Solar guide
Pros and cons of solar panels for Melbourne homes
The advantages of solar power for a Melbourne home are lower bills, rebates that cut the upfront price, and clean, renewable electricity: a 6.6kW system on a north-facing roof makes about 9,319 kWh a year here. The disadvantages are the upfront cost, no output at night, about 60% less in June than in January, and low feed-in tariffs for the power you export.
A battery fixes some of those downsides, good design fixes others, and a few you live with. Whether it pays for your home is a separate question: see is solar worth it, or browse our othersolar guides.
Updated
What are the advantages of solar power?
Each benefit below comes with its Melbourne number. Output is from PVGIS, the European Commission’s solar model, for a 6.6kW system facing north.
- Lower power bills. Every kWh of solar you use yourself is one you don’t buy: 25.96 to 31.98 cents on the Victorian Default Offer’s flat rate, depending on your network. A 6.6kW system makes about 25.5 kWh on an average day.
- Rebates cut the upfront price. Federal STCs take up to about $1,500 off a 6.6kW system installed in 2026 in most of Melbourne (39 certificates at up to $38 each). Eligible households can also apply for Solar Victoria’s rebate of up to $1,400 until 30 June 2027.
- Clean, renewable power. Sunlight doesn’t run out, and a solar system repays the energy used to make it in about a year in sunny parts of Europe, says Fraunhofer ISE (more below).
- Long life, little upkeep. The panel makers we compare give 25 to 30-year performance warranties that still promise 87.4% to 92% of the original power at the end, and Solar Victoria asks for a service by a licensed electrician at least every 2 years.
- Most roofs work. Panels facing east or west make only about 13 to 14% less a year than panels facing north.
What are the disadvantages of solar panels, and what fixes them?
Some downsides a battery fixes, some good design fixes, and a few you accept.
| Disadvantage | In Melbourne | What helps |
|---|---|---|
| Upfront cost | Market data: Melbourne averages of $5,810 for 6 kW and $8,920 for 10 kW installed, after STCs. | Rebates, finance, and a system sized to your use |
| Nothing at night | Panels stop at sunset, and the Victorian Default Offer’s time-of-use rate is highest from 4 pm to 9 pm. | A battery |
| Less in winter | A 6.6kW system makes about 432 kWh in June against 1,080 kWh in January: 40% as much. | Good design: enough panels on the best roof faces. A battery can’t fix a short day |
| Low feed-in tariffs | No minimum since 1 July 2025; retailers can pay 0 cents. Rooftop solar in Victoria has grown 76% since 2019, so midday power is plentiful. | Use more of your solar: run appliances by day, or add a battery |
| Free midday power | On the Midday Power Saver, grid power is free from 11 am to 2 pm, so solar you use then saves nothing. | The plan that suits your system; a battery for the evening |
| Export limits | Three of the five networks (CitiPower, Powercor and United Energy) plan to cut the fixed export limit to 1.5 kW per phase during 2026–31. | Flexible exports where offered, or a battery |
| Roof direction and shade | East or west roofs make about 13 to 14% less than north; shade cuts output further. | Good design: panel layout and inverter choice |
| Blackouts | A grid-connected system, with or without a battery, may be designed to switch off in an outage, to protect homes from power surges and protect the people who may be working on nearby electricity lines. | A battery with backup functionality |
| Remote switch-off | Since 1 October 2024, new systems up to 200 kW can be switched off remotely in rare grid emergencies; your home’s supply isn’t affected. | Nothing: it is used only when needed, for as long as needed |
Is solar energy renewable?
Yes. Geoscience Australia names the sun, with wind and waves, as a source of renewable energy, one that “can be used again and again, without depletion, or can be replenished in a short time frame”. Non-renewable sources, by contrast, “cannot be replaced at a rate that is sustainable”. A solar panel turns sunlight straight into electricity without burning fuel, and tomorrow’s sunlight is there whether or not you used today’s.
Renewable isn’t the same as impact-free: the panel itself is manufactured, and one day it has to be dealt with. The next section covers both.
Environmental impact: energy payback and recycling
Energy payback
Energy payback is how long a system takes to generate the energy used to make it. The Fraunhofer ISE Photovoltaics Report (July 2026) puts it at 1.1 years for a European-made system in northern Europe and 0.9 years in the south; over a 20-year life, a system in Sicily makes 20 times the energy invested in it. Systems made in China take a little longer, 0.98 to 1.24 years in the report’s comparison, because Europe’s grid is more efficient. Either way, the payback is short next to 25 to 30-year performance warranties.
Recycling old panels in Victoria
Since 2019 it has been illegal to put e-waste in household rubbish or landfill in Victoria (Victorian Government), and EPA Victoria names photovoltaic panels as e-waste. Solar Victoria says old panels must go to a lawful e-waste collection point or a solar PV recycler, and that specialist recyclers can recover up to 90% of a panel for reuse. Fraunhofer ISE adds a caveat: almost 100% of a module’s materials could technically be recycled, but for economic reasons only the glass, the frame and the junction box are recycled today.
Who solar suits, and who it doesn’t
Solar tends to suit
- Owner-occupiers who plan to stay: the savings build up year by year, for as long as you live there.
- Homes that use power by day, or can run the washing and dishwasher then. Solar Victoria says homes with solar alone use around 25% of what they generate.
- An unshaded roof facing north, east or west with room for the system you need.
- Homes planning a battery, now or later.
It suits less well
- Renters: the roof is the landlord’s, so the decision is theirs. Solar Victoria has a rebate for rental providers, but it needs an agreement signed by both the landlord and the renters.
- Heavily shaded roofs, or too little usable roof space.
- Low use, mostly at night, with no battery: most of the solar would be exported.
- Selling soon: you may not stay long enough to collect the savings.
Our free inspection looks at your roof, shade and switchboard before we quote.
Solar facts and myths
What people often believe about solar panels, and the facts for a Melbourne roof.
| Myth | Fact |
|---|---|
| “Solar doesn’t work in a Melbourne winter.” | It makes less, not nothing: about 14.4 kWh a day in June from a 6.6kW system, against 34.9 kWh in January. |
| “Hot sunny days make the most power.” | Sun, yes; heat, no. The panels we compare lose 0.24–0.29% of their power for every °C their cells run above the 25 °C test temperature. Melbourne’s output still peaks in December and January because the sun is higher and the days are longer: a north-facing roof gets about 218 kWh of sunlight per m² of panel in January, against 80 in June. |
| “You need a north-facing roof.” | North is best, but east or west roofs make only about 13 to 14% less a year. |
| “Shade can be judged from a satellite photo.” | A photo shows one moment from above. Shade from trees, chimneys or a neighbour’s second storey moves through the day and the year, and CSIRO notes it is often worse in winter, when the sun stays lower. That is why we check the roof on site before we quote. |
| “Solar is free power.” | The sunlight is free; the system isn’t. Market data puts Melbourne averages at $5,810 for 6 kW installed, after STCs, and it pays back through the power you no longer buy. |
| “Solar keeps the lights on in a blackout.” | Not on its own: that needs a battery with backup functionality. |
| “Panels wear out in ten years.” | Makers’ performance warranties run 25 to 30 years and still promise 87.4% to 92% of the original power at the end. |
| “Making a panel takes more energy than it ever makes.” | About 1 year to pay back in sunny Europe; over 20 years it makes 20 times the energy invested. |
| “Exporting is where the money is.” | Victoria has no minimum feed-in tariff; power you use yourself saves 25.96 to 31.98 cents a kWh. |
| “Old panels end up in landfill.” | In Victoria that has been illegal since 2019. |
| “Solar needs no care at all.” | A service by a licensed electrician at least every 2 years. Stay off the roof. |
Batteries: pros and cons in brief
A battery stores daytime solar for the evening. It fixes some of solar’s downsides and adds its own.
Pros
- You use more of your solar: around 50 to 60%, against 25% with panels alone (Solar Victoria).
- It covers the 4 pm to 9 pm peak, when time-of-use rates are highest.
- With backup functionality, it can keep things such as lights and your fridge running in a blackout.
- The federal Cheaper Home Batteries Program aims at a discount of around 30%.
Cons
- Cost: $7,784 on average for 10 kWh on a battery-ready system, after the rebate, nationally (market data, not our price: Solar Choice Battery Price Index, August 2026).
- Shorter warranties: seven of the eight batteries we compare carry 10-year warranties, and all promise at least 70% of capacity at 10 years.
- Little spare solar to store on short winter days: about 14.4 kWh a day in June from 6.6kW.
- A compliant spot: AS/NZS 5139:2019 keeps it out of habitable rooms, ceiling spaces and wall cavities.
Pros and cons of solar: your questions
What are three advantages of solar energy for a home?
Lower bills, rebates that cut the price, and clean power. Every kWh of solar you use yourself is one you don’t buy: 25.96 to 31.98 cents on the Victorian Default Offer’s flat rate. Federal STCs take up to about $1,500 off a 6.6kW system in most of Melbourne. And sunlight is renewable, so the power a panel makes doesn’t use up a resource. Estimate your savings
What are the disadvantages of solar power?
The upfront cost, no output at night, much less in winter (in Melbourne a 6.6kW system makes about 40% as much in June as in January) and low feed-in tariffs: Victoria has had no minimum since 1 July 2025. Some networks are lowering export limits too. A battery helps with nights, exports and blackouts; good design helps with roof direction and shade. Is solar worth it for you?
Is solar energy renewable or non-renewable?
Renewable. Geoscience Australia lists the sun, with wind and waves, as a source of renewable energy: one that can be used again and again without running out. Fossil fuels such as oil, natural gas and coal are the opposite: they can’t be replaced at a sustainable rate. Solar panels themselves are manufactured, though, so making them takes energy and materials.
Are solar panels bad for the environment?
They aren’t impact-free: making a panel takes energy and materials, and one day it has to be disposed of. Victoria has banned e-waste, solar panels included, from landfill since 2019, and Solar Victoria says specialist recyclers can recover up to 90% of a panel. Fraunhofer ISE adds that, for economic reasons, only the glass, the frame and the junction box are recycled today. Removing and recycling panels
How long does a solar system take to repay the energy used to make it?
About a year. The Fraunhofer ISE Photovoltaics Report puts it at 0.9 years for a European-made system in southern Europe and 1.1 years in the north. Systems made in China take 0.98 to 1.24 years in its comparison, because Europe’s grid is more efficient. Over a 20-year life, a system in Sicily makes 20 times the energy invested in it.
Weighing up solar for a Melbourne home
For a Melbourne home, the pros and cons usually come down to three local things:
- Your roof. A north face makes about 9,319 kWh a year from 6.6kW in Mount Waverley, Melbourne, and east or west faces about 13 to 14% less; shade from trees or a second storey next door cuts it further, most of all in winter.
- When you use power. Solar you use yourself saves 25.96 to 31.98 cents a kWh on the Victorian Default Offer’s flat rate, while exports earn only what your retailer chooses to pay.
- Your network. CitiPower, Powercor and United Energy plan to lower the fixed export limit to 1.5 kW per phase during 2026–31, which makes daytime use or a battery worth more.
Book a roof and shade inspection with our Mount Waverley team
Weigh it up for your own roof
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Ask us about solar for your home
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