Looking to slash your power bills using solar panels? Or, maybe your solar setup is already harnessing the Australian sun, but you're still uncertain about how your energy bill adds up. This is where the importance of net metering solar comes into play. It’s more than just creating solar power – it’s rather about recognizing the worth of what you send back to the energy network.
In this guide, we’ll shed light on how solar billing through net metering actually functions, how it compares in the feed-in vs. net metering discussion, and how solar power credits can transform your excess energy into bill reductions.
A Quick Summary
Ahead is a read on how net metering solar functions in Australia, how Aussie households gain value from solar power credits, and the core differences in the modelsof feed-in vs. net metering. You’ll discover some easy yet effective ways to keep a close tab on your exported solar electricity, decode your energy bill, and thoroughly assess if net metering aligns with your solar setup.
Key takeaway – Net metering enables solar users to boost the benefit of the energy they feed into the grid – gaining a thorough understanding of how it works empowers wiser decisions and greater cost reductions.
What Is Net Metering Solar? A Beginner-Friendly Overview
Consider it a two-way exchange of energy – whatever remains unused flows out, and what’s required flows in. Instead of letting surplus solar output sit idle, net metering solar enables you to reclaim value by supplying it back to the grid.
- Get Acquainted with the Basics
Net metering solar refers to a billing mechanism that lets you receive credits for the excess solar energy your system sends to the grid. These solar power credits could later be used to minimize the overall cost of the electricity you use when your panels aren't generating power (e.g., at night).
- How Does Net Metering Work in Australia?
When your solar system produces more electricity than your household uses, the excess energy is sent to the grid. At this point, net metering solar steps in! Your digital meter monitors both the electricity delivered to and drawn from the grid. As a result, credits are issued in line with your FiT (feed-in tariff) value.
For example, in case you export 10 kWh, especially during the day, and draw 6 kWh at night, the balance of electricity consumed is 4 kWh.
Net Metering vs. Feed-in Tariffs – Core Differences Explained
Though frequently mistaken as the same, feed-in tariffs and net metering follow distinct billing methods. Knowing what sets them apart can guide you in picking the option that best enhances your solar returns.
- Feed In vs. Net Metering: A Quick Comparison
| Feature | Net Metering | Feed-In Tariff (FiT) |
| Measures | Net export as well as import. | Only exports to grid |
| Credits | Depends on net usage. | Fixed rate per kWh |
| Benefits | Offsets future consumption | Paid per exported unit |
| Billing | Net electricity | Separate FiT line item |
- When Net Metering Offers More Value
If your home mainly uses electricity during daylight periods, net metering solar provides greater flexibility and lowers dependence on grid power. On the other hand, FiT might be a better match for homes that send more energy to the grid than they consume.
Looking to learn more? Consider checking out our blog on “Solar Feed-in Tariffs Explained.”
How Solar Power Credits Are Worked Out
- What Are Solar Power Credits?
Solar power credits are financial values assigned to the surplus electricity you send to the grid. They’re typically determined based on your retailer’s feed-in tariff rates that differ based on the provider and state.
- Credit Calculation in Action
Here’s a simple breakdown –
| Component | Amount |
| Exported Energy | 100 kWh |
| Feed-in Tariff | 8 cents/kWh |
| Total Credit | $8.00 |
You can subsequently apply this $8 to lower the overall cost of grid-supplied power on your statement.
Expert tip – Make sure that you use your smart meter app or portal to monitor credits in real time!
State-Based Distinctions in Net Metering Solar
- Not Every State Provides the Same Benefits
While net metering solar is available throughout Australia, each state follows somewhat different pricing structures as well as FiT rates.
| State | Typical FiT Rate (2025) * | Notes |
| NSW | 5–10c/kWh | Competitive retailers offer more. |
| VIC | 5.2–10c/kWh | Covers Victorian Default Offer. |
| QLD | 6–10c/kWh | FiT rates are often bundled with plans. |
| SA | 5–8c/kWh | Variable depending on time of export. |
| WA | 2.5–10c/kWh | Higher FiT during peak hours. |
| TAS | 8.5c/kWh | Regulated by Aurora Energy. |
These are the rates as of 2025 – ensure you check with your provider for the latest updates.
Perks of Net Metering Solar in Australia
- Why Homeowners Choose It
- Lower electricity bills through real-time energy balancing
- Encourages smart energy use in daylight hours
- Earns solar power credits for consumption on overcast days or at night
- Eliminates the requirement for battery storage to maximize savings
Whether you’re in a regional area or a city, net metering solar can bring a drastic improvement in the overall performance of your household energy and reduce costs.
FAQs: Everything Australian Asks About Net Metering Solar
- Can I still access net metering with battery storage?
Yes, absolutely! Your solar battery retains additional power, but any excess overflow can continue to be sent to the grid to receive solar power credits.
- What really happens to unused credits?
Credits usually roll over to the next cycle of billing but may lapse annually based on your retailer.
- Is net metering solar included in every energy plan?
Most providers provide plans that support net metering, but the rates, terms, and credit structures differ. Hence, you should always compare different options prior to signing up.
When Should You Select Net Metering Compared to Feed-In Tariffs?
- Perfect Scenarios for Net Metering
Prioritize net metering solar in case –
- You consume most of your power in the daylight hours.
- Your solar setup perfectly aligns with or modestly exceeds your energy usage.
- You prefer offsetting usage rather than earning small FiT payouts.
Alternatively, if your home is producing significantly more electricity than you use, a high feed-in tariff rate might bring greater value to the table.
Final Words: Is Net Metering Truly Worth It in 2025?
Net metering solar is certainly one of the most effective ways for Australian households to slash power bills, reduce independence on volatile energy costs, and contribute to a more sustainable electricity grid. By gaining an understanding of solar power credits, comparing feed-in vs. net metering, and choosing the right plan, you can reap optimum rewards out of your solar investment.
Do you want to dive deep? If yes, then read our blog on Solar Feed-in Tariffs Explained.
