One of the most appealing aspects of owning a solar system is the ability to earn money from the excess electricity your panels produce. When your solar panels generate more electricity than your home needs at any given moment, that surplus energy flows back into the electricity grid, and your retailer pays you for it. This payment is called a feed-in tariff.
In Queensland, where sunshine is abundant and solar systems perform exceptionally well, many homeowners find that their solar export income significantly reduces their electricity bills, and in some cases, results in credits on their accounts. This guide explains exactly how the process works, what you can expect to earn, and how to optimise your setup for maximum financial benefit.
How Solar Export Works in Queensland
The process of selling solar energy back to the grid is automatic. There is no switch to flip and no separate action required on your part. Here is how the flow of electricity works in a grid-connected solar home:
Solar Panels Generate Electricity
During daylight hours, your solar panels convert sunlight into DC electricity, which your inverter converts to AC electricity for household use.
Home Loads Are Powered First
Your solar system prioritises powering your home. Whatever appliances are running (fridge, air conditioning, lights, etc.) are powered by solar first, free of charge.
Excess Energy Is Exported
When your panels produce more than your home is consuming, the surplus automatically flows back through your meter and into the grid. Your smart meter records exactly how much energy you export.
You Receive a Credit
Your electricity retailer pays you a feed-in tariff for every kilowatt-hour you export. This credit appears on your electricity bill, offsetting the cost of any grid power you use (typically at night or on cloudy days).
Key Point
A smart meter (also called a digital meter or bi-directional meter) is required to measure both the electricity you import from the grid and the electricity you export to it. If you do not have a smart meter, one will be installed as part of your solar system setup. There is no additional cost for this in most cases when installing with Smart Solar Group.
Current Feed-in Tariff Rates in Queensland
Feed-in tariff rates in Queensland are not regulated by the government for most customers. Instead, rates are set by individual electricity retailers, which means they vary from one provider to another. As of 2026, the general range for Queensland feed-in tariffs is:
| Tariff Type | Rate Range | Details |
|---|---|---|
| Standard FiT | 5c - 8c/kWh | The most common rate offered by major retailers. Applied as a flat rate for all exported energy. |
| Competitive / Promotional FiT | 8c - 12c/kWh | Some retailers offer higher rates to attract solar customers. Often time-limited or conditional. |
| Time-varying FiT | 3c - 15c/kWh | Rate changes by time of day. Higher rates during peak demand periods (typically late afternoon), lower rates during off-peak. |
| Legacy 44c FiT | 44c/kWh | Only available to QLD customers who installed before July 2012 and remain on the scheme. Not available for new installations. |
It is worth noting that even at the lower end of the scale, the feed-in tariff provides meaningful value. A 6.6kW system in North Queensland that exports 50% of its production might export 12-15 kWh per day. At 7c per kWh, that is $0.84 to $1.05 per day in credits, or approximately $300 to $380 per year, on top of the savings from the solar power you use directly.
How to Maximise Your Solar Export Income
While exporting energy earns you money, the financial reality is that the electricity you use directly from your solar panels is worth more than the electricity you export. The reason is simple: the grid electricity you offset might cost 28-35 cents per kWh, while the feed-in tariff pays you only 5-12 cents per kWh. This means self-consumed solar is worth two to six times more than exported solar.
That said, there are several strategies to optimise your overall solar economics, balancing self-consumption and export:
1. Right-Size Your System
A system that is too small will not produce enough to export meaningfully. A system that is too large will export a lot but at lower feed-in tariff rates, potentially taking longer to pay for itself. Work with your installer to size a system that matches your consumption patterns. In most cases, a slightly oversized system is the sweet spot because it maximises both self-consumption and export income.
2. Shift Heavy Loads to Daytime
Running your dishwasher, washing machine, pool pump, and other energy-hungry appliances during peak solar production hours (10am to 2pm) means you use more of your free solar energy directly, reducing the amount you need to buy from the grid at full price. Many appliances have timers that let you schedule them to run during the day while you are at work.
3. Shop Around for the Best Feed-in Tariff
Since feed-in tariff rates vary between retailers, it pays to compare. But do not look at the feed-in tariff in isolation. A retailer offering a high feed-in tariff might charge higher rates for the electricity you import. Compare the total cost of your plan including both the usage rate and the feed-in tariff. Some retailers specialise in solar-friendly plans that offer a good balance.
4. Consider a Time-Varying Feed-in Tariff
Some retailers offer time-of-use feed-in tariffs where the rate you receive for exported energy varies by time of day. If your panels have a westerly component, they may produce more energy in the afternoon when time-varying rates are higher. This can increase your overall export income compared to a flat-rate feed-in tariff.
5. Use a Solar Monitoring App
Most modern solar systems include monitoring apps that show real-time production, consumption, and export data. By understanding your energy flow patterns, you can make smarter decisions about when to run appliances and how to adjust your usage for maximum benefit.
Battery Storage vs Exporting: Which Is Better?
This is one of the most common questions we hear. Should you export excess energy for a feed-in tariff, or store it in a battery for later use? The answer depends on your specific circumstances, but here is a framework to help you decide:
Exporting Makes Sense When...
- You have a high feed-in tariff (10c+ per kWh)
- Your nighttime electricity usage is low
- You want to minimise upfront cost (batteries add to the initial investment)
- You are on a reliable grid with few outages
Battery Makes Sense When...
- Your feed-in tariff is low (under 6c per kWh)
- You use significant energy at night (aircon, EV charging)
- You are on a time-of-use tariff with expensive peak rates
- You want backup power during grid outages (common in cyclone-prone areas)
- You want maximum energy independence and the lowest possible bills
The Best of Both Worlds
Many Queensland homeowners start with a grid-connected system (solar only, no battery) and add a battery later as prices continue to fall. This lets you start saving immediately while leaving the door open to further optimise your system down the road. Smart Solar Group installs hybrid-ready inverters that make adding a battery straightforward in the future.
Retailer Comparison Tips for Solar Customers
Choosing the right electricity retailer is just as important as choosing the right solar system. Here are the key things to compare when shopping for a solar-friendly electricity plan in Queensland:
Feed-in Tariff Rate
Compare the cents per kWh you receive for exported energy. Remember, a higher feed-in tariff is only valuable if the rest of the plan is competitive too.
Usage Rates (Import Tariff)
This is what you pay for grid electricity when your solar is not producing enough. Even with solar, you will import some electricity, so a lower usage rate reduces your overall cost.
Daily Supply Charge
A fixed daily fee charged by all retailers for being connected to the grid. This typically ranges from 80c to $1.20 per day in Queensland and is charged regardless of how much (or how little) electricity you use.
Contract Terms and Conditions
Check for lock-in contracts, exit fees, and whether promotional feed-in tariff rates expire after a set period. Some retailers offer high initial rates that drop after 12 months.
Billing Cycle and Credits
Understand how your retailer handles feed-in credits. Some carry credits forward to future bills, while others may pay out credits annually. Make sure credits do not expire or get forfeited.
Export Limits: What You Need to Know
In some parts of Queensland, your electricity distributor (Ergon Energy or Energex) may impose an export limit on your solar system. This is typically 5kW for single-phase connections, though it can vary. An export limit does not restrict how much solar you can produce; it limits how much you can send back to the grid at any one moment.
If you have a 10kW system with a 5kW export limit and your home is using 3kW, then 7kW of solar is available but only 5kW can be exported. The remaining 2kW is curtailed (wasted) unless you have a battery to capture it. This is another scenario where batteries add significant value, by storing energy that would otherwise be curtailed.
Your Smart Solar Group installer will check your export limits during the design phase and recommend a system configuration that maximises your benefit within any applicable constraints. In many cases, higher export limits can be applied for through your distributor.
Real-World Export Income Examples
To give you a practical idea of what you can earn from solar exports in North Queensland, here are some representative scenarios:
Scenario 1: Small Home, 6.6kW System
A couple in Townsville with a 6.6kW system and moderate daytime usage. They self-consume about 40% and export 60% of production. At a 7c feed-in tariff, they earn approximately $380-$450 per year in export credits, on top of $1,200-$1,500 in avoided grid electricity costs. Total annual savings: approximately $1,600-$1,950.
Scenario 2: Family Home, 10kW System
A family of four in Mackay with a 10kW system, pool pump, and air conditioning. They self-consume about 55% and export 45%. At a 7c feed-in tariff, export income is approximately $450-$550 per year, with self-consumption savings of $2,000-$2,400. Total annual savings: approximately $2,450-$2,950.
Scenario 3: Large Home with Battery, 13kW System
A large home with a 13kW system and 10kWh battery. The battery captures most excess production, boosting self-consumption to 80-85%. Export income drops to approximately $200-$300 per year, but self-consumption savings increase to $3,000-$3,500 because the battery powers the home through peak evening hours. Total annual savings: approximately $3,200-$3,800.
Find Out How Much You Could Earn
Every home is different. Book a free assessment and we will calculate your projected solar savings, including estimated export income, based on your actual energy usage and roof characteristics.
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