Most people focus on the cost of going solar. The question worth asking is: what is it costing you not to?
Electricity prices across Australia are skyrocketing. And even with a reduction in the benchmark by up to 10.7%, it’s natural to feel the pinch.
That trend isn’t expected to reverse. Analysts forecast continued increases through to the end of the decade.
For a household spending $400 per quarter on electricity, a 4% annual increase adds up to over $46,000 in grid costs over 10 years. That’s money paid to your retailer, and it doesn’t reduce your reliance on them.
That’s why many are turning to rooftop solar. In fact, it makes up about 14.2% of Australia’s electricity generation now.
But should you wait or opt for solar now?
The longer you wait, the higher the baseline you’re starting from. And the compounding works against you: each year of delay means another year of rising bills before the savings clock even starts.
Every quarter without solar is another quarter of savings you don’t get back.
| 30%+ Rise in electricity prices over 3 years | 5–7 yrs Typical solar payback period in Australia | 25+ yrs Average lifespan of solar panels |
What Does a Solar System Cost in 2026?
A quality solar and battery system typically costs between $15,000 and $30,000 after rebates, depending on size, equipment quality, installation complexity, and your unique energy needs.
Typically, the cost comes down to about $1000 per kW for solar panels.
If you choose to install solar panels today, here’s what your return could look like across different household bill sizes, assuming electricity prices increase by 4% per year (a conservative estimate based on recent trends):
| Monthly bill | 5-yr savings | 10-yr savings |
| $200 / month | ~$10,600 | $23,052 |
| $300 / month | ~$15,900 | $34,578 |
| $400 / month | ~$21,200 | $46,103 |
| $500 / month | ~$26,500 | $57,629 |
In a nutshell, your investment in solar pays itself off within 5-7 years. The payback period can be shorter depending on your usage efficiency and purchase price.
After payback, the system keeps generating savings for another 15+ years. This means you get “free” electricity for the rest of the solar setup’s life.
And if you sell before the 10-year mark, a study found that solar panels increase your property’s value by 2.5% to 6%. This further increases your return on investment.
What makes solar investment worth it is also the fact that it starts generating returns the moment it’s installed. As soon as power generation begins, you see a drop in your electricity bills.
Rebate Available Today is Worth More Than It Will Be Next Year
With solar setup rebates, the entry barrier comes down even further. The federal government’s Small-scale Technology Certificate (STC) scheme currently offsets roughly 25% of a solar system cost and around 30% of a battery system. Your installer handles this automatically and it’s simply deducted from your upfront cost.
But the STC scheme reduces incrementally every year for solar panels and 6 months (for batteries) through to 2030 (the current end date) as it winds down.
For a typical 6.6kW system, the rebate currently offsets around $2,200–$2,800 off the upfront cost. That figure gets smaller every January.
Likewise, several states have launched similar schemes to encourage solar adoption. For instance, schemes like the Victoria Solar Homes Program provide a rebate of up to $1,400 for panels.
What’s worth noting is that you’ve already funded these schemes through your taxes. You should consider using them while they’re still available to increase your solar ROI and cut energy bills.
The rebate available today is worth more than it will be in 12 months and it reduces every year until 2030.
The Hidden Cost of Staying on the Grid
A household that delays going solar for two years faces:
- Two more years of grid electricity bills at rising rates
- A smaller STC rebate when they eventually install
- Two fewer years of savings over the system’s lifespan
None of these are dramatic in isolation. But when you look at the long-term, the compounding makes the math clearer.
If you choose to remain on the grid, you’ll be entirely reliant on it for your power demand. And as electricity rates increase, your bills will become expensive too. Apart from the monetary costs, the dependency on the grid means you’ll also expose yourself to power outages and blackouts.
But when you install a solar system now, you essentially “lock-in” the price of your energy and make the most out of the rebates. It saves you from these steep rises in electricity bills.
Delaying the installation only increases your costs as the rebates shrink and energy bills rise.
Optimising Your Solar Setup’s ROI
Here’s something worth understanding before you install solar: feed-in tariffs (what you get paid to export excess power back to the grid) have dropped significantly over the past few years.
In most states, households receive somewhere between 2c and 10c per kWh for energy exported to the grid. Meanwhile, the rate you pay to buy electricity from the grid is much higher and sits between 30–38c per kWh.
For households without solar, that gap is invisible. You’re just paying the full rate for everything.
For households with solar but no battery, it becomes very visible very quickly. You generate power during the day, export what you don’t use for a few cents, then buy it back at night at full price.
The solution to both problems is the same: use your solar energy.
You need to install the right solar system, sized to your usage, so that it perfectly meets your daytime requirements before it hits the grid.
Adding a battery lets you use your solar energy well into the evening, eliminating the need to buy expensive electricity from the grid. Likewise, if you intend to purchase an EV in the future, the solar panels can charge those cars. This improves the ROI of your vehicle as you’ll spend pennies to drive it.
Either way, you’re using your own energy at the rate it costs to generate it, which is practically “free” after your payback period.
To further increase your solar setup’s ROI, you can choose to sell your excess power to virtual power plants (VPPs) for a handy passive income. These VPPs optimise the battery’s charge-discharge cycles to improve their lifetime and increase your return on investment.
2–10c to export. 30–38c to buy back. The maths on waiting only gets worse.
You Don’t Have to Pay for it All Upfront
The cost of installing a solar setup can seem daunting, even after rebates. But you don’t have to pay it right away.
Most Think Renewable customers use finance to get started, swapping their unpredictable electricity bill for a fixed monthly solar payment, often at a similar or lower amount. The ongoing electricity savings effectively pay off the system over time.
It’s the same financial outcome, structured so anyone can access it without needing to find $20,000 upfront.
What to Do Next
With a payback period as short as 5-7 years, solar systems provide free energy for over 25 years. And with a battery, they can power your house through the evening hours as well.
And with subsidies shrinking every year, it makes sense to start the process as soon as possible to reduce your costs.
Connect with our team for a free 15-minute consultation to get an up-to-date picture of what a system would cost today, what you’d save, and what payment plans you’re eligible for. The numbers may look different from the last time you checked.
Ready to revisit the numbers? No obligation, just a clear picture.
➡️ Book a free 15-minute consultation
