How net metering works
Solar power you use as it is generated never passes through the meter, so you pay nothing for it. When the panels make more than the house needs, the surplus flows out and the meter records it as an export. When they make less, the meter records what you import from the grid.
Net metering
Standard today- Solar you use saves your full usage rate
- Only exports earn the feed-in tariff
- You earn nothing on solar you use yourself, but you avoid buying it
Gross metering
Old schemes- Made sense when feed-in tariffs were above usage rates
- Every unit you use is bought at the full rate
- Loses money when the feed-in tariff is below the usage rate
Why net metering is worth more
On the 2026-27 Ausgrid reference rate of 33.14c per kWh, a unit of solar you use yourself saves about 33.14c. Exported, the same unit earns a feed-in tariff: IPART's 2026-27 benchmark for NSW is 3.4-6.5c per kWh. That gap is why using more of your own solar, by running appliances in the middle of the day, is the biggest lever on a solar bill.
Most customers in the NSW Solar Bonus Scheme had gross meters and were paid 60c per kWh, with around 17% on 20c, until the scheme ended at the end of 2016. In November 2016 IPART advised them to change to a net meter, because gross metering only made sense while the feed-in tariff was higher than the price of grid power.
Still on a gross meter?
Ask your retailer to change you to a net meter. They may charge for the meter and installation. Most homes now get a smart meter that records imports and exports separately. See smart meters.
Common questions
A setup where your solar power supplies your home first and only the surplus is exported. The meter records the electricity you buy from the grid and the electricity you export, not what the panels make in total.
Net metering exports only surplus solar. Gross metering exports everything the panels make and buys back everything the home uses. Gross only pays when the feed-in tariff is higher than the usage rate.
Yes. Solar homes today export only their surplus, and feed-in tariffs are well below retail rates. energy.gov.au notes that some early adopters still have gross metering on old, high feed-in tariffs.
No, but you avoid buying that power from the grid, which saves you your full usage rate. That is usually worth several times the feed-in tariff.
Check your bill. A net meter shows imports and exports. A gross meter bills your whole solar output as generation. Ask your retailer if you are unsure.
Yes. Ask your retailer to install a net meter. They may charge you for the meter and installation.
Sources
Every rate on this page comes from the regulator or the regulated retailer. Last checked October 2026. Prices include GST unless we say otherwise.