Solar power billing works by measuring how much electricity your property imports from the grid and how much excess solar electricity it exports. Your retailer charges you for imported electricity, applies daily supply charges and may credit eligible exports through a feed-in tariff.
Electricity generated and used immediately within the property generally does not appear as a separate line on the bill. Instead, it reduces the amount of grid electricity your meter records.
Solar billing usually operates through a net metering arrangement. A compatible meter records electricity moving in both directions between your property and the grid.
Solar electricity can be handled in three ways:
If your solar panels are not producing enough electricity to meet demand, the property imports the balance from the grid. These imports are charged according to your electricity plan.
If the system generates more electricity than the property uses or stores, the excess can be exported. Your retailer may apply a feed-in tariff credit for each eligible kilowatt-hour sent to the grid.
The Australian Government’s solar billing guide confirms that solar can reduce bills through self-consumption, export credits and, in some cases, lower peak demand.
Solar electricity is first available to power appliances at the time of generation. This process happens automatically and continuously throughout the day.
For example, imagine your panels are producing 4kW while your home is using 1.5kW:
If cloud cover reduces solar production to 1kW while the home continues using 1.5kW, the additional 0.5kW is imported from the grid.
This flow can change from minute to minute as solar generation and household demand rise or fall. A professionally planned solar system installation should account for the property’s energy profile, roof conditions and network requirements.
Solar power reduces electricity bills primarily by lowering the amount of electricity purchased from the grid. This is known as solar self-consumption.
Every kilowatt-hour of solar used directly means one less kilowatt-hour charged at the applicable grid usage rate. Because retail electricity rates are generally higher than solar feed-in tariffs, using solar on-site will usually deliver more value than exporting the same amount.
Solar can reduce a bill through:
Solar does not usually cover the entire bill. Daily supply charges normally remain payable because the property is still connected to the electricity network.
Solar reduces your power bill most effectively when electricity use coincides with solar production.
A home that runs major appliances during daylight hours may use more of its generation directly. A home that is empty throughout the day may export a larger proportion of its electricity and continue importing electricity in the evening.
Ways to increase self-consumption include:
These changes help replace grid electricity with solar power rather than relying mainly on export credits.
A solar feed-in tariff is the amount an electricity retailer pays or credits for each eligible kilowatt-hour exported to the grid.
For example, exporting 300kWh at a feed-in tariff of $0.05 per kWh would produce a $15 credit:
300kWh × $0.05 = $15
Feed-in tariff rates and conditions vary between retailers, plans and locations. Some plans may also apply different export rates at different times. Network export limits can restrict how much electricity is sent to the grid, while some networks use flexible or dynamic limits.
A high feed-in tariff does not automatically make an electricity plan better. It may be accompanied by:
The Australian Government’s tariff guide recommends considering the complete electricity plan rather than focusing on one rate.
A solar power bill is generally calculated by adding grid usage charges and supply charges, then subtracting eligible solar export credits and other discounts.
A simplified calculation is:
Grid usage charges + daily supply charges − solar export credits = bill before other adjustments
Consider this hypothetical 90-day bill:
Billing item | Calculation | Amount |
Grid electricity imported | 450kWh × $0.35 | $157.50 |
Daily supply charge | 90 days × $1.10 | $99.00 |
Solar export credit | 300kWh × $0.05 | −$15.00 |
Indicative total | Before other adjustments | $241.50 |
The final bill could also include GST, controlled-load charges, demand charges, concessions, discounts or previous balances.
Solar electricity used directly does not normally appear as a credit. Its value is reflected in the grid electricity you did not have to buy. This is why the bill alone may not show the system’s total generation or complete financial benefit.
A bill can remain higher than expected when most electricity is consumed outside solar-generating hours or when the property has high overall demand.
Common reasons include:
Comparing the current bill with the same period from the previous year is usually more useful than comparing consecutive seasons.
A solar battery stores surplus electricity for use when the panels are producing little or no power. This can reduce grid imports during the evening, overnight or at expensive peak times.
The battery does not eliminate standard billing components. Instead, it changes where generated electricity goes:
Suitable solar batteries should be compared using usable capacity, power output, efficiency, operating limits, warranty coverage and backup functionality.
A tailored battery installation assessment can use smart-meter data to determine how much surplus energy is available and when grid electricity is being purchased.
RenewCo Solar provides tailored solar panel quotes based on the property rather than a generic savings promise. With 15 years of renewable energy experience, an in-house electrical team and Australian-based after-sales support, RenewCo can guide you from assessment through installation and ongoing system care. Request an assessment to understand how solar could change your electricity bill.
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