Close this search box.

What is the expected Return On Investment (ROI) time-frame?

Okay so you’ve heard solar can save you big bucks and it’s a great investment, but what is the typical Solar System Payback Period and how long until you’ve pocketed enough savings to have covered the costs of buying your Solar System?

Here’s a hypothetical example:

Considering the average household’s energy usage, sunlight hours in Australia, current rates for electricity and Feed in Tariffs, a household with a 6kW system could be looking at up to an 80% reduction on energy bills.

This would make a typical Solar PV System’s ROI 2-5 years. For States that offer additional incentives on top of the Federal Government Small-scale Renewable Energy Scheme (SRES), it could be even less.

Payback periods for solar systems can vary from household to household and there are a few factors that will impact your ROI.

Factors that could affect your ROI

Location and panel direction

The more sun your solar panels receive means the more energy it will generate. If your home is located where daylight hours or sunny days are plentiful then your ROI will be faster than someone whose household is not.

Solar panel positioning and roof direction

The position and direction of your solar panels can affect how much sunlight they’ll receive and therefore how much energy is generated for your use. First off, avoid having your Solar Panels installed where it could get shaded throughout the day. E.g. near large trees.

Find out the ideal orientation for your panels here

Changes to Government subsidies

If the Federal Government Small-scale Renewable Energy Scheme (SRES) is eliminated, the cost of Solar PV Systems will rise and therefore the ROI timeframe will increase.

If the State, you live in has or introduces a new subsidy, rebate or incentive that you can combine with the current Federal Government SRES then your ROI will be faster than someone residing in a state that does not have additional subsidies or rebates.

Your energy habits

To maximise your potential solar savings those installing solar power systems will need to adjust their energy habits and shift the majority of their energy usage to during daylight hours, whilst the solar panels are generating energy. Find some handy tips to help you adjust your habits here.


If you’re paying for the Solar PV System on finance, the interest of this finance could increase the ROI timeframe. You’ll want to work out how much extra time this is going to add, to ensure finance is the best option.


Ensure your selected installer is a CEC Accredited Installer. If the system’s parts, the designer or the installer are not CEC accredited, you won’t receive the Federal Government rebate Small-Scale Technology Certificates (STCs).

Work out your predicted ROI

Check out our Solar Savings Calculator! It’ll help you determine the estimated payback period and financial returns from investing in solar, plus it will also estimate what your bills will be after installing your system.


Ready For Solar?

House with solar panels

Where are you in your Solar Journey?

Get 3 Free Solar Quotes

Top Solar Topics

Top solar topics

What’s your Ideal System Size?

Question Mark Speech Bubble

Work out your Savings

Man patting dog and using smartphone

Switch and Save Quick

Gas stove

49 Pages of Must Know Solar Stuff For Aussie Homeowners

2024 Solar Guide FREE Download

  • Plan your system
  • Learn about rebates
  • Maximise your savings

Need solar help? Where should we send your FREE copy?



Map of Australia

Relax! We’ve Helped Over


We make getting solar a breeze!

We make getting solar a breeze!


man installing solar

© 2023 Solar Market Pty. Ltd. All Rights Reserved. View our privacy policy.

© 2023 Solar Market Pty. Ltd. All Rights Reserved.

Free Solar Guide

Download Solar Guide