In this Canstar Blue guide, we look at the pros and cons of solar energy. From installation costs and energy savings to efficiencies and maintenance, this guide simplifies the advantages and disadvantages of solar energy for your home.
In this article:
What are the pros and cons of solar energy?
Below is a quick list of the pros and cons of solar energy. Scroll down for a more detailed look at solar’s advantages and disadvantages.
| Solar energy pros | Solar energy cons |
| Reduces your energy bill | High upfront cost |
| Creates renewable energy | Additional storage is expensive |
| Potential value added to property | May not suit your roof |
| Excess power can be sold back into the grid | Less production on overcast days |
| Low maintenance | Become less efficient with time |
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Advantages of solar energy
Investing in solar energy can provide many advantages — some of the biggest benefits of solar are below.
Reduces your energy bill
By generating your own electricity, you’re not using and paying for electricity that comes from the grid. During the day, your solar panels will generate energy that is used in real time to power any appliances, lights or technology you have around the home. Any excess energy can either be stored in a solar battery for night usage, or sold back to the grid (more on this later).
Creates renewable energy
Installing solar will reduce your reliance on the grid, meaning more of your electricity usage comes from a renewable source. For most of Australia, electricity is sourced from the National Electricity Market (NEM). The NEM consists of energy generated from a variety of energy sources, including coal, wind and hydro amongst others. A residential household can’t purchase electricity solely from a renewable energy generator, so creating your own renewable energy is the next best thing.
Potential value added to property
A survey conducted in 2022 by Origin Energy revealed that more than three-quarters of Australians (77%) considered a home with solar panels more valuable than a property without. And according to data from realestate.com.au, 81% of people looking to purchase a home consider sustainable features as critical in their decision-making. If your home already has solar installed, this can increase its appeal to energy-efficient home buyers and investors if and when you decide to put it on the market.
Excess power can be sold back into the grid
When you’re not using the energy generated by your solar panels, it’s either stored in a battery or exported back into the grid. For the latter, you’ll receive compensation on your power bill by way of a solar feed-in tariff (FiT). Feed-in tariffs are set by your energy retailers, although Victorians currently have a minimum FiT of 3.3 cents per kilowatt hour (c/kWh).
Current FiTs are generally between .1c and 6.0c/kWh depending on distribution network, energy company and customer tariff; however, some specialised solar plans offer higher rates, such as 10c-12c/kWh. Make your solar panels work to your advantage by factoring in your FiT when comparing electricity plans.
Low maintenance
Solar panels will generally only need attention every six months or so, mostly to clear them of any dirt build-up. Professional maintenance is also recommended by most solar panel installers, though this will only happen every few years and could be covered by your upfront payment. Be sure to ask your solar panel supplier about any out of pocket maintenance costs, and check out Canstar Blue’s guide on how to clean your solar panels.
Compare solar energy plans
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Ausgrid network in Sydney but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Citipower network in Melbourne but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Energex network in Brisbane but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on SA Power network in Adelaide but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Disadvantages of solar energy
Prior to investing in solar panels, it’s wise to familiarise yourself with the disadvantages of solar energy, such as:
High upfront cost
Upfront solar system costs aren’t cheap. There’s the cost of the solar panels themselves and then the cost of the solar panel installer. However, you may be eligible for a solar rebate depending on which state you live in.
Battery storage is expensive
Solar battery storage systems are priced by capacity, and like panels can be an expensive upfront investment. Starting from around $2,000 and reaching upwards of $20,000 for a higher capacity, battery storage systems are pricey, which can be a disadvantage for solar energy buyers on tighter budgets. The silver lining is that solar companies may offer discounts for customers who purchase solar panels and storage at the same time, so make sure you do your research before making a commitment.
May not suit your roof
The concentration of homes with solar panels decreases the closer you get to high-density cities. One contributing factor is the proximity of rooftops, which impacts the optimal positions for solar panels and limits a roof’s exposure to the sun. If you’ve got big trees or buildings nearby, your roof may also be partially shaded depending on the time of day. To determine the best positioning and options for your home, speak with a solar installer for professional advice before you make your decision.
Less production on overcast days
How much energy your solar panels generate will depend on how much sun is hitting them. On cloudier days, your solar panels won’t be working at max capacity, meaning you might have to make up the shortfall in electricity from the grid.
Become less efficient with time
As with any technology, solar panels and batteries will deteriorate over time. A disadvantage of solar panels is that they are directly exposed to the elements; while built with heavy duty materials and made to last, it’s estimated that solar panels decrease in efficiency by 20% in approximately as many years.
Batteries, while normally stored inside, will typically last for about 10 years before they begin to become significantly less effective. So make sure you check the warranty of your solar system to ensure the longevity of your investment.
Original reporting by Jared Mullane
Image Source: Mariana Serdynska/shutterstock.com
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