The retailer sends the bill, but a distribution network service provider owns the poles, wires and street transformers. Learn who does what in the electricity system, and why the network must approve solar and batteries before they connect. A distribution network service provider (DNSP), usually just called the network or the distributor, owns and operates the poles, wires, underground cables and street transformers that carry electricity to homes and businesses in its area. It is a different organisation from the retailer that sends the bill, and it cannot be chosen: it depends on where a property is located. Because the DNSP is responsible for keeping voltage, safety and capacity within limits on its network, every solar system or battery that connects to that network needs its approval, including a decision on how much power the system may export.
Who does what in the electricity system
The supply chain has several distinct roles, each with its own responsibilities:
| Role | What it does | Where a household meets it |
|---|---|---|
| Generators | Produce electricity in power stations, wind farms, solar farms and large batteries | Indirectly, through the wholesale cost built into retail prices |
| Transmission network | Carries high-voltage power over long distances to major substations | Rarely, if ever, directly |
| Distribution network (DNSP) | Runs local substations, poles, wires and street transformers; connects customers; approves solar and batteries; restores supply after faults | Connection applications, outages and network charges passed through the bill |
| Retailer | Buys electricity wholesale, packages network and other costs into plans, bills customers and pays feed-in credits | The bill, the plan and customer service |
| Metering coordinator and meter provider | Install, maintain and read meters, and supply meter data | Meter changes after solar, battery or three-phase work |
| Market operator | Runs the wholesale market and keeps the overall power system secure and balanced | Indirectly, through system-wide requirements |
| Regulators | Set network revenue allowances, market rules and consumer protections | Indirectly, through price decisions and customer rights |
A simple way to remember the split: the retailer sells the energy, the network delivers it, and the meter measures it.
Why the network, not the retailer, approves solar
A rooftop solar system or home battery is a small generator connected to the DNSP's equipment. Every export changes voltage and current on the local low-voltage network, and the network is responsible for keeping supply within standards for every customer on that street. Before approving a connection, the DNSP considers:
- Inverter capacity, and whether the connection is single-phase or three-phase.
- Export capacity: how much the site wants to send to the grid, and how much the local area can accept.
- Equipment compliance: whether the inverter and battery meet Australian grid-connection standards and will use the required settings.
- Protection and safety: that anti-islanding and other protections are in place, so the system cannot energise lines during an outage.
The answer is not always a simple yes or no. A network may approve a system with a lower export limit than requested, approve zero export in a heavily constrained area, or offer a flexible export arrangement in which the limit varies with network conditions.
The connection process, step by step
In NSW, the process for a typical home system generally runs as follows, with the installer handling most steps:
- Design. The accredited designer sizes the system, selects compliant equipment and decides what export capacity to request.
- Application. The installer lodges a connection application with the DNSP, usually through an online portal, before installation. Small systems within standard limits are often assessed quickly; larger or three-phase systems, or those in constrained areas, can take longer and may need technical review.
- Approval and conditions. The DNSP issues an approval that sets conditions such as the export limit and required inverter settings.
- Installation. Installers accredited with Solar Accreditation Australia, working with licensed electricians, install the system and program the inverter to the approved settings.
- Compliance paperwork. The electrician lodges the certificate of compliance for the electrical work and notifies the network that the work is complete.
- Metering. The retailer arranges for the meter to be replaced or reconfigured so imports and exports are recorded separately; until then, exports may not be credited correctly. Smart meters and solar explains how two-way metering works.
Skipping the application, or changing export settings after approval, can breach the connection conditions and create safety risks for network crews.
How network costs reach the bill
Distribution networks are regulated monopolies, so the revenue they can recover is capped by a regulator. They charge network tariffs to retailers, who pass them on inside household plans. Network charges are a significant part of a typical electricity bill, and they shape its structure:
- The daily supply charge largely reflects the fixed cost of maintaining the connection.
- Time-of-use and demand components on retail plans often mirror the network tariff assigned to the site.
- A meter change can trigger reassignment to a different network tariff, which is why some solar owners notice a new tariff structure after installation.
Why approval matters for future upgrades
An approval covers the system as installed. Adding panels, replacing an inverter with a larger one, adding a battery or upgrading from single-phase to three-phase generally needs a new or updated application. A battery can change how much power a site might export at once, so networks assess it too, even when the solar system is already approved.
Homes considering greater independence from the grid remain within this framework unless they disconnect entirely, a step with significant trade-offs discussed in grid independence: what it really means.
Questions worth asking before an application is lodged
Most of the connection process happens behind the scenes, but a few questions help set clear expectations:
- What export limit will be requested, and how would the design change if the network approves less?
- If flexible exports are offered, is the proposed inverter compatible with the network's communication requirements?
- Does the switchboard need upgrading before the new meter can be installed?
- Who arranges the meter exchange, and how long might exports go uncredited while it is pending?
- Is the network tariff likely to change once the meter is replaced, and how would that affect the retail plan?
Next steps
Two services on the energy market relate directly to the network side of a project: Smart Meter & Metering Coordination ($199 per property) organises the meter exchange with the retailer or metering coordinator after solar, battery or three-phase work, and the Single-Phase to Three-Phase Upgrade (from $3,490 per property) includes the network application. Prices are indicative and confirmed after a site assessment. For a system designed around your network's rules, with the connection application handled for you, request a free assessment from Blue Energy Solar.
Frequently asked questions
How can I tell which network serves my address?
The electricity bill is the easiest place to look. It usually names the distributor, often in the section listing who to contact about faults and outages, and it shows the National Metering Identifier (NMI) for the property. The first characters of the NMI indicate which network the connection belongs to. A retailer can also confirm the distributor for a particular address.
Can a network refuse a solar application?
A network can decline an export request, or approve it only with conditions, when the local area has limited capacity. More often, the outcome is an approval with a reduced or zero export limit, or an offer of flexible exports. Options then include a smaller system, accepting the lower limit, adding a battery to use more solar on site, or choosing flexible exports where available.
Who should I contact during a blackout, the retailer or the network?
The network, because it owns the poles and wires and is responsible for restoring supply. Retailers handle billing and plans, but they cannot repair faults. Most networks publish live outage information online. A standard grid-connected solar system also shuts down during an outage for safety, so power stays off at home unless a backup-capable battery system is installed.
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