Updated on October 21, 2025
Are you wondering how Ausgrid’s new two-way solar tariff will affect your energy bills? If you have solar panels on your home or business, you’re not alone. Customers who have Ausgrid as their DNSP are trying to understand what this change means for them.
At PSC Energy, we have years of experience working with DNSPs in New South Wales. In fact, our founding director started his career as an apprentice for a DNSP. We’re here to help. You’ll learn what the new tariff is, why it’s being introduced, and how you can adapt to keep your energy costs low.
- What is the Two-Way Tariff?
- Why Are Solar Tariffs Changing?
- How Does the Two-Way Tariff Work?
- Who Will the Two-Way Tariff Impact?
- What You Can Do
- FAQ: Ausgrid’s Two-Way Solar Tax
Let’s dive in!
What is Ausgrid’s Two-Way Solar Tariff?
Starting in July 2024, Ausgrid is introducing an opt-in two-way tariff for new and existing residential and small business customers with solar panels. This means that customers will pay for the energy they consume from the grid and will also be charged for the energy they export back to the grid during specific times.
By July 2025, this tariff will apply to all eligible customers. The way retailers structure this two-way tariff might vary, but the basic idea remains the same: customers will have a financial incentive to manage their solar energy usage and exports more effectively.
If you’re interested in learning a bit more about how energy retailers keep track of your kilowatt hours, you might want to check out the following article titled, How Does Solar Net Metering Work?
Why Is Ausgrid Charging You for Solar?
Over the next five years, Ausgrid expects a significant increase in the number and size of solar systems connected to its network. As more people invest in solar energy, the demand on the network changes. It’s no longer just about delivering energy to homes and businesses; it’s also about handling the energy exported back to the grid.
This shift means the network needs upgrades to support the extra load and ensure a reliable supply for everyone. While the cost increase over the next five years is expected to be small, it could grow in the future. To manage these costs and encourage better solar energy use, Ausgrid is introducing a two-way tariff.
This new tariff encourages customers to use their solar power first and export any excess energy later in the day. By doing this, it helps keep energy bills lower for everyone and ensures that customers without solar systems or batteries do not bear most of the costs.
If you’re interested in learning a bit more about exporting energy to the grid and its limitations, you might want to check out the following article titled, What is the Export Limit in NSW?
How Does Ausgrid’s Solar Tax Work?
Here’s a breakdown of how the two-way tariff will function:
Charges and Rebates:
A typical 5 kW solar system will see a small annual increase of about $6.60 if the retailer fully passes on the two-way tariff.
This amount includes $13.30 in charges, offset by $6.70 in export rebates.
Free Threshold:
There’s a free threshold for how much energy you can export to the grid without being charged.
This threshold varies by month, and the amount you can export for free is higher during certain times of the year.
Example Scenario (from Ausgrid’s Website):
If you send 307kWh to the grid between 10 am and 3 pm in November, and the free threshold is 205kWh, you’ll only be charged for the remaining 102kWh.
If you export 52kWh after 4 pm, you’ll receive a rebate, possibly reducing your overall monthly charges to a small credit.
This setup encourages you to use your solar power during peak production times and save your exports for later when the grid needs it more.
If you’re interested in learning a bit more about how energy to the grid is compensated, you might want to check out the following article titled, Variable Feed-in Rates and VPPs in NSW.
Who Will Ausgrid’s Solar Tariff Impact?
The new tariff will initially be optional for the first year but will become mandatory for all eligible customers by July 2025. How it impacts you will depend on your retailer’s pricing structure and your household’s energy usage patterns.
Customers who carefully manage their solar exports can minimise their costs or even benefit from rebates. On the other hand, those who don’t adjust their usage might see a small increase in their energy bills.
If you’re interested in learning a bit more about the differences between energy retailers and DNSPs, you might want to check out the following article titled, Energy Distributors vs. Energy Retailers: What’s the Difference?
What You Can Do
To make the most of the new two-way tariff, consider these tips:
Monitor Your Usage:
Keep track of when your solar panels produce the most energy and try to use more electricity during those times.
Adjust Your Exports:
If possible, schedule energy-intensive tasks like running the dishwasher or washing machine for times when your solar panels are producing power.
Try to export excess energy to the grid later in the day to take advantage of the rebates.
Stay Informed:
Check with your retailer to understand how they are implementing the two-way tariff.
Look for updates from Ausgrid and other sources to stay informed about any changes or tips for managing your energy use.
For more details, you can check out Ausgrid’s factsheet on two-way pricing for grid export.
If you’re interested in learning a bit more about how your energy retailer tracks your usage, you might want to check out the following article titled, Smart Meters and Solar.
“Grid I Do That?” – Ausgrid (Paraphrasing Steve Urkel)
Ausgrid’s new two-way solar tariff is a significant change for solar customers. By understanding how it works and adjusting your energy usage, you can minimise any additional costs and even benefit from this new system. By using your solar energy wisely, you can help keep energy bills low across the network.
At PSC Energy, we’re here to help you stay informed, manage your usage, and make the most of your solar energy.
If you’re interested in learning a bit more about how to adjust your energy usage and setting to get the most out of your solar system, you might want to check out the following article titled, What is Consumption Monitoring?
References:
Ausgrid Official Website – Information on the introduction of the two-way tariff and its implementation.
Australian Energy Regulator (AER) – Details on regulatory approval and stakeholder consultation processes.
Solar Energy Industry News – Context on the growth of solar systems and their impact on energy networks.
Customer Testimonials and Case Studies – Examples of how similar tariffs have impacted solar customers in New South Wales.
Ausgrid’s Announcement
FAQ: Ausgrid’s Two-Way Solar Tax
What is Ausgrid’s two-way solar tariff?
It is a network export price that charges a small fee for daytime exports when the grid is flooded with solar and gives a small credit for late-afternoon and evening exports when the grid needs energy. Retailers decide how to bundle or show these network charges on your bill.
When does Ausgrid’s two-way solar tax start and who has to be on it?
Ausgrid made the tariff opt-in in July 2024 for residential and small business customers who can export. From July 2025 it applies to all export-ready customers in the Ausgrid area.
How much will Ausgrid’s two-way solar tax cost the average solar home?
Ausgrid’s own example points to a very small change for a typical 5 kW system. The estimate is about $6.60 per year if a retailer passes the full network export price through.
What times attract charges or credits?
Exports between 10:00 am and 3:00 pm attract a small charge. Exports between 4:00 pm and 9:00 pm earn a small credit. Exact cents and bill presentation can vary by retailer.
What is the “free export threshold” and how does it work?
Each month includes a free amount of daytime exports that are not charged. If you exceed that amount in the 10:00 am–3:00 pm window, only the excess is charged. Ausgrid’s example for November shows 307 kWh exported, a 205 kWh free threshold, and only 102 kWh charged.
What exact rates apply for Ausgrid’s two-way solar tax?
Ausgrid’s indicative settings have been 1.2 c/kWh charged for 10:00 am–3:00 pm exports and 2.3 c/kWh credited for 4:00 pm–9:00 pm exports. Retailers can structure this differently on your plan. Ask your retailer how they pass these through.
Does this replace my feed-in tariff (FiT)?
No. The two-way export price is a network charge/credit. Retailers still set FiTs. Your final export line on the bill reflects your retailer’s FiT plus any network export charge/credit they pass through.
Which customers does Ausgrid’s two-way solar tax affect?
It affects Ausgrid customers who can export to the grid, such as homes and small businesses with solar and/or batteries and an interval (smart) meter. If you cannot export, you are not charged.
I’m not with Ausgrid. Will this affect me?
This FAQ covers Ausgrid’s area only. Other DNSPs may have different settings or timelines. Check your local DNSP’s website for export tariff information.
Why is Ausgrid doing this?
Daytime exports are rising fast and can overload parts of the network. A small charge for midday and a credit later helps spread exports, lowers shared network costs, and encourages self-use first.
How can I avoid most charges of Ausgrid’s two-way solar tax?
Use more of your solar between 10:00 am and 3:00 pm. Run the dishwasher, washing machine, and pool equipment then. Aim to export later in the day if you can, when credits apply.
Will a battery help under this tariff?
Yes. A battery lets you soak up midday solar that would be charged and then export or use it after 4:00 pm when credits and retail prices are usually better. Savings depend on size, control settings, and your retailer plan.
What happens in months with low solar output?
The free threshold changes by month. In lower-sun months you may have less daytime excess, so you may stay under the free threshold or pay very little.
Do I need to do anything to join Ausgrid’s two-way solar tax?
From July 2025, eligible export-ready customers are moved onto a two-way export price via their retailer. Before then, participation was opt-in. Your retailer can confirm when your plan changes.
How will Ausgrid’s two-way solar tax look on my bill?
Retailers choose how to present the export charge/credit. It may appear as a separate network export line or be bundled into your plan’s export rates. Ask your retailer for a bill example.
Is this a “solar tax”?
It is a price signal, not a flat tax. Daytime exports above a monthly free threshold face a small charge, while late-day exports receive a credit. Many homes will see little net change if they shift usage.
What practical steps should I take now?
• Check with your retailer how they pass through Ausgrid’s export pricing.
• Set appliance timers for 10:00 am–3:00 pm to self-consume.
• If you own a battery, review charge/discharge schedules for 4:00 pm–9:00 pm.
• Monitor your exports monthly to stay under the free threshold where possible.
Where can I read Ausgrid’s official guidance?
See Ausgrid’s two-way pricing fact sheet and help page for current settings, thresholds, and timelines. Your retailer remains the source of how this appears on your bill.
