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TL;DR: In 2026, a 6.6kW solar system costs $5,000 to $8,500 after rebates and pays for itself in 3 to 5 years across most of Australia. Average annual savings are $1,500 to $2,200. For the vast majority of Australian homeowners, solar remains one of the best household investments available.
"Is solar worth it?" It is the single most-searched solar question in Australia, and I completely understand why. You are being asked to spend thousands of dollars upfront on something that sits on your roof for decades. That deserves a straight answer. If you are brand new to how solar actually works, our solar fundamentals guide is a quick primer.
I have had solar on my own roof for six years now. I also spend my days crunching energy data and talking to families about their power bills. So here is my honest take, backed by the latest 2026 numbers, on whether solar panels are still worth it in Australia.
The short answer: Yes, for the vast majority of Australian homeowners, solar is still one of the best investments you can make. But the reasons it is worth it have changed significantly from a few years ago. Let me explain.
The Real Numbers: What Solar Costs and Saves in 2026
Let us start with the basics. A standard 6.6kW solar system, which is the most popular size for Australian homes, costs between $5,000 and $8,500 after federal rebates in 2026. That is the fully installed price including panels, inverter, mounting, wiring, and connection to the grid.
Why such a range? It depends on the quality of components you choose (budget versus premium panels and inverters), your roof complexity, and where you live. A straightforward single-storey tin roof in Brisbane will be cheaper to install on than a multi-storey slate roof in Sydney.
On the savings side, the average Australian household with a 6.6kW system saves approximately $1,500 per year on their electricity bills. Some save more, some less. Your actual savings depend on how much power you use, when you use it, your electricity rates, and how much sunshine your roof gets.
Do the simple maths: a $6,500 system saving $1,500 a year pays for itself in about 4.3 years. After that, you are pocketing the savings for another 20-25 years. Over a system's lifetime, that is roughly $30,000-$40,000 in total savings. Not a bad return on a $6,500 investment.
Want to see the exact numbers for your situation? Our payback calculator crunches it all for your specific postcode, roof orientation, and usage patterns.
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Over 3.6 million homes already claiming rebates
State-by-State Payback Comparison
Solar economics vary significantly depending on where you live in Australia. Here is how the major capitals compare for a typical 6.6kW system in 2026:
| City | Avg System Cost | Annual Savings | Payback Period | Peak Sun Hours |
|---|---|---|---|---|
| Adelaide | $5,200-$7,500 | $1,600-$2,000 | 3-4 years | 5.0h |
| Brisbane | $5,000-$7,800 | $1,400-$1,800 | 3.5-4.5 years | 5.2h |
| Perth | $5,100-$7,600 | $1,400-$1,800 | 3.5-4.5 years | 5.4h |
| Sydney | $5,500-$8,500 | $1,300-$1,700 | 4-5 years | 4.6h |
| Canberra | $5,400-$8,200 | $1,300-$1,600 | 4-5.5 years | 4.8h |
| Melbourne | $5,500-$8,500 | $1,200-$1,500 | 4-5.5 years | 4.2h |
| Darwin | $5,800-$8,500 | $1,200-$1,600 | 4.5-5.5 years | 5.6h |
| Hobart | $5,600-$8,500 | $1,100-$1,400 | 5-6 years | 3.8h |
Why is Adelaide the winner? South Australia has the highest electricity prices in the country and excellent sunshine. That combination means every kilowatt-hour you self-consume is saving you more. Adelaide also has strong state incentives and a competitive installer market that keeps system costs lower.
For detailed cost breakdowns by state, see our solar panel cost guide.
Why Self-Consumption Is King (Not Feed-in Tariffs)
This is the single biggest shift in solar economics over the past few years, and it catches a lot of people off guard.
Back in the early days of solar, generous feed-in tariffs (FiTs) meant you could earn 40-60c for every kWh you exported to the grid. Those days are long gone. In 2026, most Australians are getting just 2-12c/kWh for their exported solar, depending on their state and retailer.
"So is solar still worth it with low feed-in tariffs?" This is probably the question I hear most on forums like Reddit's r/AusSolar and Whirlpool. And the answer is a resounding yes, but you need to understand where the value comes from now.
Exporting to Grid
What most retailers pay for your excess solar in 2026
Self-Consumption
What you save by using solar power directly
The maths is clear: every kWh you use from your own panels is worth 5-10 times more than what you would get exporting it. A kWh you self-consume saves you 35-45c (your retail electricity rate). The same kWh exported earns you just 3-7c. In some states, wholesale prices even go negative during the middle of the day.
This is why the smartest solar owners in 2026 are not chasing the highest feed-in tariff. They are running their dishwasher, washing machine, and pool pump during the day. They are charging their EVs when the sun is up. They are using timers and smart home devices to shift as much consumption as possible into solar hours. Our guide on maximising solar self-consumption covers 10 practical ways to do this.
A typical household that self-consumes 30-40% of their solar generation will see much better returns than one that exports 80% and relies on a feed-in tariff. It is that simple.
What About Batteries? Should I Wait?
This is one of the most common questions I see, and I want to be really clear about the answer: do not wait to install solar panels just because you are undecided about a battery.
Panels and batteries are separate decisions. Solar panels already deliver excellent returns on their own, as we have shown above. A battery can be added later, and many people do exactly that. The systems are designed for it.
Every month you wait to install solar panels because you are "waiting for battery prices to drop" is a month of $100-$150 in electricity savings you are throwing away. That adds up fast.
That said, batteries are becoming more viable every year. You can compare the leading battery options on our site. In 2026, a home battery makes strong financial sense if:
- check_circleYou are on a time-of-use tariff with expensive evening peak rates
- check_circleYou can access Virtual Power Plant (VPP) programs for extra income
- check_circleYour state offers battery rebates (Victoria, SA, NSW, QLD)
- check_circleYou want blackout protection (real value, but hard to put a dollar figure on)
The DCCEEW's Cheaper Home Batteries program and various state rebates are making batteries increasingly affordable. Some owners are already using battery arbitrage strategies to profit from wholesale price swings, though it is worth being aware that Australian heat can affect battery longevity. But if you are on the fence, get solar now and add a battery in a year or two when prices have dropped further and you better understand your usage patterns.
The Federal Rebate Is Shrinking Every Year
Something many people do not realise: the federal solar rebate (technically called Small-scale Technology Certificates, or STCs) is not a fixed amount. It decreases every single year, and it is scheduled to be completely phased out by 2031.
In 2026, the STC rebate for a 6.6kW system in Sydney is worth approximately $2,800-$3,200. That same system in 2027 will receive roughly $300-$400 less. By 2030, it will be just a fraction of today's value.
This is not a scare tactic. It is just how the scheme was designed: to encourage early adoption and then phase out as solar became mainstream. The practical effect is that every year you delay, your system costs slightly more.
Are solar prices going up?
While panel manufacturing costs have stabilised, the shrinking STC rebate means the net price you pay is effectively rising each year. Combined with electricity prices that show no signs of decreasing, the cost of not having solar gets bigger every year too. Waiting to save money on solar is, ironically, costing you money.
Solar Adds Real Value to Your Home
Even if you are not planning to stay in your home for decades, solar is still worth considering. Research from Australian property data shows that solar panels add approximately $23,000 to the average home value, which represents a roughly 2.7% increase. Homes with solar also sell around 20% faster than comparable properties without it.
Think about that for a moment. You spend $6,000-$8,000 on a solar system, enjoy years of reduced electricity bills, and then get $23,000 more when you sell. That is a genuinely excellent investment, and it is one that keeps performing whether you stay for 5 years or 25 years.
Buyers are increasingly factoring running costs into their purchase decisions. A home with a $300/quarter power bill is genuinely more attractive than an identical one with a $700/quarter bill. In a competitive housing market, solar is a real differentiator.
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Over 3.6 million homes already claiming rebates
How Long Do Solar Panels Actually Last?
Modern solar panels are genuinely impressive in their longevity. Quality panels come with a 25-year performance warranty and are expected to last 25-30 years in real-world conditions. Some studies suggest they could produce useful power for 40 years or more.
Panels degrade at approximately 0.3% per year with current technology. That means after 25 years, a well-maintained system is still producing around 92-93% of its original output. You are not going to wake up one morning and find your panels have stopped working. The decline is gradual and barely noticeable year to year.
The inverter is the component most likely to need replacement during the system's life. String inverters typically last 10-15 years, so budget for one replacement. Microinverters and optimisers generally last longer but cost more upfront. Either way, an inverter replacement at the 12-year mark is a known cost, not a surprise. For a deeper dive into panel quality and choosing the right system, have a look at our buying solar guide.
"But What About My Situation?"
The general answer is that solar is worth it for most Australians. But let me address a few specific situations that come up constantly in community discussions:
"My roof faces west, not north"
Still worth it. West-facing panels produce about 85% of the output of north-facing panels. The bonus? They generate more in the afternoon, which aligns well with air conditioning loads in summer and the evening cooking period. Some households actually get better self-consumption value from west-facing panels. As I covered in our solar myths article, you do not need a perfect north-facing roof.
"I am renting"
This is trickier, admittedly. You cannot install solar on a roof you do not own. However, some options exist: community solar programs are emerging in several states, some landlords are open to discussions if you present the property value benefits, and portable solar panel systems (not rooftop) can work for smaller loads. It is also worth checking if your building has or is planning a communal solar system, which is becoming more common in apartment complexes.
"I have shading from trees or neighbouring buildings"
Shading used to be a dealbreaker, but modern technology has largely solved this. Microinverters and power optimisers allow each panel to operate independently, so one shaded panel does not drag down the rest. A good installer will assess your shading and design around it. If your roof gets at least 4-5 hours of decent sun, solar is still viable.
"My power bill is not that high"
If your quarterly bill is under $200, the payback period will be longer, and a smaller system might make more sense. You do not need a 6.6kW system if you only use 8-10kWh per day. A 4-5kW system will be cheaper and could still pay back in 4-5 years. The key is right-sizing the system to your actual usage, not just installing the biggest thing you can.
The Honest Conclusion
I have tried to lay this out as honestly as I can, so here is my straight summary:
Solar is worth it for most Australian homeowners in 2026. The payback period is 3-6 years. The savings over the system's life are significant. It increases your property value. The technology is mature and reliable. And the federal rebate, while still substantial, is shrinking every year.
The cases where solar might not be worth it are narrow: if you are renting with no alternatives, if your roof is heavily shaded with no clear sections, if you are planning to demolish or completely re-roof within the next year, or if your power usage is genuinely tiny (under $150/quarter).
For everyone else? The numbers speak for themselves. Just make sure you get at least three quotes (our guide to reading solar quotes helps you compare them), choose quality components from accredited installers, and focus on maximising self-consumption rather than chasing feed-in tariffs. If the upfront cost feels like a stretch, our article on solar affordability during the cost-of-living crunch covers payment plans and financing options.
And if you want to crunch the numbers for your specific home, our payback calculator will give you a personalised estimate in about two minutes. No sign-up required.
Frequently Asked Questions
Is solar worth it in Australia in 2026?expand_more
Yes, for most homeowners solar is still very much worth it in 2026. A typical 6.6kW system costs $5,000-$8,500 after rebates, saves around $1,500 per year, and pays for itself in 3-6 years depending on your state and energy usage. After payback you enjoy essentially free electricity for another 20+ years. The key change from previous years is that the value now comes primarily from self-consumption (using your own solar power) rather than feed-in tariffs.
How long does it take for solar panels to pay for themselves?expand_more
The average payback period in Australia in 2026 is 3-6 years. Adelaide typically sees the shortest payback at 3-4 years thanks to high solar irradiance and strong self-consumption value. Sydney and Brisbane average 3.5-5 years, Melbourne 4-5.5 years, and Hobart 5-6 years. Your specific payback depends on system cost, electricity rates, usage patterns, and how much solar you self-consume versus export. Try our payback calculator for a personalised estimate.
Are solar panels still worth it with low feed-in tariffs?expand_more
Absolutely. While feed-in tariffs have dropped to 2-12c/kWh in most states, the real value of solar in 2026 is self-consumption. Every kilowatt-hour you use directly from your panels saves you 35-45c/kWh on your electricity bill, which is 5-10 times more valuable than exporting. The key is to maximise the solar power you use yourself through smart scheduling, running appliances during the day, and optionally adding a battery.
Should I wait for cheaper solar panels or buy now?expand_more
Waiting is unlikely to save you money. Panel prices have largely stabilised, and the federal STC rebate decreases each year until it expires in 2031. Every year you wait, you lose roughly one year of savings (around $1,500) and receive a smaller rebate. The total cost of waiting one year is approximately $1,800-$2,000 when you factor in both the lost savings and the reduced rebate. The best time to go solar was five years ago; the second-best time is now.
Do solar panels increase home value in Australia?expand_more
Yes. Research shows solar panels add approximately $23,000 to the average Australian home value, representing a roughly 2.7% increase. Solar homes also sell around 20% faster than comparable non-solar properties, as buyers increasingly value lower running costs and energy independence. This means even if you sell your home before the panels have fully paid back, you are likely to recoup your investment and more through the increased sale price.
Sourcesexpand_more
- ›Energy.gov.au – SRES and STC pricing data
- ›DCCEEW – Cheaper Home Batteries program guidelines
- ›APVI – Solar installation data and peak sun hour calculations
- ›Clean Energy Council – Accreditation standards and market reports
- ›Reddit r/AusSolar – Community-reported costs and installer reviews
- ›Whirlpool Forums – Real-world performance data from Australian households
The next step
If you have any questions about the information in this guide, feel free to get in touch:
Email: hello@whysolar.com.au
Tel: +61 455 221 921
If you're considering solar panels or batteries for your home, Bec and the team can help you get quotes from trusted, pre-vetted local installers:
Written by
Bec RamirezAussie Mum & Energy Expert
Helping families navigate the switch to solar with practical, real-world advice. Bec focuses on the financial side — rebates, bill savings, and financing options — so everyday Australians can see real value from going solar.
Learn more about Bec Ramirez