Solar feed-in tariffs are a payment system that allows individuals and businesses with solar panel systems to sell excess electricity back to the grid. In Victoria, Australia, the feed-in tariff rate is determined by the state government and utilities.
Victoria’s Essential Services Commission (ESC) examined the minimum feed-in tariffs for energy exported to the grid from small-scale renewable sources such as rooftop solar.
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What is a solar feed-in tariff?
A solar feed-in tariff (FiT) is the rate an electricity retailer pays a solar customer for excess electricity exported to the grid. Rooftop solar systems typically generate more energy than a household uses during daylight hours.
Rather than going to waste, that surplus flows back into the grid, and the retailer credits the customer’s account at the applicable FiT rate. In Victoria, this rate is now set entirely by individual retailers rather than by a government regulator.
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Types of solar feed-in tariff available in Victoria
Flat rate tariffs
A flat, or single-rate, feed-in tariff pays the same rate for every kilowatt-hour exported, regardless of the time of day. This remains the most common structure offered by Victorian retailers.
Stepped or Tiered rates
Some retailers offer a stepped feed-in tariff, paying a higher rate for the first block of daily exports (typically the first 10 kWh) and then a lower rate for any exports beyond that threshold.
Time-varying rates
A small number of plans pay different rates depending on the time of export, typically rewarding evening exports more generously than midday exports, when solar supply is highest. Since deregulation, the ESC no longer publishes a standard time-varying schedule, so these structures now differ from retailer to retailer.
Solar feed-in tariff Victoria 2026-27: What's new
The biggest change to the Victoria solar feed-in tariff landscape took effect on 1 July 2025, when the state government amended the Electricity Industry Act 2000 to remove the ESC’s role in setting a minimum FiT. For 2026-27, this deregulated approach continues, meaning there is still no government-mandated minimum solar feed-in tariff Victoria households can rely on.
Here’s what solar households in Victoria need to know for the 2026-27 financial year:
- No ESC minimum: Retailers now set their own solar feed-in tariff rates in Victoria rather than following a regulator-determined benchmark.
- Zero floor still applies: A retailer’s feed-in tariff cannot be set below $0.00 per kilowatt-hour, so exporting solar can never cost you money directly.
- Notification requirements: Retailers must tell customers when their feed-in tariff rate changes, giving households the chance to compare and switch if needed.
- ESC oversight continues: While the ESC no longer sets the rate, it still monitors retailers to ensure terms and conditions remain fair and transparent.
- Victorian Default Offer down: The ESC’s separate Victorian Default Offer (VDO) for 2026-27, effective 1 July 2026, cuts average bills by around 5% for households and 6% for small businesses, which affects overall electricity costs even though it does not set the feed-in tariff.
Victorian default offer 2026-27: What it means for solar households
The Victorian Default Offer (VDO) is a separate, regulated benchmark price that applies mainly to customers on standing offers, rather than the feed-in tariff itself. The ESC’s final decision for 2026-27, effective 1 July 2026, reduces average bills by roughly 5% for households and 6% for small businesses.
While the VDO doesn’t set your solar feed-in tariff, it does influence the broader market, since many retailers use it as a reference point when pricing their market offers. Lower default prices generally mean it’s a good time to shop around and compare your usage rates and feed-in tariff.
Minimum feed-in tariff timeline in Victoria
Understanding how the Victoria solar feed-in tariff has changed over recent years helps put the current deregulated landscape into context.
Financial Year | ESC Minimum Flat Rate | Status |
2023-24 | 4.9 c/kWh | ESC-regulated minimum |
2024-25 | 3.3 c/kWh | ESC-regulated minimum |
2025-26 | 0.04 c/kWh | ESC’s final regulated minimum before deregulation |
2026-27 | No ESC minimum | Deregulated; retailer-set, floor of $0.00/kWh |
As the table shows, the trend in Victoria’s minimum feed-in tariff was already sharply downward before deregulation took effect, driven largely by falling wholesale electricity prices during daylight hours as more households installed solar.
Why has the Victoria solar feed-in tariff declined?
The steady fall in Victoria’s solar feed-in tariff over recent years comes down to simple supply and demand. Rooftop solar in Victoria has grown by more than 76% since 2019, so that more solar energy now floods into the grid every day.
With so much solar exported around midday, the wholesale value of that electricity drops sharply during daylight hours. Because minimum and market feed-in tariffs are calculated using solar-weighted wholesale prices, this oversupply pushes rates down year after year.
This is also why the Victorian Government moved to deregulate the feed-in tariff altogether. With minimum rates trending towards zero, maintaining a formal regulatory process was considered unnecessary red tape, and the responsibility was handed to retailers, who continue to operate under ESC oversight for fairness and transparency.
Eligibility for solar feed-in tariffs in Victoria
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To receive a solar feed-in tariff in Victoria, a solar PV system generally needs to meet the following conditions:
- Installed at a household or small business premises.
- Connected to the electricity grid.
- Fitted with a compatible smart meter that measures both electricity usage and electricity exported to the grid.
Other conditions may apply depending on your retailer and distribution zone, so it’s worth checking directly with your energy provider or an Energy Matters solar specialist.
Benefits of the solar feed-In tariff in Victoria
The core benefit of a solar feed-in tariff is straightforward: it turns your unused solar energy into a credit on your electricity bill, helping offset the upfront cost of your solar system.
Even with rates lower than in previous years, a feed-in tariff still adds up over the life of a solar system, particularly when paired with smart usage habits and, increasingly, battery storage.
Are solar-specific plans available in Victoria?
Yes, a few shops sell plans to clients with solar panels, although some electricity suppliers may only sometimes advertise them publicly. You should check with the provider or click our energy compare to use our energy comparator tool. While a solar-specific plan may appear appealing on paper, you should double-check that electricity rates have not been raised to meet a greater feed-in tariff.
Feed-in tariff prices are generally determined by many factors, including the size of the solar panel installation, the property’s location, and the overall demand for electricity in the area. Some retailers may charge varying prices for different categories of customers, such as residential or commercial customers, or for customers with various-sized solar panel systems.
So before engaging in an agreement with a retailer, individuals and companies interested in participating in a plan should carefully consider the conditions of any contract. This includes comprehending the rate at which the retailer will purchase electricity from the client and any fees or charges that may have in the agreement.
What is the minimum solar feed-in tariff in Victoria?
A minimum feed-in tariff is the lowest rate that merchants must provide to solar consumers.
The minimum rate is determined by projecting wholesale electricity prices for the following calendar year.
Wholesale prices vary throughout the day, and solar panels can only generate electricity during certain times. When estimating wholesale electricity costs, these solar hours are taken into account.
Solar feed-in tariffs in Victoria: Maximising your solar investment
Understanding the solar feed-in tariff Victoria offers is crucial for homeowners looking to optimise their solar investment. The solar feed-in tariff VIC represents the payment you receive for excess solar energy exported back to the grid. These tariffs vary among energy retailers, and comparing offers is essential to find the most beneficial rate. To maximise your returns:
- Regularly review your energy consumption and solar production to align with tariff structures.
- Solar battery storage solutions should be considered to store excess energy for later use, thereby reducing reliance on the grid.
- Stay informed about changes to Victorian solar feed-in tariff policies and retailers’ offerings.
- Upgrade to energy-efficient appliances to decrease overall energy consumption and ensure that your solar generation covers more of your energy needs.
For those interested in comparing tariffs across states, explore information on our following pages:
Comparison by retailers in Victoria (VIC)
Victorian electricity retailers are obligated to offer these prices to qualifying FiT customers for electricity exported to the grid. Electricity retailers may offer a rate greater than the regulatory minimum, but they are not required to do so.
Please remember that some shops may only be available in some areas of Victoria, and some FiTs may only be available to clients who meet their eligibility.
Some of the Solar Feed-in Tariff Rates for Major VIC Retailers | |
Retailers | Solar Feed-in Tariff |
AGL | 0.5c/kWh |
Alinta Energy | 0.0c/kWh |
CovaU | 4.9c/kWh |
Energy Australia | 1.5c-8.0c/kWh |
ENGIE Solar | 1.0c-8.0c/kWh |
Nectr | 1.0c/kWh |
OVO Energy | 0.0c-1.0c/kWh |
Momentum Energy | 0.0c/kWh |
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Frequently asked questions
Is there a minimum solar feed-in tariff in Victoria in 2026-27?
No. Victoria deregulated its feed-in tariff from 1 July 2025, so the ESC no longer sets a minimum rate. Retailers set their own rates, though they cannot go below $0.00 per kilowatt-hour.
What is the best solar feed-in tariff in Victoria right now?
The best available rate changes regularly as retailers adjust their offers. As at June 2026, EnergyAustralia’s plans include some of the highest advertised rates, but always compare current offers before switching, since conditions and export limits apply.
How is the solar feed-in tariff different from the Victorian Default Offer?
The Victorian Default Offer sets a regulated benchmark price primarily for electricity usage charges for standing-offer customers. The solar feed-in tariff is a separate rate, set independently by each retailer, that pays you for exported solar energy.
Can my Victoria solar feed-in tariff rate go negative?
No. Under Victorian law, a feed-in tariff cannot be set below $0.00 per kilowatt-hour, so exporting solar to the grid will never directly cost you money.
Should I install a solar battery given lower feed-in tariff rates?
For many Victorian households, yes. As the solar feed-in tariff declines, the value of self-consuming your own solar energy rather than exporting it rises. A battery lets you store excess solar energy generated during the day and use it in the evening, when you would otherwise pay a much higher retail electricity rate. Contact Energy Matters to see whether a battery makes sense for your household.
