Solar Panels vs Electricity Grid: How Much Can You Save?
Rising Electricity Prices in Australia
Electricity costs in Sydney are climbing fast. Households now pay 25–38 cents per kWh, with peak rates reaching 52 cents. These rising prices are driven by aging infrastructure, market volatility, and increased demand—making energy bills a growing burden for families
Solar vs Electricity Cost: A Clear Winner
Source | Cost per kWh (Sydney) | Notes |
Grid Electricity | 25–52 cents | Subject to market fluctuations |
Solar (home system) | ~3.6 cents | Based on 25-year system lifespan |
Installing solar panels in Sydney can slash your electricity cost by up to 90%. That’s the power of clean energy.
Reduce Electricity Bill with Solar
A standard 6.6 kW solar system in Sydney generates around 9,500 kWh/year. If you use 70% of that energy directly, your annual savings could reach $1,500–$2,000, depending on your usage and feed-in tariff.
Self-Consumption vs Feed-in Tariff
- Self-consumption: Every kWh you use from your solar system avoids paying grid rates—this is where the biggest savings happen.
- Feed-in tariff: Excess energy exported to the grid earns you 5–10 cents/kWh in NSW. It’s less than self-consumption but still adds value.
Solar ROI Australia: Long-Term Financial Benefits
- Payback period: 3–5 years
- ROI: Up to 20% annually
Warranty: Most panels come with 25-year performance guaran
Real-Life Savings Example (Sydney)
Before Solar
Annual electricity bill: $2,500
After Solar (6.6 kW system, ~$6,000 upfront)
New bill: ~$500/year
Payback: 4 years
Total savings over 25 years: $40,000+
Final Thoughts
If you’re in Sydney and tired of rising energy bills, solar is your solution. With strong ROI, long-term savings, and environmental benefits, switching to solar is one of the smartest financial decisions you can make.