Choosing to go off-grid with solar power is a big investment, offering true energy independence. The total cost can vary widely depending on a number of factors, including the amount of electricity you use, the type of equipment, your location, and available rebates. A smaller setup might run between $20,000 and $30,000. Mid-sized systems tend to land between $35,000 and $45,000, while larger installations can reach up to $65,000. In this guide, we’ll break down the major costs, what influences them, and help you determine whether going off-grid makes sense for you.
Off-Grid Solar System Explained
An off-grid solar system is an alternative energy source solution that allows your household or business to power its electrical appliances without a connection to the main electricity grid. The grid refers to the infrastructure that allows us to buy electricity for our homes. Going off-grid means you are entirely self-sufficient, with solar batteries and back-up generators ensuring you have enough energy to sustain yourself.
Off-grid solar systems have grown in popularity as a way to generate your own power, which eliminates electricity bills amid rising energy costs. They are also a great way for rural or isolated communities with limited access to electricity infrastructure to generate and power their home themselves.
Components of an Off-Grid Solar System
The components that form an off-grid solar system include the following:
- Solar Panels
Devices that absorb sunlight and convert it into DC (Direct Current) electricity. Your capacity, or number of solar panels, will depend on your energy consumption and the amount of sunlight in your area. It will also depend on the size of your roof. If additional space is needed beyond the rooftop, consider free-standing solar panels, depending on the size of your property. - Solar Batteries
Batteries are central to the success of going off-grid. These devices store all of the excess energy your panels create. This allows you to continue using your home appliances when you’re not generating solar energy, such as at night. - Solar Inverters
Devices that convert your DC solar electricity from your panels and battery into AC (Alternating Current) electricity, which is the type used to power your home. - Solar Charge Controller
Essential for the effectiveness of both your solar panels and batteries. A Solar Charge Controller regulates the rate at which an electric current is added to or drawn from your batteries to avoid overcharging. Helps to maintain the lifespan of your battery and ensures the overall efficiency and safety of your off-grid system. - Backup energy source
Occasionally, your solar system may not be enough to meet your energy needs. In these instances, it’s important to consider a backup energy source, such as a generator. These devices are typically fueled by diesel, propane, or natural gas to provide secondary power.
How Much Does an Off-Grid Solar System Cost?
The total cost of your solar system will likely vary depending on the size you choose, as well as the quality of the components and your location. The following provides estimated total costs for an off-grid solar system based on approximate sizes. These estimates include solar panels, batteries, a solar charge controller, and a solar inverter:
- Smaller system – $20,000 to $30,000
This size is ideal for lower energy users and smaller households. It typically consists of a 3-5 kW solar system, an 8-10 kWh battery, and a 3-5 kW inverter. A 3 kW solar system will cost approximately $4,500, while a 10 kWh battery can cost up to $9,700, and a 3-5 kW inverter is priced at around $5,000. Costs may be higher with additional inclusions, such as a backup generator. - Medium system – $35,000 to $45,000
If you consume between 15 kWh and 20 kWh per day on average, this system should meet your entire power needs. It’s ideal for average-sized dwellings or medium-usage households. This setup includes 6 kW of solar panels, a 20 kWh battery, and a 5-10 kW inverter. Costs for this system typically range from $35,000 to $40,000. - Larger system – $50,000 to $65,000
This system is suitable for larger households with high energy consumption that want full energy independence. A home using around 35 kWh per day would require a 10 kW solar system, a 30 kWh battery, and a 10-15 kW inverter. Costs usually range from $50,000 to $65,000 and may be higher if you’re aiming to power a business or cover your entire property’s energy needs.
Importantly, these cost figures have been averaged without considering any rebates or incentives, which can reduce your upfront costs by 30%. Please read on for more information on how specific factors, such as rebates, can influence your total cost.
Factors Influencing Off-Grid Solar System Cost
The following factors will influence the total cost of your off-grid solar system:
Considering Rebates and Incentives
Checking available solar incentives, rebates, and credits is a great way to reduce your overall system price. These rebates are available at both the federal and state levels to support your installation.
Within Tasmania, you will have access to the Energy Saver Loan Scheme, which provides interest-free loans to ensure you are better prepared to cover the upfront costs. The loans can range from $500 to $10,000, with a repayment period of up to 3 years.
Tasmanians are also entitled to the federal government’s Small-scale Technology Certificates (STCs) program, which allows eligible households to receive an upfront discount on the cost of their solar panel and battery systems. These STCs can reduce upfront costs by approximately 30% for each component as long as you meet their eligibility criteria. Particularly with the different components of an off-grid solar system, combining your rebates is a great way to benefit yourself. For instance, you may reduce the upfront cost of your battery under the “Cheaper Home Batteries Program,” and then use an interest-free loan to pay it off over time. For more information on applying for rebates, contact our knowledgeable team at Tasmanian Safer Solar (TSS) here for more information.
System size and energy consumption
Your system size is directly proportional to your electricity consumption. Households with higher consumption levels will require more solar panels to generate enough power, and a large capacity battery to store energy for use when the sun isn’t shining. Therefore, you’ll have to spend greater amounts to account for this higher energy consumption.
Quality and Efficiency of Components
If you choose to focus on higher-quality and more efficient system components, this will typically involve a higher cost. Although more expensive upfront, investing in higher-quality components will result in more efficient power generation and a longer system lifespan, leading to greater long-term savings.
Installation costs
When determining your total costs, you should also factor in additional expenses for installation. This will include factors such as labour costs, permit applications, and additional equipment such as mounting structures, wiring or repairs. Your installation costs will generally vary depending upon your location, the complexity of your system and the chosen installer.
Maintenance and upkeep
Because you are fully dependent on your solar system to power your home, general maintenance should be of added importance. This will ensure you maximise the lifespan of your system and ensure every component is working consistently and reliably. Electrical checks should be carried out to identify any lingering faults, with a professional clean of your solar panels to eliminate any accumulated dust or debris to maximise performance. Overall, we recommend a general maintenance of your entire system every two years, with a routine checkup setting you back between $200 and $1000.
Location
Because your off-grid system is entirely dependent on generating solar energy from the sun, it’s important to factor in your location. If you have plentiful access to direct sunlight, you won’t need to rely on battery storage and larger solar panels to satisfy your energy requirements. Even if two homes have identical energy usage, if one property has less sunshine, you will need a larger solar panel and a higher capacity battery to power your home usage. This added sizing will increase costs, as Tasmanians who live in regions susceptible to overcast conditions should expect to pay more for an off-grid solar system.
Is An Off-Grid Solar System Right For You?
There’s no straightforward answer to whether going off-grid is worth it for you. As previously mentioned, if you’re living in an isolated region with no access to the grid, then choosing to go fully off-grid could be worthwhile. Furthermore, if your electricity bills are increasing at an exorbitant rate or you are suffering from frequent power outages, then deciding to go off-grid could also be a smart decision.
However, unless you have a strong reason to invest in an off-grid system, it may not make logical, economic sense to invest. When compared to a grid-connected system, off-grid is at least two to three times more expensive, because of the larger batteries and additional pieces of equipment. Once your investment is paid off, you do have access to free energy; however, the payback period will be considerably longer than a grid system because of the additional upfront costs.
There are also other issues to consider. Once your off-grid system is installed, you will require more maintenance than a grid-based system, which leads to greater costs. There’s also the added stress of potentially running out of electricity, requiring changes in how you use power to ensure your system operates efficiently.
By disconnecting from the electricity grid, you are potentially redefining your way of living. For those seeking a viable solution for isolated regions and greater energy autonomy, making this investment could be worthwhile. However, with costs for a medium-sized system at over $35,000, your decision to go off-grid should require careful consideration. Ultimately, consulting with your trusted solar installer will allow you to determine whether an off-grid system is suitable for you. Our helpful team at TSS are always ready to help, and you can contact us here for more information.
*This article refers to the Energy Saver Loan Scheme, which closed to new applications in September 2025
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