Is solar still worth it in NSW with low feed-in tariffs?
Exports pay only a few cents per kWh, and some plans now charge different rates at different times of day. Solar can still pay off, but the reason has changed. Here's how to check it for your house.
Tariffs and rules change. The figures below come from IPART, the federal government and the Australian Energy Regulator, and were checked on 28 October 2026. They're benchmarks and general rules, not your plan's rates and not a quote. Always check your own bill.
The short answer
For most households the value of solar now comes from using the power yourself, not from selling it. Every kilowatt-hour (kWh) your panels make that you use at home replaces a kWh you'd have bought at your full retail rate. Every kWh you export earns a feed-in tariff, which is much lower. So solar tends to suit homes that use a decent amount of power while the sun is up, or that can store the midday surplus for the evening, and suits them less if almost all of the usage is after dark.
What exports are worth in 2026-27
The NSW pricing regulator, IPART, publishes a benchmark range each year for what solar exports are worth. For 1 July 2026 to 30 June 2027, its all-day benchmark is 3.4 to 6.5 cents per kWh, down from 4.8 to 7.3 cents in 2025-26. IPART says the fall reflects lower wholesale prices at the times solar exports, because more rooftop solar and other renewables are feeding the grid at midday. Retailers don't have to match the benchmark, and some offer more or less, or no feed-in tariff at all. You can compare plans on the government's Energy Made Easy site.
IPART also publishes time-of-day benchmarks, because a kWh exported at 6 pm is worth more to the grid than one at noon. For 2026-27:
| Network | Midday exports | Evening exports |
|---|---|---|
| Ausgrid | 3.9 to 4.0 c/kWh (10 am to 3 pm) | 17.2 to 18.7 c/kWh (4 pm to 9 pm) |
| Endeavour Energy | 3.1 to 3.2 c/kWh (10 am to 2 pm) | 16.9 to 19.9 c/kWh (4 pm to 8 pm) |
Source: IPART time-of-day solar feed-in tariff benchmarks 2026-27. Not every retailer offers time-of-day export rates, and these are IPART's estimates, not offers. Which network you're on depends on where you live (see our service areas).
The pattern is the point. Exports around midday are worth very little, and the evening is when the grid values power most. That's what a battery is for: it moves midday solar to the evening. It's also why IPART's own media release says most customers get the best value from using the solar they generate rather than exporting it.
Why your electricity rate is so much higher than the feed-in tariff
IPART explains that retail prices include network costs, environmental obligations and the retailer's costs, and that retailers also cover the higher wholesale prices at the times when solar isn't exporting. So each kWh you avoid buying saves you far more than each kWh you export earns. The exact gap is on your bill, as the usage rate in cents per kWh compared with the feed-in rate.
What "time of use" changes
On a time-of-use plan, the price you pay depends on when you use power, typically with a peak rate in the late afternoon and evening, a shoulder rate, and a cheaper off-peak rate, often including the middle of the day. Your bill lists the rates and the hours, and the hours can differ by plan and network. For solar, two things follow:
- Solar covers the cheap hours as well. If your midday rate is low, the power your panels make then displaces cheap power, so each kWh is worth less than one that displaces a peak-rate kWh.
- The valuable window is the evening. A battery, or shifting some use into the day, changes which of your kWh are bought at peak rates. Our battery guide goes through who benefits.
The Solar Sharer Offer
From 1 July 2026, NSW households with a smart meter can ask their retailer for the federal government's Solar Sharer Offer. It's an optional plan with a free-power window of 11 am to 2 pm every day, up to 24 kWh, and higher rates outside it. You don't need solar to opt in, and you still pay the daily supply charge and the rates outside the window. See the energy.gov.au page for the rules and eligibility, including that homes on embedded networks are excluded.
How it interacts with solar depends on your plan and usage. Our reading of the rules is that, if you're on the offer, midday power you use from your panels replaces power that would have been free anyway, up to the 24 kWh limit, so the panels' value shifts to the hours outside the window, and to storing power or exporting it. The government's page suggests charging a home battery or an EV during the free period. If you're thinking about the offer and solar together, compare the full rates on both and ask your retailer, because we aren't an energy retailer and can't tell you which plan to choose.
How to work out your own numbers
- Find your rates. On a recent bill, note the usage rate(s) in c/kWh, the daily supply charge, and the feed-in rate. If you're on time-of-use, note each rate and when it applies.
- Estimate how much solar you'd use directly. It depends on who's home in the day and what runs then. Smart-meter data from your retailer or distributor shows it half-hour by half-hour.
- Count the rest as exports. Whatever you don't use in the day is exported at the feed-in rate, or stored if you have a battery.
- Add it up. Yearly saving is roughly (kWh you use from solar × the rate you'd otherwise pay) plus (kWh you export × your feed-in rate). Leave out the daily supply charge, because you pay it either way.
- Compare with the net price. Take the quote price after the federal discount, divide by the yearly saving, and you have a payback period in years.
The numbers that matter most are how much you use directly and what rate that displaces. Our savings estimator does a rough version from your quarterly bill and lists its assumptions. For a proper answer, a quote based on your usage is better. For typical installed prices, see what solar and batteries cost, and for the discount, NSW solar and battery rebates, which explains how it shrinks each year.
When solar is a weaker bet
- Very low usage. If the bill is already small, there's less to save.
- Almost all usage after dark, with no plan for a battery or load-shifting.
- A heavily shaded or small roof. Less generation per dollar. See our sizing guide.
- A roof that needs replacing soon, or a plan to move in the next few years.
None of these means no. They mean the case needs checking before you sign, and we'll tell you if the numbers don't stack up for your house.
Common questions
Is it worth installing solar if I only get 3 to 6 cents for exports?
It can be, because the main saving comes from using your own solar instead of buying at the retail rate. Low export rates mostly mean you shouldn't size a system on the assumption that you'll make money from exports.
Should I get a bigger system to export more?
Usually not for the export income. Bigger can still make sense if you'll use the power directly, store it in a battery or are planning an electric vehicle. The network also limits how much you can export for some connections.
Do I need a smart meter to get the Solar Sharer Offer?
Yes. The government says a smart meter is required, and that you can ask your retailer whether one can be installed and whether fees apply.
Does the Solar Sharer Offer make solar pointless?
No, but it can change the sums. It depends on your usage and the rates outside the free window. Compare plans on Energy Made Easy and ask your retailer.
Will the feed-in tariff rise again?
We can't predict it. IPART sets a new benchmark each year based on its estimate of wholesale prices. It's safer to judge solar on what you'd save from using the power yourself.
Want the numbers for your house?
Send us a recent bill. We'll size a system around your usage, show the options with and without a battery, and give you a written quote with the discounts as separate lines.
More guides: Is a home battery worth it in NSW? · How big a solar system do I need? · What to check in a solar quote · All guides
Sources: IPART (solar feed-in tariff benchmarks 2026-27); Department of Climate Change, Energy, the Environment and Water and energy.gov.au (Solar Sharer Offer); Australian Energy Regulator. Checked 28 October 2026. General information only, not financial advice.