Switching to solar power is one of the smartest financial decisions homeowners can make. But how much can you actually save? Let’s break down the real numbers and factors that determine your solar savings.

How Solar Saves You Money

Solar energy reduces your electricity bills by allowing you to generate your own power instead of buying it from the grid. Depending on your system size and energy usage, you could eliminate a large portion—or even all—of your power bill.

Here’s how the savings work:

• Lower Power Bills – The more solar energy you generate and use, the less you pay to your electricity provider.

• Feed-in Tariffs – Any excess energy your system produces can be fed back into the grid, earning you credits or payments.

• Government Incentives – Rebates and Small-scale Technology Certificates (STCs) help reduce the upfront cost of installation.

• Protection from Rising Electricity Prices – Electricity prices have surged in recent years, but with solar, you lock in long-term savings and protect yourself from future rate hikes.

Typical Solar Savings for Homeowners

The amount you save depends on a few key factors:

• System Size – A 6.6kW system typically saves between $1,500 - $2,000 per year in electricity costs.

• Energy Consumption – Homes with high daytime energy use see the most benefit since they use more of the solar power directly.

• Feed-in Tariffs – Rates vary by provider, but in Australia, they generally range from 5c to 15c per kWh. To find out what feed-in tariffs you could get, visit the Australian Energy Regulator’s Energy Made Easy website and check the free energy offer comparison tool.

• Battery Storage – Adding a battery can increase savings by letting you use stored solar power at night instead of drawing from the grid.

Example: Savings From A Gold Coast Homeowner That Recently Installed With FirstSunSolar

Let’s take a real example from a homeowner in Helensvale, QLD, who recently had a 6.6kW solar system installed by FirstSunSolar.

Installation cost: $6,500

Estimated annual savings: $2,031.41

Time to repay system cost: A little over 3 years (potentially faster if electricity prices continue rising)

By replacing their old, underperforming solar system with a larger, more efficient one, this homeowner was able to practically eliminate their electricity bill—achieving an estimated 99% reduction in energy costs with the new system.

It’s worth noting that this particular homeowner had all their panels facing north, maximizing the energy production of their solar system. Here is a look at their estimated daily production per month in kWh:

If the panels had been configured east/west like many other homes around Australia, you would realistically expect the savings to be marginally lower—approximately $1,800 annually—but still significant.

How Long Until Solar Pays for Itself?

Most solar systems pay for themselves within 3 to 5 years, depending on your system cost, energy usage, and available incentives. After that, your savings go straight into your pocket.

Is Solar Right for You?

Not sure how much you’d save with solar? Every home is different, and the best way to find out is to get a personalized solar assessment. Whether you’re new to solar, looking to replace an old system, or want a battery for extra savings, our team here at FirstSunSolar can help.

Book a free solar assessment today and take the first step towards lower power bills!