You open your latest power bill, and your stomach sinks. Again? Didn’t prices just go up?
You’re doing all the right things: switching off lights, cutting back on the air con, and investing in solar panels. But it still feels like you’re getting punished for trying.
And now, with July just around the corner, you’re hearing that electricity prices are rising again across New South Wales.
You’re not imagining it. From 1 July, residential electricity prices in NSW are set to rise by up to 9.7%. If you’ve got solar, you might also notice something else: the credit you get for sending power back to the grid isn’t as generous as it used to be.
At PSC Energy, we speak to people just like you every day. Smart, energy-conscious homeowners are doing their best to manage rising bills but feel like the rules keep changing. We’ve helped hundreds of NSW customers navigate price hikes, feed-in tariff changes, and network tweaks and come out ahead.
In this article, you’ll learn about the following:
- NSW Electricity Price Rises – What’s Changing in 2025
- Solar Feed-In Tariff Changes in NSW
- What Solar Feed-in Tariff Changes Mean for Solar Households
- Why Batteries Are the Logical Next Step
- Battery Rebates in NSW: What Help Can You Get?
By the end of this article, you’ll know what’s changing in 2025–26, what it means for your bill, how solar feed-in tariffs are shifting, and the clear, realistic steps you can take right now to stay ahead of the curve.
Let’s get into it.
NSW Electricity Price Rises – What’s Changing in 2025
From 1 July 2025, electricity prices in New South Wales will increase. For most households, there’s no way to avoid the hit.
How much more you’ll pay depends on your setup, but here’s what you’re looking at:
- If you don’t have a controlled load (just regular usage), expect your bill to go up by 8.5% to 9.1%
- If you do have a controlled load (for things like off-peak hot water), your increase could be even higher, up to 9.7%
- If you run a small business, you’re likely looking at a 7.9% to 8.5% jump
And those numbers are based on typical usage. If you’re on an older plan or using more power during peak times, the impact on your wallet could be even more severe.
What’s driving these increases?
Why are prices going up again? It’s a mix of rising costs behind the scenes, and now, they’re being passed on to you.
Here’s what’s driving it:
It’s becoming increasingly expensive to transmit electricity. Electricity has to travel, sometimes hundreds of kilometres, from where it’s generated to your home. The infrastructure that makes this happen (such as poles, wires, and substations) is expensive to maintain and upgrade.
NSW is investing in the future. This is a government plan to modernise the electricity system. It includes building renewable energy zones, large-scale batteries, and upgrading the grid to handle it all. It’s a smart move for the long term, but in the short term, it means extra costs are being passed on to consumers.
Even if you’re not in a rural area, you’re not off the hook. Whether you live in Sydney, Newcastle, or anywhere else on the East Coast grid, these changes are coming your way.
If you’re interested in learning more about solar systems, you might want to check out our introductory article titled, New to Solar: Start Here.
Power up your savings. click here.
Solar Feed-In Tariff Changes in NSW
If you’ve got solar panels on your roof, you’re probably used to seeing credits on your bill for the energy you don’t use. It’s what you send back to the grid. These credits are known as feed-in tariffs (or FiTs), and they’re set to change in 2025–26.
What’s the new rate?
The NSW government has set a new benchmark range of $0.04 to $0.07 per kilowatt-hour for the upcoming financial year. That’s what most energy retailers are expected to offer you for each unit of solar power you export.
It’s a slight bump up from last year, but here’s the catch: You’re paying $0.30 to $0.40 per kilowatt-hour to buy electricity from the grid, sometimes even more, depending on your plan. While your exports are worth something, they’re worth a lot less than the power you use.
Why are feed-in rates still low?
These rates are based on the value of solar energy during the day when supply is high and demand is low. That’s when most solar systems are pumping out power. More supply = lower value.
But here’s the twist: In the late afternoon and evening, when solar output drops and demand surges, the value of solar jumps, often to $0.20 or more per kilowatt-hour. The issue is that by then, your system isn’t exporting much. While your energy is technically worth more, then you’re not sending it out to benefit.
These changes might seem minor on the surface. Still, they point to a bigger shift: the system is quietly steering households away from relying on solar exports for savings.
Instead, it’s pushing you toward using more of your solar power directly, and that’s where things like battery storage start to make a lot more sense.
If you’re interested in learning a bit more about feed-in tariffs, you might want to check out the following article titled, Understanding Feed-In Tariffs and Their Limitations.
Let’s talk solar savings. Click here.
What Solar Feed-in Tariff Changes Mean for Solar Households
If you’ve got solar panels on your roof, you’re already ahead of the curve. You’re generating clean energy and offsetting part of your bill. But with rising electricity prices and relatively low feed-in tariffs, the way you benefit from solar is shifting.
Here’s the plain truth:
- You may pay $0.35 to $0.40 per kWh to purchase electricity from the grid.
- However, you’ll only earn $0.04 to $0.07 per kWh when exporting excess solar energy.
That’s a massive gap.
This means the real value of your solar system doesn’t come from exporting; it comes from using your solar power yourself.
In industry terms, this is referred to as self-consumption. The more of your own solar energy you use while it’s being generated (during the day), the less you need to draw from the grid at expensive rates.
But there’s a catch:
Most households use a significant portion of their electricity in the early morning and evening when solar production is low or non-existent. So, even if your panels are working efficiently, you’re often forced to draw from the grid when rates are highest.
That’s where the cracks in the “solar alone” model start to show. And that’s why more households are now asking a new question:
How do I use more of the energy I’m already generating?
The answer to that question leads directly to a solution that’s becoming harder to ignore.
If you’re interested in learning a bit more about weighing the cost of solar against the cost of the grid, you might want to check out the following article titled, Cost of Solar Panels vs. Cost of Energy from the Grid.
Ready to go solar? click here.
Why Batteries Are the Logical Next Step
For a long time, solar panels were enough to make a noticeable dent in your energy bill. But the math is changing. As grid electricity prices rise and feed-in tariffs remain low, the value of simply exporting excess solar energy has decreased.
That’s where solar batteries come in. They’re not a luxury add-on; they’re a practical next step.
What does a battery do?
In simple terms, a battery stores the excess solar energy your system produces during the day, allowing you to use it later, such as in the evening when power usage peaks and your panels aren’t producing.
Instead of sending excess power to the grid for a few cents, you hold onto it and avoid buying electricity at top dollar.
Here’s how it plays out in real life:
- During the day, your panels power your home and fill your battery.
- In the evening, when your usage increases and solar power drops off, your battery kicks in.
- You avoid expensive peak-hour rates and only draw from the grid when absolutely necessary.
It’s not just about savings.
Batteries can help cut your bills, but that’s only part of the story.
There are a few other big reasons people are choosing to add a battery to their solar setup:
- Energy independence: With a battery, you’re less tied to the grid. That means fewer worries during peak pricing, blackouts, or sudden price spikes.
- Future-proofing your solar: As rules around solar exports tighten and feed-in tariffs stay low, having a battery puts you in control. You don’t have to rely on sending power back to the grid to make your system pay off.
- Smarter energy use: Many batteries are now “smart,” which means they can automatically adjust when you use stored energy, allowing you to avoid drawing from the grid when electricity is most expensive.
But is a battery right for everyone?
Not necessarily. Batteries are an investment, and whether they make sense for you depends on a few key things:
- How much power you use (and when).
- How much solar you generate.
- And what kind of electricity plan you’re on.
That said, for many NSW homes, especially those with solar already installed or those who use more energy in the evenings, the numbers are starting to add up more than they did a few years ago.
If you’ve already made the move to solar, adding a battery might be the missing piece that gives you real control over your energy costs.
If you’re interested in learning a bit more about the benefits of solar batteries, you might want to start with the following article titled, 7 Benefits of Adding a Battery to Your Solar System.
Get started with solar. click here.
Battery Rebates in NSW: What Help Can You Get?
Thinking about adding a battery but unsure about the cost? Good news—if you live in New South Wales, there are two rebate options that could make the decision a lot easier.
Let’s break them down in plain English:
1. The Federal Battery Rebate (Solar Battery Incentive)
This is a nationwide rebate introduced by the federal government in 2024 to help more Australians afford solar battery storage.
- How much is it? It depends on the battery and your location, but most households can expect a few thousand dollars off the upfront cost.
- Who can get it? It’s generally available to homeowners with existing solar systems or those installing a new solar + battery combo.
- What’s the catch? You’ll usually need to meet certain criteria, like being connected to the grid and using a Clean Energy Council-approved installer (like PSC Energy).
2. The Peak Demand Reduction Scheme (PDRS) – NSW-Specific
This is a state-level incentive aimed at reducing strain on the grid during peak times.
- How does it work? Rather than a flat rebate, this scheme offers a discount based on the battery’s expected impact on peak demand. It’s usually applied as an upfront discount at the point of sale.
- How much can you save? The discount can vary, but it often adds thousands in savings on top of the federal rebate.
- Do you need to do anything special? Nope. If your battery system qualifies, your installer will handle the paperwork and apply the discount for you.
If you’re interested in learning a bit more about the NSW solar battery rebate, you might want to check out the following article titled, Everything You Need to Know About the Home Battery Rebate for NSW.
Let’s go solar today. click here.
Wrapping It All Up
Electricity prices in New South Wales are increasing. Feed-in tariffs aren’t keeping pace. And even if you’ve already invested in solar, it might feel like you’re not getting the returns you expected.
But here’s the good news: you’re not stuck.
By understanding what’s changing and why, you can make smarter decisions now that set you up for long-term savings. Whether that means checking your energy plan, shifting more of your usage to daylight hours, or seriously considering adding a battery, the power to take back control is still in your hands.
At PSC Energy, we believe good advice should be clear, unbiased, and tailored to your situation. If you’re wondering whether a battery is worth it for your home or just want help making sense of your options, we’re here to walk you through it.
Your energy bill doesn’t need to keep climbing. Start making it work for you.
If you’re interested in learning a bit more about the federal solar rebate, also known as the Federal Cheaper Home Batteries Program, you might want to check out the following article titled, What the 2025 Federal Election and the Government Rebate Means for Solar Batteries in Australia.
