How Much Will I Save on My Electricity Bills In Melbourne with Solar?

If you’re living in Melbourne and wondering, "How much will I save on my electricity bills with solar?" — you’re not alone. This is easily one of the most common questions we get at Ramselec Solar, and for good reason. With energy prices rising and the cost of solar dropping, there’s never been a better time to take control of your power bills.

Let’s break it down in a simple, clear way — no confusing jargon, just real numbers and practical advice. We’ll even give you a handy formula so you can estimate your own potential savings.

How Solar Saves You Money

Solar panels generate electricity from sunlight, which means during the day, you can use your own power instead of buying it from the grid. That’s where your savings come in.

The more solar energy you use in your home (rather than exporting it to the grid), the more you save. And if you pair your system with a battery, you can store excess energy and use it at night — pushing your savings even higher.

The Simple Solar Savings Formula

Want a quick way to estimate how much you could save? Here’s a straightforward formula you can use:

Estimated Annual Savings ($) = Solar System Size (kW) x Average Daily Sunshine Hours x 365 x Electricity Rate ($/kWh) x Self-Consumption Rate (%)

Let’s break that down:

• Solar System Size: Most Melbourne homes install between 5kW to 10kW systems.

• Average Daily Sunshine Hours: In Melbourne, it's about 4 hours of full sun per day.

• Electricity Rate: In 2025, the average is around $0.30/kWh.

• Self-Consumption Rate: This is how much of your solar power you use yourself. Without a battery, this might be around 30–50%. With a battery, it could be 70–90%.

Example:

Let’s say you install a 6.6kW system, have 4 hours of sun per day, and consume 50% of your own solar power.

6.6 kW x 4 hrs x 365 x $0.30 x 0.5 = $1,445 in estimated yearly savings

Add a battery and boost your self-consumption to 80%, and those savings jump to over $2,300 per year.

What Factors Affect Your Solar Savings?

1. Your Energy Usage

The more power you use during the day, the more solar can directly offset your grid usage.

2. System Size & Design

A well-designed system matched to your household needs ensures maximum benefit. That’s where Chris Ramsey at Ramselec Solar comes in — he’ll tailor a solar solution that suits your roof, lifestyle, and budget.

3. Feed-in Tariffs

If you export excess solar energy, your retailer may pay you a small credit (currently around 5-10c/kWh in Victoria). It’s not huge, but every bit helps!

4. Battery Storage

Adding a battery can drastically increase your self-consumption and reduce your reliance on the grid.

5. Government Incentives

Solar rebates and interest-free loans from the Victorian and federal governments make going solar more affordable than ever. Read our detailed blog on rebates here.

How Long Until Your Solar System Pays for Itself?

This is known as the payback period — the time it takes for your electricity bill savings to cover the cost of your system.

In Melbourne, the average payback period for a solar system is around 3 to 5 years. With a battery, it might extend to 6 to 10 years, depending on usage and system size.

After that, your power is basically free for the next 10 to 15 years (or more), depending on your system’s lifespan.

Real Results: Ramselec Solar Clients in Melbourne

Here are a few real-world examples from clients who made the switch with Chris Ramsey at Ramselec Solar:

• Jane in Glen Iris: Installed a 6.6kW system in 2022. Her quarterly power bills dropped from $480 to just $90.

• The Patels in Reservoir: Upgraded to a 10kW system with a Tesla Powerwall. They’re now saving over $3,000 per year.

• Gary in Mornington: Added solar to his home office setup. System paid for itself in 4 years, and he hasn’t paid a cent to his retailer since 2023.

Learn More about solar on our blog.

Don’t Forget Ongoing Value

Beyond just bill savings, solar also:

• Adds value to your home

• Protects you from rising electricity prices

• Reduces your carbon footprint

• Qualifies you for rebates and tax offsets

Still Unsure if Solar is Worth It?

We totally get it — it’s a big investment. But with today’s prices, rebates, and rising power bills, most Melbourne households will see real savings in the first year.

You don’t need to figure it all out yourself. Chris Ramsey and the team at Ramselec Solar are here to walk you through it.

Read our blog: Are Solar Batteries Worth It?

Explore: Are Solar Panels Worth It In Melbourne?

Final Thoughts: How Much Will You Save?

It depends on your home, your energy habits, and your system size. But the short answer is — most Melbourne homes save $1,200 to $2,500+ per year with solar.

And with systems lasting 20+ years, that adds up to tens of thousands of dollars over time.

So why wait?

📞 Ready to Slash Your Bills?

Call Ramselec Solar at 1300 495 322 or email Chris directly at [email protected] for your free solar quote.

Let’s help you take control of your energy bills — and your future.

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