Is Solar Still Worth It in Australia?
Feed-in tariffs have dropped sharply, but the case for rooftop solar is stronger than ever. Here's how the numbers actually stack up in 2026.
A few years ago the conversation was simple: install solar, export everything, get paid 40-60c/kWh. That world is gone. Most South Australian retailers now pay 3-5c/kWh for exports, and some offer nothing during the middle of the day. So is solar still worth it? In short — yes, but the payback now comes from self-consumption, not export. The system you install today needs to be designed around when you actually use power, not around how much you can shove back into the grid.
What's changed
Wholesale electricity prices during the middle of the day routinely fall to zero (or go negative) across the National Electricity Market because of the sheer volume of rooftop solar on the grid. Retailers respond by paying tiny feed-in tariffs, and some networks now curtail exports entirely on sunny days.
At the same time, retail electricity prices in SA are among the highest in the country — typically 35-45c/kWh for residential customers. That gap between what you'd pay to import (high) and what you'd be paid to export (low) is the new economic reality of solar.
The maths today
A typical 6.6kW system in Mount Gambier produces around 9,500 kWh per year. The bigger the share you self-consume versus export, the better the return — with today's low feed-in tariffs, savings come from using your own power, not selling it back. Payback periods on a well-designed install at this size are still strong, but the exact figures depend on your tariff, usage pattern and final system design. Every job is quoted on its own specifics.
Larger systems (10-15kW) cost more per kW but produce proportionally more, and on a typical SA family home with battery and EV charging on the horizon, oversizing the array is usually the right call. Solar panels are now the cheapest part of the system.
Where solar is a no-brainer
Homes with daytime occupancy (work-from-home, retirees, families with young kids). Properties with pool pumps, ducted air-conditioning, heat-pump hot water, or EVs. Businesses that operate Mon-Fri 9-5 — almost all your consumption is during peak solar generation. Off-grid and weak-network properties where every kWh you self-generate avoids an expensive grid extension.
Where to be careful
Holiday homes or rental properties where nobody is home during the day and there's no battery — you'll export almost everything for 4-5c. Heritage roofs or sites with heavy shade where production drops 30-50% below the panel rating. Anyone being sold a tiny 3-5kW system 'because that's all your roof needs' — modern households almost always benefit from going bigger and pairing with battery later.
Key takeaways
- Self-consumption is the new feed-in tariff — design the system around your usage.
- Payback on a well-designed SA system is strong, but always depends on final quoting and your specific usage.
- Oversize the array now; panels are cheap and you'll thank yourself when the battery or EV arrives.
Sources & further reading
- SolarQuotes — Solar payback in Australia
- Clean Energy Regulator — Small-scale renewable scheme
- AEMO — Quarterly Energy Dynamics
This article is general information only. Figures change with policy, tariffs and product pricing — for a current quote tailored to your home, start an assessment or contact our team.