Taylor Troeth, Property Journalist
First published 27 Oct 2025, 3:58pm
Environmentally-friendly homeowners now have the upper hand in the property market, new data reveals.
Aussie ecowarriors who are putting sustainability at the forefront of their homes are now adding an estimated $23,100 nationally onto the value of their homes simply by adding solar, according to a Commonwealth Bank supported report.
On top of that, more than four in five Australians are prepared to pay extra for homes featuring energy saving technologies, according to Green.com.au.
While many are deterred by the cost to install, a new analysis from iSelect revealed it can take less than three years to get the return on your solar investment, which in some cities can cost you less than $5000.
Solar panels can add upwards of $23,000 to the value of your home, while also slashing bills.
Aussies are also making huge savings, with homeowners in some major cities saving more than $2000 per year on their energy costs.
iSelect has revealed where in Australia you will see the fastest returns when adding solar to your home by reviewing solar panel prices, government rebates, local solar exposure data from the Bureau of Meteorology, average retail electricity and feed-in tariff rates.
The analysis has revealed Perth homeowners have the fastest return on investment for solar panels without a battery using 4kW per day, where systems pay for themselves in about four years and nine months.
The payback period shortens with higher consumption – Perth properties using 7kW per day can see a return in just three years and eight months, while those using 4kW per day in about four years and nine months.
Perth also has the lowest cost across most system sizes, making it one of the most affordable states to invest in solar, except for 10kW systems.
Adds an estimated $14,939 (2.1 per cent) to the property value in Perth and $22,594 (4 per cent) regionally.
For households using 10kW per day, Adelaide homes take the lead with solar paying itself off in just two years and three months.
Adelaide households with high-energy usage can save up to $3019 in a year once their solar-plus-battery system is paid off – the highest in Australia. This is followed by Darwin ($2611) and Sydney ($2596).
The payback period shortens with higher consumption – homes using 7kW per day can expect repayment in three years and eight months, while those consuming 10kW per day can see a return in just three years.
While solar with a battery takes longer to pay off upfront, the long-term rewards are greater. Adelaide also has the second best savings potential of more than $2050 per year.
Adds an estimated $14,093 (1.7 per cent) to the property value in Adelaide and $22,272 (4.7 per cent) regionally.
Perth and Adelaide are among the top best cities to invest in solar, according to iSelect.
In regional Northern Territory, solar added an estimated 6.9 per cent to the median house value, about $31,350, reflecting high energy demand for cooling and heating as well as abundant sunlight, according to a Commonwealth Bank and Cotality solar report.
Although Darwin had the largest upfront cost for a solar system and battery costing an estimated $21,392, it would add about $20,331 to the value of the house.
Even without a battery, Darwin households using 10kW of energy a day can save about $2143 in a year once their solar is paid off.
Based on Bureau of Meteorology data, the Northern Territory unsurprisingly tops the list for year-round solar exposure.
Sydney ranks second for both mid and high-range usage with the quickest pay back in just six years and 11 months for 7kw per day and six years and one month for 10kW per day.
Sydney and Adelaide lead for payback with batteries, due to high electricity prices, which they avoid paying by storing solar power for evenings.
Solar power systems add an estimated $19,179 (1.6 per cent) to the property value in Sydney and $23,568 (3.7 per cent) regionally.
In Brisbane, solar panel systems are estimated to add about $30,219 to the value of the house.
When it comes to the amount of how long it will take to pay off, Brisbane sits in the middle of the range.
Brisbane has one of the higher savings amounts for solar systems with a battery, just behind Adelaide, Darwin and Sydney.
During payback, the savings are between $1616 and $2645 depending on the size of the system.
For a higher range household without a battery, it will take about three years and nine months to pay off.
In regional Queensland, solar power systems add an estimated $28,100 (3.6 per cent) to the value of a property.
iSelect reveals whether it is worth installing solar.
Melbourne had the cheapest upfront cost across the country for just a solar system with no battery at $4870, according to iSelect. For the higher range 10kW per day it would take just over four years to pay off.
At the lower end of the rankings, Melbourne households still benefit although they see the smallest amount of total long term energy savings at a max of $1721 per year.
Lower solar exposure and cheaper retail electricity rates both contribute to the smaller long-term return in Victoria.
While that is smaller compared to sunnier states, it is still a significant return once systems are paid off.
Solar power systems add an estimated $24,369 (2.8 per cent) to the property value in Melbourne and $18,892 (3.1 per cent) regionally.
Hobart sees the slowest returns for mid- and high-range usage. At 7kW per day, it takes about six years and seven months to pay off, while 10kW per day takes five years and nine months.
This is because Hobart has a high cost for solar systems and despite a relatively high feed-in tariff rate, electricity prices and solar exposure are the lowest in the country.
Despite this, it is estimated to add about 5.4 per cent, or $30,500 to the value of the home.
Tasmania also has one of the highest and most consistent feed in tariffs, with standard rates at 8.78 per kWh.
In regional Tasmania, solar power systems add an estimated $18,232 (3.1 per cent) to the value of a house.
Canberra offers the lowest installation cost when it comes to a 10kW system at a rate of 75c per watt.
Canberra households can also make a decent saving of $1547 per year with a 10kW system without a battery, or $2157 with a battery.
Solar power systems add an estimated $23,285 (2.1 per cent) to the property value in the ACT.
iSelect analysis of payback periods. Picture: iSelect
iSelect analysis of payback periods. Picture: iSelect
Savings for solar without a battery. Picture: iSelect
Savings for solar with a battery. Picture: iSelect
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