Solar economics
How to reduce your electricity bill with solar
How Australian households can use solar, load shifting, batteries and tariff choices to reduce electricity bills without relying on hype.
Short answer
Solar reduces bills most when you use more of your own generation. The winning formula is right-sized panels, daytime load shifting, a sensible tariff and a battery only when the numbers or backup goals justify it.
Start a quoteUse solar while it is being made
The highest value solar energy is usually the energy you use yourself. Running pool pumps, dishwashers, washing machines, EV charging and hot water during daylight can improve the savings from the same system.
Exporting excess solar still helps, but feed-in tariffs are often lower than the retail price of grid electricity.
Size the system around real usage
A useful design starts with interval data or at least recent bills. It should look at weekday and weekend usage, seasonal changes, roof orientation and any future loads.
A 6.6 kW system might suit one home and be too small or too large for another. The number alone is not the design.
Check your tariff
Time-of-use tariffs can reward customers who avoid evening peaks, while flat tariffs can make savings easier to understand. The best tariff depends on the household pattern and whether a battery is included.
A quote should show the tariff assumptions used in the savings model. If it does not, the projected bill reduction is just a guess.
Add a battery for the right reason
A battery can shift solar into the evening, reduce peak imports and provide backup if designed for it. But it adds cost and should be modelled against the actual household profile.
For some homes, solar alone has the stronger payback. For others, the battery makes sense because evening usage, tariffs or backup needs justify it.
Keep watching after installation
Monitoring apps can show solar generation, grid imports, exports and battery behaviour. A few habit changes after installation can improve the return without changing hardware.
The aim is not just to own solar. It is to use the system in a way that lowers grid purchases over time.
Sources
Primary references used for this guide.
Rebate settings and certificate values change. Use these sources for live program rules before accepting a quote.
FAQ
What is the fastest way to reduce a power bill with solar?
Use high-energy appliances during daylight and choose a system size that matches actual usage and roof conditions.
Do feed-in tariffs still matter?
Yes, but they usually matter less than self-consumption because exported energy is often paid at a lower rate than imported electricity costs.
Do I need a battery to save with solar?
No. Many homes save strongly with solar alone. A battery should be added when the household numbers or backup goals support it.
Related guides
Keep reading.
Solar economics
Is solar worth it in Australia in 2026?
For most Australian homes, yes. A well-designed solar system typically pays for itself in three to six years, and every year after that is money saved. But whether solar is worth it depends less on system size than on how much of its power you use yourself.
Solar economics
Solar feed-in tariffs in 2026: why self-consumption matters
A solar feed-in tariff is the rate your retailer pays for excess solar sent to the grid. In 2026, the useful money is usually not in exporting more; it is in using more solar inside the home because exported solar is often worth much less than electricity bought back later.
Solar economics
Can solar give you a zero dollar electricity bill?
A zero dollar bill is possible for some homes in some billing periods, but it is not a promise. It depends on usage, weather, tariffs, export rules, fixed charges, battery behaviour and how the household uses energy.