Let’s say you’ve installed solar panels on your roof. They’re working well, maybe even better than you expected. Some days, your system makes more electricity than your home uses. Now you’re wondering: Can I do anything with that energy?
This is a common question in Australia, particularly for folks who are considering solar panels. You want to know if you can earn some money or at least get credit for the energy you don’t use.
At PSC Energy, we know how easy it is to sell your extra power. You’re not looking for hype. You just want the facts in plain English. We’ve worked with many homeowners who have asked the same thing. Some missed out on savings just because they didn’t know what to do.
In this article, you’ll learn about the following:
- What Happens to the Extra Power Your Solar Panels Make?
- How It Works: Feed-in Tariffs, Smart Meters, and Sending Power to the Grid
- How Much Money Can You Make Exporting Energy to the Grid?
- Solar Batteries Change the Picture for Feed-in Tariffs
By the end of this article, you’ll know how selling solar power back to the grid works, what you need to qualify, and how to figure out if it’s worth it for you.
What Happens to the Extra Power Your Solar Panels Make?
To answer the titular question, yes, in Australia, you can sell extra solar power back to the grid. However, how it works depends on your electricity provider and the type of solar system you have.
When your solar panels make more electricity than your home uses, that extra power flows into the electricity grid. You do not need to take any special action to send it to the grid. Your system does that automatically.
But to get paid or receive credit for that power, you need to be part of something called a feed-in tariff. This is a program run by energy companies. It gives you money or credit for every kilowatt-hour (kWh) of energy you send to the grid.
Feed-in tariffs are available across Australia. However, the amount you earn and how it works can vary depending on your state and electricity retailer. Some people get only a few cents per kWh. Others might get a bit more.
The bottom line is this: yes, you can sell your extra solar power back to the grid.
But how much you get paid and how simple the process is will depend on your setup and your energy company.
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.
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How It Works: Feed-in Tariffs, Smart Meters, and Sending Power to the Grid
To sell your excess solar power back to the grid, three things need to happen.
- First, your solar system must be installed correctly.
- Second, you need a smart meter.
- Third, your electricity company needs to offer a feed-in tariff.
Let’s look at each one.
1. Your Solar System Must Export Power. Your solar panels make electricity from sunlight. That power goes into your home first. If your home does not use all of it, the excess electricity is sent to the grid. This is called “exporting.”
Your solar inverter helps with this. An inverter changes the power from your panels into a form your home and the grid can use. If your inverter is working correctly, the extra power will flow out without you doing anything.
2. You Need a Smart Meter. A smart meter is a digital meter that tracks both the electricity you use and the electricity you send back to the grid. Old meters only track what you take from the grid. Without a smart meter, your energy company will not be able to determine how much power you export. That means you will not get paid for it.
Smart meters are now common across most of Australia. If you don’t have one, your energy company can help you get one.
3. You Need a Retailer That Offers a Feed-in Tariff. A feed-in tariff is a plan that pays you for the electricity you generate and send to the grid. This can show up as a credit on your electricity bill. Sometimes, it reduces your bill to zero. Sometimes, it just lowers it. In rare cases, you may even receive a small payment if your credit exceeds your bill.
Each electricity retailer sets its own feed-in tariff rate. For example, one company might pay you $0.05 per kWh. Another might offer $0.08.
You can compare feed-in tariffs when choosing your electricity provider. Some providers offer higher rates but charge more for the power you use. Others may offer lower rates but cheaper electricity. It’s helpful to review your entire bill, not just the tariff.
Once your system is exporting power, your smart meter is installed, and you are signed up to a feed-in tariff, the setup runs on its own. You do not need to track the power or send in readings. Your meter and energy company do that for you.
If you’re interested in learning a bit more about solar panels and energy systems, you might want to check out the following article titled, Are Solar Panels Worth It in NSW, Australia? A Price Breakdown for 2025.
Let’s talk solar savings. Click here.
How Much Money Can You Make Exporting Energy to the Grid?
The amount you can make by selling solar power back to the grid depends on how much extra electricity your system produces, what your feed-in tariff rate is, and how much energy your home uses during the day.
Let’s break this down using a real example.
Imagine you have a 6.6 kilowatt (kW) solar system on your roof. On a sunny day, this system might produce around 25 to 30 kWh of electricity. If your home uses 15 kWh during the day, that leaves about 10 to 15 kWh of extra energy.
If your feed-in tariff pays you $0.07 per kWh, and you send 12 kWh to the grid, you would earn $0.84 for that day. That might not sound like much, but over the course of a year, it adds up.
Here is a rough breakdown:
- $0.84 a day × 365 days = about $306 per year.
Some people earn more if they use less energy during the day or if they get a higher feed-in tariff. Others earn less if their system does not produce as much or if their home uses more power.
Keep in mind that feed-in tariffs were once much higher. Years ago, some people earned up to $0.60 per kWh. Those deals are gone now. Today, most feed-in tariffs in Australia range between $0.05 and $0.10 per kWh.
Also, you usually pay more to buy power than you earn by selling it. For example, you pay $0.38 per kWh when you draw power from the grid but only receive $0.07 when you send it back. That means it’s more valuable to use your solar power during the day than to sell it.
Try running your dishwasher, washing machine, or charging devices during sunny hours. This lowers your bill more than sending power back does.
So, how much can you make? For most homes with a well-sized system and smart energy use, feed-in credits can reduce the yearly bill by a few hundred dollars. It won’t make you rich, but it can help your system pay for itself faster.
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.
Ready to go solar? Click here.
Solar Batteries Change the Picture for Feed-in Tariffs
Adding a battery to your solar system can significantly change how you use and save energy. Instead of sending extra power back to the grid for a small credit, a battery allows you to store that power and use it later.
As we mentioned earlier, the electricity you store is worth more when you use it than when you sell it.
- During the day, your solar panels make electricity.
- Your home uses what it needs, and the extra energy charges your battery.
- Your battery kicks in at night when the sun goes down, and your solar panels stop generating power.
- It powers your home with the electricity it saved earlier in the day.
This means you do not need to buy as much power from your energy company at night when prices are higher.
For example, your electricity costs $0.38 per kilowatt-hour, and your feed-in tariff pays only $0.07. You save $0.31 for every kWh you use from your battery rather than buying it from the grid. That’s more than four times the value compared to sending it out and getting paid for it.
But batteries come with a cost. A typical home battery can cost anywhere from $6,000 to $12,000 or more, depending on the size, brand, and whether it includes installation.
The payback time depends on how much energy you use, when you use it, and how often the battery gets charged and discharged.
Some people add batteries for energy independence. A battery can keep your lights and fridge running during a blackout, especially when paired with a solar system and smart controls.
Some governments and energy providers offer rebates to lower the cost of solar batteries. In NSW, you can combine two significant incentives:
Federal Solar Battery Rebate (Starts July 1, 2025):
- Around $350 per kWh of installed battery storage.
- Applies to new or add-on batteries sized between 5kWh and 50kWh.
- One-time rebate applied upfront.
NSW PDRS Battery Rebate:
- Up to $1,500 if you join a Virtual Power Plant (VPP).
- Battery must be on the approved list and have a 10-year warranty.
In short, batteries can help you save more money and use more of your own power. They cost more upfront but may become a more intelligent choice as electricity prices rise and feed-in tariffs drop.
If you already have solar and are thinking long-term, a battery could be the next step in lowering your energy bills and gaining more control over your power use.
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.
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Final Takeaway: What You Should Do Next
Selling your extra solar power back to the grid in Australia is possible, and for most people, it makes sense. You will not get rich from feed-in tariffs, but you will likely save a few hundred dollars a year. That adds up over time and helps pay off your solar system faster.
To make the most of your solar setup, follow these simple steps:
- Check if your system is grid-connected and able to export power.
- Make sure you have a smart meter that tracks both usage and exports.
- Confirm you are signed up for a feed-in tariff with your electricity retailer.
- Compare energy plans to find one with a fair feed-in tariff and reasonable usage rates.
- Use more power during the day when your panels are working at full strength.
If you already have solar and are not receiving credit for your exports, now is the time to fix that. If you plan to install solar soon, make sure your system is set up to export and that your energy provider supports feed-in tariffs.
At PSC Energy, we know how to help customers invest in solar. We’ll look at your home with you and how you use energy to see if a battery is right for your unique needs. We can check your system and make sure you’re getting the best deal for your extra power. Don’t let your energy go to waste. Let us help you turn it into savings.
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.
