The short answer: most Australian households save between $1,500 and $4,500 per year. But your actual savings depend entirely on your usage, your tariff rate, and what size system you install.
This guide walks through a real calculation so you can see exactly how solar savings are worked out — and how to find out what your home would save.
Why "Average Savings" Numbers Are Misleading
You'll see a lot of solar companies advertising "save up to $2,000 a year" or "cut your bill by 80%." These figures are almost meaningless without context.
A household using 10 kWh per day on a flat tariff in Queensland will have completely different savings to a household using 35 kWh per day on a time-of-use tariff in Victoria.
The only way to get an accurate savings estimate is to start with your actual electricity bill.
A Real Savings Calculation — Step by Step
Let's work through a real example.
This household would go from paying $3,420/year to paying around $0 — and actually earning a small credit in the summer months.
What's the Payback Period?
A 13.2kW system in NSW typically costs $10,000–$14,000 fully installed after the STC government rebate.
At $3,475/year in savings, that's a payback period of roughly 3.5 to 4 years.
After payback, the system generates essentially free electricity for its remaining 20+ year lifespan. Given that electricity prices have increased an average of 5% per year over the past decade, locking in your own generation becomes more valuable every year.
What Affects Your Savings the Most?
1. Your electricity tariff
The higher your tariff, the more valuable every kWh of solar you use directly. Households on tariffs above 35 cents/kWh see the best returns from solar. Tariffs vary significantly by state and retailer — NSW and VIC households generally pay more than QLD, which improves the savings case.
2. When you use power
If you're home during the day — working from home, retired, or have young children — you'll use more solar directly and export less. This significantly improves your savings because you're avoiding expensive grid power rather than exporting at low feed-in rates.
If nobody's home during the day, most of your solar gets exported at 4–10 cents. The savings are lower, which is exactly why batteries have become so popular.
3. Your feed-in tariff
Feed-in tariffs have dropped dramatically over the past decade. Most Australian retailers now offer 4–10 cents per kWh. The low feed-in tariff is why self-consumption matters so much — power you use directly is worth 28–35 cents, but power you export is worth only 4–10 cents.
4. Your state
Queensland gets the most sun. But NSW and VIC households often have higher electricity prices, which means higher savings per kWh self-consumed. SA households benefit from both relatively good sun and high electricity prices.
Get your personalised savings estimate
Upload your electricity bill and SolarBill calculates your recommended system size, estimated annual savings and payback period — based on your actual usage, not industry averages.
Calculate My Savings Free ☀️Real Examples by State
| State | Daily Usage | System Size | Est. Annual Savings |
|---|---|---|---|
| NSW (Sydney) | 28 kWh | 13kW | $3,200 – $4,200 |
| QLD (Brisbane) | 24 kWh | 10kW | $2,800 – $3,600 |
| VIC (Melbourne) | 22 kWh | 10kW | $2,600 – $3,400 |
| SA (Adelaide) | 20 kWh | 9kW | $2,800 – $3,600 |
| WA (Perth) | 26 kWh | 11kW | $2,400 – $3,200 |
These are estimates based on average tariffs and typical self-consumption rates. Your actual savings will vary based on your specific bill, tariff and usage pattern.
Adding a Battery — How Does It Change the Numbers?
Without a battery, excess solar during the middle of the day gets exported at low feed-in rates. With a battery, that excess power gets stored and used in the evening when everyone's home and the TV, oven and heating are running.
Using a battery to shift evening consumption from grid to stored solar can add $800–$1,500 per year to your savings.
The federal Cheaper Home Batteries Program (launched July 2025) rebates approximately $300 per kWh of battery capacity. For a 13.5kWh battery — the most popular home battery size — that's a $4,050 rebate, making batteries genuinely cost-effective for the first time.
Adding a 13.5kWh battery to the example above could push annual savings from $3,475 to $4,500–$5,000 per year.
Summary
- Most Australian households save $1,500–$4,500/year with solar
- Savings depend on your usage, tariff, self-consumption rate and system size
- The higher your electricity tariff, the better your return
- Being home during the day significantly improves savings
- Adding a battery can add $800–$1,500/year to savings and is now more affordable with the federal rebate
- Payback periods are typically 3.5 to 6 years, after which electricity is essentially free
- Get a personalised estimate based on your actual bill, not industry averages
Find out exactly what you'd save in 60 seconds
Upload your electricity bill and SolarBill gives you a personalised savings estimate based on your actual usage — not a generic industry average. Free, no account required.
Try the Free Calculator ☀️SolarBill is a free solar calculator for Australian homeowners. No account required. Works with all major Australian electricity retailers.