Selling Solar Energy Back to the Grid in Australia: What You Need to Know

Feed-in Tariffs

Feed-in tariffs—FiTs—are an integral part of solar energy usage across Australia. A feed-in tariff is a government mandated payment assured to a consumer or business that generates renewable energy—mostly solar power and feeds it back into the energy grid. In theory a consumer, in addition to reducing consumption by using solar during the day, can also feed power back into the grid and gets compensated for doing so.

Australia has various feed-in tariff options per state and per provider, however the general feed-in tariff most wildly used here in Australia is gross and net. A gross feed-in tariff pays for the solar generators for every kilowatt generated—regardless of whether a generator utilises that energy for personal consumption or not. A net feed-in tariff pays generators only for what goes back on the grid after personal consumption needs are met. Such payment incentives entice more Australians to switch over to solar energy technology because of the opportunity to profit from energy generation.

Feed-in tariff programs are incentivised and mandated because a program cost is a set price, and programs are assessed for eligibility to enter the market. Much of the eligibility assessment comes from the governing body of the grid, the Australian Energy Market Operator (AEMO), which concerns itself with grid security and fostering renewable energy efforts.

In addition, because these programs operate over time, the potential for new additions to the benefits can be created to encourage even more participation and better effectiveness for the grid and environment.

What are the benefits?

Joining a feed-in tariff comes with multiple benefits. For one, energy costs will be lower—typically, a consumer only pays for energy used and energy saved, with excess energy sold back to the grid being credited. Moreover, relying on this type of energy initiative helps to decrease dependence on fossil fuels, thereby helping the environment.

Also, should so many Australians become energy producers, one regulatory authority can establish Australia for the potential to become an entirely renewable system in the future. Australians are profiting by selling surplus solar energy back to the grid. With advancements in solar technology and the growing acceptance of solar incentives, many people find their moment to capitalise on selling surplus solar energy back to the grid.

Feed-in tariffs (FiTs) dictate the price someone can sell solar energy back to the grid. FiTs are set by providers, by location, and by private contracts negotiated with the energy retailer.

Can I make money?

As of January 2025, the going rate to sell solar electricity back to the grid for 5 to 20 cents, with the major providers—AGL, Origin Energy, and Energy Australia—offering separate feed-in tariff components. For example, AGL offers an assured minimum of a fixed 12 cents to a maximum of 20 cents, while Origin can credit up to 18 cents based on specific circumstances.

These amounts fluctuate based on locational designations and new signups, so it's best to consult with the companies directly. In addition, the contract influences FiTs. For example, some electricity providers offer a higher rate if one agrees to a "premium" contract—albeit for a limited time or only under specific solar system size specifications.

The consumer needs to be aware of this. Then, location has a lot to do with what rates are available; for example, many FiTs are better in Queensland because of solar take-up and more competitive markets. At present, feed-in tariffs can be changed under a regulated setting because of governmental energy policy.

For example, if regulators met this week to discuss efforts in renewable energy and subsidisation, they may find that rates can be adjusted based on their determinations—and, thus, affect profitability of channeling solar energy into the grid.

Those looking to do so must stay in tune and consistently evaluate what's best for all energy firms. After deciding to sell solar back to the grid, your next worry is a seller because you want to make sure you're getting your money's worth for your solar system.

Who can I sell my excess power to?

Australia's solar energy companies don't all measure up when it comes to feed-in tariffs, contractual lengths, and after-sales support. AGL Energy ranks as one of the best solar companies in the Australian solar market. It's a top solar company due to competitive feed-in tariff pricing, varied contract lengths and flexible options, and solid customer service.

Extensive positive user reviews from verified users show that this solar company boasts high customer satisfaction with use, exceptional customer service, and rapid response to inquiries, making AGL a solid solar grid connection provider. Another player on the field is Origin Energy.

This company pops up repeatedly when searching for solar retailers with a customer-oriented experience. They not only provide a respectable feed-in tariff, but they also have several renewable energy plans available, meaning customers can choose their method of energy consumption. Multitudes of customer testimonials brag about how easy switching to Origin is and the transparency they have in wanting to buy back solar energy.

Another competitor to consider is EnergyAustralia. Renowned for its superior customer service and competitive rates, EnergyAustralia boasts a relatively simple feed-in tariff package as well, ideal for solar customers looking to cash in on excess generated power.

Customer reviews boast quick turnaround for everything and quick chatting customer service reps who do the work for new customers. Prospective sellers should explore all of these companies—contracts, reviews, and general company standings in the industry. Understanding what has worked for others can help weigh the pros and cons of each to choose what would be best for one's solar needs.

The most effective way to sell solar back to the grid in Australia is to understand when and where to do it. For example, selling solar when demand exists generates sales profits to the grid. Energy is more valuable at certain times of day. If demand is high from more people using energy and excess energy is able to be sold during available hours, that's a few extra bucks in your pocket.

By assessing the patterns of the local energy market, one can effectively sell excess solar at the right time for the highest value. Another strategy with higher profit margins involves buying energy-efficient appliances. Energy production is in the highest demand during peak usage periods and thus, the easiest way to decrease energy production is to decrease energy usage.

This means that those with solar will have more solar to trade back in. Energy-efficient bulbs and appliances, new units, and seasonal aircon adjustments reduce energy costs but increase the ability for excess energy to be pushed back into the grid.

Moreover, smart home systems can efficiently regulate access and timing to energies, which also increases profits and returns. Also, it's important to monitor energy use.

Knowing when and how much they use can help producers decrease—or increase excess overage. For example, many sites exist online to assess how much energy is being created versus used in comparison to what's currently happening—allowing for adjustments down the line.

How do I measure how much power I use?

Technology such as smart meters and home energy management systems can support this effort to keep the end user informed about their use. Ultimately, the best way to guarantee that one earns the most while selling solar energy is to know all the fluctuating credits, pricing, and market in the first place.

Therefore, one should connect with local energy companies and pay attention to solar energy news to get the inside scoop on new credits or anything that may affect how much one can earn. Thus, solar energy manufacturers become reactive to foresee anything that allows per transaction profit to be available by the time the person is ready to sell something.