Why is the wholesale rate higher than my solar FiT rate?

The wholesale usage rate is higher than your solar FiT rate as it includes the costs involved with providing power to your home. The usage rate is made up of:

1. The Wholesale price of energy: 30-minute spot price from AEMO for that period.
2. Network Usage: part of the regulated price we have to pay your network (poles and wires company) for the use of their network.
3. Market and environmental costs: This is the regulated amount we pay the market operator to run the energy market, as well as the cost of meeting various government schemes (e.g. under the Australian Renewable Energy Target).

For any solar that you export we pay you the full price we receive from the market - which is the wholesale price of energy plus the market costs. We do not get paid network fees for your exports, as they are only incurred as part of the supply of power to your home. That's why these fees are not included in your FiT, and why your FiT is lower than the price you pay to use power from the grid.