Feed-in Tariff

What a feed-in tariff is

When your solar panels produce more electricity than your home is consuming at that moment, the excess flows out through your meter and onto the local network. Your retailer pays you for that exported power at a rate called the feed-in tariff.

The FiT appears on your electricity bill as a credit, offsetting what you owe for grid electricity consumed overnight or on low-generation days.

The current reality

Early solar adopters in Australia benefited from premium feed-in tariffs - some states paid 44–68¢/kWh under schemes introduced between 2009 and 2011. Those schemes are now closed to new entrants, and the rates have collapsed.

Current voluntary feed-in tariffs offered by retailers in Australia:

• NSW: Typically 5–8¢/kWh. The AER minimum benchmark is around 4–5¢/kWh
• VIC: Minimum solar FiT set by the Essential Services Commission - around 4.9¢/kWh in 2025-26. Some retailers offer higher rates voluntarily
• QLD: Typically 6–10¢/kWh. No mandated minimum FiT
• SA: 5–8¢/kWh, with some retailers offering higher peak-rate exports
• WA: Synergy pays 2.25¢/kWh on the Distributed Energy Buyback Scheme (DEBS), rising to 10¢/kWh during peak demand windows (3–9pm weekdays)

Why the FiT gap matters

With import rates at 28–40¢/kWh and export rates at 4–10¢/kWh, every kWh you self-consume is worth 3–8× more than every kWh you export. This asymmetry is the fundamental driver of solar economics in 2025 onwards.

A system sized or operated to maximise self-consumption delivers far better returns than one designed for maximum export. This changes the recommendation for solar sizing (match your daytime load, not your total consumption) and is the main argument for adding battery storage.

Time-varying and flat FiTs

Some retailers now offer time-varying FiTs - paying more during afternoon peak demand periods (typically 3–9pm) and less during midday oversupply. SA Power Networks’ Virtual Power Plant feed-in arrangements and some Amber Electric plans work this way, allowing solar owners to capture higher export revenue by storing energy in a battery and discharging it during peak windows.

Flat FiTs are simpler but leave money on the table if you have flexibility in when you export.

Premium scheme closures and grandfathering

Households still on premium schemes from 2009–2012 should check when their contract expires and plan accordingly - the transition from a 44¢ FiT to a 6¢ FiT dramatically changes the economics of that system and typically makes battery storage far more attractive.