An embedded network is a private electricity network behind one shared meter, where a building owner or operator on-sells power to residents through individual “child” meters. As at November 2026, residents in an Australian embedded network can legally buy from a licensed retailer instead, but it is often hard in practice, and in Victoria most new residential embedded networks have been banned since 1 January 2023 unless they meet a renewable energy condition.
Key facts
- An embedded network is a private network with one parent connection to the grid and individual child meters behind it, commonly found in apartment blocks, retirement villages and caravan or residential parks, according to the Energy and Water Ombudsman Victoria and consumer guides checked in November 2026.
- Under the Australian Energy Regulator (AER) exemption conditions, an exempt seller cannot charge residential customers more than the local retailer’s standing offer, as summarised by Utility Club in November 2026; in Victoria the Essential Services Commission (ESC) says exempt persons’ prices must not exceed the Victorian Default Offer.
- Since 1 January 2023 Victoria has banned new embedded networks with 10 or more residential customers unless a renewable energy condition is met, according to the Victorian Government and the Essential Services Commission (ESC).
- More than 140,000 Victorians lived in buildings with residential embedded networks when the Victorian review reported in January 2022, according to SolarQuotes.
- A resident who wants to switch must find a retailer willing to offer an “energy only” plan, and the retailer asks the embedded network manager to create a National Metering Identifier (NMI), according to the Energy and Water Ombudsman Victoria.
- According to Gadens, the AER aimed to finalise version 8 of its Retail Exempt Selling Guideline and Network Exemption Guideline in November 2026; we could not open the AER pages to confirm, so check them for the current version.
What is an embedded network?
An embedded network is a private electricity network inside a building or site that connects to the public grid at one point, the parent meter, and supplies several homes behind it. Each home has a child meter, and the owner or an appointed operator bills residents for the power.
They are common in apartment blocks, retirement villages, caravan and long-stay parks, and also in shopping centres, campuses and industrial parks, according to Utility Club. Many operators are “exempt sellers”: they sell electricity without a retail licence because the AER has exempted them, provided they follow its guidelines. Our guide to solar panels for apartments and renters explains why a building with an embedded network cannot use some schemes, such as the Solar Sharer Offer.
How do you know if you live in one? Look for a single supplier named on your lease, strata notices or bills that come from the building operator rather than a household-name retailer. Ask the owners corporation or the operator.
Can I change provider in an embedded network?
Yes in principle, but it depends on your meter and on finding a willing retailer. The Energy and Water Ombudsman Victoria says you can buy electricity from a licensed retailer while still paying the embedded network owner for network-related costs. Not all retailers accept embedded network customers.
This table sets out the steps and common barriers, as described by the Energy and Water Ombudsman Victoria, checked November 2026.
| Step or barrier | What it means |
|---|---|
| Talk to the embedded network manager | Tell them you want to switch, ask about metering and which network charges you will keep paying |
| Find a retailer first | The retailer, not you, asks the manager to create an NMI for your child meter |
| Choose an “energy only” offer | Ordinary offers include network charges you would pay twice |
| Meter compliance | A meter that does not meet on-market requirements may need replacing, usually at the resident’s cost |
| Older networks | A child meter without an NMI is invisible to the market settlement system, so no retailer can see it |
| Renters | May need the landlord’s permission |
| Gas | Generally cannot be switched in an embedded network |
Contact the Energy and Water Ombudsman Victoria or your state ombudsman if the operator blocks you.
What price protections apply in an embedded network?
The headline protection is a price ceiling. Utility Club summarises the AER conditions as meaning exempt sellers cannot charge residential customers more than the local retailer’s standing offer; the ESC says Victorian exempt persons’ prices must not exceed the Victorian Default Offer. The ceiling covers the energy charges only, and it is a maximum, not a guarantee of a good deal, because many on-market plans sit below standing offers.
The chart shows the 2026-27 regulated standing offer price for each network, the closest published benchmark for that ceiling.
View the data as a table
| Annual price | |
|---|---|
| Essential Energy (NSW) | A$2,604 |
| SA Power Networks | A$2,334 |
| Endeavour Energy (NSW) | A$2,328 |
| Energex (SE Qld) | A$1,988 |
| Ausgrid (NSW) | A$1,899 |
| Victoria average (VDO) | A$1,591 |
In 2026-27 the regulated flat-rate standing offer ranges from A$1,591 in Victoria (average) to A$2,604 on Essential Energy’s network, so an embedded network resident’s energy ceiling differs by more than A$1,000 a year depending on location.
| Region | Regulated 2026-27 price | Basis |
|---|---|---|
| Ausgrid (NSW) | $1,899 | DMO flat, 3,900 kWh |
| Endeavour Energy (NSW) | $2,328 | DMO flat, 4,900 kWh |
| Essential Energy (NSW) | $2,604 | DMO flat, 4,600 kWh |
| Energex (SE Queensland) | $1,988 | DMO flat, 4,600 kWh |
| SA Power Networks | $2,334 | DMO flat, 4,000 kWh |
| Victoria (average of five zones) | $1,591 | VDO flat, 4,000 kWh |
Prices are GST inclusive, from the AER final determination of 26 May 2026 and the ESC’s final Victorian Default Offer decision released 25 May 2026.
Standing offers have been volatile, which matters because the ceiling moves with them.
- Essential Energy
- SA Power Networks
- Energex
- Ausgrid
Source: AER Default Market Offer fact sheets and final determinations, 2020-21 to 2026-27.
View the data as a table
| Essential Energy | SA Power Networks | Energex | Ausgrid | |
|---|---|---|---|---|
| 2020-21 | A$1,960 | A$1,832 | A$1,508 | A$1,462 |
| 2021-22 | A$1,907 | A$1,716 | A$1,455 | A$1,393 |
| 2022-23 | A$2,092 | A$1,840 | A$1,620 | A$1,512 |
| 2023-24 | A$2,527 | A$2,279 | A$1,969 | A$1,827 |
| 2024-25 | A$2,499 | A$2,216 | A$2,052 | A$1,810 |
| 2025-26 | A$2,741 | A$2,301 | A$2,143 | A$1,965 |
| 2026-27 | A$2,604 | A$2,334 | A$1,988 | A$1,899 |
The Ausgrid standing offer rose from A$1,462 in 2020-21 to A$1,899 in 2026-27, an increase of about 30 per cent, which is the same direction an embedded network price ceiling has taken.
New transparency rules apply too. From 1 July 2026, the AER’s Retail Exempt Selling Guideline (version 7) requires exempt sellers in certain classes to publish their tariffs and compare them with the local retailer’s standing offer, and to print the ombudsman’s contact details on bills, according to Mills Oakley and the Energy and Water Ombudsman Queensland. Utility Club also reports that IPART in NSW is expected to set maximum prices for embedded networks, likely from the first half of 2027; we could not open the IPART page, so check IPART directly.
What is Victoria’s ban on new embedded networks?
Victoria bans the sale of electricity in new residential embedded networks with 10 or more customers from 1 January 2023, unless the network meets a renewable energy condition. The rule sits in Victoria’s General Exemption Order 2022 and is administered by the ESC.
According to the ESC’s electricity licensing exemptions page, the condition requires 100 per cent renewable electricity, with at least 5 per cent of residential electricity generated on site and the rest covered by off-site renewable energy. It applies to new embedded networks from 1 January 2023, and the ESC also says prices must not exceed the Victorian Default Offer. The state’s aim, said Energy Minister Lily D’Ambrosio when the review reported in January 2022, was for residents of new and existing networks to get the same competitive offers and protections as other customers.
The practical effect for solar is that a new Victorian apartment building with an embedded network needs on-site solar to qualify. Many developers instead use individually metered flats, with or without shared solar technology. Check the Victorian solar rebate guide for the Solar for Apartments program, which excludes buildings with an embedded network.
How does solar work in an embedded network?
Solar works in two ways. The owner can install a system on the roof and sell its output to residents through the network, usually at or below the grid price, or residents can stay with a market retailer and receive solar through shared-solar technology. The first is easier inside an embedded network because the operator already controls the meters.
As SolarQuotes notes, Allume Energy’s SolShare divides one rooftop system between separately metered apartments so that owners keep their retailer and no embedded network is needed. That is the main alternative for buildings that are not embedded networks.
Our worked example uses the project quoted by SolarQuotes: a 19.5 kW system shared across 12 apartments and the common area. Treat the 13 shares as equal for simplicity.
Source: Clean Energy Council consumer guide, volume 14 (2011), average daily production per kW; Solar Cobber calculation. The 2011 figures are design-guideline averages, not measured output for any building.
View the data as a table
| kWh per share per year | |
|---|---|
| Perth | 2,409 kWh |
| Darwin | 2,409 kWh |
| Canberra | 2,354 kWh |
| Brisbane | 2,300 kWh |
| Adelaide | 2,300 kWh |
| Sydney | 2,135 kWh |
| Melbourne | 1,971 kWh |
| Hobart | 1,916 kWh |
Under these assumptions a Sydney share produces about 2,135 kWh a year. Valued at the 2026-27 Ausgrid standing-offer usage rate of 33.1372 c/kWh from the AER, that is at most about A$708 a year if every kWh displaced grid power (our calculation; real self-consumption is lower). The Waverley example residents paid roughly A$456 to A$548 a year, so a saving is not automatic, and it depends on how much is used on site and what the operator charges for solar power.
Ask three things of any embedded network solar offer: the price per kWh of solar against the standing offer, what happens to exported power, and whether you can leave the arrangement.
Can an embedded network have a battery?
Yes. A battery behind the parent meter can store midday solar for the evening, and owners corporations commonly pair it with shared solar. The same questions apply: who owns it, who gets the value, and how it is priced for residents. We found no regulator rule that requires a battery owner in an embedded network to share its earnings with residents, so the contract is what matters.
What changes are coming?
The AER published a draft decision in August 2026 proposing version 8 of both guidelines. According to a Gadens summary, it aimed to finalise them together in November 2026; we could not open the AER pages to confirm. Proposals include easing individual-exemption requirements for retrofitting commercial networks while keeping consumer protections. Until final versions are released, version 7 applies. From 1 January 2026, exemption classes D1 and D2 closed to new supply activities and classes R1 and R2 expanded, according to Mills Oakley.
What to check if you live in, or are buying into, an embedded network
- Ask for the operator’s tariff sheet and compare it with the standing offer for your network, using the table above.
- Ask whether your meter has an NMI. Without one, switching is not possible.
- Ask who holds the exemption and which ombudsman scheme covers the operator.
- Ask what solar, battery or EV charging exists now, and how its benefits reach you.
- If you own a unit, ask for the embedded network details in the sale documents; in Victoria the review recommended disclosure to buyers.
- For a new building in Victoria, ask how the renewable condition is being met.
For installers who work on apartment and body corporate solar, browse the installer directory and the Victorian and NSW pages. Our quote comparison guide and feed-in tariff tracker help with the numbers.
A webinar from COTA Queensland, a seniors organisation, explains embedded networks in plain language, mainly for older residents.
FAQ
What is an embedded network?
An embedded network is a private electricity network that connects to the grid through one parent meter and supplies several homes through child meters. Apartment blocks, retirement villages and caravan parks are the most common. The owner or operator, not a licensed retailer, usually sells the power.
Can I change provider in an embedded network?
Yes in principle, but you need a retailer willing to offer an energy-only plan and a child meter with an NMI. The retailer asks the embedded network manager to create the NMI. You continue to pay the network owner for network costs, and a meter upgrade may be charged to you.
Are embedded network electricity prices higher?
They can be, but they are capped for residential customers at the local standing offer, according to Utility Club’s summary of the AER conditions. Many market plans are cheaper than a standing offer, so a capped price can still be higher than what a neighbour outside the network pays. Compare your tariff with the regulated prices above.
Is it legal to build a new embedded network in Victoria?
Mostly not. Since 1 January 2023, new residential embedded networks with 10 or more customers need to meet a renewable energy condition, according to the Victorian Government. Networks that were operating before then were not required to meet it.
Can I have solar in an embedded network?
Yes. Owners can install solar and sell the output to residents, or residents can use shared-solar technology and keep their own retailer. Whether it saves money depends on the price per kWh and how much you use at midday.
Can embedded network customers get the Solar Sharer Offer?
No. Our Solar Sharer Offer guide says customers in an embedded network cannot sign up, because the offer is made by retailers through individual meters. See our Solar Sharer Offer guide for the rules.
Who regulates embedded networks?
The AER sets the exemption guidelines nationally for the National Electricity Market states. The ESC regulates exempt persons in Victoria. Complaints go to your state energy ombudsman, for example EWOV in Victoria or EWOQ in Queensland.
How many people live in embedded networks?
We could not find a current national figure. SolarQuotes reported in January 2022 that more than 140,000 Victorians lived in buildings with residential embedded networks.
Sources
- AER Retail Exempt Selling Guideline
- AER review of the exemption guidelines 2026, draft decision notice (August 2026)
- AER draft decision notice, March 2025
- AER Default Market Offer 2026-27 final determination
- Essential Services Commission, electricity licensing exemptions
- Essential Services Commission, Victorian Default Offer
- Victorian Government, embedded networks
- Energy and Water Ombudsman Victoria, switching in embedded networks
- Energy and Water Ombudsman Queensland, new obligations (26 February 2026)
- Mills Oakley, AER completes its review of the embedded networks exemption framework
- Gadens, AER proposes further reform of exemptions framework
- Utility Club, embedded electricity networks explained
- SolarQuotes, Victorian Embedded Networks Review complete (17 January 2022)
- Clean Energy Council consumer guide, volume 14 (2011), copy hosted by Solar Choice
About this guide
This guide was written by the Solar Cobber editorial team from independent desk research checked in November 2026. Solar Cobber is a free directory that may earn referral or advertising fees from installers; commercial relationships never affect our content. This is general information, not financial or legal advice. To report a correction, contact us.
Filed under Solar Guides
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