Solar Payback Calculator — New South Wales (2026)
New South Wales has the biggest installed solar base in the country and one of the most competitive installer markets. This calculator is pre-set with Sydney's 2026 install prices, tariffs and the IPART feed-in benchmark. Adjust any input and the result updates instantly. Figures are for New South Wales, Australia, in 2026.
In New South Wales, a 6.6 kW solar system pays back in about 2.8 years: it costs about $6,072 after the $1,801 STC rebate, generates about 9,570 kWh a year, and saves about $2,144 a year — roughly a 35% annual return and about $36,802 net over 20 years. Change your system size, power price and daytime usage below to recompute for your home.
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Your estimated payback
In New South Wales, a 6.6 kW system pays back in about 2.8 years, saving about $2,144 a year for a net cost of about $6,072 after rebates.
Estimate only — not financial advice. Figures are indicative and depend on your retailer, usage pattern and final install quote.
Solar payback in New South Wales in 2026
New South Wales is the heartland of Australian rooftop solar: it has the largest installed base of any state and, with that, one of the deepest and most competitive installer markets in the country. That competition keeps prices low — roughly $880 to $950 per kilowatt fully installed after the STC rebate in Sydney metro — so a quality 6.6 kW system lands around $6,000 net. Combined with high retail tariffs near 33 cents per kilowatt-hour, that gives a typical payback of about 2.8 years at 60% daytime self-use, putting NSW firmly in the fast-payback group.
NSW handles feed-in tariffs differently from the southern states. There is no mandated minimum; instead the Independent Pricing and Regulatory Tribunal (IPART) publishes a non-binding benchmark range — about 4.8 to 7.3 cents per kilowatt-hour for 2025–26. Retailers use it as a reference but set their own offers, so you will see headline rates both above and below the band. A word of caution that applies across the country and especially in NSW's crowded retail market: a high advertised feed-in tariff is often paired with a higher daily supply charge or a higher usage rate, so the plan with the biggest export number is not always the cheapest overall. Because exports are a minor contributor to payback in 2026 anyway, it is usually better to optimise for a low import tariff and high self-consumption than to chase the top feed-in headline.
Generation and self-consumption in Sydney
Sydney receives about 4.4 peak-sun-hours a day, giving a yield near 1,450 kWh per installed kW per year — solid, between Melbourne's lower figure and the sunnier northern and western capitals. As everywhere in 2026, the dominant lever on your payback is self-consumption: the share of your generation you use on-site instead of exporting. Running major appliances during daylight and timing pool pumps, hot water and EV charging for the middle of the day can lift self-use from 30% to 60% or more, shaving a year or more off payback at no extra hardware cost.
Rebates: STC, the ended battery rebate, and the VPP incentive
The federal STC rebate still cuts about $1,800 off a 6.6 kW system in 2026, and it is built into the net prices this calculator uses. NSW's upfront battery rebate has ended, but a virtual power plant (VPP) incentive worth roughly $1,500 remains for households that connect an eligible battery to a VPP and let it be dispatched at peak times. On top of that, the federal Cheaper Home Batteries rebate (~$252 per usable kWh from 1 May 2026) lowers battery capex nationwide. For a NSW household, a battery still typically lengthens overall payback versus panels alone, but the VPP incentive plus high evening tariffs narrow the gap and add bill-stability and resilience value. Toggle the battery on in the calculator to see the effect on your numbers.
The bottom line for a Sydney household: a deep, price-competitive market and high tariffs make NSW one of the better states for solar in 2026, with payback around 2.8 years — and self-consumption, not the feed-in headline, is what decides your return.
New South Wales solar figures — 2026
These are the indicative Sydney-metro defaults this calculator uses for New South Wales. You can override any of them above.
| Install price (after STC) | ~$920/kW ($880–$950 band) |
|---|---|
| Retail electricity price | ~33 c/kWh |
| Feed-in tariff | ~6.5 c/kWh (IPART benchmark 4.8–7.3c, non-mandatory) |
| Generation yield (Sydney) | ~1,450 kWh per kW per year |
| STC zone rating | Zone 3 (1.382) |
| Battery help | Federal ~$252/kWh + VPP incentive ~$1,500 (state upfront rebate ended) |
| Typical payback (6.6 kW, 60% self-use) | ~2.8 years |
New South Wales solar FAQ
How fast does solar pay back in NSW?
A 6.6 kW system in Sydney costs about $6,072 after the $1,801 STC rebate and saves roughly $2,144 a year at ~33c/kWh with 60% daytime self-use, paying back in about 2.8 years. High retail tariffs mean most of that return comes from self-consumed power.
What is the NSW feed-in tariff in 2026?
NSW has no mandated minimum. IPART publishes a non-binding benchmark — about 4.8 to 7.3 c/kWh for 2025–26 — that retailers use as a guide but are free to beat or undercut. Many of the highest headline rates come with higher supply charges, so compare whole plans, not just the export number.
Is there a solar or battery rebate in NSW?
The upfront battery rebate has ended, but a VPP incentive of roughly $1,500 remains for connecting an eligible battery to a virtual power plant. The federal STC rebate still applies to panels (~$1,800 off a 6.6 kW system), and the federal Cheaper Home Batteries rebate (~$252/kWh from 1 May 2026) applies to batteries.
Is solar worth it in Sydney in 2026?
Yes for most owner-occupiers. A ~2.8-year payback at 60% self-use, plus the country's largest and most competitive installer market keeping prices low, make NSW one of the more attractive states. As elsewhere, using your generation during the day is the key.
Compare with other states
Compare payback across every state on the hub. Queensland →
The neighbour: cheapest installs, strong sun, payback ~2.7 years. South Australia →
Highest power prices in the country; the high-tariff contrast. Victoria →
Feed-in floor scrapped in 2025; the slow-payback contrast (~4.4 years).
Methodology & sources
Data last verified: · formula_version 2026.1
This calculator uses the self-consumption-dominant model that reflects 2026 conditions. The formula is:
- STC rebate = system kW × zone rating (1.382) × deeming years (5) × STC price ($39.50)
- Net cost = system kW × install $/kW (your after-STC price); a battery adds its capex net of the Cheaper Home Batteries rebate
- Annual generation = system kW × generation per kW per year (Sydney ~1,450)
- Annual savings = self-used kWh × power price + exported kWh × feed-in tariff (+ battery arbitrage value)
- Payback = net cost ÷ annual savings
Worked example (New South Wales default): 6.6 kW × 1.382 × 5 × $39.50 ≈ $1,801 rebate. Generation ≈ 6.6 × 1,450 = 9,570 kWh/yr. At 60% self-use and 33c/kWh, plus 40% export at 6.5c, annual savings ≈ $2,144. Net cost ≈ $6,072 → payback ≈ 2.8 years.
Key solar terms, defined
- Solar payback period
- The number of years it takes for the money a system saves to add up to its net cost — net cost divided by annual savings.
- Self-consumption
- The share of the power your panels generate that you use on-site instead of exporting; the biggest lever on payback in 2026.
- STC rebate
- The federal small-scale technology certificate discount, claimed by your installer as an upfront price cut on the panels.
- Deeming period
- The number of future years of generation the STC scheme credits you for upfront — 5 years in 2026, dropping by one each year to 2030.
- Feed-in tariff
- What your retailer pays for surplus solar you export to the grid; in NSW guided by the non-binding IPART benchmark.
Sources
- STC price & deeming — Clean Energy Regulator (clearing-house $40 ex-GST; deeming 5 yr in 2026), pulled 2026-06-27.
- Install prices — SolarChoice Price Index, June 2026 (NSW $880–$950/kW).
- Electricity price — Canstar average price per kWh (NSW ~33c).
- Feed-in tariff — IPART NSW solar feed-in benchmark 2025–26 (~4.8–7.3c, non-mandatory).
- Generation yield — SolarChoice / Bureau of Meteorology peak-sun-hours (Sydney ~4.4 PSH).
- Battery rebate — DCCEEW Cheaper Home Batteries Program (~$252/kWh from 1 May 2026) + NSW VPP incentive ~$1,500.
We re-check these figures on a regular schedule and update the verified date only when a value genuinely changes. Estimate only — not financial advice.