Sydney, NSW – New South Wales solar households are facing a significant shift in how they are compensated for exported electricity, with the Independent Pricing and Regulatory Tribunal (IPART) releasing its updated feed-in tariff (FiT) benchmarks for 2026-27. While flat-rate daytime FiTs are set to drop, the value of exporting solar during the evening peak period will see a substantial increase for some customers, reshaping the economics of rooftop solar from July 1, 2026.
The IPART benchmarks, announced on May 25, 2026, indicate a continued decline in the standard flat-rate FiT, which many solar owners rely on. Retailers are now recommended to pay between 3.4 and 6.5 cents per kilowatt-hour (c/kWh) for daytime solar exports, a reduction from the 4.8 to 7.3 c/kWh range in 2025-26. This downward trend reflects the increasing saturation of solar generation during daylight hours, which drives down wholesale electricity prices.
“More rooftop solar and more grid-scale renewables are flooding the network during the day, pushing wholesale electricity prices down. When the underlying value of electricity drops, the rate paid for exported solar drops with it.”
However, a closer look at the IPART release reveals a contrasting picture for evening peak exports. For the 2026-27 period, time-of-use (TOU) benchmarks show significantly higher values for solar energy fed into the grid when demand is highest and solar generation naturally tapers off. This change underscores the evolving dynamics of the National Electricity Market (NEM), where electricity’s value fluctuates dramatically based on time of day.
New Evening Peak FiTs for NSW Households
Starting July 1, 2026, NSW households with smart meters capable of tracking time-of-use exports could see their solar earnings dramatically change. The new evening peak FiT benchmarks are as follows:
| Distributor Area | Peak Export Time Window | Recommended FiT Range (c/kWh) |
|---|---|---|
| Ausgrid | 4:00 PM – 9:00 PM | 17.2 – 18.7 |
| Endeavour Energy | 4:00 PM – 8:00 PM | 16.9 – 19.9 |
| Essential Energy | 5:00 PM – 8:00 PM | 26.6 – 33.3 |
These figures represent a substantial premium over the declining flat rates, particularly for Essential Energy customers in regional NSW, who could earn up to 33.3 c/kWh during the evening peak. This shift highlights the growing importance of matching solar generation and export to periods of high grid demand.
Implications for NSW Solar Owners
For the more than 1.1 million NSW households with rooftop solar, these changes necessitate a re-evaluation of their energy consumption and export strategies. The era of generous, flat-rate FiTs is indeed waning, pushing homeowners to maximise self-consumption or explore battery storage solutions to capitalise on higher evening export rates.
Households without battery storage that primarily export during the day will see reduced financial returns. Conversely, those with home batteries can charge from their solar panels during the day and discharge during the lucrative evening peak, potentially unlocking greater savings and even new revenue streams. This makes the investment in a home battery increasingly attractive.
Understanding your electricity plan and potentially switching to a time-of-use tariff that rewards evening exports will be crucial. Homeowners should review their current electricity plans and consider options that align with these new FiT structures. For guidance on optimising your energy setup, resources like our guide to Best Electricity Plans in Australia 2026: A Comprehensive Guide for Households to Cut Costs can be invaluable.
The Role of Batteries and Smart Energy Management
The pronounced difference between daytime and evening FiTs reinforces the economic case for residential battery storage. By storing excess solar generated during the day and discharging it during the evening peak, households can mitigate the impact of lower daytime export rates and capitalise on the higher value of electricity after sundown.
This also aligns with broader grid stability efforts. As solar generation floods the grid during the day, managing this influx and ensuring supply during evening peaks (the ‘solar duck curve’) becomes critical. Batteries provide the flexibility needed to smooth out these fluctuations. The Australian Government’s Cheaper Home Batteries Program, which offers a rebate of around $311 per usable kWh of battery capacity (though this reduces every six months from May 1, 2026), further supports this transition.
For homeowners considering upgrading their system or adding a battery, understanding how to size a battery correctly for your needs is important. Our article, Your 2026 Guide: Precisely Sizing a Home Battery for Your Solar System & Usage, provides essential insights. Furthermore, exploring Best Home Energy Management Systems (HEMS) in Australia 2026: Unlock $3,300+ Savings After Rebates can help optimise energy flows and maximise savings.
NSW solar owners are encouraged to contact their electricity retailer to understand how the new IPART benchmarks will affect their specific tariffs from July 1, 2026, and to explore options for optimising their solar exports.