Do Solar Panels Save You Money? 5 Steps to Check Your Home Solar System

Step 1: Review Your Electricity Bills Before and After Solar

The most revealing evidence of solar panel savings lies in your electricity bills.

Gather your bills from the 12 months before solar installation and compare them with your current bills. Look beyond just the total amount—examine your energy consumption patterns and feed-in tariff credits.

What to check:

• Daily supply charges – These remain constant regardless of solar production
• Energy consumption from the grid – This should decrease significantly
• Feed-in tariff credits – Money earned from excess solar energy exported to the grid
• Seasonal variations – Summer bills should show greater savings due to longer daylight hours

If your bills haven’t decreased as expected, don’t panic yet. The remaining steps will help you identify why.

Step 2: Monitor Your Solar System’s Daily Production

Your solar system should come with monitoring capabilities—either through an app, online portal, or display unit on your inverter.

Check your system’s daily energy production and compare it against the estimated output provided during installation. Most Australian homes with a 6.6kW system should generate approximately 24-27 kWh per day, though this varies by location and season.

Key metrics to track:

• Daily energy generation (kWh) – Is it meeting expectations?
• Peak production times – Should occur between 10am and 2pm
• Monthly trends – Production should be higher in summer, lower in winter
• System efficiency – Compare actual vs. expected output

If your production consistently falls short, shading, panel degradation, or technical issues may be stealing your savings.

Step 3: Calculate Your Solar Self-Consumption Rate

Here’s where the magic truly happens—or doesn’t.

Your solar self-consumption rate reveals how much of your generated solar energy you’re actually using versus exporting to the grid. Since feed-in tariffs (typically 5-10 cents per kWh) are significantly lower than grid electricity costs (25-35 cents per kWh), maximising self-consumption is the secret to substantial savings.

How to calculate:

1. Find your total solar generation for the month (from your monitoring system)
2. Find your grid export for the month (from your electricity bill)
3. Subtract exports from generation to get self-consumption
4. Divide self-consumption by total generation, then multiply by 100

Example:

• Total generation: 800 kWh
• Grid export: 400 kWh
• Self-consumption: 400 kWh
• Self-consumption rate: 50%

Aim for a self-consumption rate of 30-50% or higher. Lower rates mean you’re giving away your solar energy for pennies when you could be using it to power your home.

Step 4: Assess Your Energy Usage Patterns

The timing of your energy consumption dramatically impacts your solar panel savings.

If you’re running appliances at night when solar production is zero, you’re missing the opportunity to harness free energy. Transforming your energy habits can unlock hidden savings without any additional investment.

Smart energy timing strategies:

• Run dishwashers and washing machines during peak solar hours (10am-3pm)
• Charge electric vehicles during the day when possible
• Use pool pumps and air conditioning when the sun is shining
• Set timers on appliances to operate during solar production periods

Consider installing a battery system if your household primarily consumes energy in the evening. While batteries represent an additional investment, they can dramatically increase your solar self-consumption rate and savings.

Step 5: Conduct a Physical System Inspection

Sometimes the answer to underperforming solar panels is visible to the naked eye.

Schedule a quarterly inspection of your solar system to identify issues that might be diminishing your savings.

What to look for:

Panel Condition

• Dirt, dust, or bird droppings blocking sunlight
• Cracks or physical damage to panels
• Discolouration or hot spots indicating cell failure

Shading Issues

• Tree growth casting shadows on panels
• New structures or buildings creating shade
• Seasonal shading patterns affecting production

Inverter Performance

• Error messages or warning lights
• Unusual noises or overheating
• Inverter age (most last 10-15 years)

Connection Points

• Loose or corroded wiring
• Water damage around connections
• Pest interference with cables

If you identify any concerns, contact a licensed solar technician for professional assessment and repairs.

Conclusion: Unveiling Your Solar Savings Potential

Solar panels absolutely can save you money—but only when they’re performing optimally and you’re using the energy wisely.

By following these five steps, you’ve gained the power to transform your solar investment from a passive rooftop installation into an active money-saving system. Regular monitoring, strategic energy consumption, and proactive maintenance are the keys to unlocking maximum solar panel savings.

Remember, every kilowatt-hour your system generates is an opportunity—an opportunity to reduce your electricity bills, decrease your environmental footprint, and take control of your energy future.

Ready to maximise your solar savings? Start with Step 1 today. Review those electricity bills and let the journey to energy independence begin. Your future self—and your wallet—will thank you.