Getting more value from your solar
The biggest lever in solar economics isn't your feed-in tariff or your panel brand. It's how much of your own solar electricity you actually use.
Self-consumption is king: 30c saved vs 3c earned
Every kilowatt-hour your solar panels produce has two possible destinations: you can use it in your home, or you can export it to the grid. The value difference is enormous.
Use 1 kWh yourself
You avoid buying from the grid at:
~30c
saved per kWh
Export 1 kWh instead
Your retailer pays you:
~3c
earned per kWh
A unit of solar can be worth ten times more when you use it yourself than when you export it.
Illustrative example. Actual rates vary by retailer, state, and plan.
When you use a unit of solar electricity yourself, you avoid buying that unit from the grid at your retail rate — typically around 30c/kWh. When you export it instead, your retailer pays you a feed-in tariff — typically just 3–7c/kWh.
The maths is simple
Practical ways to use more of your solar
The goal is to run your biggest electricity loads during the middle of the day, when your panels are producing the most. Here are the most effective strategies:
Run the dishwasher at lunchtime
Use the delay-start timer to finish before you get home. A typical cycle uses 1.5–2 kWh — that’s 45–60c saved vs running it after dinner.
Wash and dry during sun hours
A washing machine uses ~0.5 kWh per load, but a clothes dryer uses 2–4 kWh. Running the dryer on solar saves up to $1.20 per load.
Heat water with solar
If you have an electric hot water system, put it on a timer to heat during the day instead of overnight. Or install a solar diverter that sends excess solar directly to your tank element.
Charge your EV during the day
If your car is home during the day, set it to charge between 9am and 3pm. At 7 kW charging, you can add 35–40 kWh during peak solar hours — enough for 200+ km of driving, powered by free sunshine.
Run the pool pump midday
A pool pump running 6–8 hours at 1–1.5 kW is one of the biggest loads in a pool-owning household. Shift its run window to 9am–4pm and it runs almost entirely on solar.
Pre-cool your house
On hot days, run the air conditioner during the afternoon while solar is still producing, rather than waiting until evening. A cool house holds its temperature for hours.
Feed-in tariffs explained
A feed-in tariff (FiT) is the rate your retailer pays you for each kWh of solar electricity you export to the grid. It appears as a credit on your bill, offsetting your usage charges.
Your solar system and your household load are both connected behind the same meter. At any moment:
- If your panels produce less than you’re using, you draw the difference from the grid as normal, billed at your usage rate.
- If your panels produce more than you’re using, the surplus exports to the grid and your retailer credits you at the feed-in tariff rate.
Your bill nets these off: usage charges for what you imported, minus feed-in credits for what you exported.
Why feed-in rates are low and falling
Feed-in tariffs in Australia have dropped dramatically over the past decade. Early government-subsidised rates of 40–60c/kWh are long gone. Most households now receive 3–7c/kWh, and some retailers offer as little as 0c. This isn’t retailers being greedy — it directly reflects wholesale market conditions.
The connection to spot prices
Feed-in tariffs also vary by state and retailer. Each state’s energy regulator publishes an annual minimum benchmark (reflecting the estimated wholesale value of exported solar), and retailers can pay more but not less. That means:
Rates vary by retailer
Two retailers in the same state can offer noticeably different feed-in tariffs — it’s worth comparing when choosing a plan, not just usage rates.
Rates vary by state
Each state regulator (e.g. IPART in NSW, the Essential Services Commission in Victoria) sets its own minimum benchmark based on local wholesale market conditions.
Time-varying feed-in tariffs
Some retailers now offer time-varying feed-in tariffs that pay different rates depending on when you export. These typically pay much more for exports during the evening peak (when spot prices are high and solar is scarce) than for midday exports.
Time-varying feed-in tariffs are especially valuable if you have a home battery that can store midday solar and export it during the evening peak window. Without a battery, you have limited ability to shift your export timing.
Why this matters for your bill
The falling value of solar exports is the single strongest argument for maximising self-consumption. A household with a 6.6 kW system that achieves 30% self-consumption will save noticeably less than one achieving 50% — even though they have the same panels on the same roof.
The good news: most of the self-consumption gains above are free. They just require shifting when you do things you already do.
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