What Is SMP in Solar ATAP? (And Why It Matters to Your Bill)

Last updated: 14 May 2026

Discover how System Marginal Price works under Solar ATAP, why it replaces the old one-to-one credit system, and what it means for your solar savings.

Since the launch of Solar ATAP, one term keeps coming up: SMP (System Marginal Price).

While it may sound technical, understanding SMP is essential to knowing how your solar system actually saves you money.

So what exactly is SMP? How does it affect your savings? And how is it different from the old system? Let’s break it down in simple terms.

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What is SMP?

SMP (System Marginal Price) is the wholesale price of electricity on the grid.

A simple way to think about it:
SMP works like a stock market for electricity.

The price changes throught the day depending on:

  • Demand for electricity
  • Supply available on the grid

When demand is high – for example, on a hot weekday when offices and factories are running at full capacity – electricity becomes more expensive.

When demand is low, prices drop.

How This Affects Your Solar

Under Solar ATAP, when your solar panels generate more energy than you use, the excess energy is exported to the grid.

Instead of receiving a fixed credit (like before), you are credited based on the current SMP.

This means:

  • Your export value changes throughout the day
  • Energy exported during peak demand is worth more
  • Energy exported during low demand is worth less

How SMP Works in Solar ATAP

Under previous schemes like NEM:

  • Solar exports were credited at fixed rates
  • Often close to a 1-to-1 offset

Under ATAP:
  • Exported solar energy is credited based on SMP
  • This means your credits are dynamic and market-based

What's the Key Difference?

Your solar energy now has a real-time market value.

This introduces a major shift:

  • Savings are no longer fixed
  • Export value can fluctuate
  • How you use your energy becomes more important

In short, solar is no longer just about exporting – it’s about optimising how you use your energy.

What This Means in Practice

The move to SMP changes how you should approach solar in 2 key ways:

1. Self-Consumption Matters More Than Ever

The more solar energy you use directly, the more you save. This reduces your reliance on exporting energy at variable SMP rates.

Simple ways to maximise this:

  • Run appliances during the day
  • Shift energy-heavy usage to sunlight hours
  • Charge EVs when your system is generating

2. System Design & Battery Storage Become Critical

Because export values fluctuate, having the right system setup is key. A well-sized solar system ensures you generate what you actually need.

Adding a battery energy storage system (BESS) allows you to:

  • Store excess energy during the day
  • Use it at night instead of exporting
  • Reduce reliance on lower SMP periods


Conclusion

SMP may sound complex, but it’s simply a fair, market-driven system. And with the right solar design, you can still reduce your electricity bills, optimise your energy usage, and maximise your return on investment.

Not sure how SMP affects your savings? Talk to our team at buySolar for personalised advice and a tailored solar plan that works for your home or business.