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
These small changes can push self-consumption from 30% up to 50% or higher without spending a cent on new equipment.
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.
Will Solar Eliminate Your Bill Entirely
In most cases, no. There are two reasons for this.
- The daily supply charge (roughly $1 to $1.50 per day, or $90 to $135 per quarter) applies regardless of how much solar you produce
- Winter production drops, and most households will still draw some grid power during long evenings and overcast stretches
That said, it is entirely possible to get your quarterly usage charges down to zero or near-zero with a well-sized solar and battery system. Your only remaining cost would be the daily supply charge.
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.
Maximising Your Bill Savings on the Mid North Coast
Simply having solar panels on your roof does not guarantee the lowest possible power bill. How you use energy throughout the day matters just as much as the size of your system.
Mid North Coast households can squeeze more value from their solar by following these practical tips:
- Run dishwashers, washing machines, and dryers during daylight hours when your panels are generating
- Set your hot water system to heat during the middle of the day instead of overnight
- If you have a pool, schedule the pump to run between 10am and 2pm
- Consider adding a battery to capture excess daytime generation for evening use
- Check your inverter monitoring app regularly to spot drops in performance early
Homes in Port Macquarie and surrounding towns often see the biggest bill reductions when they shift at least half their usage into solar hours. Our team at SolaXs can review your current setup and suggest changes that make a real difference. Get in touch for tailored advice based on your energy data.
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.
SolaXs has been installing and servicing solar systems in the Port Macquarie region for over 25 years. Get a free quote tailored to your property and energy usage.
For more information, see the Clean Energy Council buying solar guide and the Australian Government Small-scale Renewable Energy Scheme.