Is Solar Worth It in Tasmania in 2026? — A 2026 Guide

Yes, for most Tasmanian households, installing solar is a smart financial decision that can significantly reduce electricity bills. With the cost of power from the grid staying high, using your own solar power is much cheaper. The key is to use the power you generate during the day to maximise savings, as the price you pay for electricity is much higher than the modest amount you get for selling it back. A typical family home could see a solar system pay for itself in around 4 to 6 years.

How do I save money with solar in Tasmania?

You save money primarily through “self-consumption”—using the solar power your panels generate directly in your home. When your panels are producing electricity during the day, you can run your appliances like the washing machine, dishwasher, or heat pump without having to buy expensive power from the grid retailer, Aurora Energy.

Power you use yourself (self-consumption): This is where the biggest savings are. Every kilowatt-hour (kWh) of solar power you use is one you don’t have to buy, saving you roughly 28-30 cents.
Power you sell back (feed-in tariff): Any extra power your system generates that you don’t use is automatically sold back to the grid. From 1 July 2026, the regulated feed-in tariff is set at 9.276 c/kWh. While this provides a small credit on your bill, it’s clear that using the power yourself is worth about three times more than selling it.

The goal is to shift as much of your power usage as possible to daylight hours to make the most of the free energy coming from your roof.

What size solar system do I need?

For a typical Tasmanian home looking to cover current energy needs and prepare for the future, a system of around 13kW of panels paired with a 10kW inverter is now the smart choice. This is a step up from the 6.6kW systems that were common in the past.

Why this size? Many households are “electrifying” by adding an electric vehicle (EV), a heat pump for hot water, or an induction cooktop. These additions increase electricity usage, and a larger system ensures you have enough power to cover these future needs. In Tasmania, the network operator TasNetworks generally allows a 10kW inverter on a standard single-phase connection, which most homes have, so you likely won’t need an expensive three-phase power upgrade.

However, if you have a small household with very low electricity usage and no plans to get an EV or electrify your appliances, a smaller system might be a more suitable and cost-effective option.

How much does a solar system cost in Tasmania?

The upfront cost of a solar system is reduced by a federal government incentive called the Small-scale Renewable Energy Scheme (SRES), often referred to as the “solar rebate.” This isn’t a cash payment but an upfront discount on the system’s price. The amount of the discount depends on the size of the system and your location. Tasmania is in STC Zone 4, which determines the value of the incentive.

While final prices depend on the specific hardware and installer you choose, this federal incentive can reduce the total cost of a quality system by thousands of dollars, making the investment much more accessible for homeowners. Eligibility for this incentive depends on your specific circumstances and the system being installed.

Should I get a battery with my solar panels?

A battery can be a great addition, but it’s a decision that requires careful thought in Tasmania. A battery allows you to store your excess solar power generated during the day and use it during the evening and overnight, further reducing your reliance on the grid. This dramatically increases your self-consumption.

The main benefits of a battery are:

Evening Power: Use your stored solar energy at night instead of buying it from the grid.
Blackout Protection: A battery can provide backup power to keep your essential circuits running during a power outage.

From 1 July 2025, the federal Cheaper Home Batteries Program may be available, potentially offering a discount of around 30% on the cost of an eligible battery system. This could reduce the cost by roughly $250 per usable kWh for the first part of the battery’s capacity, with the discount rate changing for larger batteries.

However, it’s important to be realistic. In Tasmania, our relatively cheap grid power and fair feed-in tariff mean the payback period for a battery is longer than on the mainland, often in the range of 7 to 12 years, even with a potential subsidy. Unlike in other states, there are currently no real opportunities in Tasmania to earn extra income from your battery by selling its power to a Virtual Power Plant (VPP). The primary value here is in maximising self-consumption and having backup power.

What is the realistic payback period for solar and batteries?

For a solar panel system alone, a typical Tasmanian household that maximises self-consumption could expect the system to pay for itself in energy savings in approximately 4 to 6 years. This timeframe can be shorter if electricity prices rise or if your household is particularly good at using power during the day.

For a battery, the payback period is longer. Even with a potential federal rebate, you might be looking at a payback of around 7 to 12 years. The investment in a battery is often as much about energy independence and blackout security as it is about pure financial return.

Investment	Typical Payback Period (Tasmania)	Key Benefit
Solar Panels Only	4 - 6 years	Reduces daytime power bills significantly.
Solar + Battery	7 - 12 years (for the battery portion)	Reduces evening power bills and provides blackout protection.

Note: These are general estimates. Actual payback periods depend on your energy usage patterns, the final system cost, and future electricity prices.

What’s the final word?

For most Tasmanian homeowners, installing solar panels in 2026 is a clear financial win, offering substantial savings and a quick payback period by focusing on using the power you generate. A larger, future-proof system of around 13kW is the logical choice for those planning to electrify their home. Adding a battery is a bigger financial step with a longer payback, but offers the excellent benefits of energy independence and blackout security, with potential federal incentives making it more attractive. The key is to match the system to your home’s current and future needs.

This guide was written by the team at Solar Generation Tasmania. We’re locals who are always happy to help our fellow Tasmanians understand their solar options.

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Published by Solar Generation Tasmania. General information current as at publication — rebates, tariffs and prices change, so confirm current figures before deciding.