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An example electricty bill with text overlay saying "understanding your electricity bill: What your really paying for"

Understanding Your Electricity Bill: What You’re Really Paying For

Written by Donna Wentworth on . Posted in Learning Centre.

You open your electricity bill. The number on the front page makes your stomach drop. You think, “How on earth am I using that much power?” When you try to dig into the details, it’s a wall of jargon. Supply charges, time-of-use rates, controlled loads, kilowatt-hours — and then there’s a mystery credit you didn’t expect. It’s hard to tell what you’re actually paying for, let alone whether it’s fair.

To make things worse? Rates have quietly gone up — again. There’s no big announcement, no warning, just a higher price per kilowatt-hour tucked away in the fine print. You feel like you’re being charged more and getting less, without really knowing why.

You’re not alone. Electricity bills are designed to show the information — not explain it. For those who have added solar, it often introduces another layer of complexity to the bill.

At Lenergy, we speak to homeowners every week who are paying too much, not just because they use too much power — but because they don’t fully understand what they’re being charged for, or how to check it. Often, they’ve already taken steps to reduce usage or install solar, yet they still feel like they’re still paying more than they expected.

In this guide, you’ll learn how to read your electricity bill with confidence.
We’ll show you exactly what to look for — step by step — with visual examples to help you follow along. Whether you have solar or not, you’ll understand what each charge means, why your bill fluctuates across the year, and how to spot red flags — such as sneaky rate increases.

Why Electricity Bills Feel So Confusing

Most electricity bills are designed for accountants, not everyday homeowners. They’re packed with technical terms, hard-to-follow tables, and totals that don’t tell the full story. Even if your usage is consistent, your bill can still go up — and you’re left wondering what changed.

A big part of the confusion comes from how energy is priced. You’re not just paying for how much electricity you use. You’re also paying:

  • A daily supply charge just to be connected to the grid
  • Different usage rates depending on when you use power (peak, off-peak, shoulder)
  • Extra costs or credits if you have solar
  • And sometimes, sudden rate increases that aren’t clearly flagged

Then there’s the issue of how you pay. Many households are on weekly or fortnightly direct debits — and while this can make bills feel more manageable, it can also mask how much you’re actually spending. The payments feel small, but the total across a billing cycle (especially quarterly ones) can be surprisingly high.

It’s no wonder people look at the “Amount Due” on the front page and feel blindsided. It might include weeks of backdated charges or spread across a long billing period. If you’re not tracking your usage or the rising rates underneath, it’s easy to miss the bigger picture.

If you’ve ever thought, “My usage hasn’t changed, but my bill has,” — this section will explain why.

What to Look for When You Open Your Bill

Before you start scanning rows of numbers or wondering what a kilowatt-hour actually costs — pause. The most useful thing you can do with your electricity bill is to start with four key metrics. These tell you how your charges are calculated, how long they cover, and whether anything looks off.

Here’s what to look for:

Billing Period

This tells you the exact dates the bill covers. Some people get billed monthly, others quarterly. If you don’t notice this upfront, it’s easy to misjudge how high your bill really is.

An example electricity bill from Lenergy highlighting the billing period with a Lenergy logo watermark

Always double-check how many days your bill is spread across. A $500 bill might seem massive — until you realise it’s covering 90 days, not 30.

Average Daily Usage

This shows how much electricity you use on an average day, usually in kilowatt-hours (kWh). It’s one of the easiest ways to track whether your usage is changing — especially useful across seasons.

An example electricity bill showinf rhw average daily usage with a Lenergy logo watermark

Compare this to your past bills to spot trends. Some retailers also compare your usage to “similar homes” — which can be helpful, but take it with a grain of salt.

Usage Rates

You might be paying different rates for electricity depending on when you use it:

  • Flat rate: One rate for all hours
  • Time-of-use (TOU): Higher rates during peak hours, lower off-peak
  • Shoulder rates: Mid-tier pricing between peak and off-peak periods
  • Controlled load: A separate rate for specific appliances like electric hot water systems, usually at night
An example electricity bill from Lenergy showing the peak usage, shoulder usage and off peak usages

Understanding your rates helps you match your habits. If you’re on TOU pricing and running appliances during peak times, your costs can climb quickly — even if your usage is low. Knowing when shoulder and off-peak periods apply can help you shift usage and save.

Daily Supply Charge

This is a fixed amount you pay every day just to be connected to the grid — even if you use no electricity at all.

It’s usually listed separately to usage rates and often surprises people. Multiply it by the number of days in your billing period to see how much it really adds up to.

An example electricity bill from Lenergy highlighting the Service to property charge with a Lenergy logo watermark.

Learning to spot these four things takes just a minute — but it gives you a clearer picture of what you’re really paying for.

Breaking Down the Metrics: What You’re Actually Being Charged For

Once you’ve found the basics — billing period, usage, supply charge, and rates — the next step is understanding what all those line items on your bill actually mean. This section gives you a simple breakdown of the most common charges and credits you’ll see.

Daily Supply Charge

This is a fixed fee just for being connected to the electricity grid — it’s charged per day, no matter how much or how little power you use. It usually ranges from 90 cents to $1.30 per day depending on your plan and provider.

If your bill covers 90 days, and your supply charge is $1.10/day, that is adding $99 in connection fees alone to your bill — before accounting for a single kilowatt-hour of energy.


Some plans — especially controlled load and time-of-use (TOU) tariffs — may include additional daily supply charges for each metering configuration. For example:

  • If you have a controlled load for your electric hot water system, you might see a second supply charge just for that meter.
  • Some TOU plans may break out supply charges per rate type or meter, depending on your setup.

This means your fixed daily charges could include two or even three separate daily supply fees — and they all add up.

An example Lenergy electricity bill highlighting the daily supply and daily supply controlled.

Usage Charges

This is the part of your bill based on how much electricity you actually use, measured in kilowatt-hours (kWh). You might see one flat rate, or several rates depending on your pricing structure:

  • Peak rate: Highest rate, usually weekday afternoons and evenings (e.g. 4–9 pm)
  • Shoulder rate: Moderate pricing, often mornings or mid-day periods
  • Off-peak rate: Cheapest rate, usually overnight or weekends.
    Some providers are now introducing midday off-peak rates due to high levels of solar generation feeding into the grid. This reflects a broader shift in how energy is priced — and new options like solar sharing schemes are also starting to emerge.
    You can read more about that here.
  • Controlled load: A lower rate for specific appliances like electric hot water systems, usually metered separately and run at off-peak times.
An example electricity bill from Lenergy highlighting the charging window with a Lenergy logo watermark.

Understanding how your rates work helps you make smarter choices about when to run power-hungry appliances — and can help you avoid using electricity during the most expensive times of day.

Solar Feed-in Credits (for solar households)

If you have solar panels, any excess power your system exports to the grid is credited to your bill at a “feed-in tariff” — usually between 0 and 7 cents per kWh.

This will appear as a line item or section on your bill, often labelled “solar export” or “feed-in credit.” It’s subtracted from your total charges, not paid out in cash unless you’re in credit.

It’s important to note: just having solar doesn’t mean your bill will be zero. You still pay for any grid power you use outside solar hours — and your daily supply charge still applies.

An example electricity bill from Lenergy showing feed-in credits and how they offset usage.

Other Items You Might See

Depending on your provider and plan, you might also notice:

  • GreenPower charges (if you’ve opted in to pay for renewable energy)
  • Metering fees (for remotely read smart meters)
  • Credit adjustments or late payment fees
  • Government rebates or concessions, if applicable

Each of these should be listed with clear labels — but unfortunately, that’s not always the case.

How Solar Affects Your Bill (And What to Watch Out For)

If you’ve installed solar panels, you probably expected a sharp drop in your power bills — maybe even a $0 balance. However, for many households, the first post-solar bill brings a surprise: you’re still paying more than expected. Here’s why that happens, and how to read your bill correctly with solar in the mix.

You Still Use Grid Power — Just Not as Much

Your solar system generates power during the day, and when you’re using electricity at the same time, your home will use that solar power first. This is where most solar savings actually come from — because you’re avoiding buying electricity from the grid at full retail prices.

However, your electricity bill does not show this self-consumed solar energy. The bill only records what passes through the meter:

  • Electricity you import from the grid
  • Electricity you export back to the grid

So while your solar system may be powering much of your home during the day, that benefit happens “behind the meter” and isn’t visible as a line item. The charges you see are simply the remaining gap — the grid power you still need at night, during poor weather, or during high-usage periods.

Feed-in Tariffs Don’t Show the Full Picture

Any unused solar energy is exported to the grid and credited at a feed-in tariff (FiT). These rates are typically much lower than what you pay to buy electricity — often around 0–7 cents per kWh compared to 30–50 cents per kWh for usage charges.

Because your bill only shows exports, it can make solar look less effective than it really is. Even if your feed-in credit seems small, that doesn’t mean your system isn’t saving you money. It means the self-consumed solar energy — the portion you used directly in your home — isn’t measured by the meter and therefore doesn’t appear on your bill.

This is why a single electricity bill often understates the real financial benefit of solar. For a more accurate understanding of how your solar is saving you money depending on the system you have you can refer to your solar tracking app such as the mySigen App, or setup your AlphaCloud app. These will give you a full breakdown of how your Solar + Battery system is powering your home.

Some is holding an ipad and the ipad is showing a data screen from the AlphaCloud battery app

You Still Pay the Daily Supply Charge

Even if you export more electricity than you import, you’ll still be charged daily supply fees — and if you’re on a time-of-use or controlled load plan, there might be more than one. In some cases, the supply charge alone can account for a third (or more) of your total bill.

Billing Mistakes with Solar Are Common

Not all electricity retailers handle solar exports accurately. If something looks off — for example, if your feed-in credits seem unusually low, or your export figures are missing altogether — it’s worth checking:

  • Your inverter’s export data
  • Your smart meter reads (if accessible)
  • Whether your FiT rate matches what your plan promised

Errors do happen, especially if your meter wasn’t properly reconfigured after installation.

Solar is a great investment, but it doesn’t eliminate your bill entirely — especially without a battery. The key is understanding how your solar generation and feed-in credits appear on the bill, and recognising that most of your savings are happening quietly in the background, powering your home without ever being recorded.

Why Your Bill Changes With the Seasons

Even if your energy habits stay the same, your electricity bill probably won’t. One quarter your usage looks normal — the next, it spikes. Or maybe your solar seems to carry you through summer, but not winter. This isn’t just you — it’s the season.

Energy Use Rises in Summer and Winter

For most homes, energy use increases during extreme temperatures:

  • In summer, air conditioners run longer and harder
  • In winter, heaters, electric blankets, and dryers get used more often

Even if you’re being energy-conscious, these appliances are some of the most power-hungry — and they can quickly drive up your usage.

Solar Performs Better in Summer

Solar systems generate more power in summer, thanks to longer days and more sunlight hours. This often helps offset higher summer usage — especially if you use power during the day and benefit from self-consumption.

But in winter, generation drops off:

  • Days are shorter
  • The sun is lower in the sky
  • Cloud cover is more frequent

This means your solar covers less of your usage, and you end up importing more from the grid — often just as your usage increases due to heating.

Comparing Bills Without Context Can Be Misleading

It’s easy to look at your last bill and think something’s gone wrong when it’s higher than the one before — but without checking the billing period, season, and weather, that comparison may not tell you much.

It’s more useful to compare the same season across years (e.g. winter this year vs winter last year), and to track your average daily usage, not just the total amount due.

Monthly vs Quarterly Billing — Why It Matters

If you’re only looking at the amount due on your bill, it’s easy to assume your energy usage has suddenly spiked. However, the frequency in which you are billed plays a big role in how high that number looks — and how much attention you should pay to it. 

Quarterly Bills Feel Bigger

Many electricity retailers bill quarterly — every 90 or so days. That means instead of getting a $200 bill every month, you might receive a $600 bill every three months. It’s the same amount of energy, but because it’s bundled together, it feels much more confronting.

This can catch people off guard, especially during high-usage periods like summer or winter.

Monthly Billing Can Feel More Manageable — But Still Adds Up

Some retailers offer monthly billing, which spreads your costs out over time. The bills feel smaller, but the total spend across the quarter may be exactly the same — or more if your usage creeps up.

That’s why it’s important not to compare one bill to the next by dollar amount alone. Instead, look at:

  • The billing period length
  • Your average daily usage
  • Seasonal trends (e.g. cooling or heating use)

Direct Debits Can Hide the Real Cost

If you’re on a payment plan that deducts money weekly or fortnightly, it’s even easier to lose track of what you’re spending overall. You might be paying $50 a week — but over 13 weeks, that’s $650 that has been taken off prior to how much is due on the first page of your bill.

Many households don’t realise how much they’re paying across a full quarter until they see the bill — and by then, the money’s already gone.

To stay in control, check:

  • Your current usage vs last quarter
  • Whether your payments are keeping pace with your usage
  • If you’re in credit, or at risk of falling behind

How to Spot Problems or Overcharging

Most people assume their electricity bill is correct — but that’s not always the case. Billing systems can make mistakes, solar configurations can be set up incorrectly, and rate changes can sneak in without notice. Here’s how to check if you’re being charged more than you should be.

Check the Meter Read Type

Look for terms like:

  • Actual read (based on meter data)
  • Estimated read (used when your meter couldn’t be accessed)

If your bill is based on an estimate — especially after a long time between reads — it may not reflect your real usage. Check whether the next bill corrects it, or if there’s a sharp adjustment.

If you have solar and the meter read is estimated, your feed-in credits may also be inaccurate.

Compare Rates to Your Plan

Bills don’t always make it easy to see what rates you’re being charged. But check carefully:

  • Are your usage rates (peak, shoulder, off-peak) what you signed up for?
  • Is your feed-in tariff correct?
  • Have any new fees or charges appeared?

If your provider has increased your rates, they should have notified you. It’s worth cross-checking your bill against your current plan details on the provider’s website. Feel as if you are being done badly by your energy provider? Check out another one of our articles on the best energy providers right now. 

Powerlines distributing electricity with text overlay saying "Best energy providers NSW 2025: Compare Plans & Rates"

Confirm Your Solar Exports Are Being Counted

If you have solar, check that your feed-in credits appear on your bill — and that they look reasonable. Compare the export figures on your bill with what your inverter or monitoring app shows.

If your system was recently installed or upgraded, make sure the meter was reconfigured correctly. It’s not uncommon for feed-in data to be missing entirely due to administrative delays.

Look for One-Off Spikes

Sometimes, one faulty appliance (like a pool pump, old fridge, or misconfigured hot water system) can drive up your usage. If your average daily usage has suddenly jumped, ask:

  • Did anything change in your home that month?
  • Is the spike consistent, or isolated to certain times of day?

Your retailer’s usage graph or online portal may help you spot patterns.

Don’t Ignore Small Errors — They Add Up

Even small discrepancies in daily supply charges or controlled load rates can cost you over time. If something doesn’t look right, contact your retailer and ask for an explanation. Keep your past bills handy so you can reference historical data.

Make Your Electricity Bill Work for You

Understanding your electricity bill isn’t just about knowing what you owe — it’s about learning how your home uses energy, spotting issues early, and making smarter decisions moving forward.

Once you know how to read it properly, your bill becomes a tool — not just a headache.

Here’s what to check each billing cycle:

  • Billing period — monthly or quarterly?
  • Average daily usage — is it trending up or down?
  • Rates — check your usage and feed-in tariffs
  • Supply charges — are you paying more than one?
  • Meter read type — actual or estimated?
  • Solar credits — are they showing up?
  • Total payments made — especially if you’re on direct debit

Your bill can tell you when your usage spikes, how well your solar is performing, and whether your current energy plan is still working for you. It can also reveal whether seasonal changes or subtle shifts in habits — like running the air con more or working from home — are having a bigger impact than expected.

Want help making sense of your bill — or figuring out how to lower it?
 Send it through to us at Lenergy. We’ll take a look and help you understand exactly what’s going on, and what steps you can take to bring your costs down.

Lenergy staff member, Ziad standing in front of solar panels smiling
An image of Chris Bowen, the Energy Minister of Australia with text overlay saying "Federal Government Launches Solar Sharing Scheme"

Federal Government Launches Solar Sharing Scheme

Written by Donna Wentworth on . Posted in Learning Centre.

From July 2026, households in New South Wales, South-East Queensland and South Australia will be eligible for at least three hours of free solar electricity each day — even if they don’t have rooftop panels installed. The announcement comes as part of the federal government’s new Solar Sharing scheme, which aims to let more Australians benefit from the country’s abundant solar energy. It applies to homes with smart meters — which includes the majority of Australian households — and could expand to other parts of the country by 2027.

According to The Guardian, the scheme will be enabled by updates to the default market offer — the government-set electricity price cap used in many areas. This will allow energy retailers to offer zero-cost power during periods of high solar generation, typically in the middle of the day.

Households will be encouraged to use this free electricity by shifting the timing of appliances such as washing machines, dishwashers, or air conditioners — or even charging EVs and batteries — into the zero-cost window.

Reducing Solar Waste and Shifting Energy Demand

Energy Minister Chris Bowen said the scheme was about using “every last ray of sunshine” to power homes, helping to reduce waste from excess solar production while lowering energy bills. He added: “This is proof that what’s good for the planet is good for your pocket.”

The government noted that Australia’s more than four million rooftop solar systems often generate more electricity than needed during sunny periods, leading to low wholesale prices and unused energy. The Solar Sharing program aims to smooth electricity demand by shifting it away from peak evening times, easing grid pressure and potentially reducing future infrastructure costs.

Mixed Industry Response to the Solar Sharing Announcement

While some providers like AGL and Red Energy already offer similar midday solar plans, the move has drawn mixed responses. The Smart Energy Council welcomed the program as a cost-of-living support measure. However, the Australian Energy Council criticised the lack of consultation, warning it could impact energy market confidence and disrupt product innovation.

The Australian Energy Regulator will oversee the rollout to ensure customers are treated fairly outside the free electricity window. The government also confirmed it will consult with other states about expanding the program in future years.

Aiko solar panels installed by Lenergy on roof with ample sun in the Southern Highlands

Is the Solar Sharing Scheme A Win for Households with Solar and Batteries Too?

Lenergy sees the new Solar Sharing scheme as a positive for homes with existing solar and battery systems. Why? Because now, you can charge your battery from the grid during the free power window, allowing you to soak up free electricity during the sunniest part of the day — even if your own panels aren’t covering demand.

It also opens the door to scheduling smart energy use. You can set appliances like EV chargers, dryers, washing machines, or hot water systems to run during the three-hour zero-cost period — making better use of your system and reducing your reliance on peak-time grid power.

Thinking about whether solar still makes sense for your home?

Contact the team at Lenergy for an honest chat about your usage, goals, and whether a solar system or battery could still be the right move.

Contact Us Today
Solar Panels with text overlay saying "Is Your Home Ready For Solar Panels?"

Is Your Home Ready for Solar Panels?

Written by Donna Wentworth on . Posted in Learning Centre.

Most people start looking into solar because of one thing: the power bill. But before you jump into quotes and product options, there’s a more basic question to answer first: Is your home actually ready for solar panels?

Not every house is solar-ready from day one. And that’s okay. It doesn’t mean you can’t get solar — just that a few things may need checking or updating before you install.

At Lenergy, we’ve helped hundreds of homeowners across NSW prepare for solar. We know what can delay an install, and more importantly, how to avoid it.

In this article, you’ll learn the key factors that make a home solar-ready — from roof condition to switchboard safety — and how to tell if your place is good to go.

Why Solar Readiness Matters

Not every home is set up for solar straight away. And that’s not a problem — but it does mean you want to know what’s involved before you commit to an install.

2 Lenergy branded van parked on driveway next to solar installation

Getting a proper assessment upfront helps avoid:

  • Delays on install day
  • Extra costs from unexpected upgrades
  • Safety issues during installation

This is exactly why we start every project at Lenergy with a free solar assessment. It’s about making sure your home is suitable, safe, and that solar will actually deliver the savings you’re expecting.

Is Your Roof in Good Condition?

Before installing solar panels, your roof needs to be structurally sound and safe to work on. Here’s what that typically means:

  • No major damage — cracked tiles, rusted sheets, or visible sagging can delay or prevent installation.
  • Not due for replacement — if your roof will need replacing in the next few years, it’s usually best to do that before installing solar.
  • Safe to access — steep pitches or brittle materials like old terracotta can complicate installs, but not always rule them out.
Lenergy staff members installing solar on tiled roof

If there’s any doubt, your installer may recommend a roof inspection or repairs before proceeding. It’s better to sort this early than remove panels later for roof work — which adds time and cost.

Does Your Roof Get Enough Sun?

Solar panels work best with plenty of direct sunlight — especially during the middle of the day. However not every roof has perfect conditions.

Here’s what we look for:

  • North-facing sections are ideal, but east and west can still work well.
  • Minimal shading from trees, chimneys, or neighbouring buildings. Even partial shade can impact performance.
  • Good tilt and angle help with solar production, but panels can still perform well on flatter or steeper roofs.

If shading is a concern, solutions like microinverters or optimisers can help minimise the impact. A proper site inspection will determine whether your roof’s orientation and shade levels are suitable for solar — or if some trimming or repositioning might help.

Sometimes, a few small adjustments can make a big difference. One of our customers, Andrew, found that trimming back a few overhanging branches gave his system more sunlight and improved its overall output.

Do You Have Enough Roof Space for Solar?

The amount of roof space you need depends on how much power you want to generate. Most 6.6kW systems — a common size for Australian homes — need around 30–35 square metres of usable roof area.

What counts as “usable”?

  • Unshaded space
  • Clear of vents, skylights or obstacles
  • Oriented in the right direction for solar gain

If space is limited, you might still be able to install a smaller system — or use higher-efficiency panels that generate more power in less area.

Your solar provider will measure your available space during the quoting or assessment stage to help size your system correctly.

What’s the State of Your Switchboard?

Your solar panels will connect directly to your home’s main switchboard, so it needs to be up to modern standards. Older or overloaded boards can cause issues with safety and compliance.

Here’s what to look out for:

  • Old fuse-style boards: If your switchboard still uses ceramic fuses instead of circuit breakers, it will need upgrading before solar can be installed.
  • Limited space: Your switchboard must have room for new circuit breakers to connect your inverter.
  • Safety switches: Modern installations require RCDs (safety switches) to protect against electrical faults.

A licensed electrician or solar installer will check this during your site inspection. If your board needs an upgrade, it’s a straightforward fix — and a worthwhile one for safety and compliance.

Are There Any Access Issues?

Before installation, your installer will check how easy it is to access your roof and switchboard. A few small details can make a big difference on the day.

Here’s what helps keep things smooth:

  • Clear access to the driveway and roof area. Keep vehicles, bins, or garden tools out of the way so installers can set up ladders and safely unload panels.
  • Open gates and side access. If your switchboard or inverter location is behind a locked fence, make sure it’s open
  • Secure pets indoors. Installers will need to move between your roof, meter box, and inverter location throughout the day.

It’s all about creating a safe, efficient workspace. If you’d like to see what installation day looks like in more detail, check out Lenergy’s guide:

What To Expect On Your Solar Installation Day

Do You Know What You’re Trying to Solve?

Before installing solar, it’s worth thinking about why you want it — because that shapes the kind of system you need.

Ask yourself:

  • Are you mainly trying to cut your power bill?
  • Do you want energy independence — to rely less on the grid?
  • Or are you planning to add a battery later for storage and backup?

Your energy goals determine your ideal system size and design. For example:

  • If your main goal is lowering bills, your system should match your daytime energy use.
  • If you plan to charge an electric vehicle or add a battery later, your installer may size it slightly larger to future-proof your setup.

When you book a free solar assessment with Lenergy, your energy usage and goals are reviewed to ensure the system suits how you actually live — not just how much roof space you have.

Book Your Free Solar Assessment

What If Your Home Isn’t Ready Yet?

If your home isn’t quite solar-ready, don’t stress — it’s more common than you might think. Most issues are simple to fix, such as:

  • Replacing cracked or ageing roof tiles
  • Upgrading an old switchboard
  • Trimming nearby trees that cause shade
  • Adjusting inverter or solar panel placement

Your solar installer will outline what needs attention during your free solar assessment, so there are no surprises later. Once those small upgrades are handled, you’ll be ready to move forward with confidence.

Lincoln from Lenergy standing in front of branded neon sign.

Quick Solar Readiness Checklist

Use this list to get a sense of where things stand before your assessment:

☐ Roof is in good condition (no major damage or leaks)
☐ Roof receives good sunlight most of the day
☐ Around 30–35 m² of clear, usable roof space
☐ Switchboard is modern with circuit breakers and safety switches
☐ Easy access to roof and inverter location
☐ Energy goals are clear (bill savings, battery, EV, etc.)

Getting solar installed is an exciting step — however making sure your home is ready first saves you time, money, and frustration. A short assessment can tell you everything you need to know before committing.

Lenergy offers free solar assessments to help you understand what’s required, whether your home’s ready today, or what needs a quick update before it is.

Book Your Free Solar Assessment With Lenergy

Solar panels with various size batteries. Text Overlay saying "How to Choose the Right Size Solar Battery".

How to Choose a Solar Battery Size: Everything You Need To Know

Written by Donna Wentworth on . Posted in Learning Centre.

Figuring out what size solar battery you need shouldn’t feel like learning a new language. Between “overnight usage,” “export limits,” and “peak sun hours,” it’s easy to feel like the more you read, the less you know.

And yet—battery size is one of the most important decisions you’ll make when going solar. Too small, and it’ll run out before your evening’s even over. Too big, and you might be paying for capacity you’ll never use. Plus, with the new federal rebate only claimable once, getting it wrong now could cost you later.

At Lenergy, we’ve helped thousands of homeowners size their solar and storage systems based on real-life usage—not guesses or generic recommendations. We know how to spot when a 10kWh battery makes sense, and when a 24 or 48kWh system would actually serve you better in the long run.

Speak to our team today

In this guide, you’ll learn exactly how to choose the right battery size for your home. We’ll walk through the formulas, examples, and trade-offs—so you can decide what fits your needs, your lifestyle, and your roof.

Why Battery Size Isn’t One-Size-Fits-All

There’s no universal “right” battery size. The best fit depends on two things:

  1. Whether you already have solar or not
  2. How and when your household uses power

If You’re Starting Fresh: Solar + Battery

If you’re installing both panels and a battery, you can size the entire system around your needs. This means designing your solar array large enough to cover daily usage and charge the battery — especially in winter when generation drops and usage usually increases  (this is the case in the Southern Highlands as it is colder and the AC heater is generally running more frequently. Though in warmer climates such as Newcastle, their energy use is quite stable and constant throughout the year)

It also means you can plan ahead. Thinking about buying an EV? Having Kids? Upgrading air con? Taking on housemates? Starting from scratch gives you flexibility to factor those changes into the design.

If You Already Have Solar: Battery Retrofit

Adding a battery to an existing system is a bit different. Here, the biggest question is: Do you have enough solar exports to fill a battery?

If you’re only exporting 2–3kWh a day, there’s not much spare energy to store. But if you’re exporting 10kWh or more, a battery starts to make a lot more sense.

What Size Solar System Do You Need to Charge a Battery?

If you’re installing solar for the first time, it’s not just about powering your home — it’s about generating enough energy to charge your battery too. This is where a simple sizing formula can help.

Step 1: Find Your Daily Energy Usage
 (usually on page 2 or 3 of your bill – see below snippet)

Your electricity bill will show your average daily usage, measured in kilowatt-hours (kWh). The above is 20kWh / day.

Let’s use another example and say it’s 24kWh/day — a common number for a family home.

Step 2: Estimate Your Local Sun Hours

Solar panels don’t generate their rated output all day long. In most parts of Australia, we use a conservative estimate of 3.6 peak sun hours (PSH) — the number of hours per day when solar panels operate at close to their rated capacity.

Step 3: Use the Sizing Formula

Solar system size (kW) = Daily usage (kWh) ÷ 3.6 (PSH)

For example:

24kWh ÷ 3.6 PSH = 6.6kW solar system

This means you’d need a 6.6kW system to roughly match your daily energy needs — assuming average weather across the year.

But remember: winter generation is lower, so it often makes sense to oversize slightly to ensure your system can still charge your battery during shorter, cloudier days.

If You Don’t Have Solar Yet: How to Estimate Your Battery Needs

If you haven’t installed solar yet, your electricity bill is your best clue — but it doesn’t tell the full story. It shows how much power you use each day, but not when you use it. That matters, because batteries only cover your night-time usage (when solar isn’t running).

So, how do you estimate battery size without solar data?

General Rule of Thumb

Most households use a good chunk of their energy at night — especially if everyone’s out during the day. Here’s how to estimate:

  • Light to moderate night-time usage:
     Battery size ≈ 50% of daily usage
  • Heavy night-time usage (away during the day):
     Battery size ≈ 75% of daily usage

Example 1: Bill Without Solar

From the Lenergy example:

  • Average daily usage: 24kWh

Option 1 – Moderate night use:
 24 × 0.5 = 12kWh battery

Option 2 – Higher night use:
 24 × 0.75 = 18kWh battery

So if this home adds solar + battery, either size could work — but we’d also want to check their lifestyle, winter usage, and future energy needs before finalising anything.

Keep in mind: If you size your battery before installing solar, you’ll want to make sure your panel system is big enough to charge the battery as well. That’s where the 6.6kW example from the last section fits in.

If You Already Have Solar: Can Your System Fill a Battery?

If you’ve already got panels on your roof, you don’t have to guess. Your electricity bill holds the answers — specifically in the solar export and daily usage numbers.

These tell you whether you’re generating enough excess solar to charge a battery and how much storage you actually need.

Step 1: What to Look for on Your Bill

Find these two figures:

  • Average daily usage (kWh) — your total electricity use
  • Average daily export (kWh) — how much solar you’re sending back to the grid

If you’re exporting less than 5kWh/day, there may not be enough spare energy to charge a battery — at least not consistently. If you’re exporting 10–15kWh/day or more, you’re in good shape to store that energy instead of selling it back for cents.

Example 2: Existing Solar, Moderate Use

From the bill shown below:

Key takeaways:

  • General usage = $0.29 / kWh
  • Daily supply charge = $1.30
  • Average daily usage = 13.75kWh
  • Average daily export = 11.7kWh
  • Controlled Load = 498kWh / 91 days = 5.5kWh per day

Given that this property already has solar, as indicated by the ‘solar exports’, we can gauge when they’re using power. If they are exporting power to the grid, this means they must be at least covering daytime usage with the excess going to the grid, which indicates that their usage must be occurring overnight. 

Looking at the daily usage will indicate how much battery storage the homeowner needs, but we need to ensure there is enough excess energy to charge the batteries. Comparing daily usage (kWh) to daily export (kWh), we can determine whether there is sufficient excess power to charge a battery or if they need additional solar to cover a shortfall. 

Calculation:

  • Average daily usage = 13.75kWh
  • Average daily export = 11.7kWh

This property consumes 13.75kWh per day, and in the same period exports 11.7kWh to the grid. Which indicates that this consumption must be occurring overnight. We can see that they are exporting slightly less than they are consuming, but this is negligible. To calculate the battery size we would take the lesser of the two values, in this case 11.7kWh is the amount of storage that would be required. 

Example 3: You Use More Than You Export

  • Average daily usage: 30kWh
  • Average daily export: 10kWh

This home is using a lot more power than it’s sending back to the grid. With only 10kWh of excess solar on an average day, that’s all you have available to store in a battery.

Why This Limits Battery Size

A battery can only charge from surplus solar — unless you also charge from the grid. If you’re only exporting 10kWh a day:

  • A 10kWh battery will fill on a sunny day, but that’s it.
  • A 15–20kWh battery would rarely fill completely from solar, especially in winter. The extra capacity would sit underused.

That’s why, in many cases like this, we recommend adding more solar first before investing in a large battery — as explained in our blog Why Am I Still Getting an Electricity Bill?. More generation means more excess to store.

But What If You Can’t Add More Solar?

Sometimes adding panels just isn’t possible. You might be limited by roof space, shading, or a budget that can’t stretch to both solar and storage upgrades. In these cases, you have another option: force charging your battery from the grid.

How Force Charging Works

Some energy plans let you charge your battery from the grid during specific low-cost or free periods — then use that stored power when rates are higher. For example, OVO Energy’s “Free 3” plan gives you three hours of free electricity each day. If your battery can be charged in that window, you can fill it without relying solely on solar exports.

This approach can:

  • Reduce your peak-time grid purchases
  • Let you run a larger battery even with low solar exports
  • Take advantage of free or discounted energy periods

The Trade-Offs

  • You’re still dependent on the grid — so if it goes down, you won’t be able to force charge.
  • It works best if you’re disciplined about timing your charging to those free/cheap periods.
  • If your plan changes or incentives drop, the savings could reduce.

Key Takeaway

If you use more than you export, and adding solar isn’t an option, a time-based plan with force charging could be a viable way to make a battery work harder for you. But you’ll need to run the numbers to make sure it’s worth it — and choose a plan that suits your habits.

When Bigger Batteries Might Be Worth It

Not every home needs a large battery — but for some, going bigger offers real benefits beyond just storing solar. If you care about blackout protection, long-term flexibility, or joining a Virtual Power Plant (VPP), it might be worth sizing up.

Here are three reasons to consider it.

1. You Want Better Backup Power During Blackouts

Most batteries let you set a backup reserve — a percentage of stored energy that’s kept aside in case of a power outage. If your reserve is only 10%, a 10kWh battery leaves you with just 1kWh during an outage.

But with a larger battery, you can set a higher reserve without sacrificing too much usable storage.

Example:
 A 24kWh battery with a 40% reserve leaves you with 9.6kWh for outages — compared to just 2.4kWh on a 10% reserve.

If your area gets frequent blackouts, or you rely on medical devices, a bit of extra storage could be the difference between being covered and caught short.

2. You Want to Join a Virtual Power Plant (VPP)

Some energy retailers run Virtual Power Plant (VPP) programs, where you allow them to draw from your battery during peak demand. In return, you’re paid — often at rates well above standard feed-in tariffs — and in some cases you’ll also get a sign-up incentive.

Image showing a diagram of a virtual power plant

This can be quite fruitful if you have surplus battery storage. When you’ve got plenty of energy left after covering your own needs, it usually doesn’t bother you if the retailer takes a small amount — especially when you’re being well compensated for it.

The risk comes when your battery is sized tightly to your usage. If the VPP draws power you were counting on for the evening, you might end up having to buy electricity back from the grid at peak rates — which can undo some of the financial benefits.

VPPs can be worth exploring if you regularly have excess stored energy, or if you’re sizing up your battery with participation in mind. For more on how these programs work, check out Amber’s SmartShift VPP.

3. Your Usage Might Increase Soon

Planning on:

  • Adding an EV charger?
  • Installing ducted air con?
  • Renting out a room?

If your household energy use is likely to grow, a slightly larger battery now might save you from having to expand later — especially with the rebate only claimable once (we’ll cover that next).

When Smaller Batteries Are a Smarter Fit

Not everyone needs the biggest battery on the block. In fact, for many homeowners, a smaller battery that’s well-matched to their usage offers better value — with fewer complications and a faster return on investment.

Client testimonial saying that her electricity bills are now in credit

Here’s when it makes sense to keep things simple.

Your Usage Is Stable

If your household isn’t changing anytime soon — no EVs, no big appliances, no new tenants — a right-sized battery based on your current usage is usually enough. There’s no need to future-proof if your future looks the same.

You’re Not Interested in VPPs

If the idea of letting your retailer tap into your battery doesn’t appeal to you, you won’t need the extra headroom that larger systems offer for energy trading. Stick with a size that covers your needs and nothing more.

You Don’t Get Blackouts (Or Don’t Care About Backup)

If your area has a stable grid and you’re not fussed about keeping the lights on during the occasional outage, a small reserve — or none at all — is fine. No need to oversize for something that rarely happens.

You Want to Maximise Savings, Not Storage

Smaller batteries generally cost less and pay for themselves sooner — especially if you’re already exporting more solar than you use at night. In that case, even a 10kWh battery could make a noticeable dent in your bill.

But there’s one thing you need to keep in mind, no matter what size you’re considering — and that’s the rebate.

You Only Get the Rebate Once — So Size Carefully

Here’s something most people don’t realise until it’s too late: the federal battery rebate can only be claimed once.

That means if you install a 10kWh battery now, and later decide you should’ve gone with a 15kWh system — you’ll be paying full price for the upgrade. No second rebate. No top-up discount.

Why This Matters

It’s easy to underestimate your usage, especially if your needs grow over time. Maybe you:

  • Start working from home
  • Buy an EV
  • Install electric heating or cooling
  • Get hit with longer blackouts

If your battery can’t keep up, you’ll be stuck either buying from the grid (at peak prices) — or paying thousands to expand your storage without any incentive help.

The Safer Play

If you’ve got strong solar exports and you think your usage might increase, it may be smarter to size up slightly now — while the rebate still applies.

For more on how the rebate works — and why it’s changing — check out our guide:
Government Energy Rebates Drop in December 2025: Complete Guide

Final Checklist: How to Choose a Battery Size That Works for You

Still weighing up your options? Here’s a straightforward checklist to help you make sense of the numbers — and feel confident about your decision.

Do You Already Have Solar?

Yes:
 → Check your bill for both average daily usage and average daily export.
→ A healthy export number on its own doesn’t guarantee you can charge a battery — you need to compare it against your usage patterns.
→ Use the calculation we covered earlier: your battery size should not exceed your average daily export. If your export is less than the battery capacity you’re considering, it won’t fill consistently, especially in winter.
→ If exports are low compared to usage, adding more panels before storage will usually give you a better return.

No:
 → Start with your average daily usage from your bill.
→ Apply the 50–75% rule of thumb to estimate battery size, depending on how much of your usage happens at night.
→ Make sure your planned solar system is big enough to power your home and charge your battery, using the solar sizing formula from Section 2.

solar panels installed by Lenergy on roof with ample sun in the Southern Highlands

What’s Your Lifestyle Like?

  • Home during the day?
     → You might not need a big battery — your solar already covers daytime usage.
  • Out all day, home at night?
     → A larger battery may suit you better — more of your usage happens after sunset.

Do You Want Backup Power?

  • Frequent blackouts or medical needs?
     → Go bigger and set a higher reserve level. (look for something with full home back-up like Sigenergy)
  • Reliable grid and no outage concerns?
     → Smaller battery with minimal reserve may be fine.

Are You Joining a VPP?

  • Yes:
     → Consider oversizing slightly to avoid running short during energy sharing events.
  • No:
     → You can stick with a tighter match to your usage.

Are You Expecting Higher Usage in Future?

  • New appliances, EV, extra rooms or tenants?
    → Plan for it now — remember the rebate is one-time only.

Still Not Sure?

Start with your bill. Talk to your installer. And don’t feel pressured to go bigger just because. The right battery size is the one that matches your needs, fits your budget, and makes the most of the solar you already have — or plan to install.

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Powerlines with text overlay saying "What are peak electricity times and why should you care"

What Are Peak Electricity Times in Australia And Why Should You Care?

Written by Donna Wentworth on . Posted in Learning Centre.

Do you know that running your dishwasher at 7 pm costs more than doing it at 10 pm?

It’s the same appliance, same power usage, so why the price difference?

Most people don’t realise that electricity isn’t priced equally all day. Depending on when you use it, the cost can jump significantly, especially if you’re on a time-of-use tariff.

The problem? Many Australians are unknowingly using the bulk of their power during peak periods, when demand is highest and rates are too. That quiet spike in cost can make your bill feel confusing or even unfair.

At Lenergy, we get how frustrating it is to feel punished for just living your routine. That’s why we’re here to clear it all up, so you can make an informed choice. 

In this guide, you’ll learn what “peak electricity times” really mean, why they exist, and how to make simple shifts that could save you money every single month.

What Does “Peak Electricity Time” Mean?

If you’ve ever looked closely at your energy bill or even just heard the term “peak pricing,” you might be wondering what it actually refers to.

In simple terms, “peak electricity times” are the hours of the day when most people use power at the same time. Think of it like rush hour on the roads: everyone’s cooking dinner, doing laundry, running the heater or air conditioner, and charging devices all at once. With more demand on the grid, the price of supplying electricity goes up, and so does the rate you’re charged.

Here’s how energy use is typically broken down across a day:

  • Peak: These are the busiest, most expensive hours. In the late afternoon and evening (such as 4 pm to 9 pm), when people get home from work.
  • Off-Peak: These are the quiet hours, overnight (between 10 pm to 7 am), when far fewer people are using electricity, and rates are lower.
  • Shoulder: These are the in-between periods, like mid-morning or early afternoon, where demand is moderate and prices sit somewhere in the middle.

Understanding this time-based pricing is the first step in learning how to better manage your energy costs and your usage habits.

Lenergy office staff at office located in Moss Vale, NSW

Why Does Electricity Cost More at Certain Times?

The answer lies in demand and supply. During peak periods, when lots of households and businesses are using electricity at the same time, energy providers have to generate and distribute more power quickly. This often means turning to more expensive or less efficient sources of electricity to keep up.

Think of it like this: if everyone turns on their air conditioner at 6 pm on a summer evening, the grid gets overloaded. To meet that sudden spike in demand, providers may need to bring in backup power, which costs more to supply. Those extra costs get passed on to you in the form of higher rates during peak times.

It’s also about managing the load on the network. If the system gets too overloaded, it risks outages or instability. Higher pricing during peak times helps spread out demand, encouraging some people to shift their usage to quieter periods.

In short: You’re not just paying for the electricity itself. You’re also paying for how easy (or hard) it is to deliver it to you at that specific time.

When Are Peak Electricity Times in Australia?

The answer can vary depending on your state, your electricity provider, and your specific plan. However, most follow a similar pattern based on overall demand trends.

Here’s a general guide by Energy Made Easy:

Note:
Time blocks and definitions vary slightly between energy retailers. Weekends and public holidays may have reduced rates or default to off-peak/shoulder times. Always refer to your individual plan for exact times.

Knowing these time windows helps you make smarter decisions about when to run major appliances or use power-hungry devices.

How Do Time-of-Use Tariffs Work on Your Electricity Bill?

With a time-of-use tariff, your electricity usage is charged at different rates depending on the time of day you use it. Instead of paying a flat rate per kilowatt hour (kWh), your bill reflects how much energy you used during peak, shoulder, and off-peak periods.

Here’s a basic example:

Time PeriodUsageRate per kWhTotal Cost
Peak (4–9 pm)3 kWh40 cents$1.20
Shoulder (9 am–4 pm)5 kWh25 cents$1.25
Off-Peak (10 pm–7 am)7 kWh15 cents$1.05
Total15 kWh$3.50

If you had used all 15 kWh during off-peak hours, your cost would have been $2.25 instead of $3.50. That’s a 36% difference, just based on timing.

Your bill typically includes:

  • A breakdown of usage by time period
  • A rate for each period
  • A fixed daily supply charge (regardless of usage)

With a Time-of-Use (TOU) plan, it’s not just how much energy you use, but when you use it that affects your final cost. That’s why shifting usage to cheaper periods can make a real difference over time.

5 Simple Ways to Save Money by Avoiding Peak Times

Now that you know what peak electricity times are and how they affect your bill, the next step is making small changes that can lead to real savings. 

Client testimonial saying that her electricity bills are now in credit

Here are five practical, beginner-friendly strategies:

1. Use timers on major appliances

Many dishwashers, washing machines, and dryers have a delayed start feature. Set them to run after 10 pm when off-peak rates usually kick in. You’ll get the exact same cleaning for less money.

2. Charge devices and electric vehicles overnight

If you charge phones, laptops, or an electric vehicle at night, do it during off-peak hours. Plug in before bed and wake up to full batteries at lower costs.

3. Shift heating and cooling use

Heating and cooling are some of the biggest energy consumers. Instead of blasting the heater at 7 pm, preheat your space slightly earlier during shoulder times and use insulation or closed doors to maintain comfort.

4. Avoid running everything at once in the evening

This one’s simple: don’t cook, run the dryer, charge devices, and take a hot shower all between 6 and 8 pm. Spread out your usage to avoid the costliest window.

5. Use a smart energy monitor

If your home has a smart meter, some energy providers offer apps or portals that show your real-time usage. This helps you spot patterns and identify what’s costing you most during peak times.

These changes might feel small, but they add up. If you regularly move just 20 to 30 per cent of your energy use to off-peak times, you could see a noticeable drop in your bill, without giving up any comfort or convenience.

Should You Even Care About Peak Times?

If you’re one of the richest men in Australia, you really shouldn’t care about peak times. You can pay whatever so why bother? But if you’ve made it this far in this article, we’re guessing you’re not one of the richest men in Australia, so you should definitely care. 

It’s not about obsessing over every appliance or sitting in the dark to save money. It’s about knowing how your bill works so you can make a few smarter choices. Once you understand how peak times impact your costs, you’re no longer stuck with a “surprise” at the end of each billing cycle.

Caring about peak electricity times isn’t about adding stress. It’s about gaining clarity, reducing waste, and making your energy spend work better for you.

Lenergy team leader smiling in front of work van on site about to install solar

Talk to Lenergy today and start saving smarter.