If your household has a low power consumption, you might not need a very big solar panel system. In that case, a 3kW solar system should be considered.
What does a system like this cost, and what rebate can you expect to receive from the Australian government? Here is everything you need to know!
How many solar panels does this system require?
Most solar panels made for homeowners are between 330–425 W. This means that you will typically need around 7 to 10 solar panels to get a 3kW solar system.
Since the average solar panel measures about 1.7 x 1 meter, your 3kW system will normally require around 12 to 17 m2 of roof space. This makes a 3kW system a great choice for smaller homes with space limitations.
What does a solar system this size cost?
The average installation cost is around $4,290 if you choose a 3kW solar system. However, the exact cost will depend on your STC rebate, which will differ from area to area. For instance, a 3kW solar system will typically cost less in Perth than in Darwin.
Here is an overview of the average price for a 3kW solar system in different Australian cities:
| Adelaide, South Australia | $3,680 |
| Melbourne, Victoria | $4,030 |
| Darwin, Northern Territory | $5,570 |
| Perth, Western Australia | $3,130 |
| Brisbane, Queensland | $4,270 |
| Hobart, Tasmania | $4,960 |
| Canberra, Australian Capital Territory | $4,850 |
| Sydney, New South Wales | $3,880 |
Also, you should remember that the installation cost will depend on the manufacturer and the quality of your system. It is also worth noting that solar prices are getting lower. In the last eight years, the cost of a 3kW system has been reduced by around 50%.
Solar system rebates
The prices listed above are after applying the government STC rebate. When you install a solar panel system, you will generate Small Technology Certificates or STCs, and each of these has a value. This value decreases every year.
The amount of STCs will in other words affect the size of your solar rebate. And the bigger the solar panel system, the more STCs you will get. The amount of STCs will also depend on your location.
To be eligible for the government solar rebate, it is necessary to use products listed by the Clean Energy Council (CEC). You must also use a CEC-accredited installer.
Besides the government STC rebate, you may also receive a local state rebate. This may reduce your costs even more.
What is the power output of a 3kW system?
A 3kW solar system is relatively small compared to the typical 6.6 kW system that most Australians choose. But if your household uses small amounts of electricity, a 3kW system might do the job.
So, how much solar power will a 3kW system produce? This will usually depend on several factors, including the amount of shading, panel tilt and orientation, and the sun conditions in your area.
Your solar system will usually produce different amounts of power throughout the year. For instance, the system is expected to produce twice as much electricity in January, compared to July.
Here is the expected daily power output from a 3kW solar system in different areas:
| Hobart | 9.2 kWh |
| Perth | 12.8 kWh |
| Canberra | 11.5 kWh |
| Adelaide | 10.9 kWh |
| Sydney | 10.9 kWh |
| Melbourne | 10 kWh |
| Darwin | 14.2 kWh |
| Brisbane | 11.6 kWh |
Financial return: What is the payback period?
Because of the reduced electricity costs and the feed-in tariffs, you will save a significant amount of money by installing a solar panel system. The typical annual saving is $784.
If your daily energy usage is 15 kWh (a bit lower than the average Australian), the payback period will usually be between 3 and 7 years. The exact payback period will, of course, depend on several factors – including power consumption, weather conditions and where you live.
Here is the average payback period for a 3kW solar system in different Australian cities:
| Hobart | 6.5 years |
| Perth | 2.9 years |
| Canberra | 5.3 years |
| Adelaide | 4.1 years |
| Sydney | 6.0 years |
| Melbourne | 5.8 years |
| Darwin | 5.7 years |
| Brisbane | 5.7 years |
Is a 3kW solar system the right choice for you?
A 3kW solar panel system might be the right choice for you, especially if you use less electricity than the average Australian. The smaller 3kW system might also be relevant if your roof space is limited.
However, a 6.6kW system is the most popular choice among Australian households. If you use around 20 kWh of power a day, this might be a better option for you.
If you have any questions about which system you should go for, it might be a good idea to consult a CEC-accredited solar installer. The installer will help you to find the best system for your household (and your budget).