10 things Australians ask about solar panels

• Solar can be an efficient way to power homes, given the abundant sunshine in Australia
• The Small-scale Renewable Energy Scheme offers financial incentives to eligible homeowners who have solar systems fitted by accredited installers¹
• It’s important to chat with a solar professional to determine the best system for you

With Australia’s plentiful sunshine, it’s no surprise homeowners are looking at switching to solar power. But doing the research seems to bring up more questions than answers. We aim to dispel that, with answers to common questions. That way, you’re in a better position to make an informed decision.

1. How do solar panels work?

Simply put, solar panels capture sunlight and convert it into electricity. Each panel is made up of photovoltaic cells that absorb sunlight and create an electric current.

Electricity can then either power your home straight away or be stored in a solar battery to use later. If your system produces more electricity than you need, it can be sent back to the grid – and you might receive discounts on your electricity bill.

2. Are solar panels worth the outlay?

Solar panels are a popular investment in Australia, as most regions get significant sun throughout the year. That makes solar energy an efficient way to power homes.

Over time, solar panels could reduce electricity bills and potentially pay for themselves through savings. It’s worth chatting to a solar expert to work out whether a solar investment is right for you.

3. How much do solar panels cost?

This varies depending on the size of the system, the type of panels, and installation cost.

The not-for-profit solar calculator, SunSPOT is a handy way to get a ballpark cost for your home.

For an indicative cost for your home, try the solar and battery calculator SunSPOT.

4. What government rebates can I access?

As at April 2025, the Australian government offers several incentives to make solar more affordable.

The Small-scale Renewable Energy Scheme offers financial incentives to homeowners who have solar systems fitted by accredited installers². Eligible installations receive Small-scale Technology Certificates (STCs), which can be sold to offset the cost of the system.

To make sure you’re eligible for STCs, check the panels and inverter you plan on installing are listed on the Clean Energy Council’s approved product list.

Some states also offer extra rebates or feed-in tariffs to households for the excess electricity they feed into the grid.

5. How long does it take to recoup my outlay?

For Australian households, SunSPOT suggests a system size that will pay for itself in around five years³. The payback period depends on many factors, including weather, maintenance, rebates and future electricity costs.

With retailers reducing feed-in tariffs, the best way to minimise the payback period of your solar system is to use as much generated electricity as possible,” said Chris Deugarde, Senior Risk Engineer – Property & Renewables, QBE. “For example, you can run appliances and charge electric vehicles during the day.”

From there, you could start saving money on your energy bills, and savings will continue for the life of the system. With electricity prices rising and the efficiency of solar technology improving, solar panels are becoming an attractive option.

6. What size system do I need?

Many Australian homeowners choose systems between 5kW and 7kW, with 6.6kW the most common size⁴. However, if you plan on charging an electric vehicle or running large appliances at home during the day, you could benefit from installing a larger system. Solar systems can scale up to any size, only limited by your budget and available roof space.

Your installer can help you find the right size based on your household’s specific needs.

Related article: Do I need to update my home insurance when I buy something new?

7. How long do solar panels last?

Solar panels could last 25 to 30 years when installed properly, with most manufacturers offering warranties of at least 10 years⁵. Regular cleaning and maintenance can help ensure your system stays efficient for decades.

8. Do solar panels work on cloudy days?

Solar panels still generate electricity on cloudy days at a reduced rate. In many cases, this energy is still enough to power your home during the day.

The direction and angle of the panels will also play a role in capturing sunlight, which will affect the efficiency of your system.

9. Can I go off-grid with solar panels?

Off-grid systems need to produce and store enough electricity to power your home during cloudy days or at night. While you can go completely off-grid with solar panels in Australia, this requires a significant investment in both solar panels and batteries.

For most households, a grid-connected system with a solar battery is a more practical solution. This lets you store excess power and use it during peak times, while staying connected to the grid for backup electricity when needed.

Keep in mind that some batteries have been known to pose a fire risk. Only products approved by the Clean Energy Council should be installed, and the installation location should also be carefully considered.

In an off-grid system, any excess electricity generated would be wasted. But, by keeping a grid connection, you can sell excess solar at the feed-in tariff rate.

10. Will solar panels damage my roof?

When professionally installed, solar panels should not damage your roof. A reputable installer will inspect the roof structure to make sure it can support the weight of solar panels in high winds. Then they’ll securely mount and seal the panels to prevent leaks or structural damage.

If you’re considering solar panels, it’s a good idea to meet with a qualified solar professional, who can assess your home’s energy needs and suggest a suitable solution for your home.

Of course, it’s also important to have home insurance to protect your most valuable asset – and remember to look at your sum insured if you invest in solar panels.

Learn about QBE Home Insurance

Get a home insurance quote