With the rising adoption of rooftop solar systems, a common question homeowners and businesses ask is: Can you sell excess solar energy back to the grid? The answer is yes, and it can be a smart way to reduce energy costs and earn passive income. Australians increasingly benefit from selling solar power back to the grid through net metering Australia programs and various solar energy buyback schemes.
Understanding solar energy buyback
Solar energy buyback refers to feeding excess electricity that your solar panels generate into the grid. In return, your electricity retailer pays you a feed-in tariff, essentially buying unused solar energy.
This system incentivises solar adoption by offering a financial return on the energy you produce but don’t use. Whether a residential household or a large commercial entity, solar energy buyback can significantly cut your electricity bills and reduce your payback period.
There are generally two main types of metering used in conjunction with solar systems in Australia:
Gross metering: In this less common arrangement, all the electricity generated by the solar panels is exported to the grid, and the property’s consumption is met entirely by grid electricity. This often involves two separate meters.
Net metering: Net metering measures the net flow of electricity in both directions. Customers are typically credited for excess generation at the FiT rate.
What is net metering in Australia?
Although the traditional concept of net metering—where energy consumed and exported is offset one-for-one—is not fully implemented in Australia, we operate under a similar model using feed-in tariffs.
Here’s how it works:
- Your solar panels produce electricity during daylight hours.
- You use a portion of that electricity for your household or business needs.
- Excess energy is exported back to the grid.
- Your energy retailer pays you a feed-in tariff for each kilowatt-hour (kWh) you export.
This system enables Australians to recoup part of their investment by selling solar power they don’t consume.
Feed-in tariffs: The heart of solar energy buyback
Feed-in tariffs (FiTs) are the core of Australia’s solar buyback mechanism. These rates vary depending on your state or territory and your chosen energy retailer.
Current FiT rates (approximate, 8 April 2025):
- Victoria: 0.3 – 12.0 cents per kWh
- New South Wales: 0.0 – 12.0 cents per kWh
- Queensland: 0.0 – 12 cents per kWh
- South Australia: 0.0 – 11.0 cents per kWh
- Western Australia: 2.0 – 10.0 cents per kWh
Check with your energy retailer for exact rates, as solar energy buyback values can fluctuate seasonally or contractually.
Selling solar power: Who can participate?
Anyone with a grid-connected solar system and a compliant smart meter can benefit from selling solar power in Australia. This includes:
- Homeowners with rooftop solar
- Small businesses
- Large commercial and industrial operations
- Schools and public institutions
Most modern solar systems are installed with bidirectional meters, which automatically measure exported electricity. This setup makes net metering Australia-style buyback accessible and seamless.
Benefits of selling excess solar energy
Selling excess solar energy comes with several benefits, whether you’re a household or a commercial enterprise:
1. Reduced electricity bills: Your exported energy offsets your imported energy costs, lowering monthly bills.
2. Faster ROI: Feed-in tariffs accelerate the return on investment for your solar panel system.
3. Environmental contribution: Every kilowatt you sell reduces dependence on fossil fuels and contributes to Australia’s renewable energy goals.
4. Supports grid stability: Feeding solar energy during peak demand helps balance loads and reduce blackouts.
Commercial solar example: The Port of Brisbane Project
Energy Matters Episode 3 showcases a brilliant example of how large-scale solar installations can optimise energy use and revenue through solar buyback.
Highlights from the project:
- The Port of Brisbane partnered with Momentum Energy to install an extensive commercial solar system.
- This system offsets significant daytime power use and exports excess energy.
- With strategic power use and export, the port maximises returns from selling solar power under Queensland’s feed-in tariff scheme.
Watch the full video here: Energy Matters Episode 3: Port of Brisbane
This project illustrates how net metering Australia models help big businesses turn sunlight into significant cost savings and revenue.
How to start selling solar energy
Interested in taking advantage of solar energy buyback programs? Here’s a simple checklist to get started:
1. Install a solar panel system: Ensure it’s grid-connected and sized appropriately for your energy use and export goals.
2. Choose the right meter: A smart or bidirectional meter is required to measure energy exports accurately.
3. Find the best retailer: Compare feed-in tariff rates among electricity retailers in your state, such as Momentum Energy.
4. Register for a buyback scheme: Most registration occurs automatically through your installer and energy retailer.
5. Monitor your exports: Track performance using your system’s monitoring platform or retailer’s dashboard.
Things to consider before selling solar power
While the benefits are enticing, there are a few factors to weigh before relying solely on selling solar power:
- Tariff rates may decrease over time as more users enter the system.
- Export caps may apply during grid congestion periods.
- Some retailers offer time-varying tariffs, where export value changes throughout the day.
The most efficient strategy is to maximise self-consumption (using solar power during the day) and sell excess electricity.
Tips to maximise solar energy buyback
Want to get the most out of your feed-in tariff? Try these smart tips:
- Shift energy-efficient appliance use to daylight hours to minimise grid dependency.
- Upgrade your solar inverter to ensure maximum export capacity.
- Negotiate with your retailer for a higher or best feed-in tariff, or switch providers annually.
- Install a solar battery to store and release energy during peak retail pricing periods.
Use Energy Matters’ easy-to-use solar power and solar 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.
The future of selling solar power in Australia
As Australia’s renewable energy landscape evolves, selling solar power is expected to remain a valuable incentive. Battery integration and dynamic energy pricing models will further empower solar owners.
However, as solar penetration grows, feed-in tariffs may reduce over time. This makes solar self-consumption, battery storage, and energy efficiency even more critical in future planning.
Can you sell excess solar energy back to Australia’s grid? Absolutely—and it’s a fantastic way to save money, support the environment, and maximise your solar investment. Whether you’re a homeowner or managing a large commercial site, feed-in tariffs and smart energy practices can enhance your solar returns.
Ready to unlock your solar potential? Let Energy Matters connect you with top solar installers and retailers to maximise your solar buyback today.
Energy Matters is one of Australia’s most trusted solar quotes due to our high customer satisfaction and industry recommendations. Our team of solar experts can help you get up to 3 FREE solar quotes from pre-qualified and vetted solar firms in your area.
