Updated on October 14, 2025
If you’ve started looking into solar panels for your home, you’ve probably noticed something confusing. Prices seem to be all over the place. One company quotes you one number, and another comes in much higher. It’s hard to know why solar panels cost so much or why prices vary from one company to the next.
You aren’t alone. Many people trying to make sense of solar pricing ask the same question. The truth is solar pricing depends on a lot of different factors. This can make it hard to know if you’re paying for quality or just overpaying.
At PSC Energy, we understand what affects the price of solar panels. We’ve been installing them for years. We’re here to walk you through different brands, how installation costs play a role, and how the size of the system affects the final price.
In this article, you will learn about the following:
- What Affects Solar Panel Prices?
- Solar Panel Quality vs. Pricing: Does Paying More Equal Better Panels?
- Solar Panel Installation Costs: Skilled Labour Is Essential
- Government Incentives and Rebates: How They Lower Your Solar System Costs
- How to Compare Solar Quotes and Find the Best Value
- FAQ: Solar Panel Pricing
By the end, you’ll know exactly what makes solar panel prices vary and how to choose the right system for your budget.
What Affects Solar Panel Prices?
Solar panels might all look the same, but several key factors affect their prices. Understanding these factors helps you know why quotes can be so different.
Brand of Solar Panels: Not all solar panels are created equal. Some brands are known for high efficiency and long-lasting durability, while others are more affordable but offer fewer benefits.
What to look for:
Mid-range to premium brands may cost more upfront but often provide better performance over the years. They’re warranted for longer periods of time. This rather than the latest efficiencies is what we believe is the most important aspect of any solar panel purchase.
In contrast, cheaper brands often don’t last as long as mid-range to premium panels. Replacing equipment with shorter warranty periods should be factored into the final cost of your investment.
It might look and sound like a better deal but going with a cheaper panel might cost you more over time. They simply need to be replaced sooner.
Installation Costs: Labour plays a big role in the final cost of your solar system. If you choose an experienced installer with a proven track record, you’re likely to pay more for quality workmanship.
This isn’t an area where you want to cut corners. Skilled installers make sure that your system is set up correctly. This improves efficiency and safety in your system.
Many solar companies work within a solar sales/subcontractor installation model. One company sells the system and hires a subcontractor to install it. The biggest downside of this approach to installation is ambiguity when it comes to fulfilling warranties for repairing or replacing components. It might be difficult to repair or replace components if the subcontractor directs you to the sales company and vice versa.
Another thing to look out for is how your installer charges you for installation. Many sales/subcontractor installers charge by the panel. As the system size increases, the cost balloons up.
At PSC Energy, we have a fixed day rate. This gives our customers great value for larger installations that can be done in a day. For systems that are 10kW or larger, we offer a very competitive rate that’s difficult for sales/subcontractor companies to match because they charge by the panel. We’ll discuss installation a little more thoroughly a little later in this article.
System Size: The size of the system you choose also directly affects the price. A larger system with more panels will obviously cost more, but it will also produce more energy.
We know this sounds “sales-y” but if you have large energy bills, spending more on a larger system will offset those bills more effectively and pay for itself faster. While a larger system costs more, it will save you more over time. This is important for families with high electricity needs or those wanting to power their home fully with solar.
If you don’t have enough panels, your system will struggle to keep up with your bills in just a few years’ time. It’s all about balancing your power usage with the right number of panels. A solar consultant can walk you through this and create a customised quote for you based on your needs and goals with energy.
If you’re interested in learning a bit more about your energy needs, you might want to check out the following article titled, How Much Solar Do You Need?
Solar Panel Quality vs. Pricing: Does Paying More Equal Better Panels?
Not always.
We recommend that you not get too hung up on the efficiencies of different solar panels. Other components (like the inverter or microinverter) and the installation itself ensure greater efficiencies than the ultimate, most efficient solar panels out there.
Because the solar industry has evolved so quickly in the last decade, mid-range panels have efficiencies competitive with top-of-the-line brands. It’s okay to save a few bucks here by installing a mid-range panel.
That being said, the solar business is just like every other business out there: you get what you pay for. Part of the reason there’s such a wide variety in pricing for solar is that cheap systems exist. They’re not great, but you can purchase and install them if you like.
A premium price tag reflects a premium product.
Quality solar panels are more expensive because they offer better durability. We’re talking warranties. You should look for a manufacturing warranty of 25/30 years for parts/performance.
The warranty is what you should be most concerned with when it comes to solar panels. What will stay up on the roof, harvesting sunshine, for the longest guaranteed lifespan?
But, if your goal is to get solar power on a budget, cheap panels can still work. Most likely, they’ll need to be replaced sooner than the competition.
If you’re interested in learning more about premium solar panels, you might want to check out the following article titled, Everything You Need to Know About Aiko Neostar N-Type ABC All Black Solar Panels.
Solar Panel Installation Costs: Skilled Labour Is Essential
As we mentioned, the price of your solar installation isn’t just about the panels themselves – it’s also about the people installing them. Skilled, certified installers are more expensive, but there’s a good reason for that. Proper installation makes sure your system works safely and efficiently.
Here’s why this matters: solar panels are a long-term investment. If they aren’t installed correctly, you could face problems like electrical issues, poor system performance, or even damage to your roof. A poorly installed system might not take full advantage of the sunlight available, which could hurt your return on investment.
Here at PSC Energy, we take pride in our in-house installation teams. We’re a company of electricians. Our founder, Jake Warner, has an electrical contractor’s licence, as do all our head electricians, sales manager, and members of our service department.
Speaking of our service department, we partner with you when you choose us as your installer. Every installation has a 10-year workmanship warranty. We’re also able to monitor your system remotely and diagnose problems for you as rapidly as possible.
Solar panels and microinverters have a 25-year warranty. We put our name on everything we do and we’re proud of it. If there is an error on site, we are the ones who will fix it.
Now, we know you may not want to go on that journey with us. But please consider paying for experienced installers to avoid any risks. They know how to properly position your panels to capture the most sunlight, handle the wiring safely, and install all components so they work as they should.
In the long run, investing in skilled labour can save you money on repairs and ensure that you get the most power out of your system.
If you’re interested in learning a bit more about the importance of a good installer for your solar (the most important component of any system, seriously), you might want to check out the following article titled, In-house Installers vs. Subcontractors: Which is Better?
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Government Incentives and Rebates: How They Lower Your Solar System Costs
One of the best ways to bring down the cost of your solar system is by taking advantage of government rebates and incentives. In Australia, several programs exist to help homeowners make the switch to solar. These can significantly reduce the upfront cost of your system, making solar more affordable.
The Small-scale Renewable Energy Scheme (SRES) is one of the most well-known programs. It’s also known as the federal solar rebate.
Under this scheme, you can earn Small-scale Technology Certificates (STCs) when you install a solar system. The number of certificates you get depends on the size of your system, where you live, and when you purchased the system. Your installer sells these certificates to energy companies on your system’s behalf, which reduces your overall cost. We provide that discount to you and handle the rest.
What is the Cheaper Home Batteries Program?
The Australian Government is launching the Cheaper Home Batteries Program in July 2025. It is a federal rebate designed to make home batteries more affordable for households across the country. The program gives a discount at the point of sale, so you pay less upfront when you install a new solar battery system. It works alongside existing state rebates, which means you may be able to stack the savings if you live in a state that already offers support.
Who can get it?
The rebate is open to homeowners who install a Clean Energy Council (CEC) approved battery through an accredited installer. You must be connected to the grid and using the battery in a home setting. The program does not apply to off-grid systems, DIY installs, or unapproved products. Each household can claim the rebate once, and the exact value depends on the size and type of battery you choose.
What do you need to do?
To claim the rebate, you simply need to choose a CEC-approved battery and have it installed by an accredited installer after the program begins. The discount is applied at the time of purchase, so you don’t have to chase a refund later. Your installer will handle the paperwork and make sure your system meets all the eligibility rules. The main step for you is making sure the battery and installer are both approved before you sign a contract.
VPP Incentive for NSW
The NSW Government has a smart new incentive that helps you save money when you connect your home battery to a Virtual Power Plant, often called a VPP. A VPP links lots of home batteries together so they can share power when demand is high.
From 1 July 2025, NSW households and small businesses can get up to $1,500 as an upfront payment under the Peak Demand Reduction Scheme (PDRS) when they join a VPP. This replaces the old NSW battery installation rebate, which ended on 30 June 2025. You can still stack this VPP incentive on top of the new Australian Government’s Cheaper Home Batteries Program rebate so you get more savings overall.
When you connect your battery to a VPP, you also get ongoing income. That happens because you can sell extra energy your battery stores to the grid. This helps keep the lights on and electricity reliable, especially during busy times.
The exact amount of the upfront payment depends on how big your battery is. Bigger batteries earn more. For instance, a 10 kWh battery generally earns about $400–$550, and a 27 kWh battery can get $1,000–$1,500. This means your battery pays for itself faster, and you help the grid as we all move toward cleaner and more reliable energy.
Incentives can save you thousands of dollars, but it’s important to understand that these programs can change. Be sure to ask your installer about any current rebates or loans that apply to your system, so you don’t miss out.
If you’re interested in learning a bit more about solar and battery rebates in NSW, Australia, you might want to check out the following article titled, Ultimate Guide to Australia’s 2025 Solar Rebate and Battery Rebate: Federal and NSW Rebate for Solar.
click here to Start saving with solar today.
How to Compare Solar Quotes and Find the Best Value
Now that you understand the factors that affect solar panel prices, the next step is comparing quotes and finding the best value. Here are some tips to make sure you get the most out of your investment:
Look Beyond the Price: It can be tempting to go with the cheapest quote but remember that the lowest price doesn’t always mean the best value. Consider the quality of the panels, the reputation of the installer, and what’s included in the price. Some companies may offer lower prices by using cheaper panels or cutting corners on installation. In the long run, this could cost you more in repairs or lower energy savings.
Ask About Warranties: Warranties are a big part of the value you’re getting. Good-quality panels usually come with a longer warranty, often up to 30 years. The installer’s workmanship warranty is just as important. At PSC Energy, we offer a 10-year workmanship warranty. A solid workmanship warranty gives you peace of mind that if something goes wrong with the installation, it will be fixed without extra cost to you.
Check What’s Included in the Quote: Make sure the quotes you’re comparing include the same components. Some companies might include extras like monitoring systems, while others charge separately. Be clear on what each quote covers so you can compare them fairly. If one quote seems significantly lower, ask if it includes everything you need.
Don’t Forget Rebates and Incentives: As we mentioned earlier, government rebates and incentives can greatly reduce the cost of your solar system. Make sure these savings are included in each quote you get.
Balance Price and Quality: Finding the right balance between cost and quality is key. You don’t always need the most expensive system, but going too cheap can lead to problems. Look for a reputable installer who offers quality panels and a fair price. You don’t have to break the bank to do it. Often, a middle-range option may give you the best mix of performance, durability, and affordability.
If you’re interested in learning a bit more about the process of choosing components for your solar system, you might want to check out the following article titled, How to Shop for a Solar System.
Pricing Solar: What UV is What You Get
Solar panel prices vary for several reasons, including the brand of panels, the size of the system, and installation costs. By understanding these factors, you’ll be in a better position to compare quotes and choose the system that’s right for your home and budget. Choosing the right installer ensures that you get the most value in the long run.
At PSC Energy, we know the ins and outs of solar panel installation. We’ll make sure you get your rebate and get the best deal on components and equipment. We want to set you up with quality technology at the lowest possible price point. It’s what we do.
If you’re interested in learning a bit more about shopping for a solar system, you might want to check out the following article titled, 6 Mistakes to Avoid When Buying Solar.
FAQ: Solar Panel Pricing
Why are solar panel quotes so different?
Quotes vary because of brand quality, installer skill, system size, and what is included in the scope. Some companies price per panel. Others use a fixed day rate. Warranties and aftercare also change the price.
What affects solar panel prices in Australia?
Key drivers include:
• Panel brand and build quality.
• Inverter type and monitoring.
• Installer model (in-house vs subcontractor).
• System size in kW and panel count.
• Workmanship and product warranties.
• What is included in the quote and what is not.
• Government rebates applied at sale.
Do premium solar panels cost more and are they worth it?
Premium panels cost more because they offer stronger warranties and better long-term durability. They are often worth it if you want a long service life with fewer replacements.
Are cheap solar panels a false economy?
Often yes. Lower-cost panels can fail sooner and carry shorter warranties. Replacement costs and downtime can erase the upfront savings.
How much does the solar installer influence solar pricing?
Installer approach drives a large share of price. Skilled in-house teams cost more than cut-price subcontract crews. You pay for safe wiring, clean roof work, and fewer call-backs.
Why does in-house installation of solar panels often cost more?
You pay for licensed electricians, quality control, and direct warranty support. In-house teams stand behind workmanship. That support adds value over time.
What is the difference between charging per solar panel and a fixed day rate?
Per-panel pricing rises with every extra module. A fixed day rate can offer better value for larger systems that fit in a single workday. It keeps costs predictable.
How does solar panel system size change the price?
Bigger systems cost more because they use more panels and hardware. They also make more energy. If your bills are high, a larger system can repay itself faster.
Should I chase the highest solar panel efficiency to get better value?
Not always. Mid-range panels now reach strong efficiency levels. The inverter choice and installation quality often have a bigger impact on real-world output.
Which warranties should I look for and how do they affect solar panel prices?
Look for long product and performance warranties on panels and a solid workmanship warranty from the installer. Longer coverage usually raises price but lowers long-term risk.
What should be included in a good solar quote?
A clear quote should list:
• Panel and inverter make and model.
• System size in kW and panel count.
• Monitoring and metering inclusions.
• All rebates and discounts applied.
• Workmanship and product warranties.
• Electrical and structural scope.
• Any possible extras or exclusions.
How do government rebates lower the price of solar panels?
The federal STC scheme gives an upfront discount through certificates your installer claims. This reduces the price you pay at the point of sale.
How can I compare solar quotes fairly?
Use an apples-to-apples checklist:
• Same system size in kW and panel count.
• Same or equivalent panel and inverter class.
• Same inclusions and monitoring.
• Same warranty terms.
• Same assumptions about rebates and meter work.
What hidden costs should I watch for in solar quotes?
Check for extras such as switchboard upgrades, export control hardware, meter change fees, roof safety gear, and monitoring subscriptions. Ask for all likely costs up front.
Does a better workmanship warranty justify a higher price?
Yes. A strong workmanship warranty reduces risk. It protects you from installation faults that would otherwise cost time and money to fix.
How does solar installer aftercare affect solar pricing?
Remote monitoring, fast diagnostics, and a responsive service team add value. You pay more for that support but save on downtime and call-outs later.
Will a mid-range panel with great warranties be good value?
Yes. A mid-range panel backed by long warranties often hits the sweet spot of cost, durability, and performance.
Do bigger solar panel systems always save more money?
They save more when your usage is high enough to use or export the extra energy. Size your system to your bills, lifestyle, and goals to avoid overspending.
Should I pick the cheapest solar quote?
Only if it matches quality, scope, and warranties. The lowest price can mean lower-grade hardware or weaker aftercare. Balance cost with long-term value.
How do I know if the rebate is already included in my solar quote?
Look for the STC discount line on the quote. Your installer should show the pre-rebate price, the STC value, and the final price you will pay.
What questions should I ask before I accept a solar quote?
Ask:
• Who will install my system and are they in-house?
• What are the product and workmanship warranties?
• What is included and what is excluded?
• How are rebates applied?
• How will you support me after install?
Bottom line: What determines the best-value solar system for me?
Best value comes from a well-sized system, proven components, in-house installation, clear warranties, and all-inclusive pricing with rebates applied up front
