Solar & Battery Energy Guide for Australia

Introduction

Australia has one of the highest rates of rooftop solar adoption in the world, and home battery storage is growing fast. Once your home has solar panels, you become an energy generator as well as a consumer. This means you need to think about two sides of your energy bill: what you pay to draw electricity from the grid, and what you earn when you send surplus solar energy back.

Adding a battery makes things more interesting again. You now have choices about when to store energy, when to use it, and when to sell it. Should you charge from solar during the day or from the grid overnight? Should you join a Virtual Power Plant program and let your battery earn money during grid stress events? At first glance it can seem overwhelming, but the core principles are straightforward.

At Renewables Marketplace, our goal is to help you find your cheapest energy deal in the shortest time possible. Our comparison tool models your solar generation, battery dispatch, consumption pattern, and every available retailer, tariff, and VPP combination to give you a clear answer. This guide walks you through the concepts behind those calculations, starting with the basics and building towards more advanced topics. Jump off whenever you have learned enough.

What Are Import & Export Tariffs?

If you have only ever had a standard electricity bill, you might not have come across the terms “import” and “export” before. They are straightforward once you know what they mean, and they are fundamental to understanding how solar homes are billed for energy in Australia.

What is an import tariff?

An import tariff is the rate you pay for electricity you draw from the grid. This is the same as a normal energy rate — the cents-per-kilowatt-hour charge on your bill that everyone pays whether they have solar or not. When the sun goes down and your solar panels stop generating, your home pulls electricity from the grid to keep the lights on, and your import tariff determines the cost of that electricity.

What is an export tariff (feed-in tariff)?

An export tariff is the rate you earn for electricity you send back to the grid. In Australia, this is commonly called a feed-in tariff (FiT). On a sunny day, your solar panels may generate more electricity than your home needs. Rather than wasting that surplus, you can sell it back to the grid and earn money for every kilowatt-hour you export.

Unlike the UK’s Smart Export Guarantee, Australian feed-in tariffs are not mandated at a minimum rate by the federal government. Each retailer sets its own FiT, and rates vary widely — typically between 3 and 10 cents per kilowatt-hour depending on your state and retailer. Some states have had generous government-mandated premium FiTs in the past, but for new installations, the FiT is set competitively by your retailer.

Do I need separate retailers for import and export?

In most cases, your import tariff and feed-in tariff come from the same retailer on a single plan. However, some retailers offer separate solar-specific plans with enhanced FiT rates, and it is worth comparing these against bundled deals. Our comparison tool tests every valid import and export combination to find the cheapest overall pairing for your setup.

How feed-in tariffs vary by state

FiT rates differ significantly across Australia. Retailers in states with high solar penetration (such as South Australia and Queensland) tend to offer lower FiTs because there is an abundance of midday solar generation on the grid. States with lower solar penetration or higher wholesale prices may see slightly better rates. The key takeaway is that you should never assume the FiT rate offered by your current retailer is the best available — always compare.

How Is Electricity Priced in Australia?

Understanding the structure of Australia’s electricity market helps explain why different tariffs exist and why prices vary between states, retailers, and times of day.

The National Electricity Market (NEM)

Australia’s east-coast electricity market is called the National Electricity Market (NEM). It covers New South Wales, Victoria, Queensland, South Australia, Tasmania, and the ACT. The NEM is one of the longest interconnected power systems in the world, and it is managed by the Australian Energy Market Operator (AEMO).

In the NEM, the wholesale price of electricity is determined through a dispatch process that runs every five minutes. Generators bid to supply electricity, and AEMO dispatches the cheapest available generation to meet demand. When demand is high and supply is tight (such as a hot summer afternoon when air conditioners are running flat out), wholesale prices spike. When there is plenty of generation and low demand (such as a sunny midday with rooftop solar flooding the grid), prices can drop very low or even turn negative.

Western Australia: a separate market

Western Australia operates its own wholesale electricity market through the Wholesale Electricity Market (WEM), which covers the South West Interconnected System (SWIS). The pricing mechanisms differ from the NEM, and retailer competition in WA is more limited, with Synergy being the dominant retailer for residential customers.

What is the retail price?

The retail price is what you actually pay on your energy bill. Your retailer buys electricity wholesale, adds network charges (paid to the poles-and-wires companies that deliver electricity to your home), environmental levies, metering costs, and a margin, then charges you the retail rate. This is why your energy bill is always higher than the raw wholesale price — it reflects the full cost of getting electricity to your home.

The Default Market Offer (DMO) and Victorian Default Offer (VDO)

In Australia, there is no hard price cap on energy bills like the UK’s Ofgem Price Cap. Instead, the Australian Energy Regulator (AER) sets a Default Market Offer (DMO) for New South Wales, South Australia, and south-east Queensland. Victoria has its own equivalent, the Victorian Default Offer (VDO), set by the Essential Services Commission.

The DMO and VDO are reference prices, not caps. They represent the maximum a retailer can charge customers on their standing offer (the default plan you end up on if you do not actively choose a deal). Retailers are required to show how their plans compare to the reference price — expressed as a percentage above or below the DMO or VDO. A plan advertised as “15% below the reference price” is cheaper than the DMO/VDO for a typical household, while one “5% above” is more expensive.

This system makes it easier to compare deals, but the reference price is calculated for a household without solar or batteries. For solar and battery homes, the actual cheapest deal depends on the combination of import rate, FiT, tariff structure, and VPP participation — which is what our comparison tool calculates.

Single Rate or Time of Use?

Not all tariffs charge you the same rate throughout the day. Understanding the difference between flat rate and time-of-use pricing is one of the most important decisions for getting the best deal on your solar and battery setup in Australia.

What is a flat rate (single rate) tariff?

A flat rate tariff charges you the same price per kilowatt-hour of electricity no matter when you use it. Whether you run your dishwasher at 2am or 6pm, you pay the same rate. It is the simplest tariff structure and still common across Australia. It is predictable and easy to understand, but it does not reward you for shifting energy usage to cheaper periods.

What is a time-of-use (ToU) tariff?

A time-of-use tariff charges different rates depending on when you use electricity. In Australia, the typical ToU bands are:

Peak: Usually 3pm to 9pm on weekdays. This is when demand is highest and electricity is most expensive. Rates are typically 30–50+ c/kWh depending on your state and retailer.

Off-peak: Overnight hours, typically 10pm to 7am, and often all day on weekends and public holidays. This is the cheapest period, with rates as low as 15–25 c/kWh.

Shoulder: The periods between peak and off-peak, usually daytime on weekdays outside of peak hours. Rates sit between peak and off-peak.

Controlled load tariffs

Many Australian homes have a controlled load tariff for specific appliances on a dedicated circuit — most commonly electric hot water systems and pool pumps. Controlled load rates are typically much cheaper than standard rates because the distributor can switch these circuits on and off at times that suit the grid (usually overnight or during off-peak periods). If you have a controlled load circuit, it is important to factor this into your overall tariff comparison, as it runs on a separate meter and rate.

Demand tariffs

Demand tariffs are an emerging tariff structure in Australia. Instead of (or in addition to) charging per kilowatt-hour consumed, a demand tariff charges based on your peak demand in kilowatts during a measurement window — typically your highest 30-minute average demand during peak hours in a month. This is expressed as a dollars-per-kilowatt charge.

Demand tariffs are particularly relevant for battery owners because a well-managed battery can shave your peak demand significantly. If your battery discharges during the measurement window, your recorded peak demand drops and your demand charge falls. As more distributors roll out demand tariffs, batteries become an increasingly valuable tool for managing this cost.

Dynamic tariffs

Dynamic tariffs take the time-of-use concept further. Instead of fixed peak and off-peak bands, the rate changes every 30 minutes based on actual wholesale market prices. Amber Electric is the best-known example in Australia, passing through the NEM spot price (plus a margin and network charges) directly to customers. Prices tend to be cheapest during midday solar peaks and overnight, and most expensive during the late-afternoon and evening demand peak.

Dynamic tariffs offer the greatest potential savings for solar and battery households, but they require more engagement. Amber’s SmartShift feature can automate battery charging and discharging to respond to price movements, making it easier to capture the value without constant monitoring.

Should You Fix or Stay Flexible?

Beyond how your rate is structured (flat, ToU, or dynamic), you also need to understand how Australian energy plans work in terms of pricing certainty and contract length.

Benefit period plans

Most competitive energy plans in Australia are benefit period plans. These offer a discounted rate or specific pricing for a set period — typically 12 months. During the benefit period, your rates are locked in (though some plans allow the retailer to vary rates with notice). Once the benefit period ends, you are automatically moved to the retailer’s standing offer, which is almost always more expensive. It pays to review and switch before your benefit period expires.

Ongoing plans (no fixed term)

Some retailers offer ongoing plans with no fixed benefit period. Your rates can change at any time (with notice), but you are never locked in and there are no exit fees. These plans offer maximum flexibility but less price certainty.

How does this apply to feed-in tariffs?

Your FiT rate is part of your energy plan, so it follows the same rules. On a benefit period plan, your FiT is typically fixed for the benefit period. On an ongoing plan, the retailer can adjust it. Since FiT rates have been trending downward, locking in a higher FiT on a benefit period plan can be a smart move — but only if the import side of the plan is also competitive. Always compare the total package.

How Should You Use Your Battery?

If you have a home battery alongside your solar panels, the way you choose to charge and discharge it has a big impact on your overall energy costs. There is no single “best” strategy — it depends on your tariff, your solar generation, your household’s consumption pattern, and whether you participate in a VPP program.

Strategy 1: Solar self-consumption

This is the simplest and most common approach in Australia. Your battery charges from excess solar generation during the day and discharges in the evening when the sun goes down. You are maximising the use of your own free solar electricity and minimising what you buy from the grid. This strategy works well on any tariff type and does not require a smart battery or time-of-use rates. Given Australia’s strong solar resource, most battery owners get significant value from self-consumption alone.

Strategy 2: Overnight grid charging

On a time-of-use tariff with cheap overnight rates, you can charge your battery from the grid during the off-peak window (typically 10pm to 7am). Your battery starts each day full, even in winter when solar generation is lower. You then use the stored cheap electricity during peak hours when import rates are highest. This strategy works best on tariffs with a large difference between peak and off-peak rates.

Strategy 3: Peak export

If your feed-in tariff or wholesale price pays well during peak hours, you can use your battery to maximise what you sell back to the grid. You charge the battery from solar during the day and then export the stored energy during the evening peak (typically 3pm to 9pm) when prices are highest. This is an aggressive strategy that works best on dynamic tariffs like Amber Electric, where evening wholesale prices can spike during high-demand periods.

Strategy 4: Combined optimisation

The most advanced approach combines elements of the above. You might charge from cheap overnight rates, top up from solar during the day (especially during midday when wholesale prices can go negative, meaning you are effectively being paid to consume), use stored energy during the peak period, and export any remaining surplus at the best available rate. This requires a smart battery with automated scheduling and works best on dynamic tariffs.

Virtual Power Plants (VPPs)

Virtual Power Plants are one of the most exciting developments in Australian energy, and they represent a genuine new revenue stream for battery owners. If you have a home battery, a VPP program can put extra money in your pocket by dispatching your stored energy during periods of grid stress.

What is a VPP?

A Virtual Power Plant aggregates hundreds or thousands of home batteries into a single coordinated network. When the electricity grid is under stress — such as during a heatwave when air conditioning demand surges — the VPP operator dispatches energy from participating batteries to help stabilise the grid. In return, you receive a payment or credit for the energy your battery contributes.

From your perspective, it works like this: you sign up to a VPP program, your battery is connected to the operator’s platform, and during grid events your battery is remotely discharged (within limits you agree to). Most of the time your battery operates normally for your own self-consumption. VPP events are relatively infrequent — typically a few dozen hours per year — but the rates paid during these events can be very high.

Major VPP programs in Australia

Several retailers and energy companies operate VPP programs across Australia. Here are some of the most notable:

Origin Loop. Origin’s VPP pays up to $1/kWh during dispatch events, with a cap of around 200 kWh per year. This translates to a potential annual credit of up to $200, though actual earnings depend on how often your battery is called on. Origin also offers a guaranteed annual credit of approximately $240 for participation.

AGL VPP. AGL’s program pays up to $1/kWh during events, with a cap of approximately 250 kWh per year. AGL also offers a base annual credit of around $80 for participation, regardless of how many events occur.

EnergyAustralia Battery Ease. EnergyAustralia takes a simpler approach, offering a fixed annual credit of approximately $180 per year in exchange for VPP participation rights. This gives you certainty about your earnings regardless of event frequency.

Amber SmartShift. Amber Electric’s approach is different from traditional VPPs. Rather than dispatching your battery during specific events, SmartShift automates your battery to respond to wholesale price signals. When the spot price is low (or negative), your battery charges; when it spikes, your battery can export. This is automated wholesale arbitrage rather than traditional VPP dispatch, but the economic effect is similar.

Diamond GridCredits100. Diamond Energy’s program pays up to $1/kWh during grid credit events. Events are triggered by high wholesale prices or grid stress, and your battery is dispatched to help stabilise the network.

Synergy Battery Rewards (WA). For Western Australian customers, Synergy’s program pays up to 70c/kWh during dispatch events. Because WA operates on a separate electricity market (the WEM), VPP programs there have different characteristics to those on the NEM.

What Is the Best Deal for a Battery in Australia?

This is the question we hear more than any other. If you have invested in solar panels and a home battery, you want to make sure you are on the deal that squeezes maximum value out of your setup. The short answer is: it depends on your specific situation. The long answer is below.

Why battery owners need a different kind of comparison

Standard energy comparison sites compare plans based on a simple annual consumption figure. That works fine for most households, but it completely misses the picture if you have solar panels and a battery.

When you own a battery, your energy costs depend on when you use electricity, not just how much. A tariff with cheap overnight rates lets you charge your battery for a fraction of the daytime price. A strong feed-in tariff lets you earn more from your surplus solar. A VPP program adds another layer of earnings. The cheapest flat rate plan for a normal home could easily be the most expensive option for a battery home.

That is why we built Renewables Marketplace. Our comparison tool models your solar generation, battery capacity, and consumption pattern half-hour by half-hour to find the actual cheapest combination of retailer, tariff, FiT, and VPP program for your specific setup.

What makes a good battery deal in Australia?

The best energy deal for a battery system is not just the plan with the lowest unit rate. It is the combination of retailer, tariff type, feed-in tariff rate, and VPP program that minimises your net annual energy cost. That combination typically has these qualities:

A time-of-use tariff with cheap off-peak rates. Tariffs with a large gap between off-peak and peak rates are ideal for batteries. Your battery charges cheaply overnight (or from solar during the day) and offsets expensive peak imports in the evening. The bigger the gap, the more your battery saves you.

A competitive feed-in tariff. Even with a battery, you will likely export some solar electricity to the grid, particularly on long summer days when your battery fills up by midday. A higher FiT means more earnings on that surplus. Retailers like Origin (Solar Boost plan) and AGL (Solar Savers plan) offer enhanced FiT rates designed to attract solar customers.

VPP participation for additional earnings. A VPP program layers additional income on top of your retail tariff savings. Even a modest VPP credit of $80 to $300 per year adds up over the life of your battery.

The right battery strategy. How you program your battery matters as much as which plan you are on. Solar self-consumption, overnight grid charging, peak export, and combined optimisation each suit different tariff structures and household patterns. Our tool models all four strategies for every plan combination and tells you which one saves you the most.

Which retailers work best with batteries?

Based on our modelling across thousands of configurations, these retailers and plan types consistently perform well for Australian battery owners:

Amber Electric. Amber passes through wholesale prices directly, meaning you can charge your battery when prices are low (or negative) and avoid importing when prices spike. With SmartShift automation, your battery responds to price signals without manual intervention. Amber works best for engaged households with smart battery systems.

Origin Solar Boost. Origin’s solar-specific plans offer competitive FiT rates and pair well with their Loop VPP program for additional battery earnings. A good choice for households that want a straightforward plan with VPP participation.

AGL Solar Savers. AGL’s solar plans combine competitive rates with their VPP program, offering both event-based payments and a base annual credit for battery participation.

The best retailer for you depends on your state, your network area, your consumption pattern, and how actively you want to manage your energy. Our comparison tool evaluates all available options and ranks them by net annual cost for your specific situation.

Frequently asked questions

What is the best energy deal for my battery in Australia?
The best deal depends on your battery size, solar panel output, state, and how much electricity you use. Time-of-use tariffs with cheap overnight rates, a competitive FiT, and VPP participation tend to deliver the lowest net cost. Use our free comparison tool to find the cheapest combination for your specific setup.

Which tariff is best for solar panels and a battery in Australia?
For most Australian solar and battery homes, time-of-use tariffs offer the best value. Retailers like Amber Electric, Origin, and AGL have plans designed for solar households. The best choice depends on your state, battery size, solar generation, and consumption pattern.

How much can I save with a battery on a time-of-use tariff in Australia?
A typical Australian home with solar panels and a 10–13 kWh battery can save between $300 and $800 per year by switching to the right tariff, FiT, and battery strategy. Savings depend on your state, solar generation, battery capacity, VPP participation, and peak-hour consumption.

Should I join a VPP program?
If your battery has enough capacity to cover your own consumption needs and contribute to VPP events, then yes — VPP programs add $80 to $300+ per year in additional earnings or credits. The key question is whether VPP dispatch will leave you short during peak hours. Our tool models both scenarios to give you a clear answer.

Should I charge my battery from the grid or from solar?
Both strategies have their place. Charging from solar is free but limited by weather and season. Charging from the grid overnight on a cheap off-peak rate ensures your battery starts each day full, even in winter. In Australia, wholesale prices can turn negative during midday solar peaks, which means on a dynamic tariff you can be paid to charge. Many battery owners combine solar and overnight charging for the lowest annual cost.