You've heard the claims: 'Save $2,000 a year with solar!' But what do real savings actually look like for Australian homes? Let's break it down honestly, with real numbers based on current electricity rates and system costs.
The Key Factors
Your actual savings depend on four things: your current electricity rate (varies by state from 25–36c/kWh), how much of your solar you self-consume vs export, your system size relative to your usage, and your feed-in tariff rate. The single biggest factor is self-consumption — every kWh you use directly from your panels saves you the full retail rate, while exported kWh only earn you the (much lower) feed-in tariff.
Realistic Annual Savings by State (6.6kW System)
South Australia
Highest electricity rates in Australia. Average savings: $1,800–$2,600/year. Fast payback of 2.5–4 years.
New South Wales
High rates and good sun. Average savings: $1,500–$2,200/year. Payback: 3–4.5 years.
Queensland
Best sun hours but moderate rates. Average savings: $1,400–$2,000/year. Payback: 3–4 years.
Western Australia
Excellent sun, good rates. Average savings: $1,500–$2,200/year. Payback: 3–4.5 years.
Victoria
Lower sun hours but strong rebates. Average savings: $1,200–$1,800/year. Payback: 3–5 years (after $1,400 rebate).
Tasmania
Lowest sun hours nationally. Average savings: $900–$1,400/year. Payback: 4.5–6 years.
Maximising Your Savings
The most impactful thing you can do is shift energy-hungry activities to daytime: run dishwashers, washing machines, and pool pumps during solar production hours. Use timers. Pre-heat or pre-cool your home in the afternoon. Every kWh you use directly instead of exporting saves you 20–30c. Without changing anything, expect to self-consume 30–40% of your solar. With deliberate shifting, 45–55% is achievable. Adding a battery pushes it to 65–80%.