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Thinking of joining the green energy world and buying some solar panels? Compare personal loans for solar to find something that suits your needs.

Georgia Brown

Personal Finance Editor

Content updated

08 Jun, 2022

Product data updated

20 Apr, 2024

What are solar panels and how do they work?

If you’re one of the many Australians who dread the arrival of their quarterly electricity bills, or you’re simply looking for ways to reduce your carbon footprint, then you might be considering investing in rooftop solar panels for your home.

Rooftop solar panels are used to convert heat and light from the sun into electricity to generate power. Solar energy is a ‘greener’ alternative to other energy sources as it doesn’t produce greenhouse gases or other pollutants. It is also known to be one of the most affordable kinds of renewable energy, making rooftop solar panels a popular choice for residential properties.

Australia is said to have the highest average solar radiation per square metre of any continent in the world. So, if you’re considering solar power for your household, you may be in the right place.

How can solar panels help my home?

There are a number of ways solar panels could be beneficial for your home. Some of these include:

1. Electricity bill savings

Depending on what type of property you live in, how many family members live under your roof and what kind of heating or cooling systems you have, there’s a chance you might be spending more than you’d like to on your energy bills. Using solar panels to generate your own power will generally allow you to reduce this expense.

You’ll likely see higher savings on your energy bills if the majority of your electricity usage happens during the day, when your solar panels are generating energy. Unless, however, you also invest in a solar battery to store excess power.

Of course, installing solar panels does come at a cost, so it’s important to do your own calculations to ensure you come out on top in the long run. One easy way to do this is to check your latest energy bill, find the current price per kWh you pay, and then use a solar power savings calculator to determine what potential financial benefits could apply to you.

2. Value added to your property

As well as saving you money on your energy bills, solar panels could potentially also make your house more valuable.

According to an Origin Energy survey of 1,003 Australians, 77 per cent think a house with solar is more valuable than one relying on traditional energy sources. A total of 57 per cent of homeowners said they would pay up to $10,000 more for a home equipped with solar, and 60 per cent would pay at least that much more for a home with both solar and a battery wall.

In addition, 55 per cent of renters said they would be willing to pay up to $10 a week more in rent for a property with solar power.

This could be welcome news, particularly for homeowners who decide to move before they have recouped the cost of the solar panels in the way of energy bill savings.

3. Environmental benefits

With electricity emissions making up a substantial proportion of Australia’s greenhouse gas emissions, switching to solar energy could be a big step towards reducing your household’s carbon footprint.

How much do solar panels cost?

After you have a gained an understanding of the potential benefits and savings solar panels could provide, it’s important to consider the installation costs.

While for many, these figures may seem like a major investment, it’s worth weighing up the expense with the savings you could make over time. Plus, there are solar panel government subsidies available that help reduce installation costs.

The price of a solar system is of course dependent on the size of the installation, which can be measured in how many kiloWatts (kW) are installed. Consider getting a personalised quote to determine what size is right for your home.

According to SolarQuotes, the approximate cost (after subsidies) of a good quality solar system installation with Tier 1 solar panels at the time of writing is:

3kW: $3,500 – $5,000
5kW: $4,500 – $8,000
10kW: $8,000 – $13,000

How do solar power government incentives work?

Federal: Households and small businesses in Australia that install a small-scale renewable energy system may be eligible to receive a benefit under the Small-scale Renewable Energy Scheme (SRES) to help with the purchase cost. This SolarQuotes Rebate Calculator could help you determine the maximum financial incentive available to you.
ACT: Eligible homeowners can apply for rebates of up to $5000.
NSW: The NSW Government is helping homeowners in eligible postcodes access interest-free loans to install solar battery systems, through the Empowering Homes solar battery loan offer.
NT: Eligible homeowners and businesses in the northern Territory can access a grant of $450 per kilowatt hour of useable battery system capacity, up to a maximum grant of $6000, under the Home and Business Battery Scheme.
QLD: While Queensland offers the Solar Bonus Scheme 44c feed-in tariff, this scheme is no longer available to new customers. Other feed in tariffs are available to solar customers in south east Queensland and in regional Queensland.
SA: South Australia’s Home Battery Scheme gives all grid-connected South Australians access to state government subsidies and low-interest loans - provided by the Clean Energy Finance Corporation - to help pay for a home battery system and new solar if required.
TAS: Feed in tariffs are available for Tasmanian households with solar panels, as set by the Office of the Tasmanian Economic Regulator.
VIC: A solar panel (PV) rebate is available for up to $1400, plus the option of an interest-free loan.
WA: The Western Australian government’s Distributed Energy Buyback Scheme offers eligible customers a time of export payment for electricity they export to the grid, including from rooftop solar PV systems, batteries and electric vehicles.

Where can I get solar panels?

Making the decision to install a solar panel system is a big financial commitment and long-term investment, so it’s important to do your due diligence first.

Solar panels come in a range of different wattages and power levels to suit individual needs. There are a wide selection of brands available, with updated technology regularly emerging. Although some systems might look similar, they have varied levels of power, quality and reliability.

When it comes to choosing the right system, consider shopping around, get multiple quotes and make a thorough comparison. Another thing to keep in mind is that in order to be eligible for the SRES, the system must be installed by a Clean Energy Council (CEC) accredited installer. The CEC has a database of accredited installers that you can search through.

Can renters get solar panels?

While most rental contracts in Australia require that the landlord takes care of major modifications to a property, it may still be possible to benefit from solar energy even if you’re renting your home.

For example, portable solar panels that are often used for camping, boating and caravanning could potentially be set up in your rented home with minimal impact on the structure. They may require their own charge controller or generator to be fully functional, but getting these set up shouldn’t do permanent damage to the property.

Another option could be to join a community solar garden or solar bank – a collection of centrally-located, grid-connected solar panels which generate and export power. Investing in the bank or garden can earn you financial credits from the energy it generates, though you may not directly benefit from solar energy in your home.

Depending on the solar setup in your home, and the utilities arrangement with your landlord, you may or may not get to benefit from solar feed-in tariffs as a renter. If the property’s electricity account is in the tenant’s name, they may be able to reap the financial benefits of exporting solar power. You may end up having to pay a little extra rent to help cover the cost of installing the panels, but you may be able to enjoy greater financial benefits from cheaper energy. But if the landlord manages the property’s electricity, they may be the one who receives the benefits.

How to talk to a landlord about getting solar panels

If you’d like to benefit from solar panels in a rental property, you may need to contact your landlord about getting solar panels installed. To encourage the take-up, you may be able to point them in the direction of the rebates and incentives available from the state and federal governments.

One point that you could mention to your landlord is the potential for improving the property’s value – a home with solar panels already installed may fetch a higher price from future buyers when the time eventually comes to sell.

Keep in mind that if you’re renting an apartment, it may be a different story. You may not only have to convince your landlord to install solar panels, but the building’s strata committee as well. And of course the solar benefits and costs would be shared between the block.

Why might I consider a personal loan for solar panels?

Solar panel installation is an expense that many may not have the savings to pay for upfront but are eager to access the benefits from as early as possible. This is where a personal loan could come in handy.

There are a number of lenders that offer environmentally-friendly products, called ‘green loans’, that can be used to fund solar panel installation.

To find the most competitive loan product for your individual financial needs, RateCity’s personal loan comparison tool might be useful.

Keep in mind when taking out a personal loan that they will always cost you in the form of interest and/or fees.

RateCity’s personal loan calculator could also help by giving you an estimate of what your repayments might look like, once you know how much you want to borrow.

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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, target market determination fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

What are solar panels and how do they work?

How much do solar panels cost?

After you have a gained an understanding of the potential benefits and savings solar panels could provide, it’s important to consider the installation costs.

According to SolarQuotes, the approximate cost (after subsidies) of a good quality solar system installation with Tier 1 solar panels at the time of writing is:

3kW: $3,500 – $5,000
5kW: $4,500 – $8,000
10kW: $8,000 – $13,000

Where can I get solar panels?

Making the decision to install a solar panel system is a big financial commitment and long-term investment, so it’s important to do your due diligence first.

Can renters get solar panels?

Why might I consider a personal loan for solar panels?

There are a number of lenders that offer environmentally-friendly products, called ‘green loans’, that can be used to fund solar panel installation.

To find the most competitive loan product for your individual financial needs, RateCity’s personal loan comparison tool might be useful.

Keep in mind when taking out a personal loan that they will always cost you in the form of interest and/or fees.

RateCity’s personal loan calculator could also help by giving you an estimate of what your repayments might look like, once you know how much you want to borrow.

Need a personal loan for a solar panel? Find your next loan here.

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What are solar panels and how do they work?