How Much Can You Save with Solar in 2025?
The shift toward renewable energy continues to gain momentum, and solar power stands at the forefront of this revolution. For Australians, 2025 is shaping up to be a golden year for going solar, with technology advancements, government support, and rising electricity costs aligning to make solar panels more accessible and beneficial than ever.
But how much can you really save by switching to solar in 2025? Let’s break it down.
How Solar Saves You Money
How much money your household or business saves from solar depends on what happens with the electricity generated by the system.
The electricity generated by a home or business rooftop solar system may be:
- used to run appliances (self-consumed)
- sent to the electricity grid (exported)
- wasted if the export limit (how much electricity can be exported to the grid) has been reached (curtailed)
- used to charge a battery if the system includes one.
Solar can reduce your electricity bill through:
- self-consumption
- solar export
- reducing peak demand
You can save the most money by self-consuming, or using, the electricity generated by your solar system.
Savings From Self-Consumption
When you use solar generation to power your home or business appliances, you need to buy less electricity from your electricity retailer. This is called solar self-consumption.
Every kilowatt-hour (kWh) of solar generation that your household or business self-consumes means one less kilowatt-hour (kWh) of electricity bought. The amount you save for each kWh self-consumed depends on the rate you pay (c/kWh) to your electricity retailer. This rate can vary with the time of day, day of the week or time of year, depending on your electricity pricing plan.
Earnings From Solar Export
When your rooftop solar system is generating more electricity than your household or business is using, the excess solar is exported to the grid. You will receive a credit on your bill for the exported electricity if your electricity plan includes a feed-in tariff.
If your system has an export limit agreed with the distribution network service provider, any excess solar over the export limit will be curtailed (wasted) and you won’t receive any credit for it.
Feed-in tariffs are typically a lot lower than the rates you pay to buy electricity from the grid. So, self-consuming your solar generation saves more money than exporting it.
Reducing peak demand
Many business pricing plans, and some household plans, have a demand charge tariff. This means the electricity bill includes a charge based on the peak demand, the highest amount of power drawn from the grid at any time. If the solar system is generating electricity at the time of this peak demand, it will reduce the peak demand charge.
How Batteries Reduce Your Bills
A battery can reduce your electricity bill by allowing you to:
- increase self-consumptio.
- take advantage of time of use tariffs
- reduce your peak demand
- participate in a virtual power plant
- reduce curtailment (likely to be only a small saving)
Savings From Increasing Self-Consumption
A battery can store energy generated by your solar system for later use, when the solar system is not generating electricity. This increases solar self-consumption and reduces the amount of electricity you need to buy from your electricity retailer. Savings from self-consumption are greatest if you have a time of use electricity pricing plan and use stored energy from your solar during the more expensive peak periods.
If you have a feed-in tariff, it also decreases the amount you are paid for solar exports, but this is generally much smaller than the increased saving.
Batteries can operate differently depending on the type of electricity plan or tariff.
Batteries can operate differently depending on the type of electricity plan or tariff
If you are on a time of use tariff, your battery can be charged with low-cost electricity from the grid during off-peak periods and then discharged to run appliances during peak periods, avoiding paying for peak rate grid electricity.
With a time of use feed-in tariff (available in some areas), you can also export electricity to the grid in the evening for an increased bill credit.
Reducing peak demand
Many business electricity pricing plans and some household plans, have a demand charge based on the highest amount of power drawn from the grid at any time. If this peak demand is at a time when the solar system is not generating electricity, your battery can be discharged to reduce the peak demand and therefore reduce the demand charge.
Participating in a virtual power plant
A virtual power plant is a network of batteries that is operated in a coordinated way by an electricity retailer or other organization. A virtual power plant can operate like a traditional electricity generator or big battery—buying and selling electricity.
If you join a virtual power plant, your battery will be controlled by the virtual power plant operator for some or all the time in return for financial benefits.
These could include:
- Reduced electricity prices (or even a 'zero bill guarantee' where you let the virtual power plant operator control your battery in return for a zero-cost electricity bill)
- Increased feed-in tariffs
- An upfront discount on your battery system cost
- A regular payment instead of a bill
The upfront cost of the battery should be considered in any assessment of the benefits.
Things to consider before participating in a virtual power plant:
- Possible reduced battery lifetime as your battery may be charged and discharged more than usual
- Possible loss of power back-up if your battery is configured for this purpose - you may be left with no stored energy in your battery to use in a power outage (some virtual power plants reserve part of your battery for back-up use)
- Possible impacts on your battery warranty
Each virtual power plant has different financial benefits and different risks. It can be tricky to work out the best deal. Read the details carefully and look for online reviews. Your solar retailer or installer might be able to help you.
Reducing Curtailment
Without a battery, if your connection agreement with your distribution network service provider includes an export limit, there may be times when some of your solar generation is curtailed (wasted).
In some areas, curtailment can sometimes happen automatically to help manage network voltage.
With a battery, this excess generation can charge the battery and be used at another time, instead of being curtailed. This can reduce your electricity bill.
However, for most solar systems, the amount of electricity curtailed is small, so the savings from reducing curtailment are modest.
Payback Period
The payback period is the amount of time it will take for your electricity savings to match the cost of the system, or we can simply say the return on investment (ROI). For a rooftop solar system, this is typically much less than the lifetime of the system.
The actual payback period depends on many factors, including weather, maintenance costs and future electricity prices.
You can get an estimate of the payback period for a solar system and/or battery using SunSPOT. SunSPOT does not currently include the option to explore the benefits of virtual power plants or charging a battery from the grid.
A battery will not pay back its upfront cost as fast as a solar only system and may not even pay itself off within its lifetime. Depending on your situation, purchasing a battery may not be financially beneficial. However, there may be other good reasons for purchasing a battery.
For example, if you buy a system to provide back-up in a power outage, the lifetime bill savings from the combined solar and battery system may still cover the total investment cost.
A State-by-State Savings with Solar
Solar energy savings depend on various factors such as state-specific electricity costs, solar rebates, and the amount of sunshine received. Here’s an updated overview of potential savings in each Australian state for 2025:
1. New South Wales (NSW)
- Average Annual Savings: $1,200–$2,500
- Key Factors:High electricity rates increase the financial benefits of solar.
Competitive feed-in tariffs (5–15 cents/kWh depending on the retailer)
Federal Small-scale Technology Certificates (STCs) reduce system costs.
Government Support: Empowering Homes scheme offers interest-free loans for solar and battery systems.
2. Victoria
- Average Annual Savings: $1,000–$2,000
- Key Factors:State Solar Homes Program provides up to $1,400 in rebates and interest-free loans.
Regulated feed-in tariffs ensure fair compensation for excess energy.
High grid electricity costs
3. Queensland
- Average Annual Savings: $1,500–$3,000
- Key Factors:Abundant sunshine maximizes energy generation.
Federal STCs lower upfront costs.
Regional feed-in tariffs can add additional income for exported energy.
4. South Australia
- Average Annual Savings: $1,700–$3,500
- Key Factors:South Australia’s high electricity prices deliver excellent savings.
Battery subsidies under the Home Battery Scheme enhance savings for solar storage users.
Feed-in tariffs vary but can be competitive.
5. Western Australia
- Average Annual Savings: $1,300–$2,800
- Key Factors:Strong solar irradiance in the western region.
Feed-in tariffs are available but vary by retailer.
Moderate electricity rates compared to eastern states.
6. Australian Capital Territory (ACT)
- Average Annual Savings: $1,100–$2,000
- Key Factors:Subsidies under the Next Generation Energy Storage Program.
Moderate electricity costs offset by competitive feed-in tariffs.
Federal STCs apply to lower installation costs.
A Bright Future Powered by Solar Secure
As the world transitions to clean energy and more sustainable energy sources, solar power stands at the forefront of this revolution. Solar Secure, as a NETCC Approved and a best Solar Retailer in Australia, is dedicated to making solar energy and storage solutions accessible, efficient, and beneficial for individuals and businesses alike.
By embracing solar power and the advantages of solar batteries, you contribute not only to your own energy savings but also to the greater goal of building a greener and more sustainable future for generations to come. Let us guide you on this transformative journey toward a brighter, sun-powered future.
Navigate Your Solar Journey with Solar Secure
As a NETCC Approved Solar Retailer in Australia, Solar Secure is your trusted partner on the path to embracing solar energy and storage solutions. Our expert team is committed to providing you with tailored solutions that align with your energy needs and budget. Here's how we guide you through the process:
- 1. Assessment and Customization: We conduct a comprehensive analysis of your energy consumption, location, and roof orientation to design a solar system with battery storage that meets your unique requirements.
- 2. Quality Products: We offer high-quality solar panels, inverters, and energy storage solutions from reputable manufacturers to ensure long-term performance and reliability.
- 3. Professional Installation: Our skilled technicians ensure a seamless installation process, adhering to the highest industry standards for safety and efficiency.
- 4. System Monitoring: We provide monitoring systems that allow you to track your energy production, consumption, and battery status, empowering you to make informed decisions.
- 5. After-Sales Support: Our commitment extends beyond installation. We offer ongoing maintenance and support to ensure your solar system and battery continue to operate optimally.
Conclusion
Switching to solar energy in 2025 isn’t just about sustainability, it’s a smart financial investment. From lower energy bills to state-specific incentives, the potential savings make solar more accessible than ever. By exploring the options in your state and taking advantage of available programs, you can reduce your carbon footprint while keeping more money in your pocket.
Ready to take the next step? Dive into the details of your state and start your journey with Solar Secure towards energy independence and long-term savings with the most affordable solar panels and systems. The future of energy is here, don’t miss out!