NSW Ausgrid Solar Feed-in Tariff and Metering Guide

Key Takeaways

• Two-way pricing introduction: Ausgrid has a two-way solar tariff for new and existing residential and small business customers.
• Price signals for grid efficiency: Like all our tariffs, our two way pricing is intended to act as price signals for retailers to encourage the most efficient use of our network. Our goal is to develop tariffs that fairly reflect the way each customer uses the network, while lowering the overall cost of the system.
• Self-consumption incentive: Encourage customers to use the solar they generate in the middle of the day (rather than export) or send their exports into the grid later in the day. Exporting later in the day, when demand for electricity is highest, helps to reduce pressure on the network and keep future electricity costs down.
• Dual pricing structure: The charge is 1.23 cents/kWh and the reward is 3.85 cents/kWh. These prices are passed through to the retailers. It’s then up to the retailers to decide how they bundle the prices in their offers for customers – retailers can change the value of the charge and reward.
• Monthly free export allowance: The free threshold is calculated monthly. In months with 31 days it is 212 kWh. In months with 30 days it is 205 kWh. In months with 29 days it is 199 kWh. In months with 28 days it is 192 kWh.

Solar feed-in tariffs across New South Wales are entering a new era with the implementation of network two-way solar tariffs. Designed to align distributed rooftop generation with network capacity, Ausgrid introduced pricing reform to balance daytime solar abundance with peak evening electricity demand.

Network tariffs reflect this modern operating model: "Ausgrid has a two-way solar tariff for new and existing residential and small business customers."

Two-Way Pricing Objectives & Grid Dynamics

Understanding network pricing helps consumers optimize energy dispatch:

• Price Signal Architecture: The tariff is engineered to send market signals: "Like all our tariffs, our two way pricing is intended to act as price signals for retailers to encourage the most efficient use of our network. Our goal is to develop tariffs that fairly reflect the way each customer uses the network, while lowering the overall cost of the system."
• Shifting Solar Export Timing: Ausgrid designed the policy to: "Two-way pricing was introduced to:" "Encourage customers to use the solar they generate in the middle of the day (rather than export) or send their exports into the grid later in the day. Exporting later in the day, when demand for electricity is highest, helps to reduce pressure on the network and keep future electricity costs down."
• Grid Safety & Renewable Growth: Infrastructure durability is preserved: "It manages electricity flowing both ways and supports solar growth, which helps keep the network safe and reliable for all our customers."

Export Charges, Peak Rewards & Free Thresholds

The technical mechanism introduces distinct price windows and generous free export allowances:

1. Network Charge & Reward Rates: Network pricing specifies: **"The charge is 1.23 cents/kWh and the reward is 3.85 cents/kWh. These prices are passed through to the retailers. It’s then up to the retailers to decide how they bundle the prices in their offers for customers – retailers can change the value of the charge and reward."**
2. Retailer Plan Flexibility: Retailers package charges independently: "It’s important to know that retailers can choose how they structure this two-way tariff for customers. This can mean what you see on your bill is different to our pricing, so it’s always good to compare offers to make sure you’re on the best plan for you."
3. Monthly Free Allowance: Customers receive a free export baseline: "The free threshold is calculated monthly. In months with 31 days it is 212 kWh. In months with 30 days it is 205 kWh. In months with 29 days it is 199 kWh. In months with 28 days it is 192 kWh."

Consumer Impact Scenarios & Battery Arbitrage

Real-world household examples illustrate the financial effects:

• Scenario A (Full Self-Consumption): For households using appliances during daylight hours, "Since Sam uses all the solar he generates, two-way pricing has no impact on his bill."
• Scenario B (Daytime Grid Export): For unoptimized export above the allowance, "Since Jill exports more than the free threshold (200kWh), she’s charged for the extra 100kWh. Jill ends up with a $1.23 charge."
• Scenario C (Battery Peak Dispatch): Pairing solar with storage generates net profit: "Since the reward is three times higher than the charge, Matteo and Maya end up with a credit of $2.62" across the billing cycle.

Phased Rollout & Consumer Awareness

The reform followed a gradual transition pathway:

• Mandatory Rollout Schedule: Network records confirm: "Ausgrid introduced an opt-in two-way tariff for new and existing residential and small business customers who were export-ready in July 2024. Since July 2025 the tariff has been applied to all of these customers. Retailers can choose how they structure this two-way tariff for customers."
• Community Education: Broad consumer resources explain the system: "Two-way pricing is coming, but what does it actually mean for your energy bill? Ausgrid’s Georgia and Fiona explain how this new approach reflects the true cost of electricity at different times of day, and how it could reward smarter energy use."