Solar feed-in tariffs

Our benchmark for 2026-27 of 3.4 to 6.5 c/kW is slightly lower than the benchmark we set for 2025-26 (which was 4.8 to 7.3 c/kWh). This reflects that wholesale prices are expected to be a bit lower over the 2026-27 financial year at the times solar is exporting. 

However, electricity retailers in NSW are not required to set their solar feed-in tariff offers within IPART’s benchmark range. There may be a better offer available on the Commonwealth Government’s Energy Made Easy website.

Households are paid by their retailer for the solar electricity they export to the grid. However, when this electricity is supplied to other households, retailers must still pay charges on each kilowatt hour they supply. 

The main charges are those paid to the network operator for using the energy grid. These can be around 30 c/kWh during peak times. Retailers also must recover other costs, including:

• the difference between wholesale costs when solar is exporting to the grid and their average wholesale costs, which are higher
• their environmental obligations to purchase renewable energy, demand reduction certificates, and paying into the climate change fund
• their billing services, running their call centres, and other operations.

When these costs are added up, the retail price of electricity is higher than just the cost of the wholesale electricity supplied into the grid by households.

Electricity retailers in NSW are not required to set their solar feed-in tariff offers within IPART’s benchmark range. If we set a higher price, it would be less likely to reflect what electricity retailers are actually likely to pay. 

On the other hand, if we set a higher solar feed-in tariff and electricity retailers followed this, it would mean electricity retailers would need to cover this cost by charging customers higher overall prices for electricity. 

This means that customers who don’t have solar panels would end up paying more overall. Many of these customers are unable to install solar because they rent or live in an apartment.

While there are many benefits from solar panels and batteries, including lower electricity bills, cleaner energy and the ability to store energy which can help during blackouts, there are a range of things you need to consider. These include your own electricity usage, whether your roof is suitable, the size of the solar panel system and the total cost of the system and installation.

The Australian Government’s Solar Consumer Guide provides information on the benefits of solar panels and can help you understand if they are right for you. SunSPOT, a not-for-profit entity, also provides a free calculator that you can use to estimate the savings from solar panels and batteries for your home.

Network tariffs for solar exports are a new type of tariff that were introduced in 2024. These tariffs aim to send price signals to consumers about when it is beneficial (and not beneficial) to export excess energy to the grid. They include: 

• a charge for solar exports during certain daytime hours after a free threshold is reached
• a rebate for solar exports during peak evening times. 

The Distributed Network Service Providers (DNSPs) (Ausgrid, Endeavour Energy or Essential Energy) each set their own tariffs subject to the approval of the Australian Energy Regulator. 

IPART does not regulate or set export charges. However, our solar-feed-in tariff benchmarks incorporate the impact of DNSP’s export tariffs on retailers. As a result of these tariffs: 

• The bottom end of the range of our all-day tariff is less than 0.1 c/kWh lower
• For our time-dependent benchmark tariffs:
  • The benchmarks in the middle of the day are 0.4 to 0.6 c/kWh lower
  • The benchmarks in the evening are around 4 to 12 c/kWh higher.

In the link in the table below you can see:

• IPART’s current and previous all-day and time-of-day feed-in tariff benchmark ranges
• how retailer feed-in tariffs at a point in time compared to our benchmark range