Solar Panels Sydney: Compare Costs & Installers

Sydney is a leading city for residential solar power installations, with suburbs like Schofields seeing over 70% of homes fitted with solar panels, according to the Australian Photovoltaic Institute. If you’re considering installing solar panels in Sydney or anywhere across NSW, this article will guide you through the process. We’ll help you compare costs, find the best local installers, and show you how to make the right decisions when considering installing a solar system in your home.

Interested in solar power for your business in Sydney? See our complete guide: Commercial Solar Panels Sydney

Overview: Installing Solar Panels in Sydney, NSW

• Reliable Solar Energy Production in Sydney: With an average of 3.96 sun hours per day, a 6.6kW solar system can generate around 26.1 kWh daily, making solar a strong investment for homes with unshaded roofs and daytime energy use.
• Cost-Effective Solar Installation: Sydney boasts some of the lowest solar installation costs in the world. A typical 6kW system averages $4,990 after the federal rebate, making solar highly affordable for local homeowners looking to cut long-term electricity expenses.
• Federal STC Rebate for NSW: The Small-scale Technology Certificate (STC) rebate provides an upfront discount of around 30% for Sydney solar installations. For example, a 6.6kW system benefits from about $3,026 in rebates, further reducing upfront costs.
• Fast Payback Periods on Solar: Sydney households can expect a solar payback period of around 4-5 years, with annual savings of up to $1,214 for a 6.6kW system. Larger systems may offer even faster returns due to reduced per-watt costs.
• Choosing the Right Solar Technology: Monocrystalline panels offer high efficiency for small roofs, while polycrystalline panels are budget-friendly for larger spaces. N-Type cells provide long-term performance, and P-Type cells are cheaper but degrade faster. Microinverters work best for shaded or complex roofs, while string inverters are ideal for simpler setups.
• Battery Storage: A Future-Proof Option: Though solar battery prices remain high, they offer benefits such as backup power during outages and reduced reliance on the grid. While the financial return is slower, batteries provide energy security and environmental advantages.
• Maximize Savings with Solar Self-Consumption: Sydney homeowners can significantly reduce electricity bills by maximizing solar self-consumption—using solar power during the day. Any excess energy is fed back into the grid, earning you credits through feed-in tariffs, although current rates are lower than in the past.

How much power do solar panels in Sydney generate?

Although it may not be as sunny as Brisbane or Darwin, Sydney still receives plenty of sun hours and significantly more than Hobart or Melbourne. With NREL’s PVWatts calculator, we can see that for each kilowatt (kW) of solar panels installed, you can generate an average of 3.96 kWh of electricity per day. This factors in a system efficiency loss of 15% which would be typical of a reasonable quality Sydney solar system.

We’ve put together the below table of common solar system sizes in Sydney to help you understand what this means. It’s helpful to remember that kilowatt-hours (kWh) are the units that appear on your electricity bill – and which your electricity retailer uses to calculate your quarterly or monthly electricity charges.

* Output was calculated using PVsyst software

How solar panels can cut your electricity bills in Sydney

When does solar power make sense for home owners? Solar power is a great investment for virtually any home in Sydney that has a reasonably-sized, unshaded roof and some electricity consumption during daylight hours (see the sections below). This is because your home-generated solar energy can save you money in two ways:

1. Solar helps you reduce the amount of energy you need to purchase from your electricity retailer / the grid. This is commonly referred to as ‘solar self-consumption‘, and it is the key to making the most of your solar system in Sydney – you should do everything you can to maximise your self-consumption. In practice, self-consumption means running your appliances (pool pump, washing machine, dishwasher, etc) when the sun is shining and using NSW solar power. (Read more about shiftable loads.)
2. You can earn credits on your electricity bill for your system’s surplus energy. This is usually referred to as a solar feed-in tariff. Any solar energy produced that is not immediately put to use in devices in your home will automatically be sent back to the grid, earning you a feed-in credit. A few years ago, feed-in tariffs were state-sponsored and quite generous; these days the rates offered are a bit lower but still enough to help make solar an attractive investment.

The value of your solar energy is based on a combination of how much you self-consume and how much you export. If you have 6.6kW of solar panels in Syndey that produce an average of 26.1kWh/day, but you only manage to self-consume 20% of that, then your savings will be smaller than if you managed to self-consume 40% – or even, ideally, 60%.

It’s therefore important that the system you choose is appropriately sized for your home and electricity consumption. We have developed a tool to help you select a solar PV system size based on the amount of energy that you consume and your consumption pattern.

Calculate how much money you could save with solar panels in Sydney

How to choose the best solar panel type & solar technology in Sydney

When selecting solar panels for your home, it’s important to weigh the differences in solar panel types and technology, as these factors can greatly impact your energy savings.

• Monocrystalline Panels: Monocrystalline Panels offer higher efficiency, making them ideal for homes with limited roof space in areas like Newtown. They generate more power per square meter and perform well in Sydney’s hot summers, ensuring consistent energy production.
• Polycrystalline Panels: A more affordable option, Polycrystalline panels work well on larger rooftops in suburbs like Penrith. While less efficient, they are cost-effective if you have the space to install a larger system.
• N-Type Cells: These cells degrade more slowly and perform better in low-light conditions, making them ideal for Sydney’s occasional cloudy days. They offer long-term reliability and higher efficiency, delivering better returns over the system’s lifespan.
• P-Type Cells: More common and budget-friendly, P-Type cells degrade faster and are less efficient over time. While they have a lower upfront cost, they may not provide the same long-term savings as N-Type cells.
• Inverters: The inverter converts your solar panels DC power output into usable AC electricity. Microinverters are great for homes with shading or complex roof designs, while string inverters are sufficient for simpler setups. Both options help optimize your energy output.
• Monitoring Systems: A monitoring system, often accessed via an app, lets you track your solar power production and usage in real time. This helps you make the most of your solar system by adjusting your energy use. The kind of monitoring system provided is key to increasing self-consumption and cutting grid reliance.

By selecting the right solar panels, inverters, and monitoring system tailored to Sydney’s climate and conditions, you can maximize your energy savings. Local installers can help find the best combination for your home.

To help make an informed choice, check out our guides on the best solar panels compared and the best solar inverters compared for detailed recommendations.

What rebates are available for solar panels in Sydney

Federal STC Rebate in NSW

Like everyone everywhere in Australia, Sydney residents who install solar can benefit from the nation’s small-scale technology certificate (STC) rebate under the Renewable Energy Target. In simple terms, the STC rebate offers an upfront discount of approximately 30% for any solar installation under 100kW in capacity in Australia. The rebate does differ slightly depending on your location in Australia and on the current market price for the certificates it produces.

The rebate is designed to be collected by the company that installs solar system in NSW, so they in turn offer you a net price that has deducted the STC rebate. Most quotes will provide a breakdown of the total costs (before the rebate) and the net cost to you (after the rebate).

To give you an example, a typical 6.6kW solar panel system in Sydney would generate 82 STCs (using the Clean Energy Regulator’s calculator) at a current price of $36.9 per certificate which would result in a rebate of $3,026.

NSW Government interest-free loans for batteries

The NSW government has introduced a program to provide interest-free loans to customers installing a battery. The scheme is only available to residents who are in one of the postcodes listed on this page, mostly covering the Hunter Valley and Blue Mountains areas.

We provide some information on the financial return of solar batteries further down this article, however, in our view at Solar Choice an interest-free loan is not sufficient to change the economic story of installing a battery.

How much do solar panels cost in Sydney?

Thanks in part to the federal incentives explained above, Australia is home to some of the lowest solar PV system prices in the world – which is one of the reasons that so many homes and businesses have solar panels installed. Solar Choice has been keeping track of solar panel installation price trends since 2012 and as you can see in the below table the cost of solar in Sydney tracks closely to the national average.

The chart below shows how prices have changed (in terms of dollars per watt of capacity – $/W) since 2012 for a range of popular system sizes. On average solar system prices in Sydney have more than halved since we started publishing figures.

As of September 2024, a typical 6kW system in Sydney costs about $4,990 on average after the STC rebate has been deducted.

Pricing will vary depending on if any additional costs are involved like tile roof installations or tilt frames. Solar Choice’s online quote comparison tool includes a comparison of all of these extra costs which might apply to your home.

The Solar Price Index is a trusted resource used by the Australian Government, Bloomberg NEF, and CHOICE. Our pricing data is regularly updated, providing a comprehensive look at current solar costs across Sydney and Australia.

What is the financial return on solar for Sydney customers?

The short answer is that there is a great return on investment for Sydney homes. You have the ability to save up to $2,707 per year on your energy bill with a typical payback period between 4 and 5 years.

The table below shows payback periods and annual savings in the first year for a Sydney based solar panel system in several different scenarios. Note that we have attempted to match the system size to the energy usage, however, the right size system also depends on what time of day energy is used within a home. The self-consumption rate of 40% means that a reasonable amount of power is being used in the middle of the day.

As we’ve used average prices from the Solar Choice Price Index, the financial return could be even better for you if you can find a cheaper quote. Although be wary of quotes that are too cheap – as workmanship, sales, installation process and quality of products can drop away very quickly.

Assumptions/limitations of this analysis

• Assumes an electricity price of 30c / kWh which is towards the middle of what is offered in Sydney
• Assumes an uncapped solar feed in tariff of 5c / kWh which on the better end of what you can find in Sydney
• Average costs come from the Solar Choice Price Index for June 2024
• Your self-consumption rate will vary depending on how you use power in your home. A higher rate, means less power is exported to the grid and improves your financial return

Use our calculator to work out the return for your own specific details in Sydney

What about solar battery storage in Sydney?

The cost of solar batteries in Sydney is much higher than the cost of installing solar panels. Although the battery functionality has been well established and there are different brands in the market, the return on investment still leaves something to be desired.

At Solar Choice, we have been tracking the costs of solar batteries in the battery price index and regularly performing an assessment of the financial return of batteries. We look at 3 typical use cases for solar batteries and adjust the size of the solar and battery solution to fit. See the below payback periods and annual savings from solar and batteries in Sydney.

To review our assumptions and the methodology of this analysis see our full article on whether or not home solar batteries are worth it.

As most solar batteries have a warranty for 10 years, our analysis suggests that battery storage for Sydney residents will not be able to pay for itself during its lifetime. There is still quite a way to go on the cost of batteries before this story will change. Previously we have estimated that batteries will need to cost $200-$300 per kWh of capacity to offer a good return on investment while the current price is around $1,000 to $1,100 per kWh.

This analysis does ignore some of the non-financial benefits of batteries. Crucially as Australia is experiencing higher frequencies of flooding and more severe bushfires, many households are attracted to batteries to provide back-up power in the instance of the grid outage.

There is also the benefit to the environment to assist in the reduction in Australia’s reliance of coal-fired power stations. Batteries, and many of them, will be required if we are going to eliminate fossil fuel power in Australia altogether.

Since 2008, Solar Choice has been a trusted resource for Sydney homeowners looking to install solar panels. We’ve helped over 1 million Australians each year compare pre-vetted local installers, ensuring they get the best quality and value for their solar systems in NSW. With a network of over 300+ trusted installers, including many right here in Sydney, Solar Choice makes it easy to find the right option for your home. As the publisher of the Solar Price Index—used by the Australian Government and trusted by Bloomberg NEF and CHOICE—we bring expertise and transparency to your solar journey.

FAQs on Sydney solar panel installation

• About
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Jeff Sykes

CEO at Solar Choice

Jeff has consulted on over 20MW of commercial solar projects, ranging from SMEs to ASX top 100 companies. Jeff has also provided independent advice to 100s of residential solar, battery and EV charging customers across every state in Australia. He holds an MBA from the Australian Graduate School of Management and is an expert in business strategy and financial analysis.

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