What Is the Average Power Bill in Australia With Solar Panels?

Updated: December 6, 2023

Have you ever wondered how much electricity your household uses and the power bill that it generates? Well, you’re not alone. Just like many Australian families with solar panels, knowing the amount of electricity your household uses lets you know how much you save with solar panels.

The average power bill in Australia for a home with solar panels is $26.12 per month or $312 annually. The average power bill in Australia without solar panels is $1,593.17. This is almost double the power bill with solar panels. Well, solar panels help households save on energy costs which is why many families in Australia are switching to solar panels.

Well, solar panels help homes save on energy costs which is why many families in Australia are switching to solar panels.

For many Australians with solar panels and those looking to install solar panels, there is a big question to be answered. Do solar panels help you save on your electricity bills? And if so, how much do solar panels help to keep?

To know how much solar panels save on electricity, we have to know the average electricity bill without solar panels, the cost of installing solar panels, and the amount saved by households with solar panels.

This is the Average Quarterly Electricity Bill without solar panels and with solar panels in major cities in Australia.

The figures used below are an estimate from all household sizes in the state and help to compare the average annual bill without solar panels and with solar panels to see which has better savings.

StateAverage yearly Electricity Bill (without solar panels)Average yearly electricity bill (with solar panels)
New South Wales$1,203$700
South Australia$1,707$1,120
Australian Capital Territory$2,081$1,020

The values for the average yearly electric bill were obtained from the Australian Energy Market Commission (AEMC). It has been established that solar panels help improve long-term savings on your household electricity bills by up to $600 a year.

NOTE; It is important to know that the Average annual electricity bill (with solar panels) is for a 5kw solar system.

A higher system e.g. 8kw, 10kw will generate higher savings for every household compared to a 5kw solar system.

How much is the average Australian electricity bill per month?

electricity bill per month info

The average Australian bill per month usually differs from state to state with some having significantly less energy costs than others. E.g. Queensland(QLD) has an average monthly electricity bill of $102.16 while Tasmania (TAS) has an average monthly electricity bill of $170.33.

There is a staggering difference of $68.17 between the two states, both of which are in Australia. However, it is important to note that electricity bills are not consistent throughout the year. This is because energy needs vary from month to month due to various reasons.

For instance, the change in seasons from winter to spring to summer, autumn, and back to winter influence our needs for heating, cooling, and lighting depending on the time of the year. Hence, the amount indicated below is just an average from all year long.

StateAverage monthly cost
Queensland $102.16
New South Wales$104.41
South Australia$145.67
Australian Capital Territory$167

Is solar power expensive in Australia?

Solar panels in Australia can cost between $3,000 and $14,500 depending mostly on the solar system size. Brand quality and government rebates also play a role in cost.

Without going into too much detail, below you will find a cost range you can expect for having solar installed. The most popular sizes for a solar system in Australia are 6kWh to 10kWh.

This table shows the cost range for the common solar system sizes used by households in Australia.

Size of the solar systemCost range
2kW solar system$3,705
3kW solar system$4,294
4kW solar system$5,209
5kW solar system$6,045
6kW solar system$7,412
9.9kW Solar System$9,504
10kW solar system$10,261

How many solar panels do I need to run my house in Australia?

The average solar system used in Australian homes is a 6.6kW solar system. This system generally requires between 18 and 24 solar panels and will run a medium-sized household. It is a favorite among many families because it produces enough electricity for the average Australian home of 2 to 3 bedrooms with basic electrical appliances.

Also since a 6kw solar system only requires about 18 to 24 solar panels, most houses can easily accommodate the solar panels on their roofs. It also means that purchasing a solar system along with solar panels and any other equipment is affordable while still providing the necessary energy output.

What to consider when buying solar panels in Australia

Solar panels are a very effective way to reduce the cost of electricity in Australia. Solar panels have become more and more popular among Australian families due to the accessibility and affordability they have now compared to a few years ago.

When choosing solar panels to add to your electricity output, there are some important factors to consider. They include;

1. Your budget

The most important factor to consider when purchasing a solar panel is how much you are willing to spend on it. There are many brands of solar panels available in Australia with varying price tags. Some solar panels may have higher efficiency or higher wattage than their counterparts, however, they usually cost more than lower efficiency and wattage solar panels.

Knowing your budget allows you to purchase a solar panel you can afford to pay for easily. Purchasing a solar panel out of your cost range may not be cost-effective as you will struggle to pay it off leasing to high-interest rates and longer payback periods.

2. Average electricity usage

The average amount of electricity you use regularly is one of the most important factors to consider when buying solar panels. The higher your electricity usage, the more solar panels will be needed to make a difference and help you save on electricity costs.

Households with high electricity usage can also go for high-wattage and high-efficiency solar panels. This is because these panels produce electricity faster than their low-wattage and low-efficiency counterparts allowing for better results and more savings in the long run.

NOTE: Knowing your electricity usage also allows you to purchase a solar system that will be the most effective to suit your electricity needs,

3. Available roof space

The area of available unshaded roof space is very crucial when it comes to purchasing solar panels. This is because when installing solar panels on your roof, unshaded roof space is required so the solar panels have optimal access to sunlight during the daytime.

Placing solar panels under shade will highly diminish their efficiency causing the homeowner to lose. This is because shaded solar panels produce less electricity causing the homeowner to save less than expected. This loss is unwarranted and can be resolved by installing the solar panels in open unshaded space.

4. Expected outcome

Setting down exactly what you expect from your solar panels is very important when choosing to purchase solar panels. This is because different solar panels and solar systems will give you different results.

Some homeowners may want to reduce their electricity bills, others may want to use solar energy as their main electricity source and others may choose to go completely off-grid. Knowing exactly what you want from purchasing that solar panel allows you to make better choices in terms of size, budget, and so on.

Ben McInerney head shotAuthor: Ben McInerney is a renewable energy enthusiast with the goal of helping more Australians understand solar systems to make the best choice before they purchase. Having an accredited solar installer in the family helps give Ben access to the correct information, which allows him to break it down and make it easily understandable to the average homeowner.