How is solar power billed?

I recently had a 5 KW system installed, when it comes to the billing how do they calculate it?

Let's say I use 10 KWh and generate 11KWh, my feed in tarriff is 8c. Do they look at the excess I've generated over what I've used and credit me for the extra KWh, or do they bill me 10 KWh at 24c, and minus 11 KWh at 8c from the bill?

If you use it as it's being generated it is neither billed or credited, it is just used.

Any amount that you produce that is not used immediately is thus put back into the grid and you are paid per kWh.

eg, your system is generating 4 kWh at midday. You have a basic demand of say 1000watts. You will be putting 3kw into the grid. You will be paid 3x8c = 24 cents for that hour.

if you turn the washing machine on and it uses 3 kWh you will not be putting anything into the grid, but then again not taking anything out.

Its better to therefore run your devices during the day as you buy energy at a much greater amount than you sell it. Thus use the solar generated yourself as much as possible.

run your washing machine, vacuum claner, dryer, dishwasher, electric water heater, oven, iron during the day. But not all at the same time, one after the other.....

its a a different mode of thinking.

eta - this is for vic. Other states may have different methods.

Same in NSW I think. As far as I can see from the bills, we use the electricity that we generate during the day, and then get credit for anything that is exported. I am lucky enough to be at home during the day, so I make sure that I run the washing machine, tumble dryer, charging up computers/iPads etc during the times that we are generating electricity, so that we are not paying for it. Same with the pool pump, I put it on when the solar panels are working. I don't use the system in terms of what it will PAY me, but more in terms of what it can SAVE me. We get about $25 credit in exported electricity per quarter (from a 3kW system), but save far, far more than that by being judicious in how we use the electricity that we make.'

ETA: Even if you are not home during the day you can make most efficient use of the electricity generated by using timers on appliances (e.g. our washing machine has a timer), or by adding timer switches to things.

Thanks both, that's what I was hoping they'd do. A mate with the same sized system recently got slugged with a $400 bill so it got me worried. Apparently what's what you get for running a pool pump at night.

Thanks both, that's what I was hoping they'd do. A mate with the same sized system recently got slugged with a $400 bill so it got me worried. Apparently what's what you get for running a pool pump at night.

You will probably still get a bill (we do), but it won't be as much as without the panels. We got our system after the big state FIT's had ended, but it cuts our consumption, which saves us money.

The energy market is about to undergo big changes

You need to become more aware of new peak and off peak periods (which change dependent on users, so not set times in 24 hour period).

Being able to set your power usage to off peak periods may be difficult for some, but a combination of this and taking advantage of renewable household energy:

Wind/Solar and household waste to energy.

Exciting times should result in lower cost of energy.