Learn about feed-in tariff rates
A solar feed-in tariff is a payment you get for the excess electricity produced by your system, which is fed back into the grid.
The rate is set per kilowatt hour (kWh) and the amount paid varies between retailers.
Each year, IPART, an independent regulator in NSW, sets a benchmark rate. For 2021/22, it is 4.6 to 5.5 cents cents per kWh. You can read more about IPART's Review of Solar feed-in tariffs 2023/24.
The benchmark rate is a guide for retailers, and they are not required to follow it. Some pay customers more while others pay less.
The rate you get is usually lower than the retail electricity price. Why? Retailers run a business and have all sorts of costs, including distribution and administration. You can read more about why the feed-in tariff is lower than the retail rate.
What to look out for
Some retailers offer a high feed-in tariff rate but will charge more for electricity. Consider the retailer’s offer as a whole to make sure you get the best deal. Check the following:
- feed-in tariff rate
- cost of electricity
- daily supply charge
- other terms and conditions including ‘pay-on-time’ discounts or late payment fees.
Use the Energy Made Easy tool to compare plans and feed-in tariff offers. It is a free service.