Most homeowners who install solar panels see a noticeable drop in their electricity bills within the first quarter. But how much you save depends on how your system is set up, how you use electricity, and whether you have a battery.
This article breaks down exactly how solar interacts with your power bill, what feed-in tariffs mean in practice, and what Mid North Coast households can realistically expect.
How Solar Reduces Your Bill
Your electricity bill charges you for every kilowatt-hour (kWh) you draw from the grid. When your solar panels are producing electricity, your home uses that power first. Every kWh your panels generate is one less kWh you buy from your retailer.
This is called self-consumption, and it is where the real savings come from.
- Grid electricity in NSW costs roughly 25 to 40 cents per kWh depending on your plan and time of use
- Every kWh you generate and use yourself avoids that cost entirely
- A 6.6 kW system producing 25 kWh per day with 40% self-consumption saves you around $3 to $4 per day in avoided grid purchases
Self-consumption is the single biggest factor in your solar savings. Using your own solar power at 30c/kWh avoided cost is worth far more than exporting it for 5c/kWh.
What Happens to Excess Power
Your panels will often produce more electricity than your home needs during the middle of the day. That surplus power flows back into the grid, and your electricity retailer pays you a feed-in tariff (FiT) for each kWh exported.
In NSW, feed-in tariffs currently range from 4 to 8 cents per kWh, depending on your retailer and plan. Some retailers offer time-of-use feed-in rates that pay slightly more during peak periods.
| What You Do With Solar Power | Value Per kWh | Impact on Bill |
|---|---|---|
| Use it yourself (self-consumption) | 25c to 40c avoided cost | Direct reduction in usage charges |
| Export to grid (feed-in tariff) | 4c to 8c credit | Small credit on your bill |
| Store in battery, use at night | 25c to 40c avoided cost | Direct reduction, even after dark |
The gap between what you get paid for exports (5c) and what you pay for grid power (30c+) is why self-consumption matters so much. Every strategy that helps you use more of your own solar power directly, rather than exporting it, saves you more money.
Reading Your Bill After Going Solar
Your electricity bill will look different once solar is connected. Here is what to look for.
- Grid usage (kWh imported) – This should drop compared to your pre-solar bills. It represents the electricity you still need to buy, mostly at night and on overcast days.
- Feed-in credit – A separate line showing how much you earned from exported solar. This amount gets subtracted from your total bill.
- Daily supply charge – This stays the same regardless of solar. It is a fixed daily fee for being connected to the grid (typically $1 to $1.50 per day).
- Net amount – Your actual bill after feed-in credits are applied. Many solar households see this drop to $50 to $150 per quarter.
The daily supply charge cannot be avoided with solar alone. You will always pay $1 to $1.50 per day just for being connected to the grid, even if your usage is zero.
Typical Savings by System Size
Actual savings vary by household, but here are realistic estimates for Port Macquarie homes based on average usage patterns and current electricity rates.
| System Size | Quarterly Bill Before Solar | Quarterly Bill After Solar | Estimated Annual Saving |
|---|---|---|---|
| 6.6 kW | $500 to $700 | $80 to $200 | $1,200 to $2,000 |
| 10 kW | $700 to $1,000 | $50 to $150 | $2,000 to $3,200 |
| 13.2 kW | $900 to $1,400 | $0 to $100 | $3,000 to $4,500 |
These estimates assume 30% to 40% self-consumption without a battery. Adding a battery increases self-consumption to 70% to 90% and pushes savings even higher.
How Batteries Change Your Bill
Without a battery, your solar panels only reduce your bill during daylight hours. At night and on overcast days, you are back to buying grid power at full price.
A battery storage system changes this by storing excess daytime solar for use after dark. Instead of exporting surplus power at 5c/kWh and then buying it back at 30c/kWh, you keep it and use it yourself.
- Without battery: 30% to 40% self-consumption, higher evening grid usage
- With 10 kWh battery: 70% to 80% self-consumption, minimal evening grid usage
- With 15+ kWh battery: 80% to 90% self-consumption, near-zero grid usage in warmer months
The result is electricity bills that can drop below $50 per quarter for many households. Some homes with large solar systems and batteries only pay the daily supply charge.
Maximising Self-Consumption Without a Battery
Not ready for a battery yet? There are still ways to use more of your solar power directly and reduce what you export.
- Run appliances during the day – Set your dishwasher, washing machine, and dryer to run between 10am and 2pm when production peaks
- Use timers on hot water – Switch your electric hot water system to heat during solar hours instead of overnight on off-peak
- Pre-cool your home – Run the air conditioner in the afternoon while solar is still producing, so your home stays cool into the evening without grid power
- Charge EVs during the day – If you have an EV charger, set it to charge from solar during peak production hours
- Pool pumps – Schedule your pool pump to run during the middle of the day
- Check your monitoring app – Keep an eye on your inverter’s monitoring app to spot drops in performance early. Catching a fault quickly keeps your self-consumption on track and avoids unexpected grid costs
These small changes can push self-consumption from 30% up to 50% or higher without spending a cent on new equipment. If your system’s output has dropped over the years, a solar health check and service can identify whether panels, wiring, or inverter issues are the cause.
Time-of-Use Tariffs and Solar
Some electricity plans charge different rates depending on when you use power. These are called time-of-use (TOU) tariffs, and they can work in your favour with solar.
- Peak (4pm to 8pm weekdays): 35c to 50c per kWh. This is when electricity is most expensive, and unfortunately when solar production is winding down.
- Shoulder (7am to 4pm, 8pm to 10pm): 20c to 30c per kWh. Solar covers most of this period.
- Off-peak (10pm to 7am): 15c to 20c per kWh. No solar production, but rates are lower.
With a battery, you can store solar power generated during the day and use it during the expensive peak window from 4pm to 8pm. This is where battery storage really pays for itself.
Can Solar Panels Eliminate Your Electricity Bill Entirely
This is the question most people want answered: can you actually have no electricity bill with solar panels? The short answer is almost, but not completely, unless you go off-grid.
Grid-connected systems
Most residential solar installations in Australia are grid-connected. That means you keep your connection to the electricity network and draw from it when your panels are not producing enough. Even with a large solar and battery setup that covers 100% of your energy usage, you still pay the daily supply charge. That fee runs roughly $1 to $1.50 per day, or $90 to $135 per quarter, just for being connected.
So while your usage charges can absolutely hit zero, that supply charge stays. A well-sized solar and battery system can get your quarterly bill down to just that fixed fee.
Off-grid systems
Going fully off-grid does remove the electricity bill altogether, because you disconnect from the network entirely. But off-grid setups need significantly more battery capacity, a backup generator for extended cloudy periods, and higher upfront investment. For most Mid North Coast households, staying grid-connected with a battery offers a better balance of cost and reliability.
Winter and seasonal dips
Even in a sunny region like Port Macquarie, winter months bring shorter days and more overcast weather. Solar production drops by roughly 30% to 40% compared to summer. Most households will pull some grid power during June and July regardless of system size. If your system is undersized for your needs, a solar system upgrade can close that winter gap and bring your bills closer to supply-charge-only territory.
How Long Until Solar Pays for Itself
Solar is a long-term investment, and the payback period depends on your system size, how much you self-consume, and local electricity rates.
For most Mid North Coast homes, a standard 6.6 kW system pays for itself within 3 to 5 years through avoided grid purchases. After that, the electricity it generates is effectively free for the remaining 20+ years of the system’s life. A 10 kW or 13 kW system with higher daily output can pay back faster for larger households, especially those running air conditioning, electric vehicle chargers, or pool equipment during the day.
Battery payback takes longer, typically 7 to 10 years, because of the higher upfront cost. But with NSW electricity prices climbing year on year, that timeline keeps shrinking. And batteries unlock the biggest bill reductions by letting you avoid peak-rate grid power entirely.
The NSW Solar Sharer Offer
From July 2026, the Australian Government’s Solar Sharer program gives eligible electricity customers in NSW up to three hours of free electricity per day. You do not need rooftop solar to qualify, but you do need a smart meter installed.
For households that already have solar, this stacks on top of existing savings. The free window falls during peak solar production hours, which means even more of your daytime usage is covered at no cost. Households without solar benefit too, but those with panels and a battery are positioned to get the most from the scheme by using the free hours to top up battery storage.
Details are still being finalised, and availability may vary by retailer. Check with your energy provider to confirm eligibility and ensure your smart meter is set up.
What This Means for Mid North Coast Homeowners
The Mid North Coast is one of the best regions in Australia for solar. With around 5.2 peak sun hours per day and rising electricity prices, the numbers keep improving for homeowners who go solar.
- High solar yield: Port Macquarie, Coffs Harbour, and surrounding areas receive consistent sunlight year-round. Even in winter, a well-sized system produces enough to cover most daytime usage.
- Rising grid costs: Electricity prices on the Mid North Coast have increased by more than 20% over the past three years. Solar locks in a fixed energy cost for 25 years.
- Strong feed-in tariffs are gone: The days of generous feed-in rates are over. Self-consumption is now the key to savings, which makes system sizing and battery storage more important than ever.
- Local installers matter: When something goes wrong, you want an installer who can be on your roof the same week, not a company based in Sydney or Melbourne.
Get a Savings Estimate for Your Home
Every household is different. Your bill, your roof, and your energy habits all shape what solar can do for you. With 25+ years of experience on the Mid North Coast, SolaXs can review your current bills, assess your property, and give you a realistic savings estimate based on your actual situation.
Get in touch for a free quote. Local, CEC accredited, and here to help you get the most from solar.
Frequently Asked Questions
Can solar panels completely eliminate my electricity bill?
Not quite, if you stay connected to the grid. Every grid-connected home pays a daily supply charge of around $1 to $1.50 per day regardless of how much solar you produce. A well-sized solar and battery system can reduce your usage charges to zero, leaving only that fixed fee. Going fully off-grid removes the bill entirely, but requires significantly more battery capacity and a backup generator.
How much can I save on my power bill with solar panels?
Most Mid North Coast households save between $1,200 and $4,500 per year depending on system size and self-consumption. A 6.6 kW system typically cuts quarterly bills from $500-$700 down to $80-$200. Adding a battery pushes savings even further by storing daytime solar for evening use.
Do I still get an electricity bill after installing solar?
Yes. Your retailer still sends a quarterly bill, but it will be substantially lower. The bill shows your reduced grid usage, any feed-in credits earned from exported solar, and the daily supply charge. Many solar households see net quarterly bills between $50 and $150.
What is the daily supply charge and can solar remove it?
The daily supply charge is a fixed fee your electricity retailer charges for keeping your property connected to the grid. In NSW it typically runs $1 to $1.50 per day ($90-$135 per quarter). Solar panels cannot remove this charge. The only way to avoid it is to disconnect from the grid entirely with an off-grid system.
Is it better to use solar power myself or export it to the grid?
Using it yourself is always worth more. Self-consumed solar saves you 25 to 40 cents per kWh in avoided grid costs, while exporting earns only 4 to 8 cents per kWh as a feed-in tariff. Running appliances during daylight hours and adding battery storage are the two best ways to increase self-consumption.
How long does it take for solar panels to pay for themselves?
A standard 6.6 kW system on the Mid North Coast typically pays for itself in 3 to 5 years through reduced electricity bills. After that, the electricity it generates is effectively free for the remaining 20+ years of the panel warranty. Battery payback takes longer, around 7 to 10 years, but is shortening as grid prices rise.
What happens to my solar savings in winter?
Solar production drops roughly 30% to 40% in winter compared to summer due to shorter days and more cloud cover. Most households will draw more grid power during June and July. A larger system or battery helps offset this seasonal dip, but expect slightly higher winter bills than summer.
Does the Solar Sharer offer affect my solar savings?
The Solar Sharer program, starting July 2026 in NSW, gives eligible customers up to three hours of free electricity per day. For households with solar, this stacks on top of existing savings. You need a smart meter to qualify. Check with your retailer for eligibility details.
What size solar system do I need to get my bill as low as possible?
It depends on your household’s daily usage. A 6.6 kW system suits most average homes, while larger households with air conditioning, pool pumps, or electric vehicles benefit from 10 kW to 13 kW systems. Pairing any system with a battery of 10 kWh or more will push your bills close to the supply-charge-only minimum.
For more information, see the Clean Energy Council buying solar guide and the Australian Government Small-scale Renewable Energy Scheme.