What is a Feed-in Tariff?
A feed-in tariff (FiT) in Australia pays you for surplus solar electricity that you export to the grid. Each state and territory sets its own feed-in tariff rates, which are paid by your electricity retailer per kilowatt-hour (kWh) exported.
Feed-in tariffs have decreased significantly over the past decade as solar uptake has grown. However, they still provide valuable income that improves the return on your solar investment, especially when combined with self-consumption strategies.
How It Works
- 1.Your solar panels generate electricity
- 2.You use what you need in your home
- 3.Surplus electricity is exported to the grid
- 4.Your smart meter records the export
- 5.Your retailer credits your bill for each kWh exported
Feed-in Tariff Rates by State
| State / Territory | Minimum Rate | Typical Range | Regulated? |
|---|---|---|---|
| New South Wales | No minimum | 3-8c/kWh | Market rate |
| Victoria | 4.9c/kWh | 5-10c/kWh | Minimum set |
| Queensland | No minimum | 3-7c/kWh | Market rate |
| South Australia | No minimum | 3-8c/kWh | Market rate |
| Western Australia | 2.25c/kWh | 2-10c/kWh | DEBS scheme |
| Tasmania | No minimum | 5-9c/kWh | Market rate |
| ACT | No minimum | 4-8c/kWh | Market rate |
Important: Feed-in tariff rates change regularly. Check with your electricity retailer for the most current rate. Rates shown are indicative for 2026.
How Feed-in Tariffs Work in Practice
Your electricity retailer pays you the feed-in tariff rate for every kWh you export. This appears as a credit on your electricity bill, reducing your overall power costs. The credit is calculated using your smart meter data, which records both imports and exports separately.
Self-Consumption vs Export
The key economics: electricity you use directly saves you the full retail rate (typically 25-35c/kWh), while exported electricity earns you the feed-in tariff rate (typically 3-10c/kWh). This means self-consumption is 3-10x more valuable than exporting.
Requirements
- System installed by a CEC-accredited installer
- Smart meter installed (your retailer can arrange this)
- System connected to the grid through your distributor
- All panels and inverters on the CEC approved products list
Maximising Your Feed-in Tariff Earnings
With lower feed-in rates, smart energy management is more important than ever.
Shop Around for the Best Rate
Feed-in tariff rates vary significantly between retailers. Compare rates from multiple retailers in your area — a difference of just 3c/kWh on 3,000 kWh of exports equals $90 extra per year.
Prioritise Self-Consumption
Use timers and smart plugs to run pool pumps, hot water systems, dishwashers, and laundry during peak solar hours. Every kWh you use yourself saves 25-35c versus exporting for 3-10c.
Add Battery Storage
A battery storage system stores surplus daytime generation for evening use, dramatically reducing your grid imports and boosting overall savings.
Consider Time-of-Use Plans
Some retailers offer time-of-use feed-in tariffs that pay more during peak demand periods (typically late afternoon to evening). With a battery, you can export strategically during these high-value windows.
Virtual Power Plants (VPPs)
Virtual Power Plants are emerging as an alternative to traditional feed-in tariffs in Australia. By joining a VPP, your battery can be used by an aggregator to stabilise the grid during peak demand — in return, you receive premium payments that can significantly exceed standard feed-in tariff rates.
Standard FiT
3-10c/kWh
VPP Payments
10-45c/kWh
Premium Events
Up to $1/kWh
Popular VPP programs include Tesla Energy Plan, AGL Virtual Power Plant, Origin Loop, and Reposit Power. Requirements typically include a compatible battery system and smart meter.
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