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What Are Solar Feed-In Tariffs — And Why Are They Falling?
Your solar feed-in tariff (FiT) is the rate your energy company pays you for excess electricity exported back to the grid. In earlier years, this was a key financial incentive for going solar.
But in 2025–26, things look very different. Feed-in tariff prices have dropped significantly across Australia. Why?
5 Reasons Feed-In Tariffs Are Falling:
- Grid Oversaturation
During peak solar hours (10am–2pm), there’s more energy than the grid can handle. Prices fall as supply overwhelms demand. - Aging Grid Infrastructure
Our grid wasn’t built for millions of homes feeding power back into it. Limited capacity means providers pay less for your exports. - Wholesale Price Volatility
Feed-in tariffs often track wholesale prices, which can go negative on sunny days when solar floods the market. - Regulatory Shift
Regulators are now encouraging self-consumption, not exports, to protect grid stability. - Market Maturity
Solar is mainstream now. Companies no longer need high feed-in tariffs to attract customers.
Current Feed-In Tariff Prices by State (2025–26)
| State / Territory | Common Feed-In Tariff Price | Minimum Tariff Regulation? | Energy Umpire Summary |
|---|---|---|---|
| Victoria (VIC) | ~1.2c/kWh (some higher promos) | ❌ No (removed July 2025) | Providers can set FiT to zero |
| New South Wales (NSW) | 4.8–7.3c/kWh (benchmark only) | ❌ No | Some providers offer no FiT |
| Queensland (QLD) | ~6.0c/kWh | ✅ Yes (North QLD only) / ❌ No (SEQ) | SEQ unregulated |
| South Australia (SA) | ~4.5c/kWh | ❌ No | Rates are low and unregulated |
| Tasmania (TAS) | 5.0–5.5c/kWh | ✅ Yes | Regulated, but still modest |
| Australian Capital Territory (ACT) | Varies by provider | ❌ No | No FiT guarantee at all |
What That Means in Minimum Tariff Regulation — State by State
Victoria (VIC)
As of 1 July 2025, the Victorian Essential Services Commission no longer sets a minimum feed-in tariff. That means electricity providers in Victoria are free to set their own feed-in tariff — and technically, that rate could be set to zero cents per kWh (though not below zero).
In practice, this opens the door for some providers to offer very low or even no feed-in tariff on exported solar. For solar households, this underlines the urgency of shifting focus: when the safety net of a minimum export rate disappears, your solar value must come from how much you use, not how much you export.
New South Wales (NSW)
In NSW, feed-in tariffs are unregulated. The regulator (IPART) provides a benchmark range — currently between 4.8 and 7.3 cents per kWh — but providers are not required to follow it. In fact, some may legally offer no feed-in tariff at all. That’s why comparing the whole plan, not just the export rate, is essential.
Queensland (QLD)
Queensland has a split system. In regional QLD, solar customers are protected by a government-set minimum feed-in tariff, currently around 6c/kWh. But in South East QLD (including Brisbane and the Gold Coast), there is no regulated minimum, and providers can set their own rates — even as low as zero. Customers in this area should choose plans that reward solar self-use.
South Australia (SA)
South Australia does not enforce a minimum feed-in tariff. Providers are free to set their own rates, which are often quite low — usually between 4 and 5 cents per kWh. With no regulatory protection, solar customers in SA must pay close attention to usage charges and plan structure to maximise their savings
Tasmania (TAS)
In Tasmania, the government sets a minimum feed-in tariff through the Tasmanian Economic Regulator. The current rate is around 5 to 5.5 cents per kWh. While this offers some level of certainty, the rate remains modest. Maximising savings through daytime usage still provides better value than exporting.
Australian Capital Territory (ACT)
The ACT does not mandate a minimum feed-in tariff. Providers are allowed to set their own rates, which often vary significantly. Households in the ACT should compare offers carefully, as some may offer little or no return for exported solar energy.
If you live in a state with no mandated minimum FiT, your provider could offer very low or even zero cents per kWh for exported solar. That’s why at Energy Umpire, we focus on helping you get value from using your solar — not just exporting it.
The New Solar Economics: Self-Consumption Beats Exports
Here’s the bottom line: solar power is worth 5–7x more when you use it yourself instead of exporting it.
Compare:
- Export 1kWh → Earn $0.05 at 5 cents/kWh feed in tariff
- Use 1kWh at home → Save $0.25–$0.35
Real-Life Example:
If your household generates 10kWh per day:
- Exporting earns $0.05 x 10 = 50 cents
- Using saves $0.30 x 10 = $3.00
That’s a $2.50 daily difference, or $912.50 per year.
Smart Solar Strategies in the Low Feed-In Tariff Era
At Energy Umpire, we help households go beyond the feed-in tariff and take full advantage of their solar system by focusing on:
1. Daytime Load Shifting
Move appliance use to solar hours (9am–4pm):
- Run dishwashers, laundry, and hot water heating during the day
- Use timers and smart plugs to automate usage
2. Smart Energy Management
We recommend affordable tools like:
- Smart plugs with scheduling
- Solar inverter apps to monitor generation and usage
3. Heating & Cooling with Solar
- Use air conditioning or heating when the sun is shining
- Pre-cool your home before peak rates
- Heat hot water systems during solar hours
4. EV Charging at Home
If you have an electric vehicle, charge during the day instead of overnight. It’s one of the most efficient ways to absorb excess solar.
5. Right-Sizing Your System
Bigger isn’t always better. If you export a lot of solar at 5c/kWh, you may be losing value. Focus on matching your system size to your usage, not just your roof space.
Beyond the Tariff: Choosing the Right Energy provider
With feed-in tariffs low everywhere, the real value comes from choosing a plan that suits your usage. At Energy Umpire, we compare providers based on:
- Usage rates during the day (usually much more important than FiTs)
- Time-of-use pricing structures
- Flexibility for solar and smart home tech
- Ongoing plan changes and provider performance
We go beyond comparing the highest feed-in tariff price — we find what actually saves you money.
Why Location Still Matters
Climate Considerations:
- Northern Australia: Year-round sun = high self-use potential
- Southern states: Seasonal generation affects your ideal solar strategy
Looking Ahead: The Future of Solar Feed-In Tariffs
Experts predict:
- Further declines in feed-in tariff prices
- Time-varying FiTs, rewarding solar during peak demand periods only
- Export caps and even penalties during times of oversupply
What This Means for You:
- Focus on self-consumption, not exports
- Consider battery storage as prices fall
- Stay updated with your local grid and tariff rules
Conclusion: Smart Solar = Bigger Savings
The age of relying on feed-in tariffs is over. But the age of energy independence is just beginning.
At Energy Umpire, we help you:
- Analyse your usage patterns
- Calculate your true savings potential
- Compare plans beyond feed-in tariffs
- Implement smart tech to maximise solar value
The key takeaway:
Don’t chase feed-in tariff prices — chase real savings.
At Energy Umpire, we help households navigate this change. We don’t just look at one number (like the feed-in tariff). We calculate your real savings potential, considering everything — from your usage patterns to energy plan structure — so you can get the most from your solar system in 2025 and beyond.
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