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Is Solar Worth It in Australia in 2025? The Honest Numbers
Australia has the highest rate of rooftop solar adoption in the world — over 4 million homes now have panels installed. And the financial case for solar has never been stronger: electricity prices remain high, solar panel costs have fallen dramatically, and new government battery rebates are making storage increasingly viable.
But is solar worth it for your home? The answer depends on your state, electricity bill, roof orientation, and how much of the solar power you actually use yourself. This guide gives you the honest numbers.
State-by-State Solar Data — 2025
| State | Avg Electricity Rate | Feed-in Tariff | Avg Annual Sun Hours | Typical Payback (6.6kW) |
|---|---|---|---|---|
| SA | 43–48c/kWh | 5–8c/kWh | 1,800 | 3–5 years |
| NSW | 28–35c/kWh | 5–8c/kWh | 1,700 | 4–6 years |
| QLD | 26–32c/kWh | 6–10c/kWh | 1,850 | 4–6 years |
| VIC | 24–32c/kWh | 4–7c/kWh | 1,600 | 5–7 years |
| WA | 28–32c/kWh | 2.25–3c/kWh | 1,950 | 5–8 years |
| ACT | 20–26c/kWh | 0–4c/kWh | 1,700 | 6–9 years |
| TAS | 24–30c/kWh | 6–9c/kWh | 1,400 | 6–9 years |
| NT | 26–30c/kWh | 7–10c/kWh | 2,100 | 4–6 years |
The STC Rebate — How Much Off Your Solar System?
Small-scale Technology Certificates (STCs) are the federal government's upfront rebate on solar installations. The number of STCs you receive depends on your system size and your location's solar zone. Installers typically deduct the STC value upfront, so you pay the net price.
In 2025, STCs typically reduce the cost of a 6.6kW system by $2,000–$3,500 depending on your solar zone. The STC scheme is being phased down by one fifteenth each year from 2017 to 2030, so the rebate reduces slightly each year — making now a better time to install than later.
The New Battery Rebate — $7.2 Billion Program (December 2025)
In December 2025, the Australian Government announced a massive expansion of the Cheaper Home Batteries Program, increasing funding from $2.3 billion to an estimated $7.2 billion. The rebate provides approximately $372 per kWh of usable battery capacity.
What this means: A 10kWh battery qualifies for a rebate of approximately $3,720. A 13.5kWh Tesla Powerwall 3 qualifies for approximately $5,000 off. Combined with falling battery prices, payback periods for batteries are now 8–12 years in most states — down from 12–16 years just two years ago. The program is available through accredited solar retailers — check energy.gov.au for eligible products and installers.
Self-Consumption is King — Why It Matters More Than the Feed-in Tariff
The single biggest factor in your solar ROI is how much of the power you use yourself versus export to the grid. Every kWh you use yourself saves you the full retail rate (25–43c/kWh). Every kWh you export earns only the feed-in tariff (typically 5–10c/kWh).
This means self-consumption is worth 3–8x more than exporting. Strategies to maximise self-consumption:
- Run the dishwasher, washing machine and dryer during daylight hours
- Set pool pumps to run 10am–2pm (peak solar generation)
- Pre-heat or pre-cool your home during solar hours
- Charge an EV during the day if you have one
- Add a battery to store excess generation for evening use
Panel Degradation — The 25-Year Picture
Quality solar panels degrade at approximately 0.5% per year in output efficiency. After 25 years (the typical panel warranty period), your system will produce about 88% of its original capacity. Our calculator accounts for this degradation in the 25-year savings projection.
Bottom line: For most Australian households with a north-facing roof and a quarterly electricity bill above $400, solar is one of the highest-return investments available — often delivering 15–25% annual returns after tax. The combination of high electricity prices, generous STC rebates, and falling hardware costs makes 2025 an excellent time to install.
Savings estimates are indicative only. Actual savings depend on roof orientation, shading, system quality, electricity usage patterns and retailer feed-in tariff. Always get 3 quotes from Clean Energy Council accredited installers. This is not financial advice.