{"id":83236,"date":"2024-05-02T05:12:07","date_gmt":"2024-05-01T19:42:07","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=83236"},"modified":"2024-05-16T10:59:43","modified_gmt":"2024-05-16T01:29:43","slug":"two-way-pricing-electricity-mb2911","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/two-way-pricing-electricity-mb2911\/","title":{"rendered":"Ausgrid’s Two-Way Pricing For Solar Exports Looms"},"content":{"rendered":"

\"Two-way<\/p>\n

Many solar owners in New South Wales will soon be subjected to “two-way” tariffs. Find out what that means and how it will work.<\/p>\n

Ausgrid is the largest distributor of electricity on Australia’s east coast, providing electricity to 1.8 million customers in Sydney, the Central Coast and the Hunter Valley. Its network of substations, powerlines, underground cables and power poles spans 22,275 square kilometres.<\/p>\n

Like other Distributed Network Service Providers (DNSP<\/a>s), Ausgrid has been grappling with an influx of solar energy goodness from residential solar power system exports. It’s a case of too much of a good thing at times; particularly between the hours of 10 am and 3 pm when solar system output generally reaches a maximum. Too much can potentially lead to network stability issues.<\/p>\n

Ausgrid has come up with a carrot-and-stick approach with two-way pricing in the hope of encouraging solar owners to maximise solar self-consumption during the 10 am to 3 pm period. After a trial currently under way, this is expected to kick in across the network starting July this year.<\/p>\n

What Is Two-Way Pricing?<\/h2>\n

The first thing to understand is two-way pricing and feed in tariffs<\/a> are separate beasties, but the former will impact the latter. Two-way pricing, aka a two-way tariff, provides a couple of signals – a reward for exporting to the grid when it’s needed and a charge for when it’s not.<\/p>\n

In Ausgrid’s case, it intends applying a 1.2 c\/kWh charge when solar electricity is exported between the hours of 10am and 3pm, and rewarding solar owners with a payment or credit of 2.3 cents\/kWh for exports during the peak demand period (4pm to 9pm).<\/p>\n

Ausgrid will also introduce a “free threshold” on the charge side; meaning a certain amount of electricity can be sent into the Ausgrid network between 10am and 3pm and not attract a charge. The amount varies depending on the month, but it ranges from 192 kWh to 212 kWh.<\/p>\n

Retailers will be able to choose how they structure this two-way tariff for customers, who might not see the impact directly on their bills.<\/p>\n

“It is likely that retailers will pass on this tariff via changes in the feed-in tariffs they offer customers, by reducing these feed-in tariffs during certain hours of the day and increasing them during other hours of the day,” states Ausgrid.<\/p><\/blockquote>\n

(Added: Perhaps some retailers may choose not to pass it on.)<\/p>\n

How Will This Impact Power Bills?<\/h2>\n

Ausgrid believes it’s likely the two-way tariff will have a “very small impact” for most solar owners and offers this example in its fact-sheet:<\/p>\n

\"Two-way<\/p>\n

In its example, the system sent 307 kWh into the network between 10am and 3pm for the month of November, when there is a “free threshold” of\u00a0 205 kWh. The customer is charged for 102 kWh, which Ausgrid says is $1.19 for the month. On the reward side, the customer has sent 52 kWh into the network after 4pm, earning $1.21; so the overall result is a credit of 2 cents (spend it wisely).<\/p>\n

I get slightly different figures based on that example – $1.22 on the charge side and $1.20 on the reward side – a debit of 2c.<\/p>\n

During the winter months, the amount exported during peak demand periods will be very little. But Ausgrid says:<\/p>\n

“If the retailer fully passed through our two-way tariff, a typical solar customer with a 5kW system will see an annual bill increase of $6.60 per year.”<\/p><\/blockquote>\n

But systems are getting larger, so the impact could be greater depending on a customer’s energy consumption profile. Still, it should be a drop in the bucket compared to overall savings.<\/p>\n

Whether this two-way pricing will be enough carrot and stick to alter consumer behaviour remains to be seen, and some of that will have to do with how electricity retailers implement it and make customers aware of the charge\/reward.<\/p>\n

Ausgrid’s fact sheet<\/a> is dated late last year – so there may be last minute changes before two-way tariffs commence in July.<\/p>\n

Other DNSPs are taking a different – and arguably a more elegant – approach to dealing with congestion issues. For example, in South Australia SAPN is rolling out dynamic (flexible) solar exports<\/a>; where inverters may be throttled remotely based on network conditions. Readying for a similar initiative across the border in Victoria<\/a>, all new inverters installed must be capable of remotely and dynamically adjusting solar export limits.<\/p>\n","protected":false},"excerpt":{"rendered":"

Many solar owners in New South Wales will soon be subjected to “two-way” tariffs. Find out what that means and how it will work.<\/p>\n","protected":false},"author":17,"featured_media":83237,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[678],"tags":[],"class_list":["post-83236","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-solar-battery-news","entry"],"acf":[],"yoast_head":"\nAusgrid's Two-Way Pricing For Solar Exports Looms<\/title>\n<meta name=\"description\" content=\"Many solar owners in New South Wales will soon be subjected to "two-way" tariffs. 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SolarQuotes has launched a \"sun tax\" calculator that will show the impact two-way pricing will have on your electricity bills.\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Australia's Sun Tax debunked","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/06\/sun-tax-debunk.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/06\/sun-tax-debunk.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/06\/sun-tax-debunk.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/06\/sun-tax-debunk.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/06\/sun-tax-debunk.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":96400,"url":"https:\/\/www.solarquotes.com.au\/blog\/ausgrid-community-power-network-mb3329\/","url_meta":{"origin":83236,"position":2},"title":"Green Light For Ausgrid Community Power Network Trial","author":"Michael Bloch","date":"December 8, 2025","format":false,"excerpt":"The Australian Energy Regulator (AER) has granted New South Wales electricity distributor Ausgrid a controversial trial waiver so it can experiment with the co-ordination of community batteries and private solar power installations within part of its networks. What's Ausgrid's Community Power Network Trial (CPN) Involve? Essentially, the CPN will be\u2026","rel":"","context":"In "Solar Innovations"","block_context":{"text":"Solar Innovations","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-innovations\/"},"img":{"alt_text":"Ausgrid Community Power Network Trial","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/12\/ausgrid-community-trial.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/12\/ausgrid-community-trial.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/12\/ausgrid-community-trial.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/12\/ausgrid-community-trial.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/12\/ausgrid-community-trial.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":85736,"url":"https:\/\/www.solarquotes.com.au\/blog\/ausgrid-battery-esaas-mb2977\/","url_meta":{"origin":83236,"position":3},"title":"NSW’s Ausgrid Launches Energy Storage As A Service","author":"Michael Bloch","date":"August 6, 2024","format":false,"excerpt":"Would you like access to a home battery, but simply can't afford it? Get ready to learn some acronyms. Installing a home battery brings lots of benefits, but is an expensive exercise. And if you're a renter, you'd be relying on the generosity of your landlord to install one. 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The prospect has set NSW's solar industry on edge - and for good reason. The Emergency Backstop Mechanism will allow Distributed Network Service Providers (DNSPs) to temporarily\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"NSW Emergency Backstop Mechanism Q&A session","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/03\/nsw-backstop-solar.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/03\/nsw-backstop-solar.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/03\/nsw-backstop-solar.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/03\/nsw-backstop-solar.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/03\/nsw-backstop-solar.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":84631,"url":"https:\/\/www.solarquotes.com.au\/blog\/endeavour-solar-tariffs-mb2947\/","url_meta":{"origin":83236,"position":5},"title":"Endeavour Energy’s New Two-Way And Free Solar Soak Tariffs","author":"Michael Bloch","date":"June 21, 2024","format":false,"excerpt":"NSW Distributed Network Service Provider (DNSP) Endeavour Energy is introducing two-way tariffs for solar owners starting next month. Find out how this will work and also about Endeavour's new free \"solar soak\" tariff. 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