Considering solar panels in Melbourne, Victoria & wondering if they’re still worth it in 2024? You’re not alone. With rising energy prices, many Victorian homeowners are switching to solar and battery storage. While solar panel installation in Melbourne can save you money, it’s important to ask the right questions to get the best system and installer for your specific situation.
According to the Australian Photovoltaic Institute, over 70% of rooftops in suburbs like Clyde already have solar power — but is it the right choice for you? This independent guide will help youcompare costs, savings, and installation options to help you decide if solar power in Melbourne is the best way to cut your energy bills for your home.
Melbourne receives enough sunlight to make solar panels effective, with an average energy output of 4.18kWh to 4.8kWh per square meter per day, despite being further south than Sydney or Brisbane.
Significant savings: Victorian homeowners can reduce energy bills by up to $2,200 per year with solar panel systems, with payback periods as short as 3-5 years.
Solar Rebates and incentives: Eligible homeowners can access up to $1,400 in state rebates through the Solar Victoria program, plus additional federal incentives that can cover around 30% of upfront costs.
Solar panels are affordable in Melbourne, with a 6.6kW system costing around $6,030 after rebates—making the city one of the most cost-effective locations for solar installations in Australia.
Battery storage: Although the payback period for solar batteries can exceed 7 years, rebates of up to $3,500 make them more attractive, especially for those concerned about energy security.
Maximize Savings with Solar Self-Consumption: Melbourne 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.
Find out what you need to know before buying solar power in Melbourne below.
How much power do solar panels produce in Melbourne?
Australia is home to some of the best solar energy resources in the world. Although Melbourne, Victoria is a bit further south than Brisbane or Sydney, there’s still enough sunshine to make panels a worthwhile investment.
According to PVWatts, a typical Melbourne home’s roof receives about 4.8 kilowatt-hours (kWh) of raw sunshine per square meter per day, while the Bureau of Meteorology website averages work out to about 4.18kWh. Essentially, this sunlight is the ‘fuel’ for the system. If a solar PV system could be 100% efficient (which is not physically possible), a 1 kilowatt (kW) solar system in Melbourne would produce between 4.18kWh – 4.8kWh of energy per day, and a 2kW system would produce between 8.36kWh – 9.6kWh per day.
In real life, however, there are efficiency losses that must be taken into account between the time the sun hits your panels and when it exits the system’s inverter. The table below shows rough daily energy output figures for a range of popular solar system sizes if installed on a north-facing roof in the Melbourne area, assuming an efficiency loss of about 25% (to be conservative).
Estimated power output for solar panel Melbourne systems
When you are grid-connected with no solar system, you have to purchase all of your electricity from an energy retailer. Typically, you will pay at least 21c for every kilowatt-hour that you use.
Having solar panels will allow you to save money by reducing your need to purchase energy from the grid – every unit of solar energy that you ‘self-consume’ in your home is a unit that you do not need to pay for. You can also earn credits for selling your energy into the grid (current state minimum set at 6.7c per kWh), but you’ll save far more money by focusing on maximising your solar self-consumption.
There are two ways to ensure you’re using as much of your solar energy as possible:
What rebates exist for solar panels and batteries in Victoria
Federal STC Upfront Rebate
For those looking for solar rebates, the federal government’s Renewable Energy Target contains a mechanism that reduces the up-front cost of solar installations under 100kW in capacity. The actual value of the incentive depends on a number of factors such as location and system size, but usually works out to be about 30% of the total installation cost.
For example, a commonly selected 6.6kW solar panel system would create 70 certificates (using the Clean Energy Regulator’s calculator) at a current price of $36.9 per certificate which would lead to a rebate of $2,583.
Solar Victoria Rebate
Solar Victoria is the body the state government has set up manage the delivery of the Victorian Government’s Solar Home Program – which offers an additional rebate to the federal program to eligible solar panels Melbourne customers. Importantly this is in addition to the federal STC rebate mentioned above – you don’t have to choose between them.
If eligible, your rebate could be as high as $1,400 for solar panels and $3,500 for solar batteries. There are also interest-free loans available for eligible Victorians. To access this rebate you will need to assistance of a CEC Approved Solar Retailer – you can instantly view quotes via our online comparison in the link below.
Compare quotes from up to 7 installers in your area now.
How much do solar panels cost in Melbourne?
Thanks in great part to the STC rebate and the Victorian State scheme, Melbourne is home to some of the lowest PV system installation prices in the world – one of the reasons that there is such a large amount of rooftop solar installed across the state. Solar Choice has been tracking price trends in Australia’s capital cities since 2012 in our monthly Solar PV Price Index. The below tables show that the cost of solar in Melbourne is very close to the national average.
Based on our data from July 2023, the average cost of a common 6.6kW solar panel system in Melbourne is $6,030 including the STC rebate and GST but excluding the state rebate. So if you are eligible for the Solar Victoria rebate of $1,400 your costs could be even lower!
As you can see from the below graph the cost of solar panels in Melbourne and across Australia has fallen significantly over the last decade as the efficiency of production scale of solar equipment has rapidly increased.
Compare quotes from up to 7 installers in your area now.
Are solar panels worth it in Melbourne?
According to our analysis, Victorians who are eligible for the Solar Victoria rebate have the best case for solar anywhere in Australia, including those in the sunny northern parts. As you can see in the table below for typical use cases, solar panels Melbourne customers can save up to $2,200 on their annual energy costs with a payback between 3-5 years.
The prices in the below table are average costs, however, you can view a full range of quotes on our free-to-use online comparison portal. Keep in mind, however, that while lower prices don’t always necessarily mean lower quality, they should be approached with a healthy degree of caution; a solar panel system should continue to produce power for up to 25 years (with inverter replacements every 7-13 years). Any system downtime (due to component failure, for example) will result in extended payback periods – not to mention the costs that may be incurred for repairs/replacements not covered under product warranty.
The self-consumption ratio of 40% assumes that there is a reasonable amount of energy use during the daytime. If you are out of the house every day and only use energy in the morning and evening (and are unable to move your power loads like dishwashers and washing machines to the middle of the day) you may experience lower financial returns that what’s picture below.
Indicative Returns for solar panel systems in Melbourne – Updated June 2024 –
Solar Panel Size
Average Cost (after rebates)
Average Daily Energy Usage
Self Consumption Rate
Annual Savings
Payback Period
5kW
$4,970
15 kWh
40%
$890
5.4 Years
6.6kW
$5,380
20 kWh
40%
$1,183
4.4 Years
10kW
$8,400
30 kWh
40%
$1,780
4.6 Years
15kW
$12,600
45 kWh
40%
$2,669
4.6 Years
Assumptions/limitations of this analysis
Assumes energy price of 30c / kWh which is towards the middle of what is offered in Melbourne
Assumes a solar feed in tariff of 5c / kWh which is the current state minimum
Your self-consumption rate will vary depending on how you use power in your home. At higher rate, means less power is exported to the grid and improves your financial return
In general, the return on investment for solar batteries in Australia is lower than solar panels. This is mainly due to the fact that the cost of batteries hasn’t (yet) gone through the dramatic fall in price that we have seen solar panels take over the last ten years.
At Solar Choice we are following these prices very closely and we regularly perform an assessment of the financial return of batteries in our ‘Are solar batteries worth it?‘ article. The short answer is, despite the state government rebate of $3,500, for most people the financial payback alone will not merit the high cost required to install a battery.
See the below 3 use cases we have examined closely to assess the payback period for an optimally sized solar and battery system. Note each use case has a different energy usage load profile which affects their savings.
User Case
Solar and Battery Solution
Total Year 1 Savings
Payback Period Solar & Battery
Payback Period Battery Only
Young Adults / Older Family
5kW of Solar Panels and a 3.5 kWh battery
$891
8.5 years
> 20 years
Retirees / Young families
6.6kW of Solar Panels and a 6.5 kWh battery
$1,391
7.1 years
> 20 years
Big Energy User
13 kW of Solar Panels and a 13.5 kWh battery
$2,262
7.0 years
12.6 years
Solar & Battery Payback Period By Use Case
To see all of our assumptions and the methodology of this analysis see our full article.
Why then are so many Victorians installing batteries alongside their solar panels? For many people the opportunity to access a $3,500 rebate is too good to pass up, whilst for others there are some non-financial reasons that motivate the installation of a battery. After recent bushfire seasons energy security has risen to the top of everyone’s minds and the only way to keep the lights on in your house without installing a generator is to have a solar and battery system.
Also important to mention that the transition away from coal power in Australia won’t be possible without much more battery capacity. While it’s not going to be the responsibility of solar panels Melbourne customers to supply this capacity, every little bit helps!
Compare quotes from up to 7 pre-vetted installers in your area now.
Since 2008 our knowledge and sophisticated software has allowed over 300,000 Australian households and businesses to make a well-informed choice on their solar & battery installer.
Since 2008, Solar Choice has been a trusted resource for Melbourne 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 VIC. With a network of over 300+ trusted installers, including many right here in Melbourne, 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
How many houses have solar panels in Melbourne?
The Australian Photovoltaic Institute shows that some suburbs like Barrabool and Clyde have over 70% of dwellings with an existing solar installation. The rest of Melbourne is estimated to have closer to 25% of dwellings with an existing solar installation.
What is the best orientation for solar panels in Melbourne?
The best orientation for solar panels in Melbourne is north-facing, as this maximizes sunlight exposure throughout the day. However, east or west-facing panels can still generate significant energy, with only about 10-20% less efficiency compared to north-facing panels.
Are solar panels worth it in Melbourne?
Yes, solar panels are definitely worth it in Melbourne. We saw that Melbourne solar panels can save a typical homeowner from $700 to $2,300 a year with a payback period of 3 to 5 years. This can be even better if you are eligible for the Solar Victoria rebate of $1,400.
How much do solar panels cost in Melbourne?
The cost of a solar panel system in Melbourne starts at around $5,500 to $7,500 for a 5kW system. With the Solar Victoria rebate, eligible homeowners can reduce this cost by up to $1,400, and interest-free loans are also available to further ease the financial burden.
How long do solar panels last in Melbourne?
Solar panels typically last 20 to 25 years in Melbourne, with warranties covering performance for this period. High-quality panels are designed to withstand Melbourne’s climate, ensuring consistent energy production over their lifespan.
Do I need a solar battery in Melbourne?
A solar battery can enhance energy savings by storing excess power for nighttime use. While not essential, installing a battery can help reduce reliance on the grid, especially during peak times, and is eligible for up to a $3,500 rebate under the Solar Victoria program.
What size solar system do I need in Melbourne?
The ideal solar system size depends on your household energy needs. For an average home in Melbourne, a 5kW to 6.6kW system is typically sufficient, requiring around 16-20 panels. Larger homes or higher energy users might benefit from a 10kW system.
What rebates are available for solar panels in Melbourne?
Melbourne homeowners are eligible for the Solar Victoria rebate, offering up to $1,400 for solar panel installations and $3,500 for battery systems. Additionally, federal Small-scale Technology Certificates (STCs) can reduce the upfront cost of a solar system by around 30%.
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.
i want to know if its possible to add a wind generator to an exciting solar system on the grid. surely theirs a way to obtain the same watts /amps from the generator as what the solar panels are producing .
thanks
Hi Steve,
A wind generator would generally require its own inverter, although there are some speciality products out there that will do both solar and wind at the same time.
looking at the last 3 bills I see that we use between 4 – 5 kW/h per day
What size system would be suitable for us in Melbourne, allowing for the possibility of battery storage add-on later
David Rees
Hi David,
Congrats on your very low level of energy consumption! Pretty impressive.
You can also request solar & battery quotes by filling out our form to the right of this page.
I have 2 systems on my home. 1 is directed East and the other is directed West.
We were not happy that the West profile was correct and when we asked for advise we were told that we would void our warranty should we change, so we bought an additional system.
Given the returns the East facing produces far more Ray’s than the other.
Could we get this West facing lot moved or elevated so that we would get better results?
Hi Fred,
Have you checked for shading on the western array? Or is it a problem with the orientation of the panels (I imagine they might be facing slightly south-west as opposed to due west?)
Could be a costly operation to move the panels over to the east side, but wouldn’t know until you got some quotes from an installer. And even if you did move them you might still have the same issue with voiding your warranty.
What sort of output are you seeing form the west-facing array vs east-facing?
We’ve recently moved into a property with an older 2kw grid connect system. However, the panels are mounted almost flat and are facing east. Would it be worth getting someone to re-mount them on a tilt frame and turn them to face north?
Hi Phil,
It’s probably a good thing that they’re nearly flat if they’re east-facing, as they’ll be able to capture more of the sun during the day. I ran some quick numbers using PVWatts and can see that you’d generate about an extra 300kWh of solar energy per year if you remount them facing north and at 37 degrees (Melbourne latitude).
This would mean about $75 additional savings per year or about $750 over the next 10 years if you manage to use all of the solar energy produced (and less if you’re sending some of your solar energy into the grid). If you can have the panels re-mounted for significantly less than that, it might be worth your time but my feeling is you’re probably better leaving them as they are.
(P.S. I’m assuming that you’re not currently receiving one of Victoria’s legacy feed-in tariffs, but realistically it shouldn’t make much of a difference with regard to my conclusions here.)
Hope this helps!
Thanks. Yep, i do get over 60cents kwh but i never actually export. Im lucky to produce 3 kwh a day. Hardly worth having solar. Thanks anyway. much appreciated
No problem, Phil. If you’re interested in having someone out to have a look at it, I know that SolarSafe specialise in post-installation servicing.
I have just moved into a house in Sunbury Victoria which has a Solax battery system but the previous owner has not left me any documentation. I live in Sunbury, VIC if you are able to provide me with any help.
Thanks
Tom Thurtell
Hi Tom,
You’d be best to contact Solax directly. You can find their contact details at the bottom of our article about Solax’s product (which you can read here).
Do you fit batteries(7kw) to 3 year old running 3kw solar system mains connected using model 5kw SOLAR RIVER 5400TL-D
Q. 1 would I need a new control unit COST $..
2 batteries 6-7 kw COST $…..
3 instillation cost if not included &…
4 is all automatic in use.
Ian…….
Hi Ian,
To get pricing through our system, please complete your details in the Quote Comparison Request form to the right of this page. All the prices you see will be inclusive of GST and installation. We do not sell products on their own or keep any stock – we’re a brokerage & comparison service working with a network of companies around Australia.
We want to move our solar electricity system to a new house as the old house is being demolished who can do this for us and what are the costs
Hi Jan,
You’d probably be best to consult a local, solar-certified electrician about doing this for you. You can find a list on the Solar Accreditation website.
Hello, I have recently moved into a property in Wodonga which has solar panels and a Growatt Invertor. This is my first experience with Solar Panels but I have noticed the red fault light is on and the watt figure is not increasing. Could you please contact me or advise who I could contact in my area. Phone 040136574. Thank you.
Hi Norma,
You can either reach out to Growatt directly (contact details at the bottom of this article) or contact SolarSafe, who have a network of electricians specialising in solar PV system after-care.
These sites have production/benefit from the Solar panels in States ect. We need more information on batteries and volumes and installation, even how to get intouch with a company that will go through the transfer to Solar/Wind/Batteries not just the information of what is happening over seas. We need to be able to install batteries to the investment we have already made. People-power can raise awareness, to get this done, tell us what the holdup is. Thank-you
Hi Dev,
There is certainly plenty of interest in battery storage for solar here in Austalia – and people are having systems installed. Solar Choice has recently launched a free and impartial battery storage comparison platform which allows our customers to instantly shop around for energy storage solutions on offer through installers in their area.
At the moment, it’s not set up for people who already have a solar system (only for people who are shopping for both solar and storage), but if you’d like us to let you know this service becomes available with preexisting solar systems, let us know and we’ll add your email address to our mailing list.
In the meantime, best of luck!
My growatt solar system have been installed by years ago.but it does not work properly,it always reconnect,what is wrong whit it?
Hi Flynn. Best to contact Growatt directly about this. You can contact their Australian offic on 02 80651298 or 0431754428. Alternatively, you may email them on ben.li@ginverter.com.
Comments are closed.
Helping Australians make a well-informed decision since 2008
i want to know if its possible to add a wind generator to an exciting solar system on the grid. surely theirs a way to obtain the same watts /amps from the generator as what the solar panels are producing .
thanks
Hi Steve,
A wind generator would generally require its own inverter, although there are some speciality products out there that will do both solar and wind at the same time.
looking at the last 3 bills I see that we use between 4 – 5 kW/h per day
What size system would be suitable for us in Melbourne, allowing for the possibility of battery storage add-on later
David Rees
Hi David,
Congrats on your very low level of energy consumption! Pretty impressive.
I’d recommend that you check out two of our tools: 1) Our Simple Solar System Sizing Estimator Tool, and b) our Solar & Battery Storage System Sizing Estimator Tool. While neither of these will give you a definitive answer to your question (talk to your installer for something closer to that), they will give you ballpark figures.
You can also request solar & battery quotes by filling out our form to the right of this page.
I have 2 systems on my home. 1 is directed East and the other is directed West.
We were not happy that the West profile was correct and when we asked for advise we were told that we would void our warranty should we change, so we bought an additional system.
Given the returns the East facing produces far more Ray’s than the other.
Could we get this West facing lot moved or elevated so that we would get better results?
Hi Fred,
Have you checked for shading on the western array? Or is it a problem with the orientation of the panels (I imagine they might be facing slightly south-west as opposed to due west?)
Could be a costly operation to move the panels over to the east side, but wouldn’t know until you got some quotes from an installer. And even if you did move them you might still have the same issue with voiding your warranty.
What sort of output are you seeing form the west-facing array vs east-facing?
We’ve recently moved into a property with an older 2kw grid connect system. However, the panels are mounted almost flat and are facing east. Would it be worth getting someone to re-mount them on a tilt frame and turn them to face north?
Hi Phil,
It’s probably a good thing that they’re nearly flat if they’re east-facing, as they’ll be able to capture more of the sun during the day. I ran some quick numbers using PVWatts and can see that you’d generate about an extra 300kWh of solar energy per year if you remount them facing north and at 37 degrees (Melbourne latitude).
This would mean about $75 additional savings per year or about $750 over the next 10 years if you manage to use all of the solar energy produced (and less if you’re sending some of your solar energy into the grid). If you can have the panels re-mounted for significantly less than that, it might be worth your time but my feeling is you’re probably better leaving them as they are.
(P.S. I’m assuming that you’re not currently receiving one of Victoria’s legacy feed-in tariffs, but realistically it shouldn’t make much of a difference with regard to my conclusions here.)
Hope this helps!
Thanks. Yep, i do get over 60cents kwh but i never actually export. Im lucky to produce 3 kwh a day. Hardly worth having solar. Thanks anyway. much appreciated
No problem, Phil. If you’re interested in having someone out to have a look at it, I know that SolarSafe specialise in post-installation servicing.
I have just moved into a house in Sunbury Victoria which has a Solax battery system but the previous owner has not left me any documentation. I live in Sunbury, VIC if you are able to provide me with any help.
Thanks
Tom Thurtell
Hi Tom,
You’d be best to contact Solax directly. You can find their contact details at the bottom of our article about Solax’s product (which you can read here).
Do you fit batteries(7kw) to 3 year old running 3kw solar system mains connected using model 5kw SOLAR RIVER 5400TL-D
Q. 1 would I need a new control unit COST $..
2 batteries 6-7 kw COST $…..
3 instillation cost if not included &…
4 is all automatic in use.
Ian…….
Hi Ian,
To get pricing through our system, please complete your details in the Quote Comparison Request form to the right of this page. All the prices you see will be inclusive of GST and installation. We do not sell products on their own or keep any stock – we’re a brokerage & comparison service working with a network of companies around Australia.
We want to move our solar electricity system to a new house as the old house is being demolished who can do this for us and what are the costs
Hi Jan,
You’d probably be best to consult a local, solar-certified electrician about doing this for you. You can find a list on the Solar Accreditation website.
Hello, I have recently moved into a property in Wodonga which has solar panels and a Growatt Invertor. This is my first experience with Solar Panels but I have noticed the red fault light is on and the watt figure is not increasing. Could you please contact me or advise who I could contact in my area. Phone 040136574. Thank you.
Hi Norma,
You can either reach out to Growatt directly (contact details at the bottom of this article) or contact SolarSafe, who have a network of electricians specialising in solar PV system after-care.
These sites have production/benefit from the Solar panels in States ect. We need more information on batteries and volumes and installation, even how to get intouch with a company that will go through the transfer to Solar/Wind/Batteries not just the information of what is happening over seas. We need to be able to install batteries to the investment we have already made. People-power can raise awareness, to get this done, tell us what the holdup is. Thank-you
Hi Dev,
There is certainly plenty of interest in battery storage for solar here in Austalia – and people are having systems installed. Solar Choice has recently launched a free and impartial battery storage comparison platform which allows our customers to instantly shop around for energy storage solutions on offer through installers in their area.
At the moment, it’s not set up for people who already have a solar system (only for people who are shopping for both solar and storage), but if you’d like us to let you know this service becomes available with preexisting solar systems, let us know and we’ll add your email address to our mailing list.
In the meantime, best of luck!
My growatt solar system have been installed by years ago.but it does not work properly,it always reconnect,what is wrong whit it?
Hi Flynn. Best to contact Growatt directly about this. You can contact their Australian offic on 02 80651298 or 0431754428. Alternatively, you may email them on ben.li@ginverter.com.