In this article:
Is solar worth it?
For most households, solar is worth the upfront cost.
"Households paying hundreds of dollars per quarter for electricity will definitely benefit from looking into solar. So will households with low electricity consumption, though their payback time might be a bit longer," says Chris Barnes, CHOICE's solar expert.
How much does solar cost?
It's cheaper than ever to install solar – prices have fallen by around 58% in the last six years. A 5kW solar system (which is the average size) will cost you around $5100 in a capital city.
How large a system you need – and therefore how much it'll cost – depends on a number of factors. Our article on sizing your solar panel system can help you figure out what you'll need.
How long do solar panels take to pay for themselves?
Working out your payback times is complicated and unfortunately there's no one-size-fits-all calculator.
A 5kW solar system can take between two and seven years to pay for itself, depending on where you live and your energy use. Check out our article on solar payback times for more information on your region.
2. Is my house suitable for solar?
Solar will generally work anywhere in Australia, but it will work better under certain conditions. You'll need to consider:
- Location: Southern regions like Hobart will receive less sunlight than northern areas like Darwin.
- Roof: Check which direction your roof faces. North-facing panels catch the most sunlight, but even south-facing panels can still produce about 80% of their rated power.
- Shade: Make sure there are no trees, power lines or other structures shading your roof.
- Council: Find out what approvals you'll need from your local council.
Renters and apartment dwellers might assume that solar isn't an option for them – but it is possible to get on board with some lateral thinking. Check out community energy projects or solar PV system leasing for starters.
3. What equipment do I need?
Solar PV systems seem complex, but there are just two main components you need to worry about: the panels and the inverter. You can also add a battery to store any surplus energy.
How many panels you need depends on your energy use. A typical home uses 20kWh per day, which equates to a 5kW system. If you're getting a quote, make sure to look at the price of the whole system and installation, not just the panels.
Our solar panel reviews reveals that most brands perform around the same, so you can feel confident in most of the panels we've tested. The main difference is price.
"However, panel price alone isn't an indicator that one panel will be better than another. More expensive panels may work better in the long term, but with cheaper panels you might be able to put more on," says Chris.
You need to consider warranty too. Solar panels generally have two warranties – one for the panels themselves, and another for the panels' performance. Make sure you're clear on which warranty a retailer is talking about. A 25-year warranty sounds great, but if it's only for the performance you could be left in the lurch if the panels themselves are faulty.
For the nitty-gritty on panels, see our solar panels buying guide and solar panel reviews.
When the sun hits a solar panel, the panel turns the energy into direct current (DC) electricity; the electricity from your power points is alternating current (AC) electricity. An inverter converts the DC to AC so you can use that energy to power your house.
"The inverter is the most complex part and the part most prone to failure," says Chris. "It's important to know what you're getting."
For most homes, batteries don't make complete economic sense yet – they're expensive and have long payback times. Keep an eye on the market, though, as battery prices are falling and electricity costs are rising, so they could soon be a good option.
If you think you might install a battery in the future, you should ensure that your solar PV system is battery-ready.
"If you're thinking of getting a battery, you should look at upsizing your solar PV system by at least 1–2kW, depending on your needs," says Chris. "And find a good installer who can analyse your needs and advise you properly."
If you're interested in batteries, our battery storage buying guide has all the information you'll need.
4. How to 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 PV 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."
If you're tempted to DIY, think long and hard about it. There's a lot of electrical work required so you need to be a licensed electrician (or at least have one inspect the work afterwards), and you won't be eligible for some rebates if you're not an accredited solar installer. "Overall, it's beyond most people to DIY," says Chris.
To find a good installer, look for:
- CEC (Clean Energy Council)-accredited designer, installer and components
- CEC Approved Solar Retailers
- Companies that have been in business more than five years
- Companies with sales and technical support in Australia
You can also ask to speak to former customers about their experiences with a particular company.
For more tips on choosing a good solar retailer or installer, check out our guide to avoiding shonky solar companies.