Selling Power Back to the Grid

Does the idea of generating your own energy appeal to you? Generating your own power can help the environment while helping you cut your energy bill.You’re probably already aware of the various renewable energy options, but did you know you can sell excess power back to energy companies to reduce your energy bill and even make a profit? Here’s how you can generate your own power at home, a quick outline of the feed-in tariff system, and how to know if you’re eligible.

Generating your own power at home

Power is the one resource we just can’t seem to get enough of at home. Essential appliances, the latest gadgets, basics like heating and cooling — these things could be mereluxuries to dream about if we didn’t have access to plenty of electricity, gas, solar, or other energy sources.

If your electricity bill seems to be climbing by the month, perhaps you’ve considered installing your own solar panels or otherwise generating your own energy at home. You can generate power to augment your existing power supply or even to become completely energy self-sufficient.

One thing’s for certain: generating your own power will save you on energy costs over time and free up more funds for your monthly car payment or home-loan repayment.

While most of us probably think of solar panels when the topic of renewable energy is raised, there are various options that may be available to you. Options for generating power at home include solar, water (or hydroelectricity), and wind.

  • Solar. Solar panels are probably the most commonly used option for households looking to generate their own power. Panels are usually installed on rooftops; households can draw on solar energy during the day and access their energy company’s supply at night.
  • Wind. Wind is a less commonly used option that’s more suitable for rural or windy areas. While wind generators require ongoing maintenance and can be noisy, they’re a clean and renewable source of energy for homeowners.
  • Water. Water turbines are great if you live near a fast-flowing waterway. You can generate plenty of energy regardless of the weather.

The feed-in tariff system

Australia is not the only country with a feed-in tariff system; numerous countries around the world have used this system to encourage the uptake of renewable energy in homes and businesses. The feed-in tariff system allows homes to feed energy back to their grid, effectively selling it back to their energy retailer for a given rate. This means you can offset the costs of the electricity you draw from your energy company and possibly even realise a profit, on which no GST is payable (in most cases).

In Australia, the system is administered by the state and territory governments. You should look to your state or territory’s regulations for the tariff rates that apply to you. Your energy retailer will also have its own rates, incentives, or conditions for the feed-in tariff.


As mentioned above, the respective state and territory governments administer the feed-in tariff system. Your state or territory government will have specified a maximum size for your power generation system. Systems larger than the specified size are usually ineligible. Check with your retailer and local authorities for more information.