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Solar Panel Costs: How Much Do Solar Panels Cost In 2023?

Solar Panel Costs

If you’re looking to lower your electricity bills and be eco-friendly at the same time, then switching to solar power will be good for you. The average residential solar panel package in Australia vary from around $2,300 to $10,000 but can run up into the hundreds of thousands for larger commercial solar installations.

Switching to solar power is a major decision. Before spending your well-earned money, it’s important to know what you can get for your investment in solar. In this blog post, we will provide valuable information on the costs of solar panels and give you tips to help you choose the best solar system for your situation. 

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Initial Investment: Understanding Solar Panel Costs (October 2023)

We’ve put together the average cost’s for different size systems across Australia in the table below. This data is a rough estimates and can vary based on other factors like install location, incentives, installer commission and the band you choose to install.  For an exact quote for your home, contact our team for a free no obligation chat.

Solar System Size Average Cost (AUD) Daily Energy Output (kWh)Annual Energy Output (kWh)
6.6kWh$5,000 – $9,00026.4 – 339,636 – 12,045
10kWh$9,500 – $12,00040 – 5014,600 – 18,250
13kWh$10,000 – $18,00052 – 6519,000 – 23,725

Decoding the Price Tag: Factors Affecting Solar Panel Costs in Australia

Several factors affect the pricing of solar panels such as the type of solar panel used, installation process, location and sunlight availability, and rebates. 

Let’s discuss each one of them to help you decide on choosing a solar panel that suits your needs and budget.  

Types of Solar Panels

There are different types of solar panels available in the market, including monocrystalline, polycrystalline, and thin-film solar panels. Here are the advantages and disadvantages of each type. 

Monocrystalline Panels

Monocrystalline panels are made from a single continuous crystal structure and are usually in a dark black colour. These panels are known for their high efficiency at 21% in low-light conditions and space-saving design, but they tend to be more expensive compared to other types of solar panels.

Polycrystalline Panels 

Although not used in the industry much anymore, Polycrystalline panels are made of multiple crystal (silicon) structures with a light or dark blue hue. It takes up a lot of roof space but is more budget-friendly. This panel has lower efficiency rates compared to monocrystalline panels.

P-type versus N-type Solar Panels

The distinction between P-type and N-type solar panels is an essential aspect of modern solar technology, often paralleling the traditional mono vs poly (monocrystalline vs polycrystalline) comparison in terms of quality and cost.

  1. P-type Solar Panels: P-type (Positive-type) panels are the most common in the solar market. They are made using Boron as a doping agent, which gives the silicon a positive charge. P-type panels are generally less expensive to produce and thus more affordable for consumers. However, they tend to have a lower efficiency and a higher rate of degradation over time compared to N-type panels. They are a great option for those seeking a balance between cost and performance.
  2. N-type Solar Panels: N-type (Negative-type) panels use Phosphorus as a doping agent, giving the silicon a negative charge. These panels are known for their higher efficiency and lower degradation rates, making them a higher quality option compared to P-type panels. N-type panels are typically more expensive due to their advanced manufacturing process, but they offer better long-term performance and may generate more electricity over their lifespan. They are ideal for those prioritizing efficiency and long-term value over initial costs.

Bifacial versus Monofacial Solar Panels

The choice between bifacial and monofacial solar panels is another important consideration for those investing in solar energy.

  1. Monofacial Solar Panels: Monofacial panels are the traditional type, with solar cells on one side of the panel only. These panels absorb sunlight from one direction – typically the side facing the sun. They are widely used due to their simplicity and effectiveness in a variety of settings. Monofacial panels are usually less expensive and easier to install and maintain but are limited to absorbing sunlight only from their top side.
  2. Bifacial Solar Panels: Bifacial panels, on the other hand, can absorb sunlight from both sides. This design allows them to capture reflected sunlight from the surface below the panel, in addition to direct sunlight from above. Bifacial panels are typically more efficient than monofacial panels, especially in settings with highly reflective surfaces like white gravel or snow. They are, however, usually more expensive and may require a more complex installation to maximize their efficiency. Bifacial panels are ideal for maximizing energy production in limited spaces or for installations where aesthetic considerations are important.

Both P-type vs N-type and bifacial vs monofacial panels offer distinct advantages and considerations, making it important for consumers to understand their specific energy needs and installation conditions when choosing the right type of solar panel.

Efficiency and Performance

Solar panel efficiency is a huge factor to consider when buying solar panels. Higher-efficiency panels convert more sunlight into electricity and require fewer panels to meet your energy needs. However, higher-efficiency solar panels are expensive, so consider your energy requirements and available roof space before buying one.

Size and Wattages

The size and wattage of solar panels are directly related to their energy production. Normally, solar panels range in size from 1.7m x 1.1m on average and have wattages ranging from about 370 watts to 500 watts per panel. 

Most residential solar power systems range from 6.6 kW systems through to 13.3 kW, which is equal to about 14 to 18 solar panels, depending on their wattage. Larger residential systems can go up to 20 kW or more, depending on your household’s energy needs and the available space for installation.

Installation Process

The cost of solar panel installation varies depending on factors such as your roof’s condition, the complexity of the installation, and the type of mounting system used. Quality installation is crucial to ensure the long-term performance of your solar panels. 

At Sungain Solar, we can guarantee the quality of your solar installation process. Our professionals can handle the job from start to finish and make your solar investment worth it. 

Location and Sunlight Availability

Sunlight availability varies across different regions of Australia. The amount of sunlight your location receives impacts the efficiency of your solar panels. Coastal areas and northern regions generally receive more sunlight, making solar installations in these areas more efficient.

Government-mandated Policies

The Australian government offers various incentives and rebates to encourage the switch to solar energy. State and territory governments may offer additional incentives and feed-in tariffs. Understanding the available incentives can significantly reduce the overall cost of your solar panel system.

For example, the Inflation Reduction Act, designed to stabilise the economy, could have various impacts on the pricing of solar panels. Here are some other government-mandated policies you should remember:

  • Regulatory Changes: The Inflation Reduction Act could lead to changes in regulations governing the solar industry. This might affect the standards, safety requirements, or import tariffs that could impact the overall cost structure.
  • Investment in Research: The government may invest in research and development for clean energy technologies as part of economic stability efforts. This can encourage innovation, leading to more cost-effective solar options.

Solar Rebates

Across Australia, various solar rebate programs can significantly reduce the upfront cost of installing solar panels. These rebates, often offered by both federal and state governments, are designed to encourage the adoption of renewable energy by making solar systems more accessible to a broader range of people.

For a comprehensive overview of the different solar rebate options available in Australia, including details on eligibility, application processes, and the potential savings they offer, visit our dedicated page on solar rebates at Sungain Solar Rebates.

Tips For Reducing Solar Panel Cost 

Getting a solar panel is an investment, but it doesn’t mean you have to punch a hole in your pocket to get it. There are several ways to reduce the cost of your solar power system. Take note of these tips to maximise your investment. 

Government Incentives and Rebates

The Small-scale Renewable Energy Scheme (SRES) and feed-in tariffs are a few of the well-known incentive programs that provide financial support for small-scale solar installations.

Before buying and installing your solar system, explore these options and take advantage of the available incentives and rebates to lessen the initial cost of your solar panels.

Comparison of Different Models

It’s best practice to compare different models before making your final decision. Assess their efficiency, durability, and warranties. Weigh the pros and cons of each model to find the one that best suits your needs and budget.

Energy Efficiency Measures

Improving your home’s energy efficiency can impact your solar panel system’s cost. Simple measures like upgrading insulation, using energy-efficient appliances, and sealing drafts can help you reduce your electricity consumption, reducing upfront costs.

Ways To Pay For Solar Panel System Installation

There are several ways to pay for solar panel system installation, each with different advantages and considerations. Here are some common methods:

Out-of-Pocket Purchase

Some solar owners choose to pay for their solar panel systems upfront. They do this by using their savings or taking out a personal loan. This means you pay for the entire system when it’s installed. 

The benefit? You own the solar system immediately and save more money in the long run. Plus, you don’t have to worry about interest payments on loans or leases.

But it’s important to note that this approach requires an investment, which could be challenging for you. Yet, the savings on your electricity bills over time and the chance to benefit from government incentives can help balance out this initial cost.

Incentives and Rebates

We discussed earlier that the Australian government and different state governments provide incentives and rebates and its availability and price varies depending on your location and may change over time.

At SunGain Solar, we understand that investing in solar power is a large financial decision. Aside from government incentives, SunGain Solar can help you find the most suitable financing options to make your switch to solar more budget-friendly. You can guarantee that our team will find the best financing solution based on your requirements. 

Interest Free Solar Loans – Green Loans

We can help provide you with competitive solar financing options called solar or green loans. These financing options come with competitive interest rates and are specifically for solar installations. These loans help you get and pay for solar power over a few years.

With solar loans, you can split the cost into smaller payments over time, which makes solar panels easier on your wallet. What makes this better is that these loans’ interest rates are usually lower than regular personal loans. 

But remember, you have to meet the lender’s requirements, and they might want some security like your property.

Solar Leases or Power Purchase Agreements

Solar leasing and Power Purchase Agreements (PPAs) offer a way for you to have a solar system without the need to buy it. In a PPA, you pay for the electricity the system generates at a rate lower than standard utility bills.

The beauty of these options is that they often involve minimal or no upfront expenses, making solar accessible without the large upfront investment. This setup can lead to immediate savings on your electricity bills. 

But take note that you won’t own the solar panels, and the specific terms and conditions can vary between providers. 

Community Solar Programs

Certain communities provide shared solar programs that allow you to buy a share in a solar installation or subscribe to a system owned by the community. With this choice, you can enjoy the advantages of solar energy without installing panels on your property. It’s a solar energy approach driven by the community as a whole.

Future Projections: Anticipating Solar Panel Costs

Australia’s journey toward harnessing solar power has been remarkable, with more households and businesses embracing solar panels to combat rising energy costs and reduce their carbon footprint. 

As the country undergoes this transition, it’s important to anticipate the trends that could influence the pricing of solar panels in the future.

  1. Technological Advancements: The solar industry is continually evolving, with technological breakthroughs driving improvements in efficiency and cost-effectiveness.
  1. Increased Adoption: As more Australians invest in solar energy, the increased demand and production volume can lead to cost reductions. In the near future, we can expect more competitive pricing due to this growing market.
  1. Storage Solutions: Integrating solar panel systems with energy storage solutions like home batteries is becoming more popular. As energy storage technology advances, it may influence solar panel pricing, especially for those seeking more self-sufficiency.
  1. Global Factors: Australia frequently relies on imported solar panels, which is easily influenced by supply chain disturbance and trade policy changes. Changes in the international solar market can affect the cost of solar panels domestically.

Conclusion

If you’re thinking about solar energy, it’s crucial to understand the costs and what to expect from solar panels. Many factors, such as system size, type, location, and incentives, affect how cost-effective solar panels are. You can reduce your initial solar installation costs by exploring these factors and using government programs.

SunGain Solar can help you find the ideal solar solution for you. Our experts carefully consider all factors, such as your available space, property position, power requirements, and budget. 

Discover the bright side of savings! Calculate your solar panel cost and energise your home with affordable power.

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