A new report from energy comparison site iSelect reveals which Australian cities offer homeowners the fastest return on solar investment – insights that could influence both property values and household affordability for mortgage clients.
The Solar Payback Report analysed solar installation costs, energy usage, system sizes, government rebates and Bureau of Meteorology solar exposure data to model how quickly solar systems pay for themselves across Australia.
Perth and Adelaide have emerged as the top performers for homeowners wanting a fast solar return.
For households using 4kWh per day, Perth offers the quickest payback period at around 4 years and 9 months – almost half the time it takes in Melbourne (eight years and 11 months). At mid-range energy usage (7kWh/day), Perth remains the best performer, paying for itself in just three years and 8 months.
For higher-usage households (10kWh/day), Adelaide leads, where systems can pay for themselves in as little as two years and 9 months, followed closely by Perth at three years.
iSelect noted that the findings highlight the way strong solar exposure, affordable system costs, and high retail power prices work together to accelerate payback periods in Perth and Adelaide.
The report shows that households using more of their solar power during daylight hours benefit from faster returns.
Homeowners who work from home or run high-energy devices like gaming systems or EV chargers can halve their payback period compared to lower-usage households.
Melbourne shows the largest difference, with high-use homes cutting their payback by up to four years and 10 months.
For a 6.6kW solar system paired with a 12kWh battery, Adelaide again tops the list with payback in five years and six months for high-energy households and eight years and six months for lower users. Sydney ranks second for both mid- and high-usage homes, thanks to high electricity prices offset by evening energy storage.
Government incentives such as the Cheaper Home Batteries Program, introduced in July 2025, are accelerating adoption, providing “around a 30% discount on home batteries” for eligible households.
The solar findings align with growing consumer appetite for energy-efficient upgrades, as highlighted in the latest PropTrack Origin Australian Home Energy Report.
More than half of Australians (56%) plan to improve their home’s energy efficiency within the next five years, motivated primarily by cost savings (68%) and sustainability (55%).
However, upfront costs and limited knowledge remain major hurdles – with 40% unsure how to make their homes more efficient.
A companion study – the PropTrack Origin Renter Reality Report – found renters face similar challenges, with 56% citing lack of control over their property as the biggest barrier to adopting energy-efficient features. Another 27% pointed to upfront costs, while 33% said their homes had no energy-efficient features at all.
For brokers, this rising demand creates new financing opportunities. Several major lenders now offer green home loans designed to support solar and energy-efficiency upgrades.
These initiatives help borrowers manage upfront costs while cutting long-term energy expenses – making solar and sustainability improvements more attainable for homeowners and investors alike.
As rising energy costs and sustainability priorities reshape homeowner behaviour, mortgage brokers are increasingly factoring in energy savings and green finance options when advising clients.
With more Australians ready to invest – and lenders offering targeted support – solar and energy-efficiency upgrades are fast becoming a mainstream financial consideration for brokers helping clients build sustainable, future-proof homes.
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