How Much Will I Save on My Electricity Bills by Installing Solar Panels

The amount you save with solar depends on how much electricity your home uses, the size of the solar system, and how much of your power you use during the day while the panels are generating. Most Sydney households save anywhere from 600 dollars to more than 2000 dollars per year once solar is installed.

A typical home with a well sized system will usually see a noticeable drop in the first bill. If you are home during the day or have appliances running during sunlight hours, your savings can be much higher because you are using the free solar energy directly rather than buying power from the grid.

Homes that use most of their power at night will still save money, but the savings depend more on the feed in tariff. This is the small credit you get for sending unused solar energy back into the grid. Feed in tariffs have dropped in recent years, so the biggest savings still come from using your own solar energy during the day.

System size matters too. A common six and a half kilowatt system can cut a large portion of the daytime cost for an average home. Larger homes or properties with high usage benefit from an eight to ten kilowatt system because more of the home’s daily needs can be supplied by solar.

In simple terms, you save money every time your solar covers your daytime usage. The more you shift your habits to daytime where possible, the greater the savings. Running the dishwasher, washing machine and pool pump in the middle of the day can make a real difference.

Most homeowners find that solar pays for itself within three to five years. After that, it is mostly pure savings.