Feed-in Tariffs NSW 2026: What Your Energy Retailer Will Actually Pay You

In 2026, NSW feed-in tariffs sit between 4¢ and 12¢ per kWh depending on your retailer, with most major energy companies paying a flat rate of 5–7¢/kWh for solar exports. That's a sharp drop from the 15–20¢ tariffs of 2018, and it changes how you should size and use a modern solar system. The honest reality: feed-in tariffs are no longer the main reason solar pays back — self-consumption is.

What is a feed-in tariff, exactly?

A feed-in tariff (FiT) is the per-kWh rate your electricity retailer pays you for solar energy you export back to the grid. When your panels produce more than your home is using — say, at midday when you're at work — that surplus flows out through your meter and your retailer credits your bill at the FiT rate.

NSW does not have a state-mandated minimum feed-in tariff. Unlike Victoria, where the Essential Services Commission sets a minimum FiT each year, NSW retailers set their own rates. The Independent Pricing and Regulatory Tribunal (IPART) publishes a benchmark range each year, but it's a recommendation only. In 2026 IPART's benchmark sits at 4.9–6.3¢/kWh.

What NSW retailers actually pay in 2026

Feed-in rates change quarterly and vary by retailer, plan and even time of day. Here's what the major retailers serving Endeavour Energy and Essential Energy customers across the Illawarra and South Coast are paying in 2026:

• Origin Energy: 5.0¢/kWh flat, with a "Solar Boost" plan offering 16¢/kWh for the first 10kWh exported daily
• AGL: 4.5–6.0¢/kWh flat depending on plan
• Red Energy: 6.0¢/kWh flat, no caps
• Energy Australia: 5.7¢/kWh flat, with optional 12¢ peak-time rate (4–9pm)
• Powershop: 7.0¢/kWh flat, generally the most consistent for high exporters
• Globird Energy: 8–11¢/kWh on certain plans, but with higher daily supply charges
• OVO Energy: 6.5¢/kWh with time-of-use bonuses

The headline rate isn't the whole story. A 16¢ "Solar Boost" tariff capped at 10kWh/day works out to about 7.3¢ blended for a household exporting 25kWh daily — sometimes worse than a flat 6¢ plan with no cap. Always run the maths on your actual export volume.

Why feed-in tariffs have collapsed since 2017

NSW feed-in tariffs have fallen from a peak of around 20¢/kWh in 2017 to 5–7¢ today. The reason is simple supply and demand: there are now more than 1.1 million solar systems on NSW roofs, all exporting at roughly the same midday window. Wholesale electricity prices in the middle of the day regularly drop below 2¢/kWh on sunny weekends — sometimes going negative — so retailers can't pay much more than that and still make a margin.

This trend is permanent. Treasury modelling and AEMO forecasts both indicate daytime wholesale prices will continue to fall through 2030 as more rooftop and utility-scale solar comes online. If anything, expect feed-in tariffs to drift slightly lower over the next few years, not higher.

How this changes the way you should design your system

When FiTs were 15–20¢, the maths favoured oversized systems that exported aggressively. With 6¢ FiTs, the equation flips. Every kWh of solar you self-consume offsets a 30¢/kWh grid purchase — a 5x value advantage over exporting. This is why we now design Illawarra systems around three principles:

1. Size for your real daytime usage, plus 30%

Look at your last four electricity bills. If your home uses 25kWh a day on average, with 8–10kWh of that being daytime use (pool pump, fridge, AC, kids home), a 10kW system that produces ~40kWh on a clear day will give you good self-consumption headroom plus useful export.

2. Shift loads to daytime where you can

Run dishwashers, washing machines, pool pumps and electric hot water on midday timers. Charge your EV during the day if you work from home. Each kWh you shift from grid (30¢) to solar (free) is a 30¢ saving — a far better return than the 6¢ you'd get exporting it.

3. Consider a battery if your evening usage is high

With the federal Cheaper Home Batteries Program now subsidising up to $2,000 off battery installs, a 10kWh battery captures your midday surplus and discharges it at 6pm when you're cooking, watching TV and running aircon. A typical Illawarra home with high evening usage now sees 7–9 year battery payback — and that calculation gets better every time grid prices rise.

Use our free Solar Savings Calculator to see your personalised payback period.

Time-of-use feed-in tariffs: are they worth chasing?

A handful of retailers now offer time-varying FiTs that pay more during peak demand windows (typically 4–9pm) and less or nothing during the solar glut hours of 10am–3pm. On paper, a 12¢ peak FiT looks much better than a 6¢ flat rate. In practice, your solar system isn't producing much at 7pm — sunset in Wollongong is around 5pm in winter and 7:45pm in midsummer.

Time-of-use FiTs only make financial sense if you have a battery, because the battery shifts your midday surplus into the peak export window. Without one, the higher rate is essentially marketing — you'll never export enough between 4pm and 9pm to capitalise on it.

How to find the best feed-in tariff in 2026

Use the federal government's Energy Made Easy comparison site (energymadeeasy.gov.au), which shows every retailer plan available at your address with the FiT, daily supply charge and usage rates spelled out. Don't fixate on the FiT alone — a plan with a 9¢ FiT and a $1.30/day supply charge will usually be worse than a 6¢ FiT with a $0.95 daily charge for most Illawarra homes.

The plan to optimise for is whatever gives you the lowest expected annual bill given your actual import and export profile. Most homes find the FiT contributes 15–25% of total bill savings; the bulk comes from self-consumption offsetting grid imports.

Frequently Asked Questions

Are feed-in tariffs taxable income?

No. The ATO has consistently treated residential feed-in tariff payments as a reduction in your electricity expense rather than assessable income, so you don't need to declare them on your tax return. The exception is large commercial systems run as businesses — but residential homeowners on standard plans are unaffected.

Can I switch retailers to get a better FiT and keep the old one?

You can switch retailers at any time without penalty (unless you're on a fixed-term contract with exit fees). Your meter and solar system stay where they are; only the billing entity changes. We recommend reviewing FiT plans every 12–18 months because the market shifts quickly.

Do I get the FiT credited monthly or quarterly?

Almost all NSW retailers credit your FiT against your normal electricity bill, which means quarterly. Some — like Powershop — operate on monthly billing. The credit appears as a line item; if your FiT credit exceeds your usage charges, the surplus rolls forward to the next bill rather than being paid out in cash.

What's the difference between Endeavour Energy and Essential Energy areas?

Endeavour Energy covers Wollongong, the Illawarra and Sydney's south-west. Essential Energy covers regional NSW including most of the South Coast south of Bateman's Bay and inland regions. Feed-in tariffs are set by your retailer, not the network, so the rate is the same across both areas — but connection processes and approval times differ.

Is there a cap on how much solar I can export?

Yes — Endeavour Energy's standard export limit for residential single-phase connections is 5kW, with up to 10kW available on three-phase. Larger systems can be installed but with export limiting set in the inverter. The federal government's "flexible export" rollout is gradually allowing higher dynamic limits, but most Illawarra homes still operate under fixed caps in 2026.

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