Sydney, NSW – New South Wales solar households are set to experience a notable reduction in their flat-rate solar feed-in tariffs (FiTs) from July 1, 2026, following the Independent Pricing and Regulatory Tribunal (IPART) releasing its updated benchmarks for the 2026-27 financial year. The decision, announced on May 25, 2026, will see the recommended flat-rate FiT drop significantly, impacting how much solar owners earn for exporting excess electricity to the grid.
IPART’s new benchmark range for the flat-rate FiT is between 3.4 cents and 6.5 cents per kilowatt-hour (c/kWh) for daytime solar exports. This represents a considerable decrease from the 2025-26 financial year’s recommended range of 4.8 to 7.3 c/kWh.
“The flat-rate FiT, the standard rate most solar households receive for exporting electricity to the grid, has dropped again. IPART now recommends retailers pay between 3.4 and 6.5 cents per kilowatt-hour for daytime solar exports, down from 4.8 to 7.3 cents in 2025-26.”
This shift underscores a growing trend across the National Electricity Market (NEM) where the value of daytime solar exports is diminishing due to the sheer volume of rooftop solar flooding the grid during peak sunlight hours. This phenomenon, often referred to as the ‘solar duck curve’, means that while solar generation is abundant during the day, demand is lower, reducing the economic value of exported power.
Time-Varying Tariffs Offer New Opportunities
While flat-rate tariffs are declining, IPART’s updated benchmarks also highlight the increasing importance of time-varying feed-in tariffs. These tariffs are designed to reward solar households for exporting power when it is most needed by the grid, typically during the evening peak demand window when solar generation tapers off but household consumption surges.
For 2026-27, IPART has set significantly higher benchmark ranges for evening solar exports across NSW’s three main distribution networks:
| Distributor | 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 |
This indicates a clear signal from the regulator: solar owners who can store their daytime generation for later use, or shift their exports to these evening windows, stand to earn substantially more. For regional NSW customers under Essential Energy, the evening peak rates could reach up to 33.3 c/kWh, providing a strong incentive to optimise solar consumption and storage.
Adapting to the Changing Solar Landscape
The ongoing decline in flat FiTs, coupled with the rise of lucrative time-varying options, necessitates a strategic approach for NSW solar homeowners. Simply exporting all excess daytime generation may no longer provide the same financial benefits it once did.
Investing in a home battery system allows households to store surplus solar power generated during the day and discharge it during the evening peak, when electricity import prices are high and export tariffs are at their most valuable. This not only maximises self-consumption, reducing reliance on grid imports, but also enables participation in these higher evening FiT rates. For guidance on optimal battery sizing, refer to our guide: Your 2026 Guide: Precisely Sizing a Home Battery for Your Solar System & Usage.
Homeowners should also review their current electricity plans to ensure they are on a tariff that best suits their solar generation and consumption patterns. Many retailers now offer plans specifically designed for solar households, some of which include attractive time-of-use rates for both imports and exports. Comparing these options can unlock significant savings. The Ultimate Guide to Switching Electricity Providers in Australia 2026: Save on Your Home Energy Bills provides a comprehensive overview of how to navigate this process.
Furthermore, technologies such as Home Energy Management Systems (HEMS) can help automate the optimisation of solar usage, battery charging and discharging, and appliance scheduling to take advantage of varying tariffs and reduce overall electricity bills. These systems can be particularly valuable in maximising the financial returns from rooftop solar installations in this evolving market. Best Home Energy Management Systems (HEMS) in Australia 2026: Unlock $3,300+ Savings After Rebates offers insights into the latest HEMS options.
What This Means for New and Existing Solar Owners
For those considering installing solar panels, the new IPART benchmarks reinforce the importance of self-consumption over simply exporting to the grid. Sizing a system to meet a significant portion of your own energy needs, particularly with a battery, will yield greater long-term savings. The federal Small-scale Renewable Energy Scheme (SRES) continues to provide upfront discounts through Small-scale Technology Certificates (STCs), making solar installation more affordable. However, the value of these STCs is subject to change.
Existing solar owners, especially those on older, more generous flat-rate FiTs, may find their rates adjusted downwards by their retailer from July 1, 2026, or at the end of their current contract period. It is crucial to check with your electricity provider about your specific FiT arrangements and explore whether switching to a plan with time-varying export rates, or investing in battery storage, could improve your financial returns.
IPART’s latest announcement signals a maturing solar market in NSW, where the focus is shifting from simply generating electricity to intelligently managing its consumption and export to support grid stability and maximise household savings.