How Solar Feed-In Tariffs Work in NSW
When your solar panels make more power than your home is using, the surplus flows back to the grid and you are paid a feed-in tariff for it. It sounds like the heart of how solar saves money, but it is actually the smaller half of the story. Understanding feed-in tariffs helps you see where the real value sits.
What a Feed-In Tariff Is
A feed-in tariff is the rate your electricity retailer pays for each kilowatt-hour you export. It is set by the retailer, varies between plans, and is typically well below what you pay to import power. So while exporting earns something, every unit you sell back is worth far less than one you use yourself.
Why Self-Consumption Beats Export
Here is the key: power you use as your panels make it saves you the full retail rate you would otherwise pay. Power you export earns only the modest feed-in rate. The gap between the two is large, which is why a well-designed system aims to maximise what you use yourself, with export as a bonus rather than the goal.
How It Shapes System Design
Because self-consumption is worth more, sizing and usage timing matter. A system matched to your daytime usage captures more value than an oversized one exporting its best hours cheaply. It is also why batteries and load-shifting appeal, they turn would-be exports into self-consumption at full value.
Feed-In Rates Change
Feed-in tariffs are not fixed forever; they shift with the energy market and between retailers, and have generally trended down as more solar feeds the grid midday. Building your expectations around self-consumption rather than export income makes your system's value far more stable against those changes.
Making the Most of It
To get the best from the arrangement, compare retailer plans on both their import and feed-in rates, shift heavy usage into daylight where you can, and consider storage if your evenings are power-hungry. The aim is to lean on your own generation and treat the feed-in payment as the cream, not the cake.
Comparing Retailer Plans
Feed-in tariffs are set by retailers, so they vary between plans, and a headline-high feed-in rate can hide a high import rate that costs you more overall. Since most homes import more than they export, the import rate usually matters more to your bill than the feed-in figure. The sensible approach is to compare plans on both numbers together, ideally against your own usage pattern, rather than being drawn in by a big feed-in rate alone. The best plan is the one that works out cheapest across everything you draw and send, not the one with the flashiest export number.
Where Batteries Change the Equation
A battery shifts the whole feed-in conversation. Instead of exporting your midday surplus for a modest rate and buying power back at full retail in the evening, you store the surplus and spend it yourself after dark. That turns low-value exports into full-value self-consumption. Whether a battery pays for itself depends on how power-hungry your evenings are and the system cost, but it directly attacks the gap between import and feed-in rates, which is the gap where solar value is won or lost in the first place.
Shifting Usage Into Daylight
One of the simplest ways to get more from solar without spending a cent more is to move heavy usage into daylight hours. Running the dishwasher, washing machine, pool pump, or charging an EV in the middle of the day means that power comes from your roof at full retail value instead of being exported cheaply and bought back later. Timers and a glance at your monitoring app make this easy to do. It will not suit every household's routine, but where it fits, load-shifting quietly lifts the value of the same system.
Frequently Asked Questions
How much is the feed-in tariff worth?
It varies by retailer and plan and is typically well below the import rate. Because of that, it is best treated as a bonus rather than the main saving.
Should I choose a plan with the highest feed-in rate?
Not on its own, a high feed-in rate can come with a high import rate. Compare both together, since most homes import more than they export.
Does a bigger system earn more from exporting?
It exports more, but at a low rate, so the extra earns less than using that power yourself would. Sizing to usage usually beats sizing for export.
Can a battery improve the picture?
Yes, it lets you store surplus and use it at night instead of exporting cheaply and buying back at full price. Whether it pays depends on your usage.
Do feed-in tariffs differ across the Central Coast?
They are set by your retailer rather than your suburb, so they vary by plan more than by location. Comparing retailer plans matters more than where on the Coast you live.
Want to Get the Most From Your Solar?
A local licensed installer can design a Central Coast system that maximises what you use yourself, not just what you export. Chat with our team for a free, no-obligation design.