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How Much Do Solar Panels Cost in 2020?

Solar energy is gaining traction as the most popular type of clean energy in Australia. Below is a quick guide to the costs associated with installing solar panels.

Average Solar Panel Costs

On average solar panel installation amounts to an average of $5,250. This price is associated with the 5kWh system, which is the most common type of system installed in Australia. This amount is after the rebate offered by the government has been applied.

A standard 5kWh system can support a household of around 4 or 5 people and has a total daily output of around 20.5kWh.  A 5kWh standard system averagely has around 16 x 320w panels. A household with such a system can save around $1,765 on average.

The right size of the solar system largely depends on the energy consumption and size of your home. Therefore, the price of solar installation will depend on these factors too. The range is between $2,900 and $5,800 for systems ranging between 1.5kWh to 6kWh. The costs also depend on the quality, inverter brands and the rebates by the government for your specific suburb.

Installation Costs

Most of the time installation costs are factored into the total price when advertised, this price also reflects the rebate. So, you do not have to worry about pay extra for installation. If a company charges you extra for installation, this is most likely a scam.

Installation needs to be carried out by a certified installer. If you’re living in Melbourne, you need to check solar panels Melbourne price in advance. Always have installation costs factored in. The only reason that the prices will differ between postcodes is that each state offer different rebate amounts. The number of panels required can also differ between states due to the difference in sunlight.

Solar Panel Cost per kWh

Thanks to all the government initiatives for clean energy, the cost of solar panels in Australia is among the cheapest when compared globally.

The average cost per kWh for a 5kWh system is around $1040. You can even find some dealers going as low as $910 per kWh.

Solar Panel Cost per watt

If you install solar panel and then cost them per watt, the price will depend on the local rebate and size of the system.

Based on the average system size of 5kWh, the average cost per watt is around $1.04. This is quite low when compared to $3.40(Australian Dollars) in the US.

Buying a larger system is encouraged because the price per watt decreases. It’s like a bulk buy offer. Price per watt for a 10kWh system is around $0.92.

This is because labour costs will be the same and you are only paying for extra panels.

Payback Period

To cover your costs, on average it would take around 4 years. The larger the system capacity, the more your savings will be.

Solar panels are reliable, deliver clean energy and is also completely silent. They also come with extended periods of warranty. There is absolutely nothing stopping you from switching over.