How Much Can You Save with Solar in 2025? Realistic Expectations for Australian Households

If you’re like most Aussies, you’ve probably glanced at your power bill recently and thought, “There’s got to be a better way.” Well, there is—and solar’s still one of the smartest moves a household can make in 2025.

But here’s the thing. People often hear big promises: “Save thousands per year!” or “Slash your bills to zero!” The truth? Solar can save you a lot of money, but only if you understand how the savings work, what affects them, and whether it’s the right setup for your household.

I’ve worked with homeowners all over—from inner-city apartments in Melbourne to off-grid farmhouses in WA—and the same question always comes up: “How much will I actually save?”

So let’s cut through the hype and get into real numbers, practical examples, and what you can realistically expect if you’re considering solar in 2025.

The Solar Landscape in 2025

Australia’s solar market in 2025 is still booming. Over 3.5 million homes now have panels on their roof. That number’s only growing as energy prices rise and solar tech becomes more efficient and affordable.

Electricity prices jumped again in 2024, with the average Aussie household paying around $1,900 to $2,500 a year for power—depending on usage, state, and whether you’ve got things like a pool, electric vehicle, or ducted air con.

Meanwhile, solar systems are cheaper and more powerful than ever. A solid 6.6kW rooftop system—the most common size for families—now costs between $4,500 and $7,000 fully installed, depending on your installer and quality of parts.

And the government’s still helping out. Federal rebates (via Small-scale Technology Certificates or STCs) are still in play, although they are slowly being phased down each year until 2030. Plus, many states offer extra incentives or interest-free loans to make solar more accessible.

So the landscape’s looking good—but let’s get into what that means for your back pocket.

How Solar Saves You Money (In Simple Terms)

Solar panels help you save in two ways.

First, they reduce how much electricity you need to buy from the grid. That’s the biggest source of savings—especially if you’re using power during the day, when your panels are generating the most.

Second, they let you export unused electricity back into the grid. Your electricity retailer pays you a feed-in tariff (FIT) for every kilowatt-hour (kWh) you send out.

But here’s the catch. The electricity you avoid buying from the grid is worth around 30–40 cents per kWh. The feed-in tariff you get for exporting? That’s usually around 5 to 10 cents per kWh, depending on your state and energy retailer.

So the best savings come when you use your solar power while it’s being produced—not when you export it.

Think of it like this: using your own solar is like getting paid full price. Sending it back to the grid is like getting paid a fraction.

That’s why households with higher daytime usage—like people working from home, retirees, or families with stay-at-home parents—tend to get the best results from solar.

Real Numbers: What Can a Typical Household Save in 2025?

Let’s say you install a 6.6kW system on your roof. That’s enough to generate around 24–28 kWh of electricity per day on average, depending on your location, roof angle, and sunshine hours.

If you use half that electricity during the day and export the rest, your savings might look something like this:

You avoid buying 12–14 kWh per day at 35 cents = $4.20–$4.90 saved

You export 12–14 kWh at 7 cents = 84 cents–98 cents earned

That’s roughly $5–$6.50 of value per day. Multiply that by 365, and you’re looking at $1,800–$2,300 in annual savings. Not bad, considering the system itself might have cost you around $6,000.

That means your payback period could be as short as 3 to 4 years, depending on how much solar you self-consume and what electricity plan you’re on. After that, you’re in pure savings territory—your panels just keep generating free power.

Of course, every household’s usage is different. If you’re barely home during the day and don’t have a battery, your savings will be lower. On the flip side, if you’ve got a home office, an EV you charge during the day, or heavy appliances running, you’ll use more of your own solar and boost your savings significantly.

Solar with Battery Storage: Is It Worth It in 2025?

Adding a battery—like a Tesla Powerwall or Sonnen system—can store your excess solar so you can use it at night instead of pulling from the grid. Sounds ideal, right?

Well, yes and no.

Batteries are still expensive in 2025. A decent system will set you back anywhere from $9,000 to $14,000, and while prices have come down slightly, it’s still a big investment.

That said, for households in areas with frequent blackouts or high night-time usage, batteries offer peace of mind and long-term value. They also let you maximize your solar self-consumption—sometimes pushing your grid usage down to almost zero.

But don’t expect fast payback. Even in ideal scenarios, battery ROI often stretches 8–12 years. So you have to see it as a lifestyle or energy security choice more than a pure money-saver—at least for now.

If you’re considering this option, our guide on grid-tied vs off-grid solar systems explains more about battery setups and when they make sense.

Location, Tariffs, and Other Factors That Affect Savings

Where you live in Australia has a huge impact on how much you’ll save.

A system in Darwin or Townsville will produce far more solar energy than one in Hobart or Melbourne due to more sunlight hours per year. That’s just geography.

But there’s more to it. Electricity prices and feed-in tariffs also vary wildly between states and even between retailers.

For example, feed-in tariffs are more generous in South Australia and Victoria, while some parts of NSW and Queensland have started lowering their rates to below 5 cents per kWh.

Your electricity plan matters too. Some retailers offer “solar-friendly” plans with better FITs, but they may come with higher daily charges or peak-time usage rates. So you have to compare the whole plan—not just one number.

Also, how you use power matters a lot. If you shift your washing machine, dishwasher, and pool pump to run during the day instead of overnight, you can dramatically increase your solar savings. That one change alone can knock hundreds off your annual bill.

How to Maximise Your Savings in 2025

This is where things get fun—and practical. Here are simple things real Aussie households are doing to get more out of their solar in 2025:

One family in Adelaide switched their electric hot water system to run during midday hours using a timer. That change alone increased their solar self-use by 25%. Another homeowner in regional NSW charges their electric car during lunchtime every day, powered entirely by solar. No petrol, no grid energy. Just sunshine and planning.

A couple in Perth got creative by installing a smart energy monitor that shows real-time solar output and household usage. Now, when the sun’s cranking, they know it’s the perfect time to turn on the air con or do a few loads of laundry.

Solar-savvy households know this isn’t just about panels. It’s about small habit changes that add up over time. And honestly? Once you get into the rhythm of using your own sunshine, it feels pretty empowering.

For more detailed strategies, check out our article on energy efficiency with solar panels, which covers how to maximize your system’s performance.

What About Maintenance and Longevity?

Another reason solar is so appealing: once installed, it mostly takes care of itself.

Good-quality panels last 25 years or more. Inverters tend to last around 10 to 15 years, so you might need to replace one over the system’s life. Cleaning panels occasionally—especially if you’re near the coast or under trees—helps maintain efficiency, but it’s not something you need to do every few months.

Modern solar systems also come with monitoring apps that help you track performance and catch issues early. So maintenance is minimal, especially compared to how much you’re saving.

Our guide on solar panels maintenance and longevity provides more detail on keeping your system in top condition.

What’s the Catch? Are There Any Risks?

There aren’t many downsides to solar in 2025—but there are a few things to watch out for.

Dodgy installers are still out there. Always choose a Clean Energy Council (CEC)-accredited installer with solid reviews and warranty support. If the quote seems too good to be true, it probably is.

Also, while solar is a great long-term investment, it doesn’t make sense for everyone. If you’re about to move house or your roof needs replacing soon, you might want to hold off. Likewise, if your energy use is very low (say, under 5 kWh a day), the savings might be too small to justify the upfront cost.

Final Thoughts: Is Solar Still Worth It in 2025?

Yes—if you own your home, have a decent roof, and use a moderate amount of electricity, solar is still absolutely worth it in 2025.

Savings of $1,500 to $2,500 per year are realistic for most households. Payback periods of 3–6 years are common. After that, it’s mostly free power for 20+ years.

Just remember, solar isn’t plug-and-play savings. The biggest benefits come when you use your power smartly and stay aware of changing feed-in tariffs and energy plans. The good news? That’s getting easier every year with better tools and smarter homes.

Next Steps: What Should You Do Now?

Start by checking your current electricity usage and bill. Then get quotes from at least two or three reputable solar installers in your area. Make sure they do a proper inspection—not just a phone estimate.

If you’re not sure whether you should go solar with or without a battery, ask the installer for savings projections both ways. Any decent provider should offer this for free.

Solar’s not just a green decision anymore—it’s a financially smart one. And in 2025, it’s more accessible, affordable, and powerful than ever.

Not sure which system is right for you? Contact us for personalized advice tailored to your specific situation.