New South Wales solar

Is solar worth it in New South Wales?

At 29.8c/kWh and about 1,382 kWh per kW of panels a year, a typical home here pays back its system in roughly 3.8 years after the STC rebate. Solar exports earn only 3.0c — about 10% of what you pay — so the money is in using what you generate, not selling it. Run your own numbers below.

That rate is the median of the 38 single-rate offers on market right now, not a published average — which is why it can sit several cents above the figure comparison sites quote. Why this differs →

An elevated view over an Australian coastal suburb at golden hour, tile and Colorbond roofs among gum trees.
Every figure on this page is worked from this state's own retail rates and solar yield, not a national average. Illustration generated for Solar Pays Off.
c / kWh
$ / mo
$ / watt
off the price
$
saved over 25 years

Pays for itself in
System size
Net cost after incentives
Year-1 savings

Sources: AER Consumer Data Right · Clean Energy Regulator. STC rebate included.

An independent estimate for guidance only — not a quote or financial advice. Always get itemised quotes before you buy.

A system sized to that bill

System size5.2 kW, to cover a $180/month bill
Before rebate$5,238 at $1.00/W
STC rebate−$1,368 (36 certificates)
You pay$3,870
Generates7,239 kWh a year
Saves in year one$995
Pays for itself in3.8 years
Over 25 years$27,946 net

Assumes a $180/month bill and that you use about 40% of what you generate as you generate it — the rest is exported at 3.0c. A battery shifts that balance, and in New South Wales it shifts it a long way.

What one kilowatt-hour is worth in New South Wales The same unit of power, valued two ways: not bought from a retailer, or sold back to one. Exports earn 10% of what you pay.
You use it yourself 29.8c You export it 3.0c

Median of current single-rate residential offers and feed-in tariffs, Australian Energy Regulator — Consumer Data Right, Product Reference Data, as at 2026-08-23

Why the rebate shrinks every January

36 certificates at $38 each — 5.2 kW × 1.382 zone rating × 5 years deeming. The scheme closes at the end of 2030, so the deeming period — and the rebate — shrinks every January. Certificate price is market-set and assumed conservatively below the $40 Clearing House ceiling. Installing a year later on the same system costs you roughly $274 in lost rebate.

The same system, installed later: what the rebate is worth each year A 5.2 kW system in New South Wales, at the 1.382 zone rating. Nothing about the system changes — only the number of years left in the scheme.
2026: 36 certificates, $1,368 $1,368 2026 36 certs 2027: 28 certificates, $1,064 $1,064 2027 28 certs 2028: 21 certificates, $798 $798 2028 21 certs 2029: 14 certificates, $532 $532 2029 14 certs 2030: 7 certificates, $266 $266 2030 7 certs −$304 if you wait a year

Computed at build time from the SRES deeming rule · certificates assumed at $38, below the $40 Clearing House ceiling

Your retailer can ignore the regulator here — and does

IPART publishes an all-day solar feed-in tariff benchmark for New South Wales, set at 3.4 to 6.5 c/kWh for 2026–27. It is a guide, not a floor: retailers are not required to offer anything inside that range, and may offer less, more, or nothing at all. That distinction matters, because the median flat feed-in rate actually on offer in our sample is 3.0 c/kWh — below the bottom of the regulator’s own benchmark. Treat IPART’s range as a description of what exports are worth wholesale, not as a promise about what you will be paid.

Sources: IPART — solar feed-in tariff benchmark for 2026–27 · IPART — solar feed-in tariffs

What's different about New South Wales

One of the most contested retail markets in the country

12 retailers are competing for households here. The median below is the middle of that spread, not the best deal available — switching is worth real money before you spend anything on hardware.

Most offers here are time-of-use, not flat

101 of the 139 residential offers on market price power differently through the day, and they are set aside from the headline rate because a time-of-use plan cannot be compared to a flat one without knowing when a household actually uses power. It matters for solar: on a time-of-use plan the power you displace at 2pm is usually worth less than the evening peak you still buy, so a battery earns its keep sooner.

Your postcode may be worth more than the capital

New South Wales spans STC zones 2, 3, 4. This page uses Sydney's rating of 1.382, because that is where most of the population is — but a system in zone 2 is rated 1.536, about 11% higher. That lifts both the power a system makes and the number of certificates it earns, so a regional install is cheaper and more productive than the figures here suggest.

The market here

These figures are medians across 38 single-rate residential offers from 12 retailers, with 101 time-of-use offers set aside as not comparable. Sydney sits in STC zone 3 — though New South Wales spans zones 2 and 3 and 4, and this page uses the capital's.

The retailers whose current offers feed these figures are ActewAGL, Alinta Energy, CovaU, Diamond Energy, Dodo, EnergyAustralia, Indigo Power, Momentum Energy, Origin Energy, Powershop, Red Energy and Tango Energy. That is who is actually selling power to households here this week — not a list of every licensed retailer, and not the same list as the state next door.

The honest verdict on New South Wales

The largest and most contested retail market of the six, and the one where the plan you are on matters most: nearly three-quarters of the residential offers here are time-of-use, which changes what a solar kilowatt-hour is worth depending on the hour you avoid buying it. Payback is solid rather than spectacular. The lever with the most left in it is not the size of the array — it is matching your consumption to the middle of the day, and checking whether a flat rate beats the time-of-use plan you were defaulted onto.

The other states

Compare every state side by side →

Where these numbers come from

How every one of these numbers is worked out →

Sources: Australian Energy Regulator — Consumer Data Right, Product Reference Data, Clean Energy Regulator — postcode zone ratings for solar PV systems.