1. Sunlight Absorption
Solar panels absorb sunlight.
2. Energy Use
The generated electricity helps power your home’s appliances and lighting.
3. Energy Conversion
The absorbed sunlight is converted into electricity.
4. Energy Feed-in
Any unused energy is fed back into the grid.
Where does the exported electricity go?
Once the generated electricity is fed to the grid, it becomes part of the overall electricity supply. This energy is distributed to various consumers, such as homes and businesses. This means that the excess energy your panels are generating are feeding the grid with clean solar energy, reducing the reliance on non-renewable energy sources.Myth: By installing solar, I won’t need to use energy from the grid
Reality: As solar electricity is only generated when the sun is shining, most homes rely on a combination of using their own household generated solar alongside electricity from the grid to power their household.
What impact does solar energy have on the network?
During the middle of the day, when solar production is at its highest, and most people are away from home, there is a surge in solar exports to the network. These exports are caused by the excess electricity that people aren’t using having nowhere to go and flowing into the grid. This puts strain on the infrastructure that Ausgrid operates leading to investment in the electricity network to manage this two-way flow of energy.
An easy way to think of this is like the expansion of a road or the addition of traffic lights to accommodate the flow of more cars in different directions. Networks like Ausgrid need to adjust the grid infrastructure to accommodate the increased flow of solar energy from households into the electricity network.
As the adoption of solar continues to grow over time, the network needs to adjust to accommodate more solar exports. By spreading exports out across the day, we can avoid these extra investments and get better value from our existing investment in the grid – this keeps bills from rising unnecessarily.
How does solar energy impact your bill?
Generating solar electricity means that you may not need to buy as much electricity from your retailer. This has an impact on your bill and is how you can maximise your greatest savings. The electricity we don’t have to pay for is the cheapest electricity of all.
For example: Paul has installed a solar system to reduce the amount he pays for electricity. If during the afternoon, his solar system was to generate 2kWh of electricity and his consumption was 5kWh - Paul would only be paying for 3kWh of his electricity usage.
Solar feed-in
You may also notice a solar feed-in on your bill where excess solar that you export to the grid is added to your bill. The amount will vary depending on your retailer.
| Solar feed-in | Feed in Tariff | Credit |
|---|---|---|
| 5kWh |
5c/kWh | +$0.25 |
For example: Paul uses 10kWh of electricity over the course of a day. His solar system generates 15kWh of electricity. His usage is covered so he wouldn’t be charged for this, and the additional 5kWh is fed into the network in the evening, giving him a small credit on his bill.
Myth: Exporting to the grid will save me the most money on my energy bill
Reality: The biggest impact you can have on your bill is shifting your usage so that you are using up your solar energy whilst the sun is shining.
Finding the right deal for your household
It is worth considering the tariff you are on and contacting your retailer to ask whether you can benefit from making any changes for your household.2024 - 2025 Solar Tariff Changes
With more and more households exporting solar, Ausgrid needs to adjust the network to facilitate this, which comes with additional costs. In order to fairly pass these costs on to those benefiting from solar, in July 2024, we introduced an opt-in two-way tariff for new and existing residential and small business customers who export over a threshold.
From July 2025 the tariff will apply to all export ready customers. How and when your retailer passes this on to you as part of your solar feed-in reward is up to them. This may reduce the amount you are paid for your solar feed in during the middle of the day when there is an excess of solar supply (between 10am-3pm). Conversely, there is an additional reward for customers, paid as a credit to your retailer, where export to the grid occurs in peak periods and is beneficial to everyone (e.g. between 4-9pm). It is always a good idea to compare retailers to find the best deal for your household. The tariff includes a free threshold with the amount you can export to the network before these charges and rewards apply, so households with smaller solar system will see no or little change.
Myth: Ausgrid are charging consumers a tax to use the suns energy
Reality: It’s a common misconception that Ausgrid is taxing the sun. Our charges reflect the additional costs associated with the need to adapt our network to accommodate the two-way supply of energy from households. By passing these charges through to those that have larger solar systems we’re able to provide a fairer attribution of these costs to customers driving the changes required to the network.
Optimising your solar system
Whether you’re looking to have a system installed or you’ve already got one on your roof there are a few factors that could affect the amount of solar energy your system will generate. Knowing what to look out for will help you make the most of your installation.
- Direction
As the sun rises and sets throughout the day, the direction your panels face will influence when they generate the most electricity. This is different from house to house, but knowing when you’re generating can help you know when to use energy in your house more efficiently.
- Angle
The angle of your panels also helps maximise energy production and keep panels clean due to rain run-off. The ideal angle follows your roof. The exception being a flat roof - where use of tilt frames helps avoid lost generation and the hassle of cleaning them.
- Amount of panels
The available space on your roof and your budget will determine the maximum number of panels you can install. However consider how much energy you use (and think about your future use), to find a system that is optimal for you.
- Environment
Just like how we head for the shade on a hot sunny day, shade on your solar panels will impact how much they generate! Removing trees or other objects that are casting shadows on your panels will help optimise your output.
- Dirt and debris
Dirt and debris can slightly reduce efficiency. The good news is, in Australia, rainfall is usually enough to keep solar panels reasonably clean. The exception is flat-laid panels that require additional cleaning to run efficiently. Keep an eye on your output and check panels so leaves or larger debris aren’t hindering your generation.
How else can you optimise your use of solar energy?
Use your own solar
Running high energy use appliances during the day is a great way to use your own generated solar. Here are some tips to help you get started:
Washing machines, dryers, dishwashers, pool pumps and EV chargers often have built-in timers so you can choose when they turn on.
Slow cookers can help reduce your usage by cooking your evening meal during the day.
Run air-conditioners during sunlight hours and keep heat out by closing doors and windows.
In winter run your electric heater to prewarm your house during sunlight hours and keep heat inside by keeping doors and windows closed.
Monitor your solar usage
Knowing how much energy is being generated and how you are using it is a crucial step on your journey to optimising your household’s solar usage. It can also help you know when something isn’t right.Time your solar feed-in
If you are able to, timing your solar feed-in to be later in the day is a good way to help the network by providing energy when it’s needed. Later in the day, when we all typically get home and start turning on appliances is when excess energy is most useful, and why there are extra rewards for exporting to the grid in peak periods!
This can be particularly impactful if you are on two-way solar tariffs.
Work towards an electrified household
Electrification of your home is a good consideration for you to use more of your own solar energy. Replacing traditional gas appliances with electric water heaters and stovetops, are steps you can look at when it comes time to replace old appliances.Storing solar energy
If you’re producing a lot more solar than you’re using, it may be worth looking at whether adding a battery to your system could be right for you. Household batteries allow you to store energy to be used later or fed-in at a different time. This can help you avoid feeding-in during peak times - reducing the strain on the network.
It’s important to consider your own situation and whether a battery is right for your household. SunSPOT can help you weigh the costs and benefits, and the NSW Government offers incentives that could help with upfront costs.
What does the future of solar energy look like at Ausgrid?
Renewables are an important part of our energy mix. The more houses that have solar, the greener our electricity is, and that’s good for everyone. At Ausgrid we’re working on several initiatives that support a greater role for solar in the network into the future. Here’s a glimpse:
Additional resources
If you are looking for some extra information about solar energy, check out these resources.