If you’re considering solar, one of the first questions you’ll want to ask is: “How long until it pays itself off?”
That’s where the solar payback period comes in.
What is a solar payback period?
The solar payback period is the amount of time it takes for your electricity bill savings to equal what you paid for your solar system.
Once you’re past that point, every dollar you save on electricity is real surplus savings you wouldn’t have had without solar.
Example
If you pay $6,000 for a 10kW solar system and it saves you $1,500 per year on power bills, your payback period is 4 years.
From year 4 onwards - up to the typical 20-25 year lifespan of the system - those annual savings are money back in your pocket.
What factors influence the payback period?
Several variables affect how quickly your system pays itself off, including:
- The size of your solar system
- How much energy it produces
- Your electricity cost per kilowatt-hour (kWh)
- The upfront cost of the system
- Your self-consumption rate (how much solar you use yourself)
No two homes are the same, which is why payback periods can vary.
Read more: Electricity bill tariffs: flat rates and demand charges
What is the average solar payback period in Queensland?
In Queensland, the average solar payback period is 3-5 years.
A word of advice: while cheaper systems can appear attractive due to a shorter payback on paper, low-quality components increase the risk of failures, repairs, or early replacement. In that scenario, you may never fully recoup your investment.
With solar, price is often an indicator of quality. A well-designed, high-quality system will not only pay itself off, but continue delivering savings for decades.
How do I calculate my payback period?
Your solar quote should include a payback estimate that accounts for factors like energy price inflation, system performance, and panel degradation.
For a simple estimate:
- Take the net system cost (after rebates)
- Divide it by your estimated annual savings
That gives you the number of years to reach payback.
How to improve my payback period?
The biggest lever is self-consumption - using as much of your solar energy as possible.
Feed-in tariffs today are typically under 5c/kWh, so exporting excess power isn’t nearly as valuable as using it yourself. Practical ways to improve self-consumption include:
- Cooking while the sun is up
- Running heating and cooling during the day
- Charging your EV during daylight hours
- Running pool pumps and cleaners during the day
- Doing laundry while solar is producing
Most modern appliances allow timers, so these habits can work even if you’re not home.
Read more: Peak vs off-peak power in Australia
How do batteries impact my payback period?
Adding a battery increases upfront cost, but with federal rebates and the importance of self-consumption, batteries don’t hurt payback as much as many expect.
In Queensland, the average payback period for solar paired with a 16kWh battery sits around 4-6 years.
By storing excess solar and using it later, batteries help maximise your savings - especially as grid electricity prices continue to rise.
Read more: Best solar batteries 2026
Springers Solar | Queensland's Most Experienced Solar Installer
Springers Solar provides quality components with proven performance, backed by industry-leading warranties, and dedicated after-sales support. Thousands of satisfied customers over more than 23 years of operation make Springers Solar one of the most established and experienced solar companies in Australia.
Springers Solar has received multiple awards for design and installation and is a certified/preferred installer for a large range of solar panel, inverter, and solar battery manufacturers, including Sungrow, Tesla, and Sigenergy.
Our dedicated in-house team of electrical engineers, project managers, solar PV designers, solar installers, and electricians work closely with you before, during, and long after your project is completed. Springers Solar offers an industry-leading 10-year workmanship warranty which is a testament to our qualified staff and offers you outstanding value and peace of mind.
Solar Payback Period Explained