NSW Solar Feed-in Tariffs Explained: What Every Homeowner Needs to Know in 2026

If you have solar panels on your roof in New South Wales, chances are you're earning credits every time your system exports unused electricity back to the grid. But are you getting the best possible rate? Understanding how your NSW solar feed-in tariff works — and how to shop around for a better deal — can make a real difference to your annual electricity bill.

In this guide, we break down everything NSW homeowners need to know about solar feed-in tariffs in 2026: what they are, what the current rates look like, how they're regulated, and how to maximise your return.

What Is a Solar Feed-in Tariff (FiT)?

A solar feed-in tariff (FiT) is a credit paid to you by your electricity retailer for every kilowatt-hour (kWh) of surplus solar energy your system exports to the grid. Think of it as your solar system "selling" electricity it doesn't use in your home back to the wider network.

This credit typically appears as a line item reduction on your electricity bill. If your exported energy value is high enough, it can significantly offset — or even eliminate — what you owe each billing cycle.

In NSW, feed-in tariffs are not a single government payment. They are negotiated between you and your electricity retailer, and the rates vary widely across providers. This is where many homeowners leave money on the table by simply staying with their default plan.

How Are NSW Solar Feed-in Tariffs Regulated?

Unlike some other Australian states, NSW does not mandate a minimum feed-in tariff. Instead, the Independent Pricing and Regulatory Tribunal (IPART) — the NSW Government's independent pricing authority — sets annual benchmark ranges each year. These benchmarks act as a reference guide to help consumers assess whether their retailer is offering a fair rate.

Important: Retailers are not legally required to offer rates within IPART's benchmark range. Some go higher; others go lower. Always compare before you commit.

IPART publishes two types of benchmarks each year:

1. All-day (flat-rate) benchmark — a single rate that applies at all hours of the day.

2. Time-of-day benchmark ranges — higher rates for peak periods (typically evenings) when electricity demand surges and wholesale prices spike.

NSW Solar Feed-in Tariff Rates: 2026 Update

IPART's Latest 2026–27 Benchmark

On 25 May 2026, IPART released its updated solar feed-in tariff benchmarks for the 2026–27 financial year. The headline figure is a decrease from the prior year:

Financial Year	IPART All-Day Flat-Rate Benchmark
2024–25	4.9 to 6.3 c/kWh
2025–26	4.8 to 7.3 c/kWh
2026–27	3.4 to 6.5 c/kWh

The reduction reflects lower wholesale electricity prices during daytime hours, driven by the growing volume of rooftop solar and grid-scale renewables feeding into the network. As IPART Tribunal Member Jonathan Coppel explained, the decrease is mainly due to increasing electricity generation from grid-wide renewables and rooftop solar increasing the supply of electricity and putting downward pressure on prices.

In short: more solar on the grid means midday electricity is worth less — and your daytime exports are paid less.

The Good News: Evening Peak Rates Are Much Higher

While flat-rate benchmarks have declined, the time-of-use (TOU) benchmarks for evening peak hours tell a very different story. For 2026–27, IPART's benchmark ranges for evening solar exports are significantly higher:

Network	Peak Window	Benchmark Range (2026–27)
Ausgrid (Sydney, Hunter)	4pm – 9pm	17.2c – 18.7c / kWh
Endeavour Energy (Western Sydney, Illawarra)	4pm – 8pm	16.9c – 19.9c / kWh
Essential Energy (Regional NSW)	5pm – 8pm	26.6c – 33.3c / kWh

Regional NSW customers on the Essential Energy network, for example, could theoretically earn over 33 cents per kWh for evening exports — nearly 10 times the flat daytime rate.

The catch? These time-of-use rates are only available if your retailer offers a time-varying feed-in tariff plan, and you need a compatible smart meter to participate. Battery storage can also help you capture evening rates by charging during the day and disporting stored energy into the grid at peak times.

What Are Retailers Actually Offering in 2026?

Current Best NSW Solar Feed-in Tariff Rates

As of June 2026, the NSW solar feed-in tariff market is competitive, with rates varying significantly between providers. Here are some of the notable offers available:

Retailer	Feed-in Tariff Rate	Notes
Amber Electric	Up to 25.27 c/kWh	Wholesale price-linked; varies in real time
Origin Energy (Solar Partner Plus)	12c/kWh (to export cap)	Reverts to 3c/kWh after cap; ≤10kW inverter required
Engie	Up to 10 c/kWh	Among highest standard fixed rates
Alinta Energy	Up to 10 c/kWh	Competitive flat offering
GloBird Energy	Up to 10 c/kWh	Premier plan
EnergyAustralia (Solar Max)	8c/kWh (first 10 kWh/day)	Drops to 4c/kWh beyond daily cap

Note: Rates are subject to change and may vary based on your network area, system size, and plan conditions. Always verify directly with the retailer or use the Commonwealth Government's Energy Made Easy comparison tool for the most current data.

The average retail electricity price in NSW sits around 36.73 cents per kWh. This means every unit of solar power you use yourself is worth roughly 4–9 times more than what you get paid to export it — which is why self-consumption and battery storage are becoming increasingly important strategies.

NSW Solar Feed-in Tariff vs. Self-Consumption: Which Matters More?

This is a question we get asked all the time. The answer is clear: self-consumption almost always wins.

Here's why:

• Importing electricity from the grid costs you approximately 36.73c/kWh

• Exporting excess solar earns you approximately 3.4c – 10c/kWh (depending on your plan)

• Every unit of solar you use directly in your home saves you the full retail rate, rather than earning you the smaller export rate

This is why the right solar system sizing matters so much. An oversized system that constantly exports large amounts to the grid at 5–7 cents is less financially optimal than a well-matched system where most generation is consumed on-site.

Tips to improve self-consumption:

• Run high-energy appliances (dishwasher, washing machine, EV charger) during peak solar production hours (10am–2pm)

• Pair your system with a home battery to store daytime generation for evening use

• Use a smart home energy monitor to track real-time consumption vs. generation

How to Find the Best NSW Solar Feed-in Tariff for Your Home

Getting the most from your NSW solar feed-in tariff requires a bit of active comparison — but it's well worth the effort. Here's a practical checklist:

Step 1 — Check your current rate Log into your electricity account or look at your latest bill. Find the "solar feed-in credit" or "solar export credit" line. The rate is usually listed in cents per kWh.

Step 2 — Compare retailers online Use the Energy Made Easy website (Commonwealth Government) or the NSW-specific Energy Switch tool to compare plans side by side.

Step 3 — Read the fine print High-FiT plans sometimes carry trade-offs:

• Higher import (usage) rates

• Daily export caps (you earn the premium rate only up to a set daily limit)

• System size restrictions (some plans require ≤6.6kW or ≤10kW)

Step 4 — Consider time-of-use plans If you have a smart meter and a home battery, a time-of-use FiT plan could earn you significantly more during evening peak windows.

Step 5 — Switch and save Most electricity contracts in NSW allow you to switch without exit fees. Review your plan annually — the market changes, and new offers may be available.

Are NSW Solar Feed-in Tariffs Getting Worse?

It's a fair question. The trend over recent years has been a gradual decline in daytime flat-rate FiTs as more solar floods the grid during daylight hours. The 2026–27 benchmark drop from 4.8–7.3c/kWh to 3.4–6.5c/kWh reflects that reality.

However, this doesn't mean solar is becoming less financially worthwhile — it means the strategy for maximising solar savings is shifting:

• Self-consumption is now the primary value driver

• Battery storage allows you to shift solar energy to the high-value evening window

• Time-of-use FiTs can dramatically improve export income for households who export during peak hours

• The federal Cheaper Home Batteries Program (from 1 July 2025) provides approximately 30% off eligible battery costs, making storage more accessible than ever

NSW homeowners who invest smartly in the right system — whether a well-sized solar array alone, or solar-plus-storage — are still seeing payback periods of 3–6 years, with long-term annual savings of $1,500–$2,500 depending on consumption and system size.

Why Solar Panels Are Still a Smart Investment in Australia

Even with declining feed-in tariff rates, solar panels remain one of the most financially and environmentally sound investments available to Australian homeowners. Here's why:

Australia's Solar Advantage

Australia enjoys one of the highest solar irradiance levels in the world. NSW averages approximately 4.5–5.0 peak sun hours per day, meaning a standard 6.6kW system can generate roughly 26–30 kWh on a clear day — far outperforming equivalent systems in Europe or North America.

Ongoing Cost Savings

The real value of solar in 2026 isn't the feed-in tariff. It's the electricity bill reduction from self-consumption. With retail electricity costs in NSW averaging 36.73c/kWh, every kilowatt-hour your panels generate and your home uses directly is money you don't spend buying power from the grid.

A typical NSW household with a 6.6kW solar system can expect to reduce annual electricity costs by $1,200–$2,000 per year, depending on their energy usage patterns, location, and whether they shift consumption to solar hours.

The Federal STC Rebate Still Delivers Upfront Savings

The Small-scale Technology Certificate (STC) scheme — Australia's primary solar rebate — continues to provide meaningful upfront discounts in 2026. NSW homeowners installing solar can typically reduce system costs by:

• $3,000–$6,000 through federal STCs alone

• An additional $2,000–$4,000 through battery incentives and VPP participation (where applicable)

While the STC scheme is progressively winding down toward its 2030 end date, it still represents thousands of dollars in savings — and the sooner you install, the more certificates your system generates.

Environmental and Energy Independence Benefits

Beyond dollars and cents, solar panels in Australia offer:

• Significant carbon reduction — a 6.6kW system offsets approximately 9–10 tonnes of CO₂ per year

• Protection against electricity price rises — with retail power costs historically rising faster than inflation, locking in solar generation protects your household budget

• Grid resilience — especially when paired with battery storage, solar gives you a degree of energy independence during outages or price spikes

NSW's energy transition is well underway — already, approximately one in three NSW homes has solar panels on the roof. Joining that wave now means accessing the best available technology, meaningful rebates, and some of the most competitive installer pricing the market has seen.

Why Choose AU Solar Mate?

At AU Solar Mate, we handle the entire solar battery installation process — from system design to installation and support.

Our services include:

• Battery sizing assessments

• Hybrid inverter recommendations

• Backup power setup

• Compliance management

• Monitoring configuration

  
  

You work directly with experienced technical specialists — not sales teams.

📞 Call: +61 1800 508 922

🌐 Website: AU Solar Mate

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