Feed-in Tariffs Are Falling in QLD & NSW: How to Maximise Your Solar Savings in 2026

Feed-in Tariffs Are Falling in QLD & NSW: How to Maximise Your Solar Savings in 2026

May 06, 20265 min read

If you already have solar panels installed, you may have noticed something frustrating:

Your feed-in tariff keeps dropping.

Across Queensland and New South Wales, many homeowners are now earning less than ever for exporting solar energy back to the grid often as low as 5 to 10 cents per kWh.

So the big question becomes:

If exporting solar isn’t paying much anymore, how do you actually maximise your savings?

In this guide, we’ll show you exactly how QLD and NSW homeowners are adapting and how you can get more value from your solar system in 2026.


Why Feed-in Tariffs Are Dropping

Feed-in tariffs were once much higher even over 20 cents per kWh in earlier years.

But today, they’ve declined significantly due to:

  • Increased solar adoption across Australia

  • Oversupply of daytime solar energy

  • Grid infrastructure limitations

  • Energy retailers adjusting pricing models

In simple terms:

There’s now too much solar being exported during the day

And not enough demand for it.


Why Exporting Is No Longer the Goal

Here’s the key shift every solar owner needs to understand:

Solar is no longer about selling energy, it’s about using your own energy.

Let’s compare:

  • Export solar: ~5 to 10 cents per kWh

  • Buy electricity: ~30 to 45 cents per kWh

That gap is massive.

So instead of:
Selling low → Buying high

The smarter strategy is:
Use your own solar first

This is called self-consumption.


What Is Solar Self-Consumption?

Self-consumption means:

Using the electricity your solar system generates in real time, instead of exporting it.

The more solar energy you use yourself, the more money you save.

Example:

  • Use solar at home = save 30 to 40 cents per kWh

  • Export solar = earn only 5 to 10 cents per kWh

That’s why increasing self-consumption is now the #1 strategy.


5 Smart Ways to Beat Low Feed-in Tariffs

5 Smart Ways to Beat Low Feed-in Tariffs

1. Shift Your Energy Usage to Daytime

This is the easiest win.

Run high energy appliances during solar production hours:

  • Washing machine

  • Dishwasher

  • Pool pump

  • Air conditioning

  • Hot water systems

Best time:
👉 10am to 3pm

This ensures you use your own solar instead of exporting it cheaply.


2. Use Timers and Smart Devices

Smart plugs and timers can automate your savings.

You can:

  • Schedule appliances to run during solar hours

  • Automatically heat water during the day

  • Control devices remotely

This turns your home into a solar-optimised system without extra effort.


3. Upgrade Your Solar System (If Undersized)

Many older systems in QLD and NSW are:

  • 3kW to 5kW

  • Installed years ago

These systems may not generate enough power for modern homes.

If your system is small:
👉 Upgrading to 6.6kW or larger can increase self-consumption potential.

More solar = more power you can use yourself.


4. Add a Battery (When It Makes Sense)

A battery allows you to:

  • Store excess solar during the day

  • Use it at night

  • Avoid peak electricity prices

Instead of exporting for 8 cents, you:

👉 Save 30 to 40 cents later

However, batteries are not always the fastest payback option. They are best suited for:

  • High evening energy use

  • Homes with EVs

  • Areas with frequent blackouts

  • Long-term homeowners


5. Join a Virtual Power Plant (VPP)

A Virtual Power Plant (VPP) connects your battery to a network.

This allows your system to:

  • Support the grid during peak demand

  • Earn credits or payments

  • Increase overall system value

In QLD and NSW, VPP programs are growing and can provide:

  • Upfront incentives

  • Ongoing bill credits

  • Smarter energy optimisation

It’s one of the most overlooked ways to improve returns.


QLD vs NSW: What’s Different?

Queensland

  • High solar generation year-round

  • Lower feed-in tariffs in many areas

  • Strong potential for daytime self-consumption

  • Storm season makes batteries attractive


New South Wales

  • Higher peak electricity prices

  • Time-of-use tariffs common

  • Batteries can provide stronger financial benefit

  • VPP programs expanding rapidly


When Should You Consider a Battery?

A battery makes more sense if:

  • You use most of your energy at night

  • Your feed-in tariff is low

  • You want blackout protection

  • You have excess solar being exported daily

  • You plan to stay in your home long-term

If you mainly use power during the day, you may benefit more from optimising usage first.


The Future of Solar Savings in Australia

The trend is clear:

  • Feed-in tariffs will likely continue declining

  • Electricity prices are rising

  • Self-consumption is becoming more valuable

  • Smart energy systems are the future

Solar is still one of the best investments — but the strategy has changed.


Final Thoughts

If you already have solar in QLD or NSW, the goal in 2026 is simple:

Use more of your own power.

Feed-in tariffs may be falling, but your savings don’t have to.

By adjusting how and when you use electricity, upgrading your system where needed, and exploring options like batteries or VPPs, you can continue getting strong value from your solar investment.

Powered By Solar

Want to Get More from Your Solar System?

At Powered By Solar, we help homeowners across Queensland and New South Wales optimise their systems for real-world savings.

We can assess:

  • Your current solar performance

  • Your energy usage patterns

  • Whether a battery or upgrade makes sense

Get in touch to see how you can maximise your solar savings in 2026!

Powered By Solar is an Australian-owned solar energy company helping homeowners take control of their power and reduce energy bills.

With years of experience in solar panel and battery installations across Queensland and New South Wales, our team is passionate about delivering reliable, affordable, and future-ready energy solutions.

We believe in making solar simple — from design to installation to aftercare so every Australian home can enjoy clean energy and long-term savings.

Powered By Solar

Powered By Solar is an Australian-owned solar energy company helping homeowners take control of their power and reduce energy bills. With years of experience in solar panel and battery installations across Queensland and New South Wales, our team is passionate about delivering reliable, affordable, and future-ready energy solutions. We believe in making solar simple — from design to installation to aftercare so every Australian home can enjoy clean energy and long-term savings.

Instagram logo icon
Back to Blog