Electricity prices in Australia continue to rise, and many Melbourne residents are looking for long-term solutions to cut costs. That’s where solar power steps in—not just as a smart way to reduce your energy bill, but as a clean and sustainable way to power your home or business.
Melbourne gets an average of 4.1 peak sun hours per day, which makes it an ideal place to harness solar energy. Whether you’re a homeowner wanting to lower household expenses or a business owner seeking to reduce operational costs, installing solar panels is one of the most effective ways to save money year after year.
In Melbourne’s climate, a well-sized system can supply a large share of a home’s or business’s energy needs. Thanks to falling panel prices and government incentives, solar panel installation can pay for itself in just a few years.
Benefits of Solar Panels
- Lower power bills: You use free energy from the sun, so your electricity bills drop. Any extra solar you generate can often be sold back at a fixed feed-in tariff. In Victoria, households must be paid a minimum rate for exported solar, so unused solar power still earns you something.
- Environmental good: Solar power is clean and renewable. It slashes greenhouse gas emissions compared to coal or gas power, helping fight climate change. Every kWh you generate from your rooftop solar offsets electricity that would otherwise come from fossil fuels.
- Higher property value: Many buyers see solar as a bonus. Studies suggest that having solar panels can increase a home’s resale value, because the new owners inherit lower electricity bills.
- Return on investment: Despite the upfront cost, solar panels usually pay off. Melbourne’s sunshine means systems produce plenty of energy. Industry data show a well-chosen solar installation can pay back in roughly 3–5 years, after which the electricity is essentially free.
How Solar Power Works
Solar panels (photovoltaics) soak up sunlight and convert it to DC electricity. An inverter then changes this to the AC power your appliances use. You’ll need a few key parts: panels, an inverter, and mounting racks. Modern systems are mostly plug-and-play and require little attention. Even on cloudy days, panels still produce some power, though less. At night or in heavy shade, you’ll switch to the grid (or a battery, if you have one).
Panels degrade slowly over 25+ years. High-quality panels often come with 25-year performance warranties, ensuring they still produce near their rated output after two decades.
Solar Installation Costs in Melbourne
The cost of installing solar panels in Melbourne depends on the size of the system and whether it’s for a home or a business. Below is a helpful guide to average prices and how much energy and savings you can expect.
Residential Solar System Costs
- A typical 6.6 kW system for a house costs around $6,000–$7,000 after federal rebates.
- A larger 10 kW system might cost $8,000–$12,000.
- Eligible homeowners can also get a $1,400 Solar Victoria rebate, which reduces the price even more.
Commercial Solar System Costs
- A 30 kW system for a small business can cost about $27,000–$30,000.
- A 50 kW system for larger businesses averages $45,000–$50,000.
- Businesses also benefit from federal STC rebates, which lower the upfront cost.
Solar System Cost and Savings Overview
| System Size | Estimated Cost (after STCs) | Yearly Energy Output | Estimated Yearly Savings* |
| 5–6 kW (Home) | $4,000 – $7,000 | 6,000 – 8,000 kWh | $1,200 – $2,400 |
| 10 kW (Home) | $8,000 – $12,000 | 12,000 – 14,000 kWh | $2,400 – $3,900 |
| 30 kW (Business) | $27,000 – $30,000 | 35,000 – 40,000 kWh | $7,000 – $10,000 |
| 50 kW (Business) | $45,000 – $50,000 | 50,000 – 60,000 kWh | $10,000 – $15,000 |
*Estimates based on a power cost of ~30 cents per kWh and using most of the solar power during the day.
Notes:
- Prices include federal government STC rebates but not the Victorian $1,400 solar rebate, which can lower home system costs even more.
- Savings depend on how much solar power you use yourself vs. how much you send back to the grid.
- Businesses can claim tax deductions on solar systems, helping offset the cost even further.
Choosing a Solar System and Installer
Picking the right solar system and installer can make a big difference in how much money you save. Here’s what you need to know:
1. Choose the Right System Size
Start by checking your electricity bill. Look at how many kWh (kilowatt-hours) you use each day.
- Small homes: A 5–6 kW system is usually enough.
- Larger homes or big families: Go for 8–10 kW.
- Businesses: You might need 20–50 kW or more, depending on your energy use.
Tip: Each 1 kW of solar makes about 3.6 kWh per day in Melbourne. So a 6 kW system could make around 21 kWh/day.
2. Pick Good-Quality Equipment
You don’t have to buy the most expensive system, but quality matters.
- Solar Panels: Budget brands like Jinko or Canadian Solar are affordable and reliable. Premium brands cost more but may last longer or work better in shade.
- Inverter: This turns your solar energy into usable electricity. It’s the heart of your system. Go for a well-known brand and make sure it has at least a 5- to 10-year warranty.
3. Find a Trusted Installer
Don’t just go with the cheapest quote. Look for a company that is:
- Accredited by the Clean Energy Council (CEC) or Solar Accreditation Australia (SAA) – this is required for rebates.
- Listed as an authorised solar retailer with Solar Victoria – needed to get the $1,400 rebate.
Tip: Get multiple quotes to compare prices, warranties, and services. Ask questions like:
- How long have you been in business?
- Do you offer full warranties (on parts and labour)?
- Will you handle the rebate paperwork?
4. Check What’s Included
Make sure your quote covers everything:
- Solar panels
- Inverter
- Mounting system and cables
- Installation
- STC rebate (applied upfront)
- Any extra costs (like switchboard upgrades)
5. Look at Warranties
A good system should include:
- 25-year performance warranty on panels (they still produce most of their power after decades)
- 10–15 years product warranty on panels
- 5–10 years on the inverter
Take Action: Get Quotes and Go Solar!
With energy prices rising, there’s never been a better time to consider solar. The federal STC rebate is still generous, and the Victorian government’s rebate can cut your upfront cost.
Solar power isn’t just for the environmentally conscious, it’s for anyone who wants to take control of their electricity bills and enjoy long-term financial benefits. With generous government rebates, falling solar prices, and strong sunlight across Melbourne, there’s never been a better time to go solar.
Whether you’re powering a family home in the suburbs or a busy business, the savings are real, and they add up quickly.
Here’s what you can do next:
- Check your latest power bill to understand your energy use.
- Get quotes from at least 2–3 accredited installers.
- Ask about rebates and whether you qualify for interest-free loans through the Solar Victoria program.
- Consider a battery if you want even more energy independence.
When done right, solar is a smart investment that pays for itself while making your property more sustainable. Contact a solar expert today and get a personalised quote.
FAQs:
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How much does solar panel installation cost in Melbourne?
Costs vary based on system size, but most residential installations range from $4,000–$8,000 after rebates. We offer free quotes tailored to your needs.
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Do you install solar batteries and EV chargers too?
Yes! We install solar batteries for energy storage and EV chargers for electric vehicles, perfect for going fully energy independent.
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Why choose Western Elec over other solar companies?
We’re Melbourne-based, fully accredited, and known for honest advice, quality workmanship, and local support—from quote to installation and beyond.
