Solar Feed-in Tariff NSW 2026: What You Actually Get Paid

Current NSW Feed-in Tariff Rates

In 2026, NSW feed-in tariffs typically range from 3 to 8 cents per kilowatt-hour (kWh), depending on your electricity retailer. This is significantly lower than what you pay to buy electricity (28-35c/kWh), which is why self-consumption is king.

Some retailers offer time-of-use feed-in tariffs, paying more during peak demand periods (typically late afternoon) and less during the middle of the day when solar generation is highest.

Why the Feed-in Tariff Is So Low

NSW once offered generous feed-in tariffs of 44-60c/kWh under the Solar Bonus Scheme (2010-2016). Those rates reflected a time when solar was expensive and adoption was low. Today, with over 3 million Australian homes running solar, the economics have shifted.

The reality is simple: electricity retailers can buy wholesale solar energy cheaply during the day when supply is abundant. They have no incentive to pay homeowners premium rates for excess energy when the grid is already flooded with it.

Self-Consumption vs Export: Where the Real Savings Are

Here's the maths that matters: every kWh you use from your own solar panels saves you 28-35c. Every kWh you export earns you 3-8c. That means using your own solar is worth 4-10 times more than exporting it.

How to Maximise Your Solar Savings

1. Shift Heavy Appliances to Daytime

Run your dishwasher, washing machine, and dryer during the day when your panels are generating. Use timers to schedule these appliances for late morning or early afternoon.

2. Heat Your Water With Solar

If you have an electric hot water system, set it to heat during the day using a timer. This alone can shift 3-5kWh of daily consumption to solar hours, saving $300-500 per year.

3. Consider a Battery

A home battery stores excess solar for use in the evening. At current prices ($8,000-15,000 installed), batteries take 7-10 years to pay off purely on savings. But they provide backup power during outages and will become more financially attractive as electricity prices rise and battery costs fall.

4. Get a Smart Inverter

Modern inverters with consumption monitoring show you exactly when you're using solar vs grid power. Apps like Fronius Solar.web, SolarEdge, and Enphase Enlighten help you optimise your usage patterns.

Ausgrid vs Endeavour Energy: Export Limits

Your electricity network determines how much solar you can export:

• Ausgrid (Eastern Sydney): Up to 10kW inverter on single-phase
• Endeavour Energy (Western Sydney): 5kW inverter limit on single-phase

Both networks allow panel capacity to exceed inverter size (e.g. 6.6kW panels with a 5kW inverter). This is called "oversizing" and is standard practice to maximise generation during non-peak sun hours.

Virtual Power Plants (VPPs): The Future of Feed-in

Some retailers now offer VPP programs where your battery is used to support the grid during peak demand. In return, you receive higher feed-in rates (sometimes 20-30c/kWh during peak events). Programs like Origin's Loop and AGL's VPP are worth investigating if you have a battery.

Bottom Line

Don't install solar expecting to make money from the feed-in tariff. Install it to reduce what you pay for electricity. The feed-in tariff is a bonus for excess energy, not the main game. A well-sized system that matches your daytime usage will deliver far better returns than an oversized system that exports most of its energy at 5c/kWh.