Solar Panels Canberra, ACT: Compare costs & installers

At Solar Choice, we offer an unbiased guide on solar panels and solar installation in Canberra, ACT, because we’re independent from installers and manufacturers. This means you get the honest information you need before making any decisions about solar panels or solar batteries.

In this guide, you’ll find up-to-date details on solar system pricing, potential solar energy generation specific to Canberra’s conditions, and the latest rebates and incentives available to homeowners in the ACT.

We’ll also help you decide if solar power and battery storage are worth it in your area. With this guide, Canberra residents can maximize their savings, benefit from competitive solar installation prices, and get the most out of their solar power systems.

Overview: installing solar panels in Canberra ACT

1. Maximize Savings with Solar Self-Consumption and Feed-In Tariff: Canberra residents can reduce energy bills through solar self-consumption and earn credits for excess power sent to the grid. Shop around for the best feed-in tariff rates for optimal savings.
2. Strong Solar Energy Potential in Canberra: With an average of 4.8 sun hours per day, a 5kW system can generate approximately 18 kWh daily—enough to cover much of a typical household’s energy needs.
3. Competitive Solar Installation Costs: Standard 6kW solar system costs around $5,730 after rebates, offering a cost-effective solution for homeowners looking to reduce long-term electricity costs.
4. Sizing Your Solar System for Maximum ROI: The 6.6kW system is the most popular for Canberra homes, balancing affordability with energy production to achieve faster returns on investment.
5. Leverage Federal Solar Rebates: Federal government incentives, such as Small-Scale Technology Certificates (STCs), can significantly lower upfront costs, with a 5kW system benefiting from approximately $2,287 in rebates.
6. Quick Payback Periods for Solar: Canberra homeowners can expect solar payback periods of around 4-5 years, with larger systems providing even faster ROI due to lower per-watt costs.
7. Battery Storage: A Long-Term Investment: Though the ACT battery rebate program has ended, adding battery storage remains a viable option for future-proofing your energy needs and gaining energy independence during outages.

How do you benefit from solar panels in Canberra?

Solar power systems only produce electricity during sunlight hours, and how much electricity is generated depends on the intensity and duration of the sunshine.

ACT residents can benefit from solar in two ways:

1. Solar self-consumption, means using the solar energy your panels produce during sunlight hours, allowing you to power your home without relying on electricity from the grid or paying your energy provider.
2. Solar feed-in credits, where you receive a credit on your bill for ‘excess’ solar energy that you send into the grid. The combination of these two benefits helps to make solar a great investment for the ACT.

Note that the feed-in tariff rate that you receive depends on who sells you electricity (your retailer) and the plan that you’re on with that retailer. You can compare feed-in tariffs and switch electricity plans using the government’s EnergyMadeEasy.gov.au comparator website, or our own electricity plan comparison tool.

How much energy will Canberra solar panels produce?

The average Canberran rooftop receives an annual average of about 4.8 hours of sun per day based on data from the Bureau of Meteorology. This number fluctuates seasonally (higher in summer and lower in winter). Estimated daily generation figures for different size systems based on 4.8 sun hours are detailed below (minus a 25% efficiency loss). Note that ‘kilowatt-hours’ (kWh) is the same unit that you’ll see on your electricity bill; the average Australian home uses between 15-25kWh of energy per day.

Assumptions:

• Solar panels are free of shading and orientated to the North at 30 degrees
• The solar power system’s efficiency is 75% (conservative estimate)

How much do solar panels cost in Canberra?

Solar Choice regularly publishes articles with indicative pricing for PV systems in Australia’s capital cities (including Canberra) in our Solar Choice Price Index.

Based on the price index data from September 2022, we can see that in Canberra a typical 6kw solar system would cost $5,730 on average after deducting the STC rebate and including GST.

The table below shows how solar system price trends for Australia over the last decade. The prices are in dollar-per-watt ($/W) format and segmented by capital city (including Canberra).

How to choose the right solar system size

Because solar is affordable these days, sizing up a system for your home is not an exact science.  The most popular residential system size in Australia has risen to 6.6kW system; the larger the system, the less you’ll pay per watt of capacity ($/W) for comparable equipment. This size system could work with a household consuming the typical 15-25kWh/day – increasing the system size up and down will slightly adjust the return on investment which we discuss below.

To simplify the shopping process, our online comparison portal provides a good way to get started. You can easily browse through different system sizes and costs, along with different qualities and types of solar equipment – click compare now on the right to get started.

Federal & State government incentives for solar panels Canberra

Federal rebate for solar (STCs)

Significant up-front incentives are available from the federal government. Technically speaking, this discount comes in the form of ‘small-scale technology certificates’ (STCs), which utility companies and other liable entities are obligated to purchase under Australia’s national Renewable Energy Target. This discount is applied directly to the purchase price of your system – there is no need to claim it, as it is passed through to you by the company that sells you the system; all you have to do is compare prices.

As an example, the STC benefit associated with the scheme for a 5kW solar system in Canberra is approximately $2,287 based on pricing from Green-bank.

ACT State Solar Rebates and Incentives for Homeowners

In the ACT, homeowners can take advantage of the Home Energy Support Program, which provides up to $5,000 in rebates for energy-efficient home upgrades, including solar panels, solar batteries, and other eco-friendly installations like hot water heat pumps. Eligible homeowners can receive 50% off the total cost (up to $2,500 per installation), and the rebate can be paired with a zero-interest loan of up to $10,000 to help cover remaining expenses. These initiatives align with the ACT’s commitment to achieving net zero emissions by 2045. For more details, visit the ACT Government’s Energy website.

ACT Apartment Solar Rebate

The ACT Apartment Solar Rebate introduces a new $3.6 million incentive program to encourage rooftop solar installations in multi-unit apartment buildings. This program, aimed at supporting body corporates, offers a combination of rebates and interest-free loans, with up to $100,000 available per project. Eligible buildings will align with the Sustainable Households Scheme, and it’s estimated that 92% of apartments in the ACT will qualify. Applications are expected to open in Q3 2023. Solar Choice can help apartment buildings prepare by providing independent solar assessments and managing tenders with experienced solar installers.

Is solar power worth it in Canberra?

Residents of the ACT are fortunate enough to benefit from some of the lowest grid electricity prices in the whole of Australia, with the most competitive rates coming in at around 19c/kWh according to the government site Energy Made Easy. While this means that typical (pre-solar) household electricity bills in the ACT tend to be less than those in QLD or NSW, it also means that the return on investment for a solar system is slightly lower than in other states.

The table below examines 3 popular system sizes (5kW, 6.6kW and 10kW) with varying energy usage profiles to estimate the return on investment for common scenarios. A big input to the calculation is the “self-consumption rate” which estimates how much of your generated solar power will be used in the household rather than being sold back to the grid. As the feed-in tariff rates are low and reducing, it always presents a better payback period if you can use as much solar power as possible.

Note that we’ve used average solar system prices, but there is a full range of options available on Solar Choice’s comparison portal if you are ready to get quotes for solar.

Assumptions/Limitations of this analysis

• Assumes energy price of 29c / kWh which is towards the cheaper end of what is possible in different areas of Canberra
• Assumes a solar feed-in tariff of 7c / kWh
• 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

Calculate Your Solar Payback Period & ROI in Canberra: Custom Solar Calculator

What about solar battery storage in Canberra?

Note: The ACT is no longer offering the Next Gen battery scheme and is no longer accepting rebate applications.

Solar Choice has been regularly assessing the financial return of batteries for many years in our ‘Are solar batteries worth it?‘ article. We looked at three different use cases and matching solar panel and battery solutions to arrive at the results below. You will notice that the return for batteries isn’t quite at the same level as solar panels and now the rebate has finished for ACT.

For a full explanation of our methodology and assumptions – see the full article.

Many solar panels Canberra customers are installing solar panels first to lower power bills and keeping their options open to add a battery once prices come down (we expect they will over the next few years).

Increasingly Australians are making the decision to add a battery to their solar panel solution due to the non-financial benefits like having power during a blackout and running the house almost entirely off renewable energy.

Solar Choice has been a trusted leader in the solar industry since 2008, assisting over 3,000 businesses and developing more than 750MW of solar farms. Over 1 million Australians rely on Solar Choice annually to research and compare pre-vetted local solar installers. With a network of over 300 installers nationwide, we are the publisher of the Solar Price Index, a resource used by the Australian Government, Bloomberg NEF, and CHOICE, reflecting our authority and expertise in the renewable energy sector.

Case Studies: Commercial Solar Panel Installation in Canberra, ACT

Solar Choice has extensive experience helping businesses in Canberra install solar & maximize the benefits of solar electricity generation. Two standout examples include:

• 74 Northbourne Ave: Solar Choice facilitated the installation of a 100kW solar system at this commercial property, significantly reducing energy costs and leveraging government incentives like Small-scale Technology Certificates (STCs). The system demonstrates the financial and environmental benefits achievable through solar power in Canberra’s strong solar conditions.
• 360 Early Childcare Education: Solar Choice helped this leading childcare provider install a 64kW solar system at their Throsby site, featuring 146 JA Solar Panels and a 50kW Sungrow inverter. This system is projected to generate nearly 100,000 kWh of clean energy annually, offsetting over $350,000 in electricity costs over its lifetime.

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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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