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Solar Feed In Tariff Victoria

solar feed in tariff vic

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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Types of feed in tariff available in Victoria

Single rate feed in tariffs

With a single-rate FiT or also known as flat, you’ll get the same price for your solar energy no matter when you export it to the grid. These are the most common types of FiTs supplied by retailers.

Feed-in tariffs from 1 July 2023 to 30 June 2024: The 2023-24 flat rate minimum feed-in tariff is 4.9 cents per kilowatt-hour (kWh).

Feed-in tariffs from 1 July 2022 to 30 June 2023: The 2022-23 flat rate minimum feed-in tariff is 5.2 cents per kilowatt hour.

Time varying rates

Time-varying FiTs pay variable rates based on the time of day the electricity is exported to the grid. The table below shows the minimum daily feed-in tariffs for 2022–2023 (effective July 1, 2022) and 2023–2024 (effective July 1, 2023). 

As of 1 July 2023

OPTION 1
PeriodWeekdayWeekendRate: cents per kilowatt hour (c/kWh)
Overnight10 pm to 7 am10 pm to 7 am11.3 c/kWh
Day7 am to 3 pm, 9 pm to 10 pm7 am to 10 pm4.4 c/kWh
Early Evening3 pm to 9 pmn/a9.3 c/kWh
OPTION 2
PeriodEverydayRate: cents per kilowatt hour (c/kWh)
Shoulder9 pm to 10 am ; 2 pm to 4 pm5.5 c/kWh
Off peak10 am to 2 pm3.9 c/kWh
Peak4 pm to 9 pm10.6 c/kWh

As of 1 July 2022

PeriodWeekdayWeekendRate: cents per kilowatt hour (c/kWh)
Overnight10 pm to 7 am10 pm to 7 am7.1 c/kWh
Day7 am to 3 pm, 9 pm to 10 pm7 am to 10 pm5.0 c/kWh
Early Evening3 pm to 9 pmn/a6.9 c/kWh

Eligibility

To qualify for a feed-in tariff, a solar PV system must:

  • installed on a household or small business
  • connected to the grid

Individuals and businesses must have a solar panel system installed and be connected to the grid to participate in Victoria’s solar feed-in tariff program. They must also have a smart meter, a device that measures electricity usage and tracks electricity generated and exported to the grid. Other conditions may apply.

Benefits

One of the main benefits of participating in the solar feed-in tariff program is the opportunity to earn money by selling excess electricity back to the grid. This can help offset the cost of installing and maintaining a solar panel system, making it a more financially viable option for homeowners and businesses.

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Incentives and programs

In addition to the solar feed-in tariff, Victoria has many other incentives and rebates to encourage renewable energy adoption. These include the Solar Homes program, which provides financial assistance to homeowners to help cover the cost of installing a solar panel system, and the Renewable Energy Target, which sets a goal for the state to generate a certain percentage of its electricity from renewable sources.

Victoria’s solar feed-in tariff program provides a financial incentive for individuals and businesses to switch to renewable energy and reduce their carbon footprint. It is important to shop around for the best deals and to transition to a more sustainable energy future for Victoria.

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.

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What is a minimum feed-in tariff?

A minimum feed-in tariff is the lowest rate merchants must provide 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 considered.

Comparison by retailers

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.

Top 2 Feed-in Tariff rates VIC
RETAILERSMIN SOLAR FiTMAX SOLAR FiT
Origin4.9c20c (must purchase a solar system through Origin that’s under 7kW)
AGL4.9c15c (for the first 10kWh/day, 4.9c thereafter)

The table below shows the lowest and maximum solar feed-in tariffs available in Victoria for residential customers on a single rate tariff. 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.

Feed-in tariff rates for major VIC retailers
VIC MAJOR RETAILERSMIN SOLAR FiTMAX SOLAR FiT
1st Energy4.9c9.9c
Alinta Energy4.9c4.9c
EnergyAustralia5.4c12c (for the first 15kWh/day, 5.4c thereafter)
Lumo Energy4.9c5.5c
Momentum Energy5.4c5.4c
Red Energy4.9c7.0c
Simply Energy4.9c11.0c
Tango4.9c4.9c

Read more about the solar Feed-in Tariff in Victoria

Energy Matters has over 17 years of experience in the solar industry and has helped over 40,000 Australian households in their journey to energy independence.

Contact us today, and we can connect you with our trusted local solar installers in Melbourne, who will provide up to 3 FREE solar quotes for your home and business solar energy system.

Switching to a better plan?

You may already have an energy plan but want more power or to shop for a better deal.

Energy Matters‘ “Free Energy Bill Comparator” is a cutting-edge energy bill tool that compares your area’s most competitive retail offers. We collect the data from our wide range of trusted retailers, allowing you to decide on the switching plan and find the best deal for your needs.

If your goal is to get more electricity and minimise the cost of your gas and electricity bills, switch to a better plan now!

Updated January 2024

Sources: Essential Services Commission, Canstar Blue