The true cost of cheap solar panels in Sydney

It’s tempting to jump at a bargain, especially for a significant investment like home solar panels. We’ve all seen the ads for a full 6.6kW solar panel system in Sydney for an incredibly low price. However, our analysis shows that these deals often cost homeowners thousands more in the long run through repairs, replacements, and lost energy production.

The upfront price for a “cheap” system masks the use of lower-grade materials and rushed installations. These systems are cheap for a reason: corners have been cut. This can include using Tier 2 or 3 panels with questionable reliability, a budget inverter prone to early failure, and subcontracting installation to inexperienced teams. In contrast, a quality system from a reputable provider, while having a higher initial cost, ensures peace of mind and reliable performance for decades.

Risks of buying cheap solar systems in Australia

Across Australia, the solar market has seen a flood of low-cost providers, many of whom have gone out of business, leaving customers with worthless warranties. One of the most significant risks is the high failure rate. Industry data has shown that as many as one in five systems inspected were found to be faulty or unsafe, a direct consequence of the race to the bottom on price.

Key risks associated with cheap solar panels include:

• Component failure: Budget systems often use unbranded panels and inverters that are not designed to withstand harsh Australian conditions, leading to issues like cracking, hotspots, and premature failure.

• Worthless warranties: Many budget solar companies disappear, leaving no one to honour warranty claims. Getting support from an overseas manufacturer without an Australian presence is often a difficult, if not impossible, task.

• Safety hazards: Rushed, poor-quality installations can lead to serious electrical and fire safety risks due to substandard wiring or mounting.

Hidden costs of budget solar panel installation in Sydney

A low sticker price can be deceptive. Homeowners are often surprised by extra charges that weren’t included in the initial quote. These hidden costs can quickly turn a “bargain” into a significant financial burden.

Common hidden costs we see include:

• Switchboard upgrades: Older homes in Sydney often have switchboards that don’t meet current Australian standards for solar installations. An upgrade can cost up to $2,000 and is a frequent oversight by installers who don’t conduct a proper site inspection first.

• Complex roof charges: Installing solar panels on a multi-storey house or a roof with a steep pitch requires additional safety equipment and labour, which can add hundreds of dollars to the final bill.

• Meter replacement: The electricity meter may need to be replaced or reconfigured to handle solar exports, another cost often omitted from cheap quotes.

AU Solar Panels’s Pro Tip: Always demand a detailed, itemised quote that explicitly states what is and isn’t included. A reputable installer will always perform a site visit or thorough remote assessment to identify potential extra costs, like a necessary switchboard upgrade, before you sign anything.

Cheap vs expensive solar panel performance degradation

All solar panels lose efficiency over time—this is known as degradation. However, the rate of degradation is a key difference between budget and premium panels. While a premium panel from a manufacturer like REC or SunPower might have a warranted annual degradation rate of 0.25%, a cheaper panel could degrade at 0.5% or more per year.

Over a 25-year lifespan, this difference is substantial. A premium panel might still operate at over 92% of its original capacity, while the budget panel could be functioning at 86% or less. This means less electricity generated and smaller savings on your bills, year after year. Furthermore, cheap panels are more susceptible to heat-induced performance loss; on a hot Sydney summer day, their output can drop by 10% more than a high-quality panel.

Common problems with cheap solar inverters in Australia

The inverter is the hardest-working part of your solar PV system, converting the DC power from your panels into AC power your home can use. It’s also the component most likely to fail, and this is especially true for the cheap, unreliable inverters often bundled with budget systems.

Common failures in cheap inverters are often due to:

• Overheating: Poor quality components are highly sensitive to heat. Without proper ventilation and robust build quality, inverters can fail, especially in a hot climate.

• Faulty installation: Incorrect pairing of the inverter with the solar panels’ capacity can cause premature failure.

• Short lifespan: While a quality string inverter from a brand like Sungrow is expected to last 10-15 years, a cheap one can fail in as little as two to five years, leaving you with a replacement bill of between $1,500 and $2,500.

Solar panel warranty issues with budget systems

A long warranty period can provide a false sense of security. Many cheap solar panels are advertised with a 25-year performance warranty, but this promise is often meaningless. If the installer or manufacturer goes out of business, there is no one left to honour the claim.

Furthermore, claiming a warranty from an overseas manufacturer without a dedicated Australian office is notoriously difficult. You may be left with a faulty system and no recourse. A reputable brand not only has a strong Australian presence for support but also offers a product warranty (covering defects) of at least 15 years, in addition to the performance warranty.

Case Study: A Family in Penrith The Sharma family was facing quarterly electricity bills of over $700. They installed a 6.6kW system with Trina panels and a quality Sungrow inverter for a total cost of $7,200. Their annual savings are now over $2,400, putting them on track for a payback period of just 3 years. Their last bill was only the daily grid connection fee, demonstrating the long-term value of investing in a reliable home solar panels system.

Unqualified solar installer risks in Sydney

The quality of the installation is just as important as the quality of the components. Unfortunately, companies offering rock-bottom prices often cut corners by using inexperienced or unaccredited subcontractors. In Australia, it is mandatory for solar systems to be installed by a Solar Accreditation Australia (SAA) accredited professional to be eligible for government rebates and ensure safety. Using an unaccredited installer not only voids your warranties but also poses serious risks of roof leaks, electrical faults, and house fires. Always verify your installer’s SAA accreditation before proceeding.

Beyond the individual installer’s credentials, it’s wise to vet the company selling you the system. Look for a Clean Energy Council (CEC) Approved Solar Retailer. This is a voluntary program where retailers commit to a strict code of conduct covering ethical marketing, responsible sales tactics, and industry best practices. Choosing a CEC Approved Retailer gives you peace of mind that you’re dealing with a reputable business that is committed to high standards of service and customer protection.

How to identify low-quality solar panels

While it can be difficult for a homeowner to judge a panel’s quality just by looking at it, there are several red flags to watch out for:

• No Australian presence: Check if the manufacturer has a registered office and support team in Australia. If not, warranty claims will be a major challenge.

• Unrealistic pricing: If a quote for a full system is significantly lower than the average market price (around $1,000 per kW for a quality system), it’s a strong indicator that subpar components are being used.

• Vague warranty terms: Look for a clear distinction between the product warranty (covering defects, ideally 15-25 years) and the performance warranty (covering degradation, typically 25 years). Cheap panels often have a short product warranty.

• High-pressure sales tactics: Reputable companies focus on value and long-term performance, not pressuring you into a cheap deal “that ends today.”

Investing in solar power for your home is one of the smartest financial decisions you can make, but only when done correctly. Choosing a quality system from a trusted, SAA-accredited installer ensures decades of reliable, clean energy and protects your family from the significant risks of “cheap solar.”

If you’re feeling overwhelmed, we can help. I can connect you with a trusted local expert who can provide a detailed quote for a high-quality, reliable solar system tailored to your needs.