Is it still a good time to get solar panels in 2025?

With the cost of living as a major concern for Australian households, many are asking if solar panels are still a smart financial decision. From our analysis, the answer is a clear yes. The combination of persistently high electricity prices, significant government incentives, and historically low system costs means that solar power remains one of the most effective upgrades a homeowner can make to reduce long-term expenses.

The key benefit has shifted from earning high feed-in tariffs to maximising self-consumption—using the solar power you generate to avoid drawing expensive electricity from the grid. This strategy delivers the fastest payback and the greatest savings. With more people working from home, charging electric vehicles, and running appliances during the day, the value proposition for home solar panels is stronger than ever.

Cost of residential solar panels 2025

The good news for homeowners is that the cost of a home solar power system remains highly affordable in 2025. While prices vary by location, installer, and component quality, you can use the following figures as a reliable guide for a fully installed, high-quality system after the federal rebate is applied.

Source: Data compiled from multiple Australian solar installer price guides for 2025.

These prices typically include:

• Solar Panels: Reputable brands like REC, Trina, and Jinko offer excellent performance and value.

• Inverter: The device that converts solar energy into usable electricity for your home.

• Installation: Labour costs from a Solar Accreditation Australia (SAA) accredited professional.

• Rebate: The upfront discount from the federal government’s SRES scheme.

Average payback period for solar panels 2025

The payback period—the time it takes for your energy savings to cover the initial cost of the system—is the most critical factor for most homeowners. In 2025, the payback period for a standard solar panel system in most Australian capital cities is typically between 3 and 7 years.

Factors that shorten your payback period include:

• High daytime electricity usage: The more of your own solar power you use, the less you buy from the grid.

• Location: Sunnier cities like Perth and Adelaide often have slightly faster payback times.

• Electricity rates: Higher grid electricity prices mean your solar savings are more valuable.

For systems that include battery storage, the payback period is longer, generally sitting around 7 to 10 years. However, with the new federal battery rebate, this is becoming shorter, and many homeowners value the energy security a battery provides during blackouts.

Case Study: A Family in Sydney’s West The Tran family was struggling with quarterly electricity bills often exceeding $700. They installed a 6.6kW solar panel system with Trina panels and a 10kWh Sungrow SBR battery, with a total upfront cost of $16,000. After applying the federal solar rebate and the new Cheaper Home Batteries Program rebate, their out-of-pocket cost was reduced to approximately $11,500. Their annual savings now total over $2,400, placing them on track for a payback period of under 6 years. Their last bill was just the daily grid connection fee.

Australian federal solar incentives 2025

The federal government continues to support homeowners making the switch to solar through two key programs in 2025. It’s crucial to understand these aren’t cash handouts but point-of-sale discounts that significantly lower your upfront cost.

• Small-scale Renewable Energy Scheme (SRES): This is the main solar panel rebate. It provides Small-scale Technology Certificates (STCs) for eligible systems under 100kW. Your solar installer handles the trading of these certificates and applies the value directly as a discount on your quote. In 2025, this can reduce the cost of a 6.6kW system by around $2,400.

• Cheaper Home Batteries Program: Launched on 1 July 2025, this new scheme provides a federal rebate of around 30% on the cost of an eligible solar battery. This incentive is designed to make battery storage more affordable and can be combined with the SRES rebate for new solar and battery installations.

Expert Tip: Always ensure your installer is accredited by Solar Accreditation Australia (SAA). SAA accreditation is a requirement to be eligible for these federal government rebates.

How much do solar panels increase home value in 2025?

Installing solar panels on your home is not just an investment in energy savings; it’s an investment in your property’s value. Multiple studies in 2025 have confirmed that homes with solar panels sell for a premium and are more attractive to potential buyers.

A recent report found that, on average, installing solar panels can increase an Australian home’s value by a national average of $23,107, or about 2.7%. In some areas, the increase can be as high as 6.9%. With a 6.6kW system costing around $5,000-$8,500, the increase in property value can often exceed the initial investment.

Buyers are increasingly savvy about energy efficiency, and a home with solar panels signals lower running costs and sustainability—two highly desirable features in today’s property market.

Lifespan of solar panels 2025

Modern solar panels are incredibly durable and built to last. The average lifespan of a high-quality solar panel is between 25 and 30 years.

Manufacturers provide two key warranties:

• Product Warranty: This covers defects in the panel itself, typically for 10 to 25 years.

• Performance Warranty: This guarantees the panel will still produce a certain percentage of its original power after 25 or 30 years, usually 80-85%.

This gradual decline in efficiency is known as degradation. Reputable panels have a very low degradation rate, often around 0.5% per year, meaning that even after 25 years, they will still be operating at a high capacity. A common mistake we see is homeowners focusing only on the upfront cost, but investing in quality components ensures your system will deliver savings for decades.

Environmental benefits of solar energy 2025

Beyond the financial savings, choosing to install solar panels for your house is a powerful statement for environmental sustainability. By generating your own clean electricity, you directly reduce your household’s carbon footprint.

Key environmental benefits include:

• Reduced Greenhouse Gas Emissions: Solar power displaces electricity generated from fossil fuels like coal and gas, which are major contributors to climate change.

• Improved Air Quality: Unlike fossil fuel power plants, solar panels produce no harmful pollutants that contribute to air quality issues.

• Water Conservation: Traditional power generation uses vast amounts of water for cooling. Solar panels require minimal water to operate, a critical advantage in a dry continent like Australia.

Projected electricity price trends 2025

While the energy market can be volatile, the general consensus is that relying on the grid will continue to be an expensive option for households. Although wholesale prices have seen some stabilisation due to the influx of renewables into the grid, retail prices for consumers are expected to remain high or continue rising due to network costs and other market pressures.

Installing solar panels effectively allows you to lock in a low cost of energy for the next 25+ years, providing a powerful hedge against future price hikes from energy retailers.

The verdict: Are home solar panels worth it?

Based on our comprehensive analysis of the costs, savings, and long-term benefits, our answer is an emphatic yes. With fast payback periods, substantial government rebates still available, and the ability to significantly increase your property’s value, investing in solar panels for your home in 2025 is one of the smartest financial decisions an Australian homeowner can make.

Ready to take the next step and see how much you could save? We can connect you with trusted, SAA-accredited local solar professionals.