Newcastle's Leading Residential & Commercial Solar Installers
Newcastle's Leading Residential & Commercial Solar Installers
Posted 15 Jul
Want the latest in energy, solar, and savings?Subscribe to our newsletter – we don’t spam!
When it comes to talking about electricity, many use the terms 'power' and 'energy' inter changeably, but did you know these actually represent to different aspects to your electricity? It is important to understand these 2 terms, especially if you're looking at investing in solar, battery storage, or electric vehicle charging in Australia.
Quick answer: Power (kW) measures the rate at which electricity is being used or generated right now. Energy (kWh) measures the total amount of electricity used over a period of time. Think of power as speed and energy as distance - a car travelling at 100 km/h (power) for 2 hours covers 200 km (energy). In electricity terms: a 2 kW appliance running for 3 hours uses 6 kWh. Your electricity bill charges you for energy (kWh), not power (kW). Solar panels are rated in kW (their peak output); batteries are rated in kWh (their storage capacity).
Power is the rate at which electricity is generated or consumed at any given moment, measured in watts (W) or kilowatts (kW). It tells you how hard something is working right now, not how long it runs, just the intensity at this instant.
One kilowatt equals 1,000 watts. Common power ratings for household appliances:
Power is like the flow rate of a tap. It tells you how fast water is coming out, not how much has filled the tank and it can change instantly as appliances switch on and off, and it drops to zero when nothing is running.
Is power the same as electricity? Not quite. Electricity is the broader term for the flow of electric charge. Power is the rate of that flow, a specific measurement within the world of electricity, measured in watts or kilowatts.
Energy is the total amount of electricity consumed or generated over a period of time, measured in kilowatt-hours (kWh). Where power tells you the rate at this moment, energy accumulates over time, it only ever goes up as long as something is running.
The formula is: Energy (kWh) = Power (kW) × Time (hours)
So a 2 kW appliance running for 4 hours uses 8 kWh. A 5 kW air conditioner running for 6 hours uses 30 kWh.
Energy is like the odometer on a car, it accumulates continuously and tells you the total distance covered, not just the current speed. Your electricity bill is charged in kWh. Every unit of electricity on your bill is 1 kWh.
Is kWh energy or power? kWh is energy, not power. The "h" (hours) is the clue. It's power multiplied by time, which gives you total energy. Power is measured in kW alone, without the time component.
The main difference between power and energy is how power is simply measures the rate of electricity, where energy represents the amount of time that power is being used.
| POWER |
ENERGY |
|
| Unit |
Kilowatt (kW) | Kilowatt-hour (kWh) |
| Measures |
Rate of electricity at any given moment | Total electricity used over time |
| Changes |
Instantly when appliances are switched on, and down when switched off | Gradually accumulates - never goes backwards |
| Analogy | Speed (km/h) |
Distance (km) |
| On your bill |
Not charged directly (excluding demand tariffs) | What you're billed for per unit |
| Solar relation | The total solar output capacity |
The amount of daily/annual generation |
| Battery relation | Total battery power input & output | Total battery capacity |
Why the power rating alone doesn't give a complete picture of energy usage: A 3 kW appliance running for 10
minutes uses far less energy than a 1 kW appliance running for 8 hours. Power tells you the intensity; energy tells you the impact on
your bill. A high-power appliance used briefly may cost less than a low-power appliance running all day. You need both the power rating
and the run time to understand actual energy consumption.
This is where most people get tripped up, because the units look almost identical.
kW (kilowatt) = power. The rate of energy use or generation at this moment. A 10 kW solar system can generate up to 10 kW when the sun is strong. that's its output capacity at peak conditions.
kWh (kilowatt-hour) = energy. The total accumulated over time. That same 10 kW solar system, running at an average of 5 kW across 8 hours of sunlight, generates 40 kWh in a day.
For solar and batteries, both numbers matter:
Your electricity bill is charged in kWh. The rate (say, 30c/kWh) multiplied by your consumption (say, 20 kWh/day) gives your daily energy cost ($6.00). The power level of each appliance doesn't appear directly on the bill, only the total energy consumed does.
Australian electricity is measured using several related units depending on what's being described:
Watt (W): the basic unit of power. Most small appliances are rated in watts. A phone charger draws about 20W; a lightbulb around 10W.
Kilowatt (kW): 1,000 watts. Used for household appliances, solar systems and EV chargers. A standard kettle is about 2 kW.
Megawatt (MW): 1,000 kW. Used for large commercial and utility-scale power generation.
Watt-hour (Wh): a unit of energy. 1 Wh = 1 W of power used for 1 hour. Typically used for small batteries (e.g. phone or laptop batteries).
Kilowatt-hour (kWh): 1,000 Wh. The standard unit for household electricity consumption, solar generation, and battery storage. What your electricity bill charges you for.
Megawatt-hour (MWh): 1,000 kWh. Used for large-scale commercial battery systems, grid storage, and utility-scale solar farms.
What is 1 unit of electricity? In Australia, 1 unit of electricity on your
bill = 1 kWh. When your bill shows 500 units used, it means 500 kWh.
Understanding power vs energy makes the numbers on solar and battery spec sheets a lot more readable.
Solar panels are rated in kW, their peak power output under ideal conditions. A 10 kW solar system means it can generate up to 10 kW at peak. In Australia, a 10 kW system typically generates 35–50 kWh per day depending on location, season and shading.
Batteries have two specs that both matter. A Tesla Powerwall 3 has 13.5 kWh of energy storage and 11.5 kW of continuous power output. The 13.5 kWh tells you how much it can hold. The 11.5 kW tells you how fast it can deliver or receive energy.
Your electricity bill charges you in kWh. The average Australian household uses around 18–22 kWh per day. A well-sized solar system can offset a significant portion of that during daylight hours; a battery stores surplus generation to cover evenings.
Demand tariffs (common for commercial customers) add a kW-based charge on top of the kWh energy charge, calculated on your peak power draw in any 15 or 30-minute interval during the billing period. This is why a solar system reduces your energy bill but doesn't always reduce demand charges.
So we've looked at power and energy in appliances and solar systems, but how does power and energy relate to electric vehicles? Using EVs as an example, we're met with an abundance of places where both power and energy are used.
Firstly, every electric car battery is measured in energy or kilowatt-hours, like how the BYD Sealion 7 has an 82.5kWh battery capacity.
This is not to be confused with phrases like '390kW of power'. This isn't referring to the battery capacity, but instead the power that the electric motor can output at its peak.
When it comes to electric vehicle charging, chargers are measured by power or kilowatts that refer the amount of power the charger can deliver to the battery. Chargers can range in power outputs, depending on AC or DC, however home AC chargers are usually 7-22kW depending on if your home is single or three-phase.
Electricity bills are measured in kilowatt-hours (kWh), as it refers to the total amount of energy you consume over time, usually each quarter. Energy providers look at both the amount of power consumed, and the duration it is consumed for.
Are Solar FiTs Energy? Additionally, you'll notice solar feed-in-tariffs are also measured in energy. This is to determine the amount of power you produced over an amount of time.
What is Power vs. Energy for Batteries? If you have a solar battery like Tesla Powerwall 3, it will have a total energy capacity which will in this case consist of 13.5kWh of energy, meaning if you're drawing 6.75kW of power from the battery, it will last 2 hours.
Why aren't Energy Bills measured in Power? If energy providers were to determine your bill based on power consumption, they would only be able to see the amount of power you're drawing at any given moment. Using energy is essential to finding out how much power a home or business has consumed over an amount of time to accurately bill based on usage.
Both power and energy are essential to measuring electricity and component specifications throughout Australia, and can also help you understand your energy better.
Whether you're interested in getting a solar and battery system, you're a new electric vehicle owner, or just an avid reader looking to increase your electrical knowledge, you now know what the difference between energy and power is.
Below are some frequently asked questions about power vs. energy and kW vs. kWh.
Not sure which battery matches your solar system? Compare solar & battery size combinations, from 6.6kW to 13.3kW+, & find the right fit in Newcastle.
Read moreSee exactly what solar system size you need, from panel dimensions to 3kW-13.3kW+ pricing, based on your household size and daily usage in NSW.
Read moreExplore the recently changed VPP NSW rebate, & how the Peak Demand Reduction Scheme (PDRS) calculates rewards for joining a Virtual Power Plant.
Read moreFind available rebates & subsidies for solar systems, battery storage, and VPPs in NSW. Explore eligibility and maximise live incentives today.
Read moreAlready have a Powerwall 2? You can now add a Powerwall 3 alongside it. Supported configurations, limitations and how the rebates stack in 2026.
Read moreWhy does your solar generate less in winter? Explore real output figures, summer vs. winter differences, and the best month to use solar in Australia.
Read moreAll NSW homeowners need to know about the solar installation process - from first quote to first bill. 9 steps, real timeframes, & what to ask your installer.
Read moreAlready have solar? Decide whether to add a battery, expand your panels or replace your system, and which delivers the best return in 2026.
Read moreSupply charges, feed-in tariffs, controlled load, peak rates - we explain every line on your NSW electricity bill and show you where you can save more.
Read moreCompare retailer Solar Sharer plans, check eligibility & opt in. Origin, Amber, AGL, EnergyAustralia & more. 3 hours free power daily from 11am–2pm.
Read moreLearn how home electricity works in Australia, including circuits, switches, circuit breakers, RCDs and what happens during power outages.
Read moreIs solar & battery worth investing in for Australian homes? Explore 2026 costs, payback periods, disadvantages, and how the Solar Sharer offer affects it.
Read moreLearn about the May 1st Federal battery rebate changes in Australia and what they mean for home battery costs, solar savings, and discounts.
Read moreCompare Tesla Powerwall 3, Sungrow SBR & SBH, GoodWe ESA, Fronius Reserva, and BYD Battery-Box to find the best home battery for Australia.
Read moreExplore how Australia’s Q4 2025 solar and battery data highlights a major milestone: majority renewable contribution to daytime electricity demand.
Read moreHow rooftop solar helped NSW avoid blackouts during the 2026 heatwave, reducing grid stress & supporting record electricity demand across Newcastle.
Read moreExplore Elite Power Group's solar and battery installation statistics for 2025, and how we performed over this year of operation in Newcastle and Maitland.
Read moreCompare how Peak shaving reduces demand spikes; load shifting moves consumption to cheaper hours; demand response is grid-triggered.
Read moreExplore the difference between solar inverter types like grid-tied, hybrid, microinverters, and off-grid inverters for solar and battery systems in Australia.
Read moreExplore Australia's first CEC-approved bidirectional and vehicle-to-grid capable electric vehicle, the V2Grid Numbat, a 6.2kW V2G/H charger now ready.
Read moreEnergy capacity (kWh) is how much a battery stores. Power output (kW) is how fast it delivers. Covers nominal vs useable, SoC, DoD and cycles.
Read moreExplore the differences between AC and DC electric vehicle charging in Australia and how it affects the way you charge your EV, and the pros & cons.
Read moreConsidering a cheap solar system? Learn how low-quality, unreliable inverters and panels can lead to costly repairs, full replacements, and safety issues.
Read moreLearn the difference between volts, amps and watts, and learn electricity with simple explanations, formulas, real-world examples, and an easy calculator.
Read moreBattery supply chains are tight across Australia, with shipping delays leaving many installers out of stock and customers waiting longer. What's happening?
Read moreLearn how to avoid solar scams in NSW. Spot red flags & dodgy installer tactics and find reputable companies with great warranty & quality installations.
Read moreExplore why the delays in vehicle-to-grid and bidirectional chargers are happening, and how V2G faces regulatory and legislative development in Australia.
Read moreOver 56,000 solar batteries were sold in Q2, 2025, thanks to the Australian battery subsidy. Explore solar & battery uptake, growth trends, and what's next.
Read moreDiscover how to choose the right solar battery size for your home. Compare 10kWh, 15kWh, and 20kWh options to maximise savings, and solar in NSW.
Read moreVirtual Power Plants explained for Australian homeowners. What a VPP is, how it works, NSW program comparison and whether joining one is worth it.
Read moreExplore what solar hotspots are, how they can affect your panel performance & efficiency, & how bypass diodes can affect your cells & strings in Australia.
Read moreDiscover the best home EV chargers in Australia. Compare popular electric vehicle home charging stations, costs, and installations for Newcastle NSW.
Read moreLearn if your roof is suitable for solar panels and how roof materials like terracotta or tin, orientation, tilt, & shading can affect energy production and install.
Read morePower vs Energy in Australia: Difference Between Watts and Watt-Hours, kW vs kWh, with Diagrams, Calculations, and Home Appliance Examples.
Read moreExplore upcoming & available bidirectional V2G-capable chargers in Australia from V2Grid, RedEarth, Sigenergy, Enphase, Tesla, and Fronius EV charging.
Read moreCompare the difference between Sungrow's SBH and SBR battery storage vs. BYD Battery-Box and find what battery is better for homes or businesses in NSW.
Read moreThe NSW Government have announced that the NSW Battery Rebate (PDRS) will be suspended on June 30th, 2025, and will no longer be available.
Read moreAvoid the 9.7% NSW electricity bill increase with expert tips on reducing energy costs, optimising solar usage, and finding better energy plans in 2025.
Read moreExplore how you can use your EV battery via vehicle-to-load (V2L) as a backup energy source during blackouts to power your home appliances in Australia.
Read moreExplore Australia's Federal Government solar battery rebate subsidy like eligibility, approved batteries, requirements, and more about the upcoming incentive.
Read morePartnering with Elite Power Group, Maitland City Council have invested in more electric vehicle chargers in the Maitland area, supporting the uptake of EVs.
Read moreCompare home insurance policies and find out if solar and battery is covered and how installations affect costs, value, and included coverage in Australia.
Read moreRenewable News Articles
Sign up for new article updates - we don't spam.
We've invested in becoming fully-licenced and qualified installers to ensure Newcastle homes and businesses
get the best solar, battery, and electrical systems available. We want to assist Newcastle's renewable energy revolution with quality
installations for maximum customer satisfaction.
Certified solar system installers near you.
Get CEC-Approved Battery Installations.
Fully-licenced electricians in Newcastle.
Convenient EV charging stations for properties.
Leave a Comment