TL;DR: Market Offers provide cheaper rates and higher feed-in tariffs for solar owners, but have fixed terms and often expire. Standing Offers are basic, government-regulated plans without discounts, serving as a default if you do not actively choose a Market Offer. Solar households save more money by regularly comparing and signing up for the best Market Offer available.
What Are Market Offers and How Do They Work for Solar Homes?
Market offers are electricity plans retailers create to attract and keep customers in competitive energy markets like those in Queensland, New South Wales, Victoria, and South Australia. These plans typically feature lower usage rates, discounted supply charges, or attractive solar feed-in tariffs (FiTs). Retailers use various incentives, often for a fixed benefit period of 12 or 24 months, to win your business. For example, a market offer might provide a flat usage rate of 25 cents per kilowatt-hour (c/kWh) and a daily supply charge of $1.10, along with a solar FiT of 8c/kWh. These terms are usually conditional; if you miss a payment or do not pay by direct debit, you might lose certain discounts.
Market offers particularly benefit homes with solar panels. A higher feed-in tariff means you get more credit for the excess solar power your system exports back to the grid. While typical standing offers might give you only 5c/kWh for exported power, a market offer could push that to 8c/kWh or even 10c/kWh in some regions, depending on the retailer and current market conditions. Over a year, this difference adds up, significantly reducing your overall electricity bill. Many solar households find the most savings by actively shopping for the market offer with the best combination of low usage rates and high feed-in tariffs, especially as their fixed benefit periods expire.
Navigating Market Offer Terms and Expiry
Market offers usually have a specific duration, often 12 or 24 months. When this period ends, the retailer automatically rolls you onto a less competitive 'default' market offer or even their standing offer. This often means your rates increase, and any attractive feed-in tariffs disappear or reduce significantly. For instance, a plan offering 9c/kWh FiT for 12 months might revert to 5c/kWh after the term. It is essential for solar owners to monitor their contract end dates and regularly compare new market offers from various retailers. Websites like Energy Made Easy (federal government) or Victorian Energy Compare allow you to input your usage and solar export details to find the best available plans. Regularly switching offers ensures you capture the best value for your solar power generation.
What Are Standing Offers and When Are They Applied?
Standing offers are basic, unregulated electricity plans that all authorised retailers must provide. They serve as a default for customers who have not actively signed up for a market offer. These plans typically have higher usage rates and supply charges compared to market offers and offer lower or standard solar feed-in tariffs. For example, a standing offer might have a usage rate of 30c/kWh and a daily supply charge of $1.30, with a solar FiT fixed at 4.9c/kWh. Government regulators, such as the Australian Energy Regulator (AER) in most states, set a Default Market Offer (DMO) price safety net that standing offer prices generally do not exceed.
You might find yourself on a standing offer if you move into a new property and do not choose a plan, or if your market offer contract expires and you do not switch to a new one. They provide a continuous electricity supply without requiring an active contract, offering a fallback for consumers. However, they lack any discounts, bonuses, or premium feed-in tariffs common with market offers. This makes them significantly less economical, particularly for households with solar PV systems exporting power back to the grid.
Why Standing Offers are Costly for Solar Owners
For a solar household, being on a standing offer means you miss out on substantial savings. The lower feed-in tariffs provided by standing offers diminish the financial benefit of generating your own power. If your solar system exports 10 kWh daily, a market offer with an 8c/kWh FiT earns you 80 cents per day in credit, while a standing offer with 5c/kWh only earns 50 cents. Over a year, that's over $100 in lost savings, just from the FiT difference. Compounded with the generally higher usage and supply charges of standing offers, a solar owner on such a plan often pays hundreds of dollars more annually than they need to. The simplicity of a standing offer comes at a considerable financial cost, making it an unsuitable choice for most solar-equipped homes.
Which Electricity Plan Offers Better Value for Solar Owners?
Market offers almost always provide better value for solar owners than standing offers. The competitive nature of market offers drives retailers to offer more attractive rates, including higher feed-in tariffs for solar exports and lower per-kilowatt-hour charges for electricity consumption. For a typical Sydney home with a 6.6kW solar system exporting 15kWh per day, a market offer with an 8c/kWh FiT earns $1.20 in credits daily. A standing offer might only provide a 5c/kWh FiT, reducing that daily credit to 75 cents. This difference accumulates quickly, leading to hundreds of dollars in lost savings each year. Beyond FiTs, market offers often feature conditional discounts on consumption, further lowering your overall bill.
To maximise savings, solar owners need to be proactive. Compare market offers from different retailers using government comparison sites or directly contact providers. Look for plans that balance a strong feed-in tariff with competitive usage and supply charges. Remember that the "highest FiT" is not always the best overall deal if the usage charges are excessively high. Focus on the total estimated annual cost after considering your solar exports and typical consumption. Regularly reviewing your plan, particularly as fixed benefit periods expire, ensures you continuously access the most beneficial terms available in the market. Do not let your current market offer automatically roll over into a less favourable arrangement.
Key Takeaways
- Market offers deliver better value for solar owners through higher feed-in tariffs and lower electricity rates.
- Standing offers are default plans with higher costs and lower feed-in tariffs, resulting in less savings for solar households.
- Solar owners should actively compare and switch market offers before their current plan's benefit period ends.
- Use government comparison websites like Energy Made Easy to find the best electricity plan for your solar home.
- A high feed-in tariff is important, but also consider usage and supply charges for the best overall value.
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For a comprehensive overview, check out our master guide: Read the Full Guide Here.
