There's never been a better time to install a solar system. Electricity prices continue to rise, solar panels are coming down in price and the federal government's now offering a 30% rebate on eligible home batteries.
But if you're feeling overwhelmed by all the solar tech talk, you're not alone.
Energy independence can slash your bills and help cut your carbon footprint, but it can be complex and confusing too. Just researching it can give you a headache and that's before you've learnt the difference between a kilowatt and kilowatt-hour.
A good solar installer will always explain the process to you, but going in armed with even an entry-level understanding will definitely help you get a better deal and ask the right questions.
Energy independence can slash your bills and help cut your carbon footprint
It'll also help you avoid the dud deals and shady offers you're bound to come across in your quest for the best. To give you a headstart, here's our guide to the key questions you need to ask (and the all-important answers).
1. Is your home suitable for solar?
A solar system will generally work anywhere in Australia, but it will definitely work better in some locations and under certain conditions. You'll need to consider:
Location
How much sun do you get where you live? Southern regions like Hobart receive less sunlight than northern areas like Darwin.
Roof
How big is it? This will determine how many panels you can install. Which direction does your roof face? North-facing panels catch the most sunlight, but even south-facing panels can still produce about 80% of their rated power.
Shade
To maximise your solar gains, ideally there should be no trees, power lines or other structures shading your roof.
Council
Check if any approvals are required from your council (i.e if your home is heritage-listed or you need to remove trees during installation).
Location, roof size, aspect and shade can affect your solar power generation.
"A solar installer should inspect your home and premises thoroughly to assess these criteria for you and identify any issues that might impact the system installation," says CHOICE solar expert Chris Barnes.
Solar is most commonly installed by house owners. If you're renting or have bought an apartment, it can be more difficult to get as you'll need to co-ordinate it with your landlord or strata respectively, but it can still happen.
Why we partner with SolarQuotes
Since 2020, CHOICE has partnered with SolarQuotes, Australia's most-visited solar website, to help you find trusted installers. They provide high-quality quotes from vetted suppliers and back it with their 'good installer guarantee'. While CHOICE makes money if you buy through them, 100% of it goes straight back into our nonprofit mission.
Why we partner with SolarQuotes
Since 2020, CHOICE has partnered with SolarQuotes, Australia's most-visited solar website, to help you find trusted installers. They provide high-quality quotes from vetted suppliers and back it with their 'good installer guarantee'. While CHOICE makes money if you buy through them, 100% of it goes straight back into our nonprofit mission.
2. What equipment do you need?
If you're going to start shopping solar deals, it's important to know the various components of a solar system and what they do.
Solar panels
Solar panels convert light energy into electricity in a process called the photovoltaic (PV) effect. The panels' electricity-generating capacity is measured in kilowatts (kW) while the amount of electricity it makes over time is measured in kilowatt-hours (kWh).
The energy generated can be used then and there in your home (i.e. running your fridge or washing machine). If there's surplus, it can either go into the electricity grid in exchange for a small credit from your supplier (this is called the feed-in tariff, or FiT), or be stored in a home battery to be used at night or in bad weather.
How many solar panels you need depends on your home's energy use. A typical home uses 16–20kWh per day, which equates to a 5kW solar panel array, but most people now opt for a 6.6kW system or bigger, as panels are relatively cheap and powerful, and any excess electricity helps pay off the system through the FiT.
If you're considering a battery or buying an electric vehicle soon, it makes sense to get a bigger solar panel system now so you have enough power to keep them charged. It's usually easier and cheaper to install a bigger solar panel system up front than try to add to it later on.
Our solar panel reviews reveal that the tested panels generally perform according to their claimed power capacity, so you can feel confident in most of the panels we've tested. The main differences are price and warranty.
"Panel price alone isn't an indicator that one panel will be better than another," says Chris. "More expensive panels may work better in the long term, but with cheaper panels you might be able to put more on."
Home battery
Typically housed in a non-descript casing, home batteries are usually installed in your garage, or outside your house in a weatherproof enclosure.
They can come as a fixed, one-piece unit or as a modular system with stackable storage cells, which you can add to as needed. Battery capacity is also measured in kWh.
If you're interested in batteries, our battery buying guide has all the information you'll need on the best ways to make one work for you.
Inverter
Both solar panels and batteries require a device called an inverter, which converts direct current (DC) power from the panels into alternating current (AC) power which your home uses. They can have separate inverters or a 'hybrid' inverter, which will manage both.
The inverter's size is rated in kilowatts (kW) and is the maximum amount of DC power that the inverter can draw from the battery, or send to it (i.e. charge it) at any one time.
For example, if you have a 20kWh battery and a 5kW inverter, it can only supply 5kW of power at that moment (above that and you'll start drawing power from the grid). Think of it like the battery is a water tank and the inverter is a tap connection – you can only draw or add as much water as the tap allows.
"The inverter is a complex piece of electrical gear. In the first ten years or so of your system's life, if anything fails, it's probably going to be the inverter," says Chris. "Most inverters will last the distance, but it's important to know what you're getting, and especially to know how good the inverter's warranty is."
See our solar inverter buying guide to help you decide what's best for your home.
3. How much does a solar system cost?
Reducing power bills and freeing yourself from the grid sounds great, but there is a significant upfront cost to a solar system even after the rebates.
Thankfully, the cost of solar components has come down a bit over the past several years. Installing a solar panel array, battery and inverters will still cost you thousands of dollars, but the products you'll get for that money today are more powerful than those available a few years ago.
According to our friends at SolarQuotes, these are the current price ranges for the installation of solar panels, batteries and inverters.
They include both the federal government rebate for solar panels (officially known as the Small-scale Renewable Energy Scheme) and the battery rebate (the Cheaper Home Batteries Program).
Solar Panels:
5 kW: $4500–$8000
6.6 kW: $5500–$9000
10 kW: $8000–$13,000
13.3 kW: $10,000–$15,000
15 kW: $13,000–$18,000
20 kW: $17,000–$22,000
Battery + Inverter:
15 kWh: $11,000–$15,000 installed
30 kWh: $16,000–$22,000 installed
50 kWh: $24,000–$30,000 installed
Solar panels + Battery + Inverter:
15kW solar + 30kWh battery: $22,000–$30,000 installed
20kW solar + 40kWh battery: $25,000–$32,000 installed
Expect to pay the higher end of the range if you're going for top quality components or if your home has unusual installation requirements.
Keep in mind, a trickier installation will bump up costs considerably, given architectural and technical factors can increase the time, work and components a job requires.
4. Is solar worth getting?
It definitely can be, but it does depend on multiple factors. These include your system specifications, personal energy consumption, your location, and the individual electricity costs in your state or territory, which can vary wildly.
Installing solar panels can be well worth the upfront cost. They've dropped in price over time and can make a decent dent in your electricity bills immediately (especially if you start using your appliances more during the day).
Panels have dropped in price over time and can make a decent dent in your electricity bills
Likewise, batteries can seriously cut your electricity costs as you bid goodbye to the grid's peak time pricing, but they are expensive and can take a longer time to pay themselves off than panels.
"Households paying hundreds of dollars per quarter for electricity will definitely benefit from looking into solar panels. So will households with low electricity consumption, though their payback time might be a bit longer," says Chris.
"Up until recently, home batteries weren't cost-effective because their payback time was often longer than the battery's warranty period, which is typically ten years. But with the new rebate, that equation is looking more positive, depending on your usage, home and the current electricity rates you're paying."
For a deeper dive into payback periods, check out our solar panels' buying guide or battery buying guide respectively.
5. How do I find a good solar installer?
"Finding a good installer is a really important part of the process – it shouldn't be underestimated," says Chris.
"Solar systems are a complicated bit of technology and most people don't understand how they work, so you need to make sure you can trust your installer."
Dodgy installers are a particular concern when government subsidies are on offer. And remember, you can only get the solar rebates once per premises, so you really want to get your system right the first time.
In almost all circumstances, it's illegal to install your own solar panel system (unless you're an accredited electrician/solar installer, of course).
Be highly cautious of pushy door-to-door salespeople or telemarketers.
Correctly designing the system takes skill and training, and the electrical work must be done by a licensed electrician. You won't be eligible for rebates if you're not an accredited solar installer and your installation may not be covered by insurance.
To find a good installer, look for:
- an accredited designer, installer and components
- companies that have been in business more than five years (check their ABN to see when it was registered)
- companies with sales and technical support based in Australia
- companies that will visit your home and tailor a system specifically for your home and needs.
Beware door-to-door salespeople and telemarketers
We strongly advise against buying solar from salespeople knocking on your door or cold-calling telemarketers. They are usually paid on commission and can use high-pressure tactics (i.e. 'today only!' sales) to make quick sales or sell you products not optimised to your home or energy needs.
Instead, talk to friends and family who've had solar installed to see if they can recommend a company; look up reviews of the installers online and take your time to get quotes from a few reputable installers to give yourself some options.
You can also try CHOICE's Solar Estimator to connect with our solar partner, SolarQuotes, who will provide you with high-quality quotes from vetted installers in your area.
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Stock images: Getty, unless otherwise stated.
