If you’re thinking about going solar, you’ve probably asked yourself, “How much will I really save?” While making the switch to solar is certainly a greener choice, while the cost of living and electricity being what it is, it’s also a smart move financially. Solar power is an investment, and like any investment, the returns depend on several factors—location, energy usage patterns, system size and current rebates. Let’s dive into the details to help you better understand your potential savings.
Factors Influencing Your Solar Savings
1. Where You Live
Ever notice how sunny it is inNew South Wales and Queensland compared to Victoria and Tassie? That’s no coincidence, and it’s something to consider when looking at solar. Where we’re based, Northern NSW, get loads of sunshine, which means solar systems there can generate more power (and savings). On the other hand, if you’re in a cloudier area, your savings might not be as high—but don’t worry! You’ll still see a difference in your energy bills.
Want to get specific? Check out solar maps to see how much sunlight your area gets. It’s a simple way to estimate how much energy your panels can produce.
2. Your Energy Habits
Are you home during the day? Or is most of your energy use in the evenings? These little details matter. If you’re using power when the sun’s out, you’ll rely more on solar energy and less on the grid—big savings there. But if most of your energy use happens after sunset, you might want to think about adding a battery. Batteries let you store the energy your panels generate during the day, so you can use it at night.
Of course, batteries cost more upfront, so you’ll need to weigh the long-term benefits. Either way, understanding your energy patterns is key to getting the most out of your solar investment.
3. Energy Rates and Tariffs
Energy rates and tariffs differ across Australia. Your energy provider’s rates can have a big impact on your savings. If you’re on a plan with higher-tier pricing (where energy gets more expensive as you use more), solar can save you from hitting those higher costs. Additionally, many energy providers offer feed-in tariffs, where you’re paid for excess solar energy sent back to the grid.
However, keep in mind that two-way pricing is becoming more common, meaning you might incur small fees for exporting energy. Comparing energy providers can help you find the best rates for solar customers.
How Rebates and System Size Impact Savings
The size of your solar system has a direct impact on your savings. Larger systems can generate more energy but come with higher upfront costs. For example, a 6.6kW system costs approximately $6,500–$9,000 after rebates, but it offers substantial long-term savings. Smaller systems are more affordable initially but may not cover all your energy needs, reducing their cost-effectiveness.
Government incentives like the 2024 Solar Rebate (STC) can significantly offset installation costs. However, these rebates are decreasing annually as part of the phase-out plan under Australia’s Renewable Energy Target (RET).
The Bottom Line: How Much Will You Save?
On average, Australian households can save anywhere from $600 to $1,500 annually on electricity bills with a solar system, depending on their location, system size and energy usage. Most systems pay for themselves within 5–10 years, and after that? It’s all savings, baby. The longer you stay in your home, the more you pocket.
Why Now is the Best Time to Invest in Solar
If you’ve been on the fence about solar, now’s the time. With the Solar Rebate decreasing yearly, there’s no better time to act. Here at Bare Energy, can help you lock in the 2024 solar rebate now, and book your install for January 2025. All we need is a deposit before the end of the calendar year. With the current price of STCs (2024) you are looking at upfront savings of about $350 per kW. Acting now ensures you secure the maximum rebate and start saving on energy costs as soon as possible. Read more about locking in your rebate here.
