Switching to solar is one of the smartest moves Australians can make for energy independence. But what if your solar panels generate more electricity than you use? Many homeowners ask: can you sell your solar energy to neighbours? The answer is yes—with the right systems in place, peer-to-peer (P2P) energy trading is becoming a real possibility. This shift could transform how Australians consume and share power.
Understanding how to sell solar power in Australia
When solar panels generate electricity, excess power is usually exported to the grid. Homeowners receive feed-in tariffs from their energy retailer, but these payments are often lower than retail electricity rates. That’s where selling solar power in Australia directly to neighbours becomes appealing.
Instead of relying only on feed-in tariffs, peer-to-peer energy trading platforms connect households. With this approach, your extra solar energy can go directly to nearby users—often at a higher rate than feed-in tariffs but cheaper than standard electricity prices.
The rise of peer-to-peer energy trading in Australia
Australia is one of the global leaders in rooftop solar adoption. With over 3.7 million solar systems installed across the country, the opportunity for community energy trading is immense. Peer-to-peer energy trading allows households and businesses to buy and sell electricity between each other using smart technologies.
These platforms work much like digital marketplaces. By tracking solar generation, demand, and usage in real-time, they make it possible for homeowners to sell solar power in Australia to neighbours or local businesses. It’s a modern way of building community-based energy independence.
The legal framework: Can you do it?
The idea of a direct transaction between you and your neighbour for electricity sounds simple, but the regulatory environment is complex. In Australia, the sale of electricity is tightly regulated by national and state laws. Generally, you cannot simply run an extension cord over the fence and charge your neighbour for the energy. Selling energy to another party, even at cost, requires a retail authorisation or an exemption from the Australian Energy Regulator (AER). Operating without one can lead to significant penalties.
However, the legal landscape is changing. The increase in residential solar benefits and battery systems is challenging the traditional model of a centralised energy market. Authorities are looking into new frameworks that can accommodate the decentralised nature of renewable energy.
Peer-to-peer energy trading: The new frontier
Peer-to-peer energy trading isn’t about direct physical connections. It’s a digital solution that allows households with solar to sell their excess electricity to others within their community through a blockchain-enabled platform. This innovative approach offers a multitude of benefits for both sellers and buyers. For the solar system owner, it means a higher return on investment compared to standard feed-in tariffs. For the buyer, it provides access to cheaper, cleaner energy from a local, trusted source.
The technology acts as a virtual marketplace. Smart meters track the energy flow in real-time, and a digital platform, often using blockchain for security and transparency, handles the transactions. The actual electricity still travels through the existing grid infrastructure, but the P2P platform manages the billing and monetary exchange.
The benefits of peer-to-peer energy trading
This new model is a win-win for all parties involved and a crucial component of Australia’s energy future.
- Improved returns for solar owners: Instead of receiving a low feed-in tariff from your energy retailer, you can sell your solar power to neighbours at a more competitive price. This increases the financial viability of your solar investment and shortens the payback period.
- Lower costs for buyers: Households without solar can buy electricity directly from their neighbours at a price lower than what they would pay their traditional retailer, providing tangible savings on their energy bills.
- Enhanced grid stability: By keeping energy transactions local, P2P trading reduces the strain on the national grid. It helps to balance supply and demand within a specific community, lessening the need for large-scale infrastructure upgrades.
- Community empowerment: This model fosters a sense of community by allowing residents to support one another and collectively contribute to a more sustainable energy system. It decentralises power and puts control back in the hands of the people.
Platforms that make peer-to-peer energy trading possible
While the full-scale legal framework is still being developed, several successful trials have demonstrated the potential of this technology in Australia. These trials provide crucial data and insights for regulators and energy companies.
Powerledger and blockchain technology
Australian company Powerledger is a global leader in this space, developing blockchain technology that enables P2P energy trading. Their platforms have been used in various projects, including the Fremantle trial, to securely and transparently manage the trading of renewable energy.
Other energy trading innovators in Australia
Project RENeW Nexus: This landmark trial in Fremantle, Western Australia, allowed approximately 40 households to trade excess solar energy with their neighbours using a blockchain-based platform. Participants were able to set their own prices for buying and selling, proving the commercial viability of such a model.
Challenges facing peer-to-peer energy trading in Australia
Despite the promise, several challenges remain. The primary hurdle is the current regulatory structure, which was designed for a centralised energy system. Updating these laws to accommodate a decentralised, P2P model is a complex process. Additionally, the widespread adoption of smart meters and trading platforms is necessary to make peer-to-peer energy trading a reality for all Australians.
While you cannot yet sell solar power to neighbours with a handshake and a cord, the future is bright. The growing interest in peer-to-peer energy trading and the success of trials are paving the way for a new, more collaborative energy market.
How to get started with selling solar power to neighbours
If you’re interested in selling solar energy to neighbours, here are the steps.
Steps to join a peer-to-peer energy trading platform
- Install solar panels: Ensure your system is designed for optimal output.
- Add battery storage: Solar battery storage can boost flexibility and trading prospects.
- Use a peer-to-peer platform: Sign up with providers like Power Ledger.
- Monitor energy use: Use smart apps to track and manage your trades.
- Stay updated on regulations: Energy rules may change as adoption grows.
Getting started is easier when you partner with experienced solar providers who can guide you through the process.
The role of battery storage in peer-to-peer energy trading
To make the most of peer-to-peer trading, pairing your solar panels with a solar battery storage system is a smart move. Batteries allow you to store energy during the day and sell it when demand (and prices) are higher.
With residential batteries, you can:
- Maximise returns by selling power at peak times.
- Ensure backup energy for your household.
- Provide flexibility to the community solar energy network.
Use Energy Matters’ easy-to-use solar power and battery storage calculator to determine the size of your solar system with storage! Our solar calculator will generate performance information and potential savings.
We can send this information to 3 of our pre-vetted and trusted local installers in your area to receive obligation-free solar quotes and take the first step towards true energy independence!
Final thoughts on selling solar power in Australia
Selling solar energy to neighbours in Australia is no longer a distant idea—it’s already happening through peer-to-peer energy trading platforms. This innovative approach helps households earn more from solar, lowers electricity bills, and builds stronger, greener communities.
If you’re ready to explore the benefits of peer-to-peer trading, Energy Matters is here to connect you with the right solar and battery solutions. Take control of your energy future today.
Going solar with confidence
Energy Matters is here to guide you every step of the way. We help Australian home and business owners receive personalised solar quotes through our large network of high-quality solar installers. We only work with reputable solar companies that have a proven track record of delivering high-quality solar systems.
