The problem generally lies with two major issues: system oversizing and poor customer service.

We find that customers left with a sour taste after purchasing a solar electricity system tend to have not purchased from a local, experienced installer who is available for comprehensive after sales support and service.

I would like to offer the following information as clarification.

While all power generated by your solar panels does indeed go into the grid, the misunderstanding lies in how savings are accounted for.

The $47.80 discount you have referred to is the net grid export.

With a net metered solar electricity system, the greatest savings are all made at the meter and not reported directly on your bill.

The net meter is aptly named as it “nets-off” your consumption and your production.

For example, if your system is producing 2kW of power and you are consuming 2kW of power at the same time, a net meter will register nil activity.

Thus a saving to the value of 2kW of power has been achieved.

Further regarding export credits.

I will assume you are receiving an average retail rate of 6c/kW.

Also assuming an average 90 day billing cycle, this equates to 8.85kW of export per day ($47.80 ÷ $0.06 ÷ 90 = 8.85).

The average, north facing solar electricity system should produce 4.2 times their output rating per day and an average consumer will export 50 per cent of their daily production.

Based on these assumptions, it appears that you may have a 4kW system installed (a common residential system size).

A 4kW system will produce on average 16.8kW per day and assuming a 50 per cent export rate, daily export would be expected to be somewhere around 8.4kW.

While the export credit for a 4kW system will on average be $45.36 in a 90 day billing cycle, the real savings are in the 8.4kW per day the system has produced which have been consumed and not paid for.

Assuming a GST inclusive rate of $0.31185/kW and a 90 day billing cycle, the average savings would be $235.76 each billing cycle ($0.31185 x 8.4 x 90 = $235.76).

This gives an annual saving of $1,124.48 in today’s dollars (($235.76 + $45.36) x 4 = $1,124.48).

Over the life of the system (25 years), you could expect to save over $25,000 (in today’s dollars) assuming a panel degradation of 20 per cent after 25 years.

With rising electricity prices, the realised savings will be considerably greater.

A point to note is that 50 per cent export is an average.

A change in usage habits to align usage with production can easily improve self-consumption.

In most cases up to 70 per cent can be achieved assuming the correct system size has been installed.

If an oversized system has been installed, there are other options.

For example, you can now utilise production that would otherwise have been exported to heat an electric hot water storage tank.

There are also some very exciting products arriving this year which will enable battery storage of excess production for usage at night.

Please visit any of your local solar installers if you require further clarification or if you would like to know how to better utilise your system.