Solar feed-in tariffs are rates paid for electricity fed back into the electricity grid from a designated renewable electricity generation source, such as a rooftop solar panel system or wind turbine.
Exploring the global impact of feed-in tariff regulations on solar energy uptake, it’s clear that sustainable choices can thrive. As you explore the possibilities for your energy transition, Energy Matters offers a practical next step. Get FREE solar quotes from them to ensure your journey into renewable energy is both informed and effortless.
On this page
Did you know Energy Matters is Australia’s largest renewable news, blog and educational resource? Subscribe to Energy Matters’ weekly newsletter and keep updated even with incentives, rebates and recommended solar product offers.
Understanding solar feed-in tariffs in Australia
When you install rooftop solar panels, they generate direct current (DC) electricity from sunlight. Your solar inverter converts this into alternating current (AC) electricity to power your lights, fridge, and appliances.
But what happens when your panels produce more electricity than your home is using at that exact moment? That extra electricity flows back into the local grid, and your energy retailer pays you for it.
This payment is known as a solar feed-in tariff (often abbreviated as FiT). It is calculated in cents per kilowatt-hour (c/kWh) and is applied directly as a credit to your electricity bill.
Net vs. gross feed-in tariffs
It is important to understand the difference between the two main types of payment systems, even though one is now almost entirely obsolete.
- Gross feed-in tariffs: Under this old system, you exported 100% of the electricity your solar system generated directly to the grid. You received a premium payment for all generated energy, while paying a separate bill for all the energy you consumed.
- Net feed-in tariffs: This is the standard model used across all states in 2026. Your home uses your solar energy first, and you are paid a tariff only for the leftover “net” energy that leaves your property.
Because you only get paid for what you do not use, your priority should be using your solar power while the sun is shining.
How solar feed-in tariffs work
The mechanics of the modern solar feed-in tariff in Australia are closely tied to the wholesale electricity market managed by the Australian Energy Market Operator (AEMO).
During the middle of the day, millions of solar systems across the country flood the electricity grid with cheap, clean energy. This massive supply of daytime electricity drives wholesale market prices down, sometimes even into negative territory.
As a result, energy retailers have steadily reduced the rates they pay to households for daytime exports. This shifting dynamic has led to the introduction of “time-varying” and “two-way” tariffs in several states.
The rise of two-way and time-varying solar tariffs
To manage grid stability, regulators and distributors have moved toward flexible pricing structures.
- Time-of-use (time-varying) tariffs: Under these plans, you earn different rates depending on when you export power. You might receive next to nothing in the middle of the day, but earn premium rates of 10 to 18 c/kWh in the late afternoon and early evening, when grid demand peaks.
- Two-way tariffs (solar export pricing): Often referred to colloquially as a “solar tax,” this system charges a small fee (typically 1-2 c/kWh) when you export large amounts of solar energy during periods of extreme oversupply. Conversely, it pays you a much higher bonus rate if you export during peak evening hours.
Solar feed-in tariff rates at a glance (2026)
With export rates trending lower across most of the country, relying solely on exporting energy to the grid is no longer the most efficient financial strategy. To maximise your return on investment, you must adapt how you use and store your clean energy.
Victoria solar feed-in tariff
The Essential Services Commission (ESC) regulates the minimum feed-in tariff in Victoria. For the 2025–2026 financial period, the ESC has set a flat-rate minimum, alongside flexible, time-varying options, to better reflect real-time grid conditions.
- Flat-rate minimum: Historically around 3.3 c/kWh, the flat rate is shifting toward 0.0-4.0 c/kWh depending on your retailer’s specific structure.
- Time-varying rates: These rates incentivise evening exports. You can earn up to 5.91 c/kWh to 7.55 c/kWh during off-peak evening windows, while daytime exports may sit at 0.0 c/kWh.
Retailers are legally required to offer at least the minimum regulated rate, but many offer higher market rates to win your business.
Check out our page to learn more about solar feed in tariff Victoria.
Which Victorian electricity distributor should you choose?
Unfortunately, you have no choice. A distributor is assigned to specific areas:
- Citipower: CitiPower distributes electricity to Melbourne’s CBD and inner suburbs.
- Jemena: Jemena Electricity Networks distributes electricity to Melbourne’s northwest greater metropolitan region.
- Powercor Australia: Supplies electricity to Melbourne’s outer western suburbs and regional and rural centres in the west and central areas, including Ballarat, Bendigo and Geelong.
- SP Ausnet: Supplies electricity to eastern metropolitan Melbourne and eastern Victoria.
- United Energy Distribution: Supplies electricity to the southeast Melbourne metropolitan area and the Mornington Peninsula.
Which retailer should you choose?
While you cannot change distributors, you can switch retailers.
At the electricity retailer level, whether in Victoria or any other state, we always suggest that people shop around – some retailers are far more solar-friendly than others and will offer better rates, higher payments for the power your system produces and/or better arrangements regarding your account generally.
Read more about the solar feed-in tariff in Victoria
South Australia solar feed-in tariff
South Australia has one of the highest penetrations of rooftop solar in the world. The Essential Services Commission of South Australia (ESCOSA) does not set a minimum rate.
- Market-driven rates: Retailers offer anywhere from 0.0 to 10.0 c/kWh.
- Grid integration: Due to frequent periods of 100% renewable generation in South Australia, flexible export limits and VPP (Virtual Power Plant) participation are highly encouraged to stabilise the network.
Read more about the solar feed-in tariff in South Australia
ACT solar feed-in tariff
The Independent Competition and Regulatory Commission (ICRC) monitors the retail energy market in Canberra but does not mandate a minimum tariff.
- Competitive offers: Retailers offer voluntary feed-in tariffs starting from 0.0 up to 10.0 c/kWh.
- Shopping around: ACT residents are highly encouraged to compare the overall contract terms, as plans with high feed-in rates may have higher peak consumption rates.
Energy Matters provides a FREE energy bill comparison service whereby customers can use a recent energy bill (gas and/or electricity) to find better deals and make the switch in a few simple steps.
Looking for a better energy deal?
Read more about the solar feed-in tariff in ACT
Tasmania solar feed-in tariff
The Office of the Tasmanian Economic Regulator (OTTER) sets a regulated minimum feed-in tariff every financial year.
- Minimum rate: Historically fixed around 8.78 c/kWh to 10.0 c/kWh.
- Stability: Tasmania’s energy market is less volatile than the mainland’s because of its heavy reliance on baseload hydroelectric power.
Read more about the solar feed-in tariff in Tasmania
Northern Territory solar feed-in tariff
In the Northern Territory, the government-owned Jacana Energy and private Rimfire Energy manage the market.
- Standard Anytime FiT: Sits at 9.33 c/kWh (including GST).
- Super FiT (Jacana Energy): Pays a premium of 18.66 c/kWh between 3:00 pm and 9:00 pm daily.
- Rimfire Energy: Offers a flat rate of up to 11.0 c/kWh for residential and commercial connections.
Read more about the solar feed-in tariff in the NT
Western Australia solar feed-in tariff
For electricity from qualified solar PV installations, batteries, and electric cars exported to the grid, the Western Australian Distributed Energy Buyback Scheme (DEBS) gives compensation.
DEBS offers export payment time. With a greater price paid for electricity exported in the late afternoon and evening when electricity demand and the wholesale cost of electricity are higher, these rates more accurately represent the cost of electricity at different times of the day.
| PEAK | TIME PERIOD | EARNS c/kWh |
| Peak rates | Electricity is exported between 3pm to 9pm | 10.0c |
| Off-peak rates | Electricity is exported between 9pm and 3pm | 2.0c |
| PEAK | TIME PERIOD | EARNS c/kWh |
| Peak rates | Electricity is exported between 3pm to 9pm | 10.0c/kWh |
| Off-peak rates | Electricity is exported between 9pm and 3pm | 3.0c/kWh |
Read more about the solar feed-in tariff in WA
Queensland solar feed-in tariff
Feed in tariff in regional Queensland
The regional solar feed-in tariff may be available even if you don’t reside in South East Queensland. Ergon Energy Retail and Origin Energy customers who meet the requirements may use this flat-rate tariff. Regional Queensland consumers on the Ergon Energy network are subject to a minimum feed-in tariff rate of 12.377c/kWh.
- Ergon Energy Retail, if you’re connected to the Ergon Energy network
- Origin Energy if you’re connected to the Essential Energy network.
Market feed-in tariffs in South East Queensland (SEQ)
South East Queensland (SEQ) electricity retailers voluntarily provide customers with solar power at competitive feed-in tariff rates. Shopping around for the best feed in tariff rate is crucial because electricity providers offer varying prices.
Read more about the solar solar feed-in tariff in Queensland
New South Wales feed-in tariff
There is no required minimum feed-in tariff rate in NSW. Instead, each electricity retailer decides how much to charge for exported solar energy. Electricity providers are incentivised to offer a fair feed-in price to attract customers with installed solar panels, given the competitive market.
According to the Independent Pricing and Regulatory Tribunal (IPART), the benchmark rate in NSW for 2026-2027 is 3.4 to 6.5 cents per kWh.
Read more about the solar solar feed-in tariff in NSW
State-by-state solar feed-in tariff guides for 2026
State / Territory | Regulation Model | Typical / Regulated Rate (2026) |
Victoria | Deregulated (no minimum) | ~0.8c/kWh average |
New South Wales | Non-binding benchmark (IPART) | 3.4–6.5c/kWh |
Queensland (regional / Ergon) | Regulated minimum | 6.006c/kWh |
Queensland (SE / Energex) | Deregulated | 3–10c/kWh |
South Australia | Deregulated | 5–8c/kWh |
ACT | Deregulated, monitored | Varies by retailer |
Tasmania | Regulated minimum | 9.276c/kWh |
Western Australia (Synergy) | Government buyback (DEBS) | 2–10c/kWh (time-based) |
Northern Territory | Government-set | 9.33–18.66c/kWh |
Figures are indicative as at July 2026 and subject to change. Always confirm the current rate with your retailer.
Maximising your solar investment: Beyond feed-in tariffs
With export rates trending lower across most of the country, relying solely on exporting energy to the grid is no longer the most efficient financial strategy. To maximise your return on investment, you must adapt how you use and store your clean energy.
The power of solar battery systems
Installing a home solar battery storage system allows you to store your excess daytime generation rather than exporting it to the grid for a low credit. You can then use this stored power during the evening when electricity rates are at their highest.
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!
Joining a Virtual Power Plant (VPP)
A Virtual Power Plant is a network of interconnected home battery systems managed by a central operator. By joining a VPP, you allow the operator to briefly draw power from your battery during grid emergencies. In return, you receive premium credits—often up to 45c to $1.00 per kWh—or direct discounts on your system installation.
For more information, visit our VPP offers page in Australia.
🛠️Expert tip: Calculate your payback period
Adding a battery can lower your grid dependence by up to 80%. When evaluating quote options, ask your installer to calculate your projected payback period based on your household’s specific hourly usage patterns.
Legal, tax, and social security considerations
Understanding the administrative side of solar generation ensures you do not face unexpected surprises during tax season.
Is feed-in tariff income taxable?
For most residential installations, the credits earned from your best solar feed-in tariff are not considered taxable income. The Australian Taxation Office (ATO) views home solar systems as personal-use assets rather than profit-generating businesses. However, if you install solar on a commercial property or run a business from home, these credits may be considered assessable income, and you should consult your accountant.
Solar credits and Centrelink payments
According to Centrelink guidelines, solar feed-in tariff credits applied directly to your electricity account do not count as income under the pension income test. If your retailer issues your credits as a cash payment or direct deposit refund, those funds may be assessed under Centrelink’s standard rules.
Is GST payable on feed-in tariff revenue?
Private residential system owners do not need to register for or pay GST on the feed-in credits they receive. Conversely, registered business entities exporting solar power must remit GST on their energy export earnings.
Frequently asked questions
1. Why are solar feed-in tariffs in Australia decreasing?
Feed-in tariffs are decreasing because the massive adoption of rooftop solar creates a huge oversupply of clean electricity during the middle of the day. This abundance drives down wholesale energy prices, meaning retailers pay less for daytime exports.
2. Can I get a feed-in tariff if I have a solar battery?
Yes, you can absolutely receive a feed-in tariff when you have a battery system installed. In fact, many battery owners use smart controls to export their stored power during peak evening windows when rates are significantly higher.
3. What is a "solar tax" or two-way tariff?
A two-way tariff charges a minor fee (1 to 2 c/kWh) if you export power during midday periods of severe grid congestion. However, it compensates you with higher rates when you export during high-demand evening hours.
4. Which energy retailer has the best solar feed-in tariff?
The best retailer varies depending on your location and total energy usage. Some offer higher feed-in rates coupled with expensive daily supply charges, making a comprehensive bill comparison essential before switching plans.
5. Do I need to pay tax on my solar feed-in credits?
For residential systems, the ATO does not tax solar feed-in tariff credits because they are classified as personal-use assets. However, commercial installations or business properties may face different tax obligations.
Find the perfect solar solution today
Navigating solar setups and identifying the right energy plans can be complicated, but you do not have to do it alone. By transitioning to smart home consumption and exploring battery options, you can protect your household from rising grid prices and lower export rates.
Let the experts at Energy Matters help you design a future-proof energy system tailored to your unique needs. Get FREE solar quotes from Energy Matters and start saving today!
