With electricity prices continuing to rise and government incentives evolving, many homeowners and businesses are asking: Is solar still worth it in 2025? While the solar industry has matured significantly over the years, the financial and environmental benefits of installing solar panels remain compelling. In this article, we will break down the current costs of solar, available rebates, and typical payback periods to help you determine whether investing in solar energy is the right choice for you this year.
The Cost of Solar in 2025
The cost of solar panels has decreased significantly over the past decade due to technological advancements and increased manufacturing efficiency. In 2025, the average price for a 6.6 kW solar system in Australia ranges between $3,500 and $7,000 after government STCs discounts, depending on panel quality, inverter type, and installation complexity. Larger systems, such as 10 kW or 13 kW setups, cost between $6,000 and $12,000, making them an attractive option for households with high energy consumption.
One of the biggest game-changers in 2025 is battery storage affordability. With the NSW Battery Rebate and similar state incentives, battery costs have dropped, making it more practical for homeowners to store excess solar energy and reduce reliance on the grid.
Government Rebates & Incentives in 2025
Government incentives continue to make solar a smart investment. The Small-Scale Renewable Energy Scheme (SRES) still provides Small-Scale Technology Certificates (STCs), which lower the upfront cost of solar installations. The rebate amount depends on system size and location, typically covering $2,000 to $4,000 of the total system cost.
Additionally, state-based rebates such as Victoria’s Solar Homes Program and the NSW Peak Demand Reduction Scheme offer further financial relief. Many states also provide low-interest loans or interest-free payment plans to help homeowners transition to solar with minimal upfront costs.
For businesses, the Instant Asset Write-Off scheme allows companies to claim tax deductions for solar installations, making it an attractive investment to lower operating expenses.
Feed-In Tariffs: How Much Can You Earn?
Feed-in tariffs (FiTs), which reward solar owners for exporting excess electricity back to the grid, have been decreasing in recent years. In 2025, most electricity retailers offer feed-in tariffs between 5 and 10 cents per kWh, depending on the provider and state. While this is lower than previous years, the drop in battery costs means that storing and using your own solar power is now more valuable than exporting it.
Payback Period: How Long Until Solar Pays for Itself?
The payback period for a solar system in 2025 depends on factors like system size, electricity rates, feed-in tariffs, and energy consumption habits. On average:
- A 6.6 kW – 13kW solar system typically pays for itself in 2 to 4 years.
- Adding a solar battery extends the payback period to 5 to 7 years, but offers greater energy independence and protection from blackouts.
For households using most of their electricity during the day or those with battery storage, savings can be even higher, making solar an excellent long-term investment.
Should You Invest in Solar in 2025?
The short answer: Yes!
With electricity prices continuing to rise and government incentives still in place, solar remains a cost-effective and future-proof solution for homeowners and businesses. The declining feed-in tariffs mean that the focus has shifted to self-consumption and battery storage, making energy independence more accessible than ever.
If you’re looking to reduce your power bills, increase your property value, and contribute to a cleaner environment, solar is still a worthwhile investment in 2025. The key is to choose a quality system from a reputable company such as Outback Solar and take advantage of available rebates and incentives while they last.
Thinking about making the switch to solar? Contact Outback Solar today to get a tailored quote and see how much you can save!
