How long do solar panels take to pay for themselves in Australia?

For a well-sized system on the right plan, payback is commonly around 3–6 years, though it depends on your system cost, how much power you use during the day, and your feed-in and usage rates. After payback the system keeps generating value for its remaining 20-plus year life.

Is it still worth getting solar now that feed-in tariffs are low?

Yes for most homes, because the value now comes from self-consumption — using your own free solar instead of buying power at retail rates — rather than from exporting. The key is sizing the system to your daytime load and being on a plan that suits solar.

Do I get a government rebate for solar panels?

The main federal incentive is the STC scheme, which your installer applies as an up-front discount off the system price rather than a cash rebate. It is being phased down and is scheduled to end by 2030, so the discount shrinks each year. Some states also run their own solar programs.

How does my electricity plan affect my solar payback?

A lot. The feed-in tariff, daily supply charge and usage rates all change how much your solar saves you each year. EnergySorted values your feed-in on every plan it compares, so you can see which plan gives your solar the best return.

Should I get the biggest solar system I can fit?

Not necessarily. Because exports now earn low feed-in rates, an oversized system can generate power you mostly sell back cheaply. Sizing to cover your daytime usage — and considering a battery or EV to soak up more — usually gives a better return.

Are solar panels worth it in Australia?

Solar still pays back for most Aussie homes — but the maths has shifted as feed-in tariffs fall. Here is how to work out your real payback.

The short answer

For most owner-occupied homes in Australia, rooftop solar is still one of the best-value upgrades you can make — but the reason it pays off has changed. A decade ago, generous feed-in tariffs meant you were paid handsomely to export power to the grid. Today, feed-in rates have fallen a long way, so the real value of solar now comes from self-consumption: using the free power your panels make instead of buying it from your retailer.

That single shift changes how you should think about a solar system. The goal is no longer to build the biggest array you can and sell surplus to the grid. It is to cover the daytime load your household actually runs, so more of your generation offsets electricity you would otherwise pay 30-plus cents a kilowatt-hour for.

How solar payback is actually calculated

Payback is the number of years it takes for a system to save you as much as it cost to install. The method is straightforward, even if the inputs vary by household.

You start with the net system cost — the price after the federal STC discount (more on that below) is applied. Then you estimate annual savings, which come from two streams: the retail power you no longer buy because you are self-consuming solar, plus the feed-in credits you earn on whatever you export. Divide the net cost by the annual saving and you get your payback in years.

Get the net installed price (after the STC discount your installer applies at the point of sale).
Estimate how many kWh your system will generate a year (a good installer models this for your roof, tilt and shading).
Split that generation into self-consumption (valued at your usage rate, often 28–40c/kWh) and exports (valued at your feed-in rate, often much lower).
Add the two dollar figures together for your annual saving.
Divide net cost by annual saving. A typical well-sized system today pays back in roughly 3–6 years, then generates free value for its remaining 20-plus year life.

The STC discount (federal solar incentive)

Australia has had a national solar incentive for years through Small-scale Technology Certificates (STCs). When you install a system, you create a number of certificates based on its size and your location, and you assign them to your installer in exchange for an up-front discount off the price. You almost never handle STCs directly — they are baked into the quote as a reduction.

STCs are being phased down over time and are scheduled to end by 2030, so the up-front discount shrinks each year. That is one reason people who have been putting off solar are being told the deal is unlikely to get better by waiting. Always ask an installer to itemise the STC discount so you can see the true system cost.

Why the right electricity plan makes or breaks the return

Two identical solar systems on two identical roofs can have very different payback periods purely because of the electricity plan behind them. A plan with a higher feed-in tariff, a lower daily supply charge, or usage rates that suit your daytime pattern can add hundreds of dollars a year to your solar savings.

This is where a lot of comparison tools quietly let solar owners down: they compare plans on usage only and ignore what each plan pays for your exports. EnergySorted is built the other way around — it is independent, takes no retailer commissions, and values your solar feed-in on every one of the 16,000-plus plans it costs against your real usage. Our solar payback calculator uses those same numbers so the payback you see reflects the plan you would actually be on, not a generic assumption.

When solar might not stack up (yet)

Solar is not automatically right for everyone. If you rent, you generally cannot install panels on a roof you do not own. If your household is empty all day and you have no way to shift load or store energy, most of your generation will be exported at low feed-in rates, stretching the payback. And a heavily shaded or north-blocked roof will simply generate less.

None of these are always deal-breakers — a battery, an EV, load-shifting, or a heat-pump hot water system can all lift daytime self-consumption. But they are the questions worth answering honestly before you sign a quote.

General information only, current at the time of writing — not financial advice. Rebate schemes and rules change; always confirm details with your retailer or state government energy site.