Solar feed-in tariffs (FiTs) are a financial incentive offered by electricity retailers to encourage homeowners and businesses to generate renewable energy.
In New South Wales (NSW), the FiT is determined by the Independent Pricing and Regulatory Tribunal (IPART). The current FiT for 2025 in NSW ranges from 1.5 to 12 cents per kWh.
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Under the FiT scheme, electricity retailers must pay customers for the excess solar energy fed back into the grid. This helps to offset the cost of installing and maintaining a solar panel system and can provide a financial return for homeowners and businesses that invest in renewable energy.
Eligibility
To receive a feed-in tariff, a solar PV system must be:
- installed on a household or small business
- connected to the grid within the National Energy Market (NEM).
To be eligible for the feed in tariff in NSW, a solar panel system must be connected to the grid. A licensed and accredited installer must also install the system.
Independent Pricing And Regulatory Tribunal (IPART)
As of 2025, the Independent Pricing and Regulatory Tribunal (IPART) has set the recommended solar feed-in tariff benchmarks for New South Wales (NSW) between 4.9 to 6.3 cents per kWh for all-day rates. IPART’s benchmarks serve as a guideline to help consumers understand how much they should expect to receive from retailers for the solar electricity they export to the grid. These benchmarks are formulated based on forecasts of wholesale electricity prices at the time solar energy is exported.
Retailers in NSW are not obligated to offer feed-in tariffs within the benchmark range, but the benchmarks provide a useful reference for consumers to compare the tariffs they are offered. Variation in feed-in tariffs is also possible depending on the time of day the electricity is exported, with some retailers offering time-of-day-based feed-in tariffs
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Is there a minimum feed-in tariff in NSW?
In NSW, there is no minimum feed-in tariff rate. Individual electricity retailers assign value to exported solar power. Therefore, energy suppliers are incentivised to offer a decent feed-in tariff rate to win customers installing solar panels.
Benefits of a Feed-in Tariff
While the FiT can provide a financial benefit to those who invest in solar panel systems, it is important to consider the costs and benefits of installing a solar panel system before deciding. This may include evaluating the size of the system needed to meet energy needs, the location and orientation of the panels, and the potential return on investment.
The FiT in NSW is a valuable incentive for those looking to invest in renewable energy and reduce their carbon footprint.
Homeowners and businesses need to stay up-to-date on the current FiT rate and the eligibility requirements to take advantage of this opportunity.
Comparison by retailers
Explore the FiT available in NSW and compare.
Best feed-in tariff NSW
Explore the FiT available in NSW and compare.
Read more about feed-in tariffs in NSW
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