to 6 years are realistic and lifetime savings over 25 years can reach $30,000 to $60,000 or more. The key shift is that the value now comes from using your own solar power during the day, not from selling it back to the grid.
How long does it take for solar panels to pay for themselves?
+
Typically 3 to 6 years for a well-matched system in 2025, depending on size, how much power you use during daylight, your tariff and your location. Households home during the day that shift appliances to solar hours see the shortest payback.
How much do solar panels cost in Australia after the rebate?
+
After the federal STC rebate, a 6.6kW system typically costs $4,500 to $7,000 installed, and a 10kW system $7,500 to $11,000. Prices vary by state, installer and panel brand, and the STC rebate shrinks each year until the scheme ends in 2030.
Are solar batteries worth it in Australia?
+
Getting more viable, especially with the federal Cheaper Home Batteries Program from 1 July 2025, but payback is still longer than panels alone, typically 6 to 12 years. Batteries make most sense on a time-of-use tariff, with an EV, frequent outages, or a large system generating more than you use by day.
What is the best direction for solar panels in Australia?
+
North-facing is ideal, capturing the most sun through the day. East and west-facing roofs still work well for morning and afternoon sun. South-facing roofs perform poorly and are generally not recommended.
Can renters get solar in Australia?
+
Generally not rooftop solar: the landlord owns the roof and gets no benefit from a tenant's savings. Some community solar schemes and green-power plans exist but are limited. Options are improving slowly.
Keep reading
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Some links above are affiliate links. If you buy through them, Snowball Invest may earn a small commission at no extra cost to you. We only recommend books we'd suggest anyway.
Sources
This article is general information only, not financial, energy or professional advice. Solar economics vary significantly by household, location and circumstances, and rebates, feed-in tariffs and prices change and vary by state. Always get multiple quotes and check current rebates and tariffs before making any decisions.
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General information only. This article is educational and does not constitute personal financial advice. It does not account for your circumstances. Consider your own situation and seek advice from a licensed adviser before acting. Read our full disclaimer.
Timothy Hirou Gaschereau
Founder of Snowball Invest, not a financial adviser.
I write about what I'm learning myself, because nobody ever taught us how to take control of our own money. It's a skill, not a mystery, and it's never too late to learn it. The best day to start was yesterday, the second best is today.
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