Most solar owners still think in terms of how much energy they export. That made sense when feed-in tariffs (FiTs) were generous, but it’s not how solar works anymore.
Today, many households are getting around 5 cents per kWh for the power they send to the grid, then paying 25 to 30 cents or more to use electricity later in the day. That gap is where a lot of the value is lost. It’s not obvious when you look at your bill, but it adds up quickly and quietly over time.
Why exported solar is worth less than it used to
This is not just retailers being stingy, but it comes down to timing and volume. In the middle of the day, millions of rooftops are generating at once. That flood of supply pushed down the wholesale value of electricity during those hours. In simple terms, solar is producing at the exact time the market is already full of solar.
That means the electricity your system exports is often arriving when it is least valuable. Years ago, exported power had more scarcity behind it. Today, in many parts of the country, midday solar is abundant. The more common it becomes, the less retailers are willing, or able, to pay for it.
That is why high FiTs are no longer the main event. If a retailer still offers a relatively strong one, it is often tied to a plan that makes its money back somewhere else, whether through higher usage charges, less competitive conditions, or time-based quirks that do not favour the household overall.
Where households are still losing money
The quiet issue in many solar homes is poor alignment between generation and use.
Solar usually does its best work from late morning through the afternoon. Household demand often peaks later, when people get home, start cooking, turn on lights, run the air con, charge devices, and settle into the evening. By then, solar output has dropped away or disappeared entirely.
So the same home can export a large amount of power cheaply during the day, then rely on expensive grid electricity only a few hours later. That pattern is more common than people realise, especially in homes where everyone is out during business hours.
Nothing is technically wrong with the system when this happens. The panels may be performing perfectly. The issue is that the home is set up to send low-value electricity away and buy higher-value electricity back.
What actually matters now
Every unit of solar you use at home is a unit you do not have to buy from the grid at retail rates. That avoided cost is where the stronger savings now sit. This is why FiTs are still relevant, but no longer decisive. They matter at the edges as they can still contribute something to the bill. But they are not the main reason solar pays off anymore.
The stronger question for households now is not, “What is my FiT?” It is, “How much of my own solar am I actually using?”
That answer says far more about real savings than the export rate alone.
Why timing has become the real battleground
If your dishwasher runs after dinner, your hot water heats overnight, your washing machine goes on in the evening, and most of your daily energy use happens after sunset, then a big chunk of your solar value is being lost. Not because the system is underperforming, but because the household schedule is working against it.
That is why two homes with similar solar systems can end up with different outcomes. One home might use its major appliances in the middle of the day, heat water during solar hours, and shift some discretionary use into the afternoon. The other might export all day heavily and then lean on the grid after dark. Same solar. Different result.
The small changes that can improve the return
For many homes, the first gains come from changing when energy is used. Running the dishwasher, washing machine, dryer, or pool pump during solar hours can help keep more of that energy on site. Hot water systems are another major lever. In many homes, water heating is one of the biggest loads, so changing it to the middle of the day can make a noticeable difference.
Even smaller habits add up. Charging laptops, power tools, e-bikes, and other devices while the sun is out. Pre-cooling or pre-heating the home earlier in the day, if that suits the household and the weather. Using timers more deliberately instead of leaving everything to default evening schedules.
None of this is flashy, which is why it is often missed. The savings do not come from a dramatic upgrade but from reducing how often the home makes that 5c-out, 30c-back trade.
Why electricity plans deserve more attention than FiT
The FiT is easy to compare because it’s a single number, which is why it’s tempting to treat it as the key decision point. However, a solar plan is more than its FiT. Usage charges, daily supply charges, controlled load arrangements, and time-of-use (ToU) periods can all have a bigger effect on the final bill. A plan with a slightly lower FiT can still leave a household better off if its import rates are more favourable.
That is why chasing the highest export rate can backfire. A retailer may dangle a better FiT while charging more for the electricity you actually buy. If most of your usage still happens outside solar hours, those higher import costs can outweigh the benefit of the slightly better export credit. For households today, the better lens is the total bill outcome.
Where batteries fit into the picture
Batteries make more sense when viewed through this timing problem. Their value is not just that they store excess solar. Their value is that they let households use that solar later, instead of exporting it for a low rate and buying back from the grid at a high one.
That does not mean a battery is the right next step for everyone. They are still a major investment, and the numbers depend on usage patterns, tariff structure, battery size, and whether the household has already done the easier optimisation work first.
However, the logic behind battery interest is much clearer now than it was when FiTs were higher. The wider the gap between export value and the import cost, the more attractive storage becomes.
What households should take from this now
The most useful takeaway is not that FiTs are dead. What they are now is that they no longer tell the full story. Households still benefit from solar, but the strongest value now comes from self-consumption, tariff awareness, and better timing across the day.
That changes the question from “How much can I earn from solar?” To “How much expensive grid electricity can I stop buying?” That is a better question that will lead to better decisions today.
The bottom line
The old solar mindset was built around exports; the current one is built around control. Control ver when energy is used. Control over how much is bought back from the grid. Control over whether your system is working for your household schedule or against it.
In a market where exported solar may be worth 5 cents and imported electricity can cost 30 cents or more, that shift is the whole game.
Energy Matters has been in the solar industry since 2005 and has helped over 40,000 Australian households in their journey to energy independence.
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