That solar power systems save homeowners money is not in question, but how much money can you realistically expect to save by installing a solar solution at home? To accurately answer that question, take the following factors into consideration:

Your Household’s Average Energy Consumption

Look at the back page of your most recent power bill where the amount of energy consumed is shown in kilowatt hours (kWh) to determine how much electricity your household currently uses. A household with large energy demands usually requires a solar power system in the 5KW range (or higher) which generates between 18kW/h – 25kW/h. Contact us to learn whether there are any regional limitations to the size of the solar power system that you can install in your area.

Your Usage Patterns

Solar power systems use the clean, natural energy they produce during the day before drawing power from the grid, with any excess energy produced directed back into the grid. This helps to offset your energy bills as your energy provider will credit you for the energy fed back into the grid by your system.

The Size Of the Solar System Installed

Choosing a solar power system that’s ideal for the size of the property and your household’s consumption behaviour is essential if you are to maximise the amount of money you save on your power bills.

Consequently, you need to select a solar power system that is large enough to maximise your ROI by covering your household’s energy needs and reducing your payback period, without exporting an excessive amount of surplus energy back to the grid. Now that feed-in tariffs have dropped, you could find yourself selling the excess power your system produces to your energy provider for significantly less than they charge you for the electricity you use.

Your Feed-In Tariff Rate

If you have the option of shopping around to secure the best feed-in tariff rates on offer be sure to do so, as rates vary between energy providers as well as state-to-state. Most homeowners who sign an agreement with their energy provider are offered a feed-in rate of 8c/kWh, but it may be possible to secure a better tariff by comparing the rates on offer.

Before you start calculating how much money you stand to save by installing a solar power system, ensure you have confirmed exactly how much you will be paid for the power your system feeds back into the grid.

Your Geographic Location

Although Australia has a higher solar radiation rate than any other continent, some regions enjoy a higher radiation rate than others, so there’s a greater opportunity to harness more of the sun’s power in some areas than there is in others. This means your geographic location influences how much energy your solar power system can produce, which in turn determines how much money you stand to save on your power bills.

For example, as Queensland has a higher solar radiation rate per square meter than Victoria, a solar power system installed in a Brisbane home will yield more solar energy than the same unit installed in a home in Melbourne. This means a 3kW unit installed in an area with strong solar radiation may produce as much solar energy as a 4kW unit in an area with less solar radiation.

To get an idea of how much a 3kW system saves on average annually, take a look at the table below. The two values listed illustrate the average savings homeowners received based on the export of 5% and 25% of electricity.

Annual FIT & offset value based on a 3kW system

Location Based on 5% electricity
Based on 25% electricity
Victoria $866 $750
South Australia $1226 $1162
Queensland $1146 $1060
Western Australia $1128 $1030
New South Wales $1126 $934
ACT $950 $788
Tasmania $866 $750
Northern Territory $1046 $938


The annual FIT & Offset values estimations listed above are provided by the Clean Energy Council of Australia.