Feed-In Tariffs in Illawarra & South Coast NSW: What You Really Earn in 2026

One of the biggest assumptions homeowners still make about solar is that the biggest savings always come from exporting power back to the grid. That used to be far more true years ago. Now? Not exactly.

As electricity prices continue to shift across NSW, many households are realising that solar feed-in tariffs are no longer as high as they once were. And while exporting unused energy still helps reduce bills, the way feed-in tariffs work in 2026 looks very different compared to earlier solar incentive periods.

That is why more homeowners across Illawarra and the South Coast are starting to ask better questions before installing systems:

• What are feed-in tariffs?
• How do feed-in tariffs work?
• And realistically, how much can you still earn from exported solar power today?

The answer depends on far more than just your retailer. The promise of solar has always been compelling—generate your own power, send the excess back to the grid, and watch your electricity bill shrink. That part is still true.

What has changed is how much the grid actually pays you back, and for homeowners and small businesses across the Illawarra and South Coast, that number matters more than most solar quotes let on.

What Are Feed-In Tariffs and How Do They Work?

A feed-in tariff (FiT) is a per-unit payment made by your electricity retailer for solar energy you export to the grid. When your panels generate more power than your home or business is using at that moment, the surplus flows outward—and the retailer compensates you for it.

Years ago, this was a straightforward and genuinely lucrative arrangement. Premium feed-in tariffs in NSW offered rates that sometimes exceeded what households paid for electricity, which made exporting solar power a smart financial move regardless of when or how often you used power at home.

Those days are gone.

Today’s solar feed-in tariffs in NSW sit considerably lower, typically between 5 and 8 cents per kWh, while the cost of buying power from the grid remains well above 30 cents per kWh in most areas.

That gap is the core issue. If your panels are generating during the day while your home sits empty, you are exporting cheaply and buying expensively later. Your solar system works hard—just not efficiently for your household savings.

Best Feed-In Tariffs in NSW: What You Should Actually Compare

When people search for the best solar feed-in tariffs in NSW, they often compare retailer rates in isolation. That is a reasonable starting point, but it is only part of the picture.

FiT rates vary by retailer and are not regulated in NSW beyond a minimum benchmark set by IPART (the Independent Pricing and Regulatory Tribunal). Retailers are free to offer more, and some do—but the rate alone will not tell you how much you will actually save.

The AER’s guidance on maximising the value of your solar PV system makes clear that the highest feed-in tariff rate is not always the best overall deal. Comparing the FiT rate and your electricity usage tariff together gives you the real picture.

For residents across our service areas, which include Wollongong, Shellharbour, Kiama, and the Southern Highlands, the practical advice is simple: prioritise self-consumption before chasing export rates.

Why Self-Consumption Matters More Than Exporting

Every kilowatt-hour you use directly from your panels saves you the full retail electricity rate. Every kilowatt-hour you export earns significantly less.

That difference changes the economics of solar entirely.

This is what is known as solar self-consumption: the percentage of solar energy you use immediately instead of sending it back to the grid. Higher self-consumption rates dramatically improve the return on investment of a solar system.

That is why, at Solar X Energy, we focus heavily on building a solar solution around actual household usage patterns rather than simply maximising panel output.

A standard solar calculator often misses this nuance completely. It may estimate generation accurately, but fail to reflect when your household actually uses power.

We explore this further in predicting savings with solar self-consumption tools, particularly how usage habits directly affect long-term savings outcomes.

Load Shifting Is the Simplest Way to Improve Savings

You do not necessarily need a battery immediately to improve your solar returns.

Load shifting or moving energy-heavy appliance usage into daylight hours can already make a noticeable difference without adding more hardware.

Simple changes help:

• Running dishwashers during midday hours.
• Scheduling pool pumps during peak solar generation.
• Charging devices while panels are producing.

Each adjustment increases self-consumption and reduces how expensive the electricity you buy back later from the grid. Small operational habits can improve payback periods faster than people expect.

How Solar Batteries Change the Equation

If load shifting improves solar efficiency, battery storage changes it structurally.

A solar battery stores excess daytime generation for use on evenings when electricity prices are typically highest. This allows households to rely far less on grid imports after sunset.

With a properly sized battery, self-consumption rates can increase dramatically. Battery rebates in NSW are also now structured under tiered federal STC incentives from May 2026:

• 0–14 kWh: full rebate factor
• 14–28 kWh: reduced rebate factor
• 28–50 kWh: limited rebate support

NSW households may also access support through the PDRS incentive scheme, though eligibility limits still apply.

This is also why battery sizing now matters far more than simply installing the largest system possible.

What Feed-In Tariffs Mean for Small Businesses

Feed-in tariff strategy often looks slightly different for small businesses.

Commercial operations naturally use more electricity during daytime business hours, which aligns more effectively with solar generation patterns. That creates stronger self-consumption rates automatically without requiring major behavioural adjustments.

Getting your system sizing right is the most critical part of commercial solar planning. If your setup is too big, you’ll export excess power back to the grid for a minimal return. But when it’s sized perfectly to match your daytime operations, you get the absolute most out of your investment. 

Getting the Right Solar Setup From the Start

Feed-in tariffs will continue to evolve alongside electricity pricing, retailer competition, and energy policy changes across NSW.

But the core principles remain fairly consistent:

• Use as much of your own solar generation as possible.
• Store excess energy where practical.
• Export only what you cannot use.

The households seeing the best long-term outcomes are usually those with systems designed around realistic energy behaviour and not export expectations.

Solar X Energy helps homeowners and businesses across Illawarra and South Coast build solar systems designed around practical savings, energy efficiency, and long-term performance rather than just headline tariff rates.

If you are considering solar installation or reviewing feed-in tariff options, you can also get a quote to discuss your household or business energy goals with our team.