We see the numbers every day—1 in 3 Australian homes now have rooftop solar installed. Can a solar power system reduce your electricity bill? The answer is absolutely yes, and we’re excited to share just how impressive these savings can be.

We’ve helped countless Brisbane homes and businesses discover that a well-sized solar system pays for itself in just 3 to 5 years while delivering up to $50,000 in lifetime savings. The financial benefits start from day one. When you use solar power in your home, you typically save 22–30 cents per kilowatt-hour (kWh), depending on your current electricity rates. Compare this to exporting excess energy to the grid, which earns significantly less—only 5–12 cents per kWh.

Our experience shows that solar power saves between $800 and $1300 annually on a standard 6.6kW system. Every kWh of solar energy your household uses directly means one less kWh purchased from the grid at retail prices. This becomes particularly valuable with time-of-use electricity pricing plans, where you can use your stored solar energy during those expensive peak periods.

With over 310,000 rooftop solar installations added across Australia in 2022 alone, more homeowners are discovering what we’ve known for years—solar power delivers real, measurable savings on electricity bills. We’re here to guide you through exactly how this works and what factors will affect your potential savings. Let’s explore how solar can brighten your financial future, one panel at a time.

How solar panels interact with your electricity bill

When you install solar panels, your electricity bill changes in a way that puts you in control of your energy costs. Instead of simply paying for all consumed electricity, you now produce your own power and interact with the grid as both a consumer and a generator.

Understanding self-consumption vs. grid export

Solar self-consumption happens when you directly use the electricity your panels generate in real-time. Every kilowatt-hour (kWh) of solar energy your household self-consumes means one less kWh of electricity purchased from the grid. This creates immediate savings on your bill.

The financial advantage becomes clear when you compare retail electricity rates to feed-in tariffs. If you pay 20-30c/kWh for grid electricity but only receive 5-10c/kWh for exported solar energy, using your solar power directly delivers substantially more value. Self-consumption saves you the full retail rate, while exporting only earns you the much lower feed-in tariff.

How much do solar panels save on electricity bills?

Your savings from a solar system depend on several key factors:

• System size and your household’s energy consumption patterns
• Your location and available sunlight hours
• Your electricity pricing plan (flat rate vs. time-of-use)

For most Brisbane homes, the payback period ranges between 3-5 years. The more solar energy you self-consume rather than export, the faster your system pays for itself. Homeowners typically find the best return on investment comes from matching solar system size to their daytime energy needs.

What happens to excess solar energy?

When your panels produce more electricity than you’re currently using, the surplus flows back into the grid. Net metering arrangements provide credits on your bill for this exported electricity. These credits help offset electricity costs during times when your system isn’t generating enough power to meet your needs.

Feed-in tariffs vary considerably across different locations and retailers. In NSW, the benchmark rate sits between 4.8 to 7.3 c/kWh for 2025-26, while some retailers offer rates up to 12 cents per kWh. Your area might occasionally experience export limits or grid voltage issues that could curtail (waste) excess solar energy. The wholesale electricity price during midday has also declined in recent years due to the growing number of solar systems feeding into the grid.

Why using your own solar power saves more

The economics of solar power revolves around a simple principle: self-consumed solar electricity is worth much more than exported electricity. Understanding this difference is key to getting the most from your solar investment.

Feed-in tariffs vs. retail electricity rates

Feed-in tariffs (what you’re paid for excess solar energy) sit substantially lower than retail electricity rates (what you pay to buy electricity). Typically, feed-in tariffs range from 5-12 cents per kilowatt-hour (kWh), whereas retail electricity rates range from 20-35 cents/kWh. This price gap creates a compelling financial case for using your solar power rather than selling it.

Consider this example: with a retail tariff of 31c/kWh and a feed-in tariff of 11c/kWh, each kWh of self-consumed solar saves you 20 cents more than exporting it. The difference between these two rates represents your true savings opportunity.

How does solar power reduce your electricity bill?

Solar power cuts your bill through avoided purchases rather than credits. When your panels generate electricity that you use directly, you avoid buying that electricity at retail rates. For instance, if your solar system generates 2kWh while you’re consuming 5kWh, you’ll only pay for 3kWh from the grid.

Despite common misconceptions, exporting to the grid doesn’t maximize savings. As one network provider notes, “The biggest impact you can have on your bill is shifting your usage so that you are using up your solar energy whilst the sun is shining”. Self-consumed solar energy is worth 5-7 times more than exported energy.

Tips to increase daytime usage

Maximizing savings comes down to smart timing. Here are practical strategies for increasing daytime electricity usage:

• Set timers on high-energy appliances: Program washing machines, dishwashers, and dryers to run during peak solar production (typically 10am-4pm in summer and 11am-2pm in winter)
• Adjust your pool pump schedule: Set pool pumps to operate during daylight hours instead of overnight
• Pre-cool or pre-heat your home: If well-insulated, cool or heat your home during peak solar generation to reduce evening energy needs
• Use delay start features: Many modern appliances have delay start functions allowing you to load them in the morning but run them during peak solar hours
• Charge electric vehicles during the day: If you own an EV, charge it when solar output is highest

Strategically shifting your electricity usage to daylight hours (load shifting) maximizes self-consumption and consequently your solar savings. Small changes to your daily routine can make a significant difference to your electricity bills.

How batteries and smart systems boost savings

Batteries unlock new levels of savings from your solar investment. These smart storage systems create multiple pathways to reduce your electricity bills beyond what panels alone can achieve.

Storing solar energy for night use

Most households with solar panels use approximately 25% of the energy they generate, whereas adding a battery increases this to 50-60%. Your battery stores excess daytime solar production for evening use, helping you avoid purchasing expensive grid electricity after sunset. While batteries require an upfront investment, they fundamentally change how your home interacts with the grid by enabling around-the-clock use of your own solar energy.

Using time-of-use tariffs to your advantage

Time-of-use (TOU) tariffs offer variable electricity prices throughout the day—typically lowest midday and highest during evening peaks. Your battery system enables “tariff arbitrage”. This means charging your battery with cheap off-peak electricity (either from solar or grid) and discharging during expensive peak periods. Modern energy management systems automate this process by programming your utility’s TOU schedule directly into the system.

Participating in virtual power plants

Virtual Power Plants (VPP) connect your home battery to a network of other batteries, all working together like a single power source. VPP participation delivers financial benefits including:

• Reduced electricity prices (sometimes 25% below market offers)
• Increased feed-in tariffs
• Upfront battery discounts
• Regular payments or even “zero bill guarantees”

Reducing peak demand charges

Many electricity plans include charges based on your highest power usage. Batteries discharge during these peak periods, reducing demand from the grid and lowering these charges. Additionally, batteries provide backup power during outages when configured for emergency use.

What affects your total savings with solar?

Several key factors determine exactly how much your solar power system will reduce your electricity bills. At SolarThoughts®, we believe in transparency and honest advice, so we’ll walk you through these important considerations to help you make the best decision for your Brisbane home or business.

System size and household usage patterns

The relationship between system size and your energy consumption patterns directly impacts your savings potential. We’ve found that an appropriately sized system matched to your household needs delivers optimal financial returns. An undersized system won’t adequately offset your consumption, while an oversized system may export excessive energy at those low feed-in tariff rates.

Our team always recommends sizing your system based on your specific consumption habits. Smaller 2kW systems suit low-consumption homes but won’t eliminate bills entirely. Mid-range 10.5kW systems can cover most needs for average family homes. For households with high energy demands from pools, electric vehicles, or extended family arrangements, larger 19.5kW systems provide substantial surplus energy. We handle the analysis and matching process with care and precision.

Location and sunlight availability

Geographic location substantially influences solar system performance. Australia leads the world in per capita household solar installation, and we’re proud that approximately one in three homes now have solar panels. This popularity stems partly from Australia’s abundant sunlight compared to other regions globally.

Your specific location within Australia affects generation capacity and consequently your savings. We know that in areas with stronger and more consistent sunshine, even smaller systems can produce sufficient energy. This geographic advantage translates directly into greater bill reductions and faster return on investment—something we see regularly with our Brisbane installations.

Billing type: flat rate vs. time-of-use

Your electricity pricing plan significantly affects potential solar savings. We help our customers understand two primary options:

• Flat rate tariffs charge the same amount per kWh regardless of when you use electricity. Using 20kWh at 30c/kWh would cost $9.17. These plans offer predictability but less opportunity to maximize solar benefits.
• Time-of-use tariffs vary rates throughout the day—higher during peak periods and lower during off-peak times. Some also include “shoulder” periods with intermediate rates. TOU plans can increase solar savings by 10-20% without reducing actual usage, especially for households with flexibility in their consumption patterns.

How much money do you save with solar panels Australia?

The financial impact varies widely based on the factors above, yet most Australian households experience significant savings. RACV Solar estimates a 6.6kW system can save approximately $1,834.79 annually, while a typical Victorian household saves about $1,640.61.

Lifetime savings over a 25-year period typically range from $30,579.80 to $76,449.51. Most systems achieve payback within 3-7 years, after which all energy savings represent direct financial benefit. We’ve seen many Australian homes achieve near-zero electricity bills across much of the year. SolarThoughts® is here to guide you through these possibilities and help you understand what’s realistic for your specific situation.

Conclusion

A solar power system is one of the most effective ways to reduce electricity bills for Australian households. By increasing solar self-consumption, choosing the right solar panel system size, and using smart energy habits, homeowners can achieve long-term savings. Adding battery storage and time-of-use plans can further improve solar savings while reducing dependence on the grid. With Brisbane’s strong sunlight and rising power costs, investing in solar panels is a smart and future-ready decision.

Looking to reduce your electricity bills with solar panels in Brisbane? Contact SolarThoughts® today for a personalised solar power system assessment and find out how much you can save on your energy costs.