How Much Can You Really Save with Solar in Newcastle? A 2025 Guide
- Darren
- Jun 6
- 3 min read
If you’re like many homeowners in Newcastle, Lake Macquarie, Port Stephens, Central Coast or the Hunter Valley, you’ve probably wondered: “How much will solar actually save me?”
You’ve seen the ads and heard the success stories, but when it comes to real numbers, it’s hard to know what to believe. That’s why we’ve created this 2025 guide to show you exactly how solar savings work, what to expect based on local conditions, and how much you could save depending on your system and energy usage.
Let’s break it down so you can make an informed, confident decision.
The Basics: How Solar Saves You Money
Installing solar panels reduces your power bill in two key ways:
You use less electricity from the gridYour panels generate power during the day. The more of that power you use (instead of buying from the grid), the more you save.
You earn credits for exporting excess energyAny unused energy is sent back to the grid. Your energy provider pays you a feed-in tariff, typically between 5 - 12c per kWh in the Newcastle area.
How Much Power Does a Typical System Produce in Newcastle?
Newcastle enjoys an average of 4.8 peak sun hours per day, which is excellent for solar generation.
Here’s how much energy common system sizes generate:
System Size | Daily Output (approx.) | Monthly Output | Annual Output |
5kW | 20 kWh/day | 600 kWh | 7,300 kWh |
6.6kW | 26 kWh/day | 780 kWh | 9,500 kWh |
10kW | 40 kWh/day | 1,200 kWh | 14,600 kWh |
Your actual savings will depend on how much of this energy you use during the day versus export back to the grid.
What’s the Average Energy Bill in Newcastle?
According to the AER (Australian Energy Regulator), the average electricity bill for a household in NSW is around $1,500 to $2,200 per year, depending on home size and usage.
So, What Can You Save with Solar?
Let’s look at some real world examples:
Case Study 1: 4 - Person Family in Lake Macquarie
System Size: 6.6kW
Daily Usage: 25 - 30 kWh (with major use during the day)
Energy Bill (Before Solar): $2,000/year
Bill After Solar: $500/year
Annual Savings: $1,500+
Payback Period: 3.5 - 4 years
20-Year Savings Estimate: $25,000 - $35,000+
Case Study 2: Retired Couple in Port Stephens
System Size: 5kW
Daily Usage: 15 - 18 kWh
Home Occupied During Day: Yes
Energy Bill (Before Solar): $1,400/year
Bill After Solar: $300/year
Annual Savings: $1,100
Payback Period: 3 years
20-Year Savings Estimate: $20,000+
Case Study 3: EV Owner in Newcastle
System Size: 10kW with Battery
Daily Usage: 35 - 40 kWh (includes EV charging)
Energy Bill (Before Solar): $2,800/year
Bill After Solar + Battery: $200/year
Annual Savings: $2,600+
Battery Payback Period: 6 - 8 years
System Payback (Total): 5 - 6 years
20-Year Savings Estimate: $40,000+
Want a Quick Estimate? Use the 30% Rule
A good rule of thumb: If you self-consume 30 - 50% of your solar energy and export the rest, you can expect savings of:
$1,200 - $1,800/year on a 6.6kW system
Even more if you’re home during the day or add battery storage
And remember, solar panels typically last 25+ years, which means the long term savings are huge.
Bonus: Solar Increases Property Value
Beyond bill savings, solar can also:
Increase your home’s appraisal value by up to 10%
Make your property more attractive to buyers
Help you sell faster in a competitive market
In Newcastle’s real estate market, energy efficient homes are increasingly in demand.
Don’t Forget: Solar Prices Are Falling, But So Are Incentives
Every year, the STC rebate amount drops slightly, meaning the sooner you install, the more you save upfront.
As of 2025, most households can still save $2,000 - $3,000 off the upfront cost of a standard system through rebates alone.
Thinking About Making the Switch?
At STE Solar, we design and install custom solar systems to suit your home, usage patterns, and budget. We also help you understand exactly what you’ll save, what rebates you’re
eligible for, and how to maximise your return.
Call us now on 0498 537 907 Or Request Your Free Solar Savings Estimate
Let’s make 2025 the year you stop renting your power, and start owning it.
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