How Is Solar Energy Used in Your Home?
(and how do you get paid for it?)
Last Updated: 10th May 2026
If you’re planning to get rooftop solar but not a battery, understanding how to make the most of the power it produces will let you maximise your electricity bill savings, by shifting electricity consumption towards the middle of the day.
On the other hand, if you are getting solar and a battery, then making sure you use solar electricity during the middle of the day becomes less important for bill savings. But shifting electricity consumption to when solar output is high will still allow you to:
- Save some money
- Reduce wear and tear on your battery, and…
- Potentially reduce the size of the battery you need
Maximising savings with solar only
Once you pay for your solar system, the power it produces is effectively free, so – when possible – it’s always a good idea to use solar electricity when it’s produced, then grid electricity when your solar system’s output is either low or zero. Depending on electricity plan, grid electricity can be cheap during the day and some plans have periods of free daytime electricity. But it doesn’t matter is electricity is cheap or free because of your solar system and/or because of your electricity plan. It still makes sense to use the most electricity when it costs the least.
While some solar only households will have plans with cheap daytime electricity, most will have a flat tariff and, depending on location, this is typically be from 28c to 44c per kilowatt-hour (kWh). So setting appliances to run around the middle of the day when solar output is high, such as hot water systems, pool filters, dishwaters, clothes dryers – as well as charging EVs – can result in large electricity bill savings.
If you don’t directly use your solar electricity, it will be sent into the grid for a feed-in tariff. These are usually low these days, but can range from 2-12c per kWh depending on location and electricity plan. You feed-in tariff will normally be much lower than what you pay for grid electricity, so you’ll save much more by directly using a kWh of solar electricity than by exporting it into the grid.
To maximise your savings, you’ll want to:
- Shift as much electricity consumption to the middle of the day as you reasonably can
- Export a lot of electricity for a feed-in tariff
One way to ensure you’ll have enough solar generation to meet your own needs while still exporting plenty is to install a reasonably large system. If your electricity consumption isn’t high, a 6.6kW solar system may be plenty. But for most households I recommend getting more. One reason I reccommend this is because EVs are going to become the most common type of car.
Saving with solar & batteries
If you have solar and a home battery, then – provided the battery is large enough – you can be much more relaxed about when you use electricity, as most of the time, the electricity you use will come either directly from your solar system or your battery.
You can still save money by shifting consumption to the middle of the day. This is because around 10% of the energy that goes into a battery gets wasted through charging and discharging losses, so directly using solar energy by shifting consumption to the middle of the day will leave more to export for a feed-in tariff. It will also reduce wear and tear on your battery because you won’t be using it as much and this can make it last longer. Also, shifting consumption to the middle of the day means you may be able to make do with a smaller battery.
The right tariff is vital for savings
To cut your electricity bills to the bone, you’ll have to make sure your electricity plan has the right type of tariff. The two main tariff types are:
- Flat tariffs: These charge the same amount per kWh of grid electricity, regardless of when it’s used.
- Time-of-use tariffs: The amount charged for grid electricity varies through the day, with the most expensive period in the late afternoon and evening. These include plans with periods of free electricity.
- Demand tariffs: While these may suit some battery households, by advice is to stay away from them unless you really know what you’re doing.
There are also demand tariffs which may suit some battery households, but unless you really know what you’re doing I recommend staying away from them.
Solar only households usually save the most with a flat tariff, as it means they won’t have to pay high rates in the evening when there’s no solar power. But depending on when they use the most electricity, solar households can be better off on a time-of-use tariff, especially if their solar system is small.
Battery households are almost always better off with a time-of-use tariff. This is because their battery allows them to avoid having to pay for expensive peak electricity in the evening. Also, if they have a plan with a period of either cheap or free daytime electricity, the battery can be set to charge during this time, reguardless of how much surplus power the solar system is producing. This means they battery can always heading into the late afternoon and evening with plenty of charge, even during the middle of winter and/or periods of bad weather.
To sum up:
- Solar only homes should generally have a flat tariff and electricity plans with high feed-in tariffs and usually – but not always – best.
- Solar & Battery homes should almost always have a time-of-use tariff, preferably with a free or at least very cheap period every day. A high feed-in tariff is often good, but this can be less important, as a battery household will generally export les than a solar only one.
Check here to see the latest state-by-state solar feed-in tariff information.
If you want to see how the feed-in tariff in your state will affect the payback of a quoted solar system, have a play with our Solar Payback Calculator