Cost of Electricity in Sydney (2026): Bills, Feed-in Rates and Solar Sharer

Name: Tally Energy Group
Address: Sydney, NSW, 2150, AU
Telephone: 1800 945 085

Last updated: October 2026. Figures are taken from the Australian Energy Regulator (AER), IPART and the Australian Government, linked in the Sources section.

Electricity prices for Sydney households changed on 1 July 2026. The AER’s regulated benchmark bills went down, the NSW benchmark for solar feed-in tariffs went down, and a new “Solar Sharer” offer started. Here is what that means for your bill and for solar.

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What does electricity cost in Sydney in 2026–27?

The AER sets a benchmark price each year called the Default Market Offer (DMO). For 2026–27, which started on 1 July 2026, the final figures for the two networks that serve most of Sydney are:

Network	AER benchmark annual bill (incl. GST)	Usage the AER assumes	Change from 2025–26
Ausgrid	$1,899	3,900 kWh a year	−$66 (−3.4%)
Endeavour Energy	$2,328	4,900 kWh a year	−$83 (−3.4%)

These are benchmark figures, not your actual bill. The DMO is a regulated benchmark based on a set amount of usage. Your real bill depends on how much electricity you use, when you use it, your tariff, your retailer’s offer and your meter type. A household that uses more than the assumed usage will pay more than the table, and a household that uses less will pay less.

Which network you are on depends on where you live. Ausgrid serves much of Sydney, the Central Coast and the Hunter, and Endeavour Energy serves western Sydney and the Illawarra. Your electricity bill shows your network (distributor).

Did electricity prices go up or down in 2026?

For the AER benchmark, they went down: the 2026–27 figures for Ausgrid and Endeavour are each 3.4% lower than 2025–26. That does not mean every household’s bill fell by that amount. Retailers set their own market offers, and your usage and tariff matter more than the benchmark. If you have not compared offers recently, check your current rates against the offers available for your network.

What drives your electricity bill?

Daily supply charge: a fixed amount you pay for being connected, whatever you use.
Usage charges: what you pay per kWh. Many Sydney homes are on time-of-use tariffs, where electricity costs more in the late afternoon and evening peak than in the middle of the day.
Your usage pattern: evening-heavy use (cooking, heating or cooling, EV charging) costs more than daytime use if you are on a time-of-use tariff.
Your network and retailer: as the table above shows, benchmark prices differ between Ausgrid and Endeavour areas.

Solar feed-in tariffs in NSW for 2026–27

A feed-in tariff is what your retailer pays you for solar power you export to the grid. IPART, the NSW pricing regulator, publishes a benchmark range each year:

2026–27 (1 July 2026 to 30 June 2027): 3.4 to 6.5 cents per kWh
2025–26: 4.8 to 7.3 cents per kWh

IPART says the range fell because of lower wholesale prices at the times when solar is exporting. The benchmark is not mandatory: retailers can offer a rate inside or outside this range, or choose not to offer a feed-in tariff at all, so compare the actual rate on any offer you are considering.

With export payments this low, the value of rooftop solar for most households comes mainly from using the power yourself during the day instead of buying it from the grid. That is why system size, your daytime usage and, for some homes, a battery all matter.

The Solar Sharer Offer: free midday electricity from 1 July 2026

The Australian Government’s Solar Sharer Offer is a regulated offer that gives eligible households three consecutive hours of free electricity in the middle of the day. It started on 1 July 2026 in the default market offer areas of NSW, South Australia and South East Queensland.

Free usage limit: up to 24 kWh a day in the free window. Usage above that may be charged at rates set by the AER.
Who can get it: households in an eligible area with a smart meter who are not on an embedded network and are with a retailer required to offer it.
Rooftop solar is not required. The offer is designed to give more households access to midday solar power.
Battery and EV owners may be able to shift charging into the free window.

Terms differ between retailers, so check the details with the retailer before you switch. If you already have solar, ask how the offer interacts with your current feed-in tariff and tariff structure before changing plans.

Is solar still worth considering in Sydney?

That depends on your usage, roof and how much you use during the day, so we do not publish a single payback or savings figure for every home. A good starting point is what systems cost. The Solar Choice Price Index, an independent third-party industry index published on 1 October 2026, shows these indicative average Sydney prices after the STC rebate, including GST. They are not Tally Energy pricing:

System size	Indicative average Sydney price (Solar Choice, Oct 2026)
5 kW	$4,990
6 kW	$5,750
7 kW	$6,450
10 kW	$8,780

These are indicative third-party averages, not Tally pricing and not a quote. Your price depends on the panels, inverter, roof and installation.

The solar panel rebate gets smaller each year. Small-scale Technology Certificates (STCs) are calculated using a deeming period that counts down each year: five years for systems installed in 2026 and four years for systems installed in 2027, according to the Clean Energy Regulator.

To work out your own savings, start with your bill. Look at how much electricity you use during the day, what you pay per kWh at different times, and what your retailer pays for exports. A quote built on your own usage data is far more reliable than a general figure. If you would like one, request a free solar quote and we will size a system around your usage.

Not sure what size to look at? See our 6.6kW, 10kW and 13kW system pages.

What about adding a battery?

The federal Cheaper Home Batteries Program discounts eligible home batteries through STCs. The discount depends on battery size and the date of installation, and it steps down on 1 January 2027, so timing matters. CHOICE, an independent consumer organisation, reported in June 2026 that a 10 kWh battery typically costs between $7,000 and $11,000 installed after the federal rebate, with higher figures for complex installations. This is indicative third-party data, not Tally pricing. Read our guide to the federal battery rebate, NSW loan and VPP incentive, or see our solar battery installation page for Sydney.

FAQ: Cost of electricity in Sydney

How much does electricity cost in Sydney in 2026?

The AER’s benchmark annual bill for 2026–27 is $1,899 in the Ausgrid area (based on 3,900 kWh of usage) and $2,328 in the Endeavour Energy area (based on 4,900 kWh). These are benchmarks, not average actual bills. Your bill depends on your usage, tariff and retailer.

Did electricity prices rise in 2026?

The AER’s 2026–27 benchmark bills for Ausgrid and Endeavour are each 3.4% lower than in 2025–26. Individual bills will vary with usage and offer.

What is the solar feed-in tariff in NSW for 2026–27?

IPART’s benchmark range is 3.4 to 6.5 cents per kWh, down from 4.8 to 7.3 cents in 2025–26. The benchmark is not mandatory, so actual rates depend on your retailer.

What is the Solar Sharer Offer?

A regulated offer, available from 1 July 2026 in NSW, South Australia and South East Queensland default market offer areas, that provides eligible households with three hours of free electricity in the middle of the day, up to 24 kWh a day. You need a smart meter, but you do not need rooftop solar.

Does solar still make sense with low feed-in tariffs?

For most households the main benefit comes from using solar power at home, not from export payments. Whether it suits you depends on your daytime usage, roof and budget, so the most reliable way to find out is a quote based on your own bills.