If you have solar panels in Melbourne or regional Victoria, you have probably noticed your export credits shifting again. The Victoria solar feed-in tariff has changed significantly between 2025 and 2026, and the 2026-27 feed-in tariff year brings further updates. This guide breaks down what the Victoria solar feed-in tariff means now, why it changed, and how it affects your bill.
What is the Victoria solar feed-in tariff?
The Victoria solar feed-in tariff is the credit you receive for excess solar power fed back into the grid. Your solar panels power your home first. Anything left over gets exported, and your retailer pays a feed-in tariff rate for it.
For years, the Essential Services Commission (ESC) set a minimum feed-in tariff every July. Retailers could pay more than the minimum feed-in tariff, but never less. This annual feed-in tariff review shaped how much every solar household in Victoria earned from their exports.
Victoria solar feed-in tariff 2025-26: A quick recap
The 2025-26 year marked a turning point for the Victoria solar feed-in tariff. From 1 July 2025, the ESC stopped setting a minimum feed-in tariff altogether.
Before that change, here is how the numbers looked:
- 2024-25 flat feed-in tariff: 3.3 cents per kWh, a 32% drop from the year before.
- 2024-25 time-varying feed-in tariff: ranged from 0.00 cents during the day to 6.57 cents per kWh in the evening peak.
- Reason for the drop: more rooftop solar meant more daytime supply, which pushed wholesale export prices toward zero.
From 1 July 2025, retailers were free to set their own feed-in tariff, as long as it remained at or above $0.00 per kWh. This was a deliberate deregulation move by the Victorian Government, removing red tape around the feed-in tariff now that the old minimum had fallen close to zero anyway.
Victoria solar feed-in tariff 2026-27: What’s new
Feed-in tariffs are now fully deregulated
Heading into 2026-27, the Victoria solar feed-in tariff remains a retailer decision rather than a government-set rate. The ESC no longer publishes an annual minimum. Instead, it maintains an oversight role, ensuring that retailer terms remain fair and transparent.
This means shopping around for the best feed-in tariff matters more than ever for Victorian solar households. Some retailers currently advertise a feed-in tariff as high as 8 cents per kWh for the first block of daily exports, while others sit much lower. A handful still offer competitive flat feed-in tariff rates for households exporting large volumes from bigger systems.
Victorian default offer prices for 2026-27
While the feed-in tariff itself is deregulated, the ESC still sets the Victorian Default Offer (VDO). This is the standing offer price that protects customers who have not chosen a market plan.
For 2026-27, the ESC’s draft decision points to lower default prices across the board:
- Domestic customers are set to save around $46 a year (3%) on average.
- Small business customers are set to save around $172 a year (5%) on average.
- The drop is driven by lower wholesale, network, and environmental costs feeding into the price.
- A new three-part time-of-use network tariff, including an 11 am-4 pm “solar soak” period, is being built into the 2026-27 default offer structure.
The solar soak window is worth watching. It is designed to encourage households to shift energy use to the middle of the day, which is exactly when self-consumption of their own solar power delivers the biggest savings.
2025 vs 2026: Feed-in tariff and default offer comparison
| Item | 2024-25 | 2025-26 | 2026-27 |
| Feed-in tariff setting | ESC minimum: 3.3c flat / up to 6.57c peak | Deregulated from 1 July 2025 | Deregulated, retailer-set |
| Feed-in tariff floor | $0.00 minimum enforced | $0.00 minimum enforced | $0.00 minimum enforced |
| Best advertised feed-in tariff | Varies by retailer | Up to 8c/kWh (first block) | Retailer-dependent, check offers |
| Victorian Default Offer trend | Baseline year | Set by the ESC’s final decision | ~3-6% lower on average |
| New tariff structure | Two-period time of use | Two-period time of use | Three-period, solar soak added |
Key differences at a glance
Here is a simple summary of what actually changed for Victorian solar households:
- No more government minimum. The ESC stopped setting a minimum Victoria solar feed-in tariff from 1 July 2025.
- Retailers compete on rate. Your feed-in tariff now depends entirely on which retailer and plan you choose.
- Default offer prices are falling. The 2026-27 Victorian Default Offer is trending lower than 2025-26.
- Solar soak periods are arriving. Midday use is being rewarded more directly in new network tariff structures.
- Self-consumption matters more. With feed-in tariffs low and variable, using your own solar power during the day is the surest way to save.
How to get the best solar feed-in tariff in Victoria
With the Victoria solar feed-in tariff now fully market-driven, a bit of comparison shopping goes a long way. Consider these steps:
- Compare multiple retailers, not just your current one, since feed-in tariff offers can vary widely.
- Check the fine print on heavily advertised rates, as many apply only to the first 10 kWh exported each day.
- Look at import rates too, because a higher feed-in tariff can sometimes be accompanied by higher usage charges.
- Shift appliance use to midday to make the most of free solar power before it is exported at a low rate.
- Consider a solar battery to store cheap daytime solar power for use in the evening, when grid electricity is more expensive.
If you are unsure which system size or setup suits your home, Energy Matters can help you compare options built around Tier 1 solar panels and battery storage designed for Victorian conditions.
Use Energy Matters’ easy-to-use solar power and battery storage calculator to determine the size of your solar system with storage! Our solar calculator will generate performance information and potential savings.
We can send this information to 3 of our pre-vetted, trusted local installers in your area so they can provide obligation-free solar quotes and take the first step toward true energy independence!
Frequently asked questions
Is there still a minimum feed-in tariff in Victoria?
No. Since 1 July 2025, retailers have set their own feed-in tariff, though it can never legally fall below $0.00 per kWh.
Will the Victorian Default Offer affect my feed-in tariff?
Not directly. The Victorian Default Offer sets standing electricity prices, while your feed-in tariff is a separate rate you negotiate through your retailer or plan.
How do I find the best feed-in tariff for my home?
Compare retailer offers regularly, as rates change frequently now that the Victoria solar feed-in tariff is deregulated. Independent comparison tools, such as Energy Matters’ tool, can help.
Why did the Victoria solar feed-in tariff drop so much?
More households installed solar, which pushed daytime wholesale electricity prices toward zero. This made the old minimum feed-in tariff harder to justify, leading the ESC to deregulate the Victorian solar feed-in tariff altogether from 1 July 2025.
Does a higher feed-in tariff always mean a better deal?
Not always. A high feed-in tariff can come bundled with higher usage rates or daily supply charges, so it pays to compare the whole plan, not just the feed-in tariff line.
Energy Matters can help
Understanding the Victoria solar feed-in tariff 2026-2027 is only the first step.
Choosing the right solar system, battery, inverter, and electricity retailer can have a much bigger impact on your long-term savings than the minimum feed-in tariff alone.
Energy Matters helps Australian homeowners compare trusted installers, quality solar products, batteries, and energy plans to maximise solar returns.
Sources and References:
- Essential Services Commission, Victorian Default Offer 2026-27 Draft Decision Paper, March 2026 | Minimum feed-in tariff review 2025-26, Victorian regulator publishes draft default electricity price, March 2026
- Department of Energy, Environment and Climate Change (Victoria), Solar feed-in tariff – energy.vic.gov.au
- Solar Victoria, Feed-in tariff ending? You still have ways to save – solar.vic.gov.au
