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Is Solar Worth It in NSW?

Updated 2026|8 min read
Written by Jacob, Last reviewed 2026. This guide is for informational purposes only — see methodology.

Solar Conditions in NSW

The Small-scale Renewable Energy Scheme (SRES) provides an upfront discount based on your postcode and system size[2]. IPART's benchmark for NSW feed-in tariffs for 2025-26 is 4.8 to 7.3 cents per kWh for all-day exports[6]. Retailer offers vary, so comparing is key.

The average NSW household uses about 15.3 kWh a day[5]. Actual usage varies by household size, gas use, pool pumps, EVs, and air conditioning. That's enough demand for a 6.6kW system to cover a solid chunk of your consumption, especially if you can shift some usage into daylight hours.

System Costs in NSW

Prices for a quality 6.6kW system in NSW vary by installer, panel brand, and roof complexity. The federal STC scheme provides an upfront discount based on your postcode and system size[2].

Larger systems like 8kW or 10kW cost more but can deliver better savings if your household has higher daytime usage. Many quotes use 6.6kW as an example size, but the right system depends on your usage, roof space, export limits, and budget.

Feed-In Tariffs in NSW

IPART's benchmark for 2025-26 ranges from 4.8c to 7.3c per kWh for all-day exports[6]. Retailer plans vary; it pays to compare offers.

The real value in solar comes from self-consumption. Every kilowatt-hour you use directly saves you the retail rate (we model self-consumed solar at approximately $0.30 per kWh in our worked example) rather than earning the export rate. That gap makes daytime usage the single biggest driver of solar value.

Electricity Prices in NSW

The AER Default Market Offer sets the maximum standing-offer price for residential electricity in NSW[7]. Because self-consumed solar offsets the household's retail electricity rate, the DMO price provides a benchmark for calculating solar savings. Every price increase raises the value of every self-consumed kilowatt-hour. Homes that run air conditioning, pool pumps, or home offices during the day feel this benefit most.

Worked Example: A Sydney Home

For illustration, assume a Sydney household uses 15.3 kWh a day and installs a 6.6kW system costing $5,500 after STCs. The system is estimated to generate about 9,200 kWh per year (modelling assumption). If they use about 40% of the solar generation directly and export the rest at 7c per kWh, here is roughly how the numbers fall:

Annual generation (6.6kW): ~9,200 kWh
Self-consumed (40%): 3,680 kWh × $0.30 saved = $1,104
Exported (60%): 5,520 kWh × $0.07 = $386
Total annual benefit: ~$1,490
Payback: $5,500 ÷ $1,490 ≈ 3.7 years

Note: The $5,500 system cost, 40% self-consumption rate, and $0.30 per kWh avoided cost rate are modelling assumptions for illustration; actual costs, self-consumption, and retail rates vary. If the same household only uses 20% during the day, the annual benefit drops to around $1,070 and payback stretches to about 5.2 years. Daytime usage is the lever that matters most.

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Frequently Asked Questions

Common questions about solar in NSW

Is solar worth it in NSW in 2026?

For most NSW households with decent daytime usage and a north- or west-facing roof, yes. The federal STC scheme provides an upfront discount based on your postcode and system size[2]. Based on the worked example in this article (see the "Worked Example: A Sydney Home" section above), which assumes typical NSW usage and a 6.6kW system costing $5,500 after STCs, payback ranges from about 3.7 years (with 40% self-consumption) to over 5 years. Your payback will vary depending on your actual usage, tariff, and system cost.

How much does a 6.6kW system cost in NSW?

Our worked example in this article assumes a 6.6kW system costs $5,500 after the federal STC discount. Actual prices vary by installer, panel brand, and roof complexity.

What is the feed-in tariff in NSW?

IPART's benchmark for NSW feed-in tariffs for 2025-26 is 4.8 to 7.3 cents per kWh for all-day exports, with time-of-day benchmarks varying by network[6]. Retailer plans vary; it pays to compare offers. The exact rate depends on your retailer and plan.

Does the NSW Government offer a solar rebate?

The NSW household energy support page lists targeted programs such as apartment solar grants and energy-saving upgrades, while standard rooftop solar relies mainly on the federal Small-scale Renewable Energy Scheme (STCs)[1][2]. The NSW Solar for Apartment Residents program listed grants for eligible apartment buildings, with applications closing 5 pm 30 March 2026[4]. Check the NSW Energy website for any future rounds.

Is solar worth it if I work from home in NSW?

Yes — working from home means you are around during the day to run appliances and use the solar power directly. That improves self-consumption and shortens payback significantly.

Does solar increase home value in NSW?

Solar can appeal to some buyers, but any effect on resale value depends on the system age, quality, warranty, electricity costs, and buyer preferences.

Related guides

This guide is for informational purposes only and does not constitute financial or investment advice. Solar savings estimates vary by household. Always consider your own circumstances and consult a qualified professional before making a purchase decision.