How much do you save with solar panels in Australia?

How much will a 6.6 kW solar system save me?

This guide’s Australian household examples show indicative savings of $1,000 to $2,200 per year on their electricity bills, with the upper end including larger systems. For a 6.6 kW system, our NSW worked example below estimates about $1,300 a year, not a guaranteed result for every home. Your actual saving depends on your state, how much energy you use during daylight hours, system size, feed-in tariff and your retail electricity rates.

On a typical $5,500 – $9,000 install (after the federal STC discount), payback usually sits between 4 and 6 years, with another 15 – 20 years of much cheaper electricity afterwards.

Want an estimate for your own home? Use our solar savings calculator with your postcode, quarterly bill, time at home and roof details. The figures below are a starting point, not an installer quote.

How solar savings actually work

Your savings come from two streams:

• Self-consumption: every kWh your panels generate that you use yourself replaces a kWh you’d otherwise buy from the grid at roughly 25 – 40c/kWh.
• Feed-in tariff: excess power exported to the grid typically earns around 3 – 7c/kWh in 2026, depending on your retailer and state.

Because export rates are now far lower than retail rates, using your own solar power during the day, or storing it in a battery, is by far the biggest lever on your return.

A kilowatt-hour used at home avoids buying electricity at your retail usage rate; a kilowatt-hour exported earns a separate feed-in credit under your electricity plan. These are different benefits, so a high-output system does not automatically mean the biggest bill saving. The Australian Government’s explanation of how solar pays for itself identifies self-consumption as the main savings opportunity.

How to estimate the reduction in your bill

Annual solar benefit = electricity used at home × your retail usage rate, plus electricity exported × your feed-in tariff. Use annual kilowatt-hours and rates in dollars per kilowatt-hour. Simple payback then divides the after-rebate installed cost by the annual saving; it is not the same as a lifetime return.

Solar does not remove your retailer’s daily supply charge, and you may still buy electricity at night or when generation is low. Shifting flexible loads, such as a dishwasher or hot-water system, into solar hours can improve self-consumption. Check your actual plan rates rather than assuming all exported power earns the same credit.

Rebates available in 2026

There are two incentives that matter for most households:

• Small-scale Technology Certificates (STCs): the federal solar discount, applied up-front by your installer. It steps down each year until the scheme ends in 2030.
• Cheaper Home Batteries Program: the federal battery discount available from mid-2026, cutting roughly 30% off the installed cost of an eligible home battery. It is available nationwide alongside remaining state programs.

Several older state schemes, including the Queensland Battery Booster, the South Australian Home Battery Scheme and the NSW low-income solar offer, have now closed. Always confirm what is open in your state at the time you install.

Solar savings by Australian state

The numbers below use indicative 2026 retail electricity rates and average daytime usage. Most examples use a 6.6 kW system; NSW and QLD include larger sizes, as shown on each card. These are illustrative ranges, not measured state averages or quotes. Local sunshine, roof direction, shading and your own usage can move your result outside these ranges.