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You are here: NSW home > Residential > Solar energy > The benefits of solar power

The benefits of solar power

Australia is one of the sunniest locations on earth which makes it an ideal place for the generation of solar power.

The advantages of installing a solar power system include

  • Saving around $200 a year on the average household electricity bill for a well-located1kW system.
  • Saving up to 1.5 tonnes of greenhouse gas a year for a 1kW system, more than what a typical car produces in 3 months.
  • Householders with solar power can sell excess energy back into the grid under EnergyAustralia’s Solar
  • Buy-back tariff, for customers who live in the EnergyAustralia network area.
  • Generous Federal Government rebates of up to $8,000 for households and $12,000 for community organisations are now available for grid-connected systems.
  • Providing support for the renewable energy industry.

But consider this…
  • Solar power systems still have a high upfront cost ranging from $4000 - $6,000 for a 1kW system after rebates.
  • They do not suit all homes or sites as they require unshaded, north-facing roof space.
  • A household-sized solar power system is unlikely to reduce energy bills to zero. Typically, a 1kW solar system will reduce average household energy bills by 25% (excluding hot water).
  • Other energy-saving measures such as installing solar water heating systems or reducing overall household electricity consumption can result in similar greenhouse gas and cost savings.
  • Reducing electricity use by being more efficient is the lowest cost way to reduce your greenhouse gas emissions.


More information

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