New South Wales solar households are facing a significant recalibration of their energy economics following the Independent Pricing and Regulatory Tribunal’s (IPART) updated feed-in tariff (FiT) benchmarks for 2026-27. Announced on May 25, 2026, the new recommendations reveal a substantial reduction in flat-rate daytime FiTs, but also highlight a dramatic increase in the value of electricity exported during the evening peak. This shift mandates a re-evaluation of how solar owners maximise their system’s financial returns.
Under the new guidelines, the standard flat-rate FiT, which most solar households receive for exporting surplus electricity to the grid, has dropped considerably. IPART now suggests retailers pay between 3.4 and 6.5 cents per kilowatt-hour (c/kWh) for daytime solar exports, a notable decrease from the 2025-26 range of 4.8 to 7.3 c/kWh.
“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.”
This downward trend in daytime FiTs reflects the increasing saturation of solar generation during the middle of the day, a phenomenon known as the ‘solar duck curve’. As more rooftop and large-scale solar projects come online, the supply of electricity peaks when demand is typically lower, driving down wholesale prices and, consequently, export rates.
Evening Peak Exports See Dramatic Value Spike
While the flat-rate FiT decline is a headline concern for many, IPART’s time-of-use (TOU) benchmarks reveal a contrasting opportunity during the evening peak. These rates reflect the higher value of electricity when solar generation tapers off but household demand surges as people return home, turn on appliances, and charge devices.
For 2026-27, IPART’s recommended evening export rates for NSW are:
| Distributor | Export Rate (c/kWh) | Peak Window |
|---|---|---|
| Ausgrid | 17.2 – 18.7 | 4:00 PM – 9:00 PM |
| Endeavour Energy | 16.9 – 19.9 | 4:00 PM – 8:00 PM |
| Essential Energy | 26.6 – 33.3 | 5:00 PM – 8:00 PM |
These figures represent a significant premium over daytime rates, with Essential Energy customers in regional NSW potentially earning up to 33.3 c/kWh for energy exported during the evening peak. This stark difference underscores the growing importance of shifting solar consumption and exports to align with grid demand and wholesale prices.
Implications for NSW Solar Owners
The updated FiT structure reinforces the economic imperative for NSW solar households to prioritise self-consumption and energy storage. Exporting excess solar during the day for as little as 3.4 c/kWh is becoming increasingly less attractive. Instead, homeowners can maximise savings by using their generated power directly or storing it for use during the evening peak, thus avoiding purchasing expensive grid electricity and potentially earning higher export rates.
“The shift from generous FiTs means that the biggest benefit of solar comes from self-consumption, not exports,” notes one energy analysis. This trend is accelerating nationwide, with the Clean Energy Regulator’s Q1 2026 report indicating record growth in household batteries, which are tripling their daytime-to-evening energy shifting.
Home batteries, which enable households to store surplus solar generated during the day and discharge it during the evening peak for self-consumption or export, are becoming increasingly vital. Exploring options like Unlock $1,000+ Annually: Best Home Battery VPP Programs in Australia 2026 Ranked can further enhance their financial returns. While federal battery support saw changes from May 1, 2026, with a tiered structure reducing value for larger systems, it still offers significant assistance, providing around $244 per usable kWh for the first 14 kWh of capacity.
Furthermore, investing in a robust Best Home Energy Management Systems (HEMS) in Australia 2026: Unlock $3,300+ Savings After Rebates can intelligently manage energy flows, optimising when to consume, store, or export solar power based on real-time tariffs and household demand. This proactive approach is crucial for navigating the evolving energy market and ensuring solar systems continue to deliver substantial financial benefits.
For households without batteries, adjusting energy usage habits to consume more solar power during daylight hours (e.g., running dishwashers, washing machines, or charging EVs during the day) becomes even more critical. Comparing electricity plans regularly, focusing on overall value rather than just the FiT, is also essential. Homeowners should investigate plans that offer competitive usage rates alongside any available TOU export options. Our guide to Best Electricity Plans in Australia 2026: A Comprehensive Guide for Households to Cut Costs can assist in this comparison.
This latest IPART announcement serves as a clear signal for NSW solar owners: the era of passive solar savings is over. Active management and strategic investment in storage and smart energy technologies are now paramount to unlocking the full value of a rooftop solar system.