Thinking about getting solar panels or already got them ticking away on your roof? You’ve probably heard about the solar feed-in tariff, but what does it actually mean for your power bill?
Here’s the simple version: When your solar panels make more electricity than you use, that extra power doesn’t go to waste.
It gets sent back into the grid, and your energy provider pays you for it. That’s the solar feed-in tariff — a little reward for helping keep the lights on for everyone else.
If you’re a homeowner or run a business, knowing how this works could put serious cash back in your pocket.
The right setup and the right plan could mean smaller bills and faster payback on your solar investment.
Stick around — we’ll cover how the tariff works across Australia, what rates you can expect, how to pick the best deal, and a few sneaky tips to make the most out of your solar power.
What is a Solar Feed-In Tariff in Australia?
A solar feed-in tariff is a way for households and businesses in Australia to get paid for the extra solar energy they send back to the electricity grid.
When your solar panels make more electricity than you need, that extra power doesn’t just sit there.
Your electricity retailer buys it off you at a set rate, known as the feed-in tariff.
It’s usually shown as a price per kilowatt-hour (kWh), kind of like how you pay for electricity, but in reverse.
Feed-in tariffs started popping up across Australia around the late 2000s.
Governments wanted more people to install solar systems, but back then, solar panels were really expensive. By offering payments for excess energy, they gave Aussies a real reason to make the switch.
Some early schemes were super generous, paying more than double the cost of grid power. The whole idea behind feed-in tariffs was to encourage renewable energy and cut down on pollution.
How the Solar Feed-In Tariff Works in Australia
When your solar panels generate more power than you can use at home, that extra energy flows straight into the main electricity grid.
You don’t have to do anything — it happens automatically through your inverter and your meter keeps track of how much you send back. That’s the energy you get paid for through the solar feed-in tariff.
There are two ways your payment gets worked out. Some states set a minimum feed-in tariff by law. Others leave it up to energy retailers to decide what they’ll offer.
In places like Victoria and Queensland, the government steps in with a base rate. In other spots, it’s up to the market, which means the price can go up or down depending on which retailer you’re with.
The payment you earn usually shows up as a credit on your electricity bill. If you send a lot of power back to the grid, you can sometimes end up with a bill that’s almost nothing, or even get into credit.
But most of the time, your feed-in credits help shrink what you owe for the electricity you pull from the grid at night or when your panels aren’t making enough power.
Here’s a simple breakdown:
- Excess solar energy feeds back into the grid.
- Your retailer credits you for each kilowatt-hour exported.
- The credit reduces the total amount on your electricity bill.
Some people think they’ll make loads of money from feed-in tariffs alone, but in reality, most of the savings come from using your own solar energy first.
Feed-in tariffs are a bonus, not the main game. Picking a good plan with a decent export rate can still make a real difference over a year, though.
Types of Solar Feed-In Tariffs in Australia
Gross Feed-In Tariff
A gross feed-in tariff means every single unit of electricity your solar panels generate gets sent to the grid first. You get paid for the total amount, no matter how much you actually use at home. Then you buy all the electricity you need back from the grid at normal retail prices.
It’s like being a mini power station. You sell everything you produce, then you buy back what you need to run your house.
This setup was popular when feed-in rates were higher than retail electricity prices, because you could actually earn a profit from your solar system.
Gross tariffs aren’t really common anymore for new customers in Australia. Most people today are on net feed-in tariffs because they work better with how we use solar power day-to-day.
Net Feed-In Tariff
A net feed-in tariff is a bit more personal to your home’s needs. Your house uses the solar power you create first. Only the extra electricity you don’t use gets sent back to the grid for a payment.
This way, you get the best of both worlds — you save money by using free solar energy yourself, and you still get paid for the leftovers.
It’s the standard setup across almost all of Australia now, and it makes more sense for the way most people live.
The more solar energy you can use during the day, the bigger your savings will be.
The feed-in tariff is a handy bonus, but the real money comes from cutting down your need to buy power from the grid.
Quick Example for Easy Comparison
| Type of Tariff | How It Works | Best For | Common in Australia? |
| Gross Feed-In Tariff | All solar energy sent to grid. Home buys back all power needed. | When feed-in rates are higher than retail prices. | Rare for new customers. |
| Net Feed-In Tariff | Home uses solar energy first. Extra energy sent to grid. | People wanting to cut bills and still earn from excess solar. | Standard for most homes. |
Average Solar Feed-In Tariff Rates in Australia by State
Solar feed-in tariffs across Australia can vary a lot, depending on where you live and who your electricity retailer is.
There’s no single standard rate that fits every household, which is why it’s worth knowing how the different states stack up.
Here’s a quick snapshot of average feed-in tariff rates across the country for 2025.
| State/Territory | Average Min FiT (c/kWh) | Average Max FiT (c/kWh) |
| NSW | 5.4 | 9.7 |
| VIC | 3.3* | 9.1 |
| QLD | 5.2 | 10.4 |
| SA | 4.9 | 9.8 |
| WA | 2.0** | 10.0** |
| TAS | ~6.0*** | ~10.0*** |
| NT | ~8.3*** | ~8.3*** |
Victoria’s minimum FiT is set to drop to 0.04 c/kWh from July 1, 2025, but current averages are still higher.
WA rates change based on time of day: 2c/kWh off-peak, up to 10c/kWh during peak times.
Tasmania and NT rates are estimates based on recent retailer offers.
Why Feed-In Tariff Rates Vary Across Australia
- Wholesale Electricity Prices: States with lower wholesale electricity prices usually have lower feed-in tariffs. Retailers don’t make as much from selling your exported solar power, so they pass on less value to you.
- Regulatory Differences: Some states, like Victoria, have government-mandated minimum feed-in tariffs. Others, like NSW, Queensland, and South Australia, leave it up to energy retailers to decide what they’ll pay, leading to bigger differences across the market.
- Market Supply and Demand: In areas packed with rooftop solar, there’s often too much electricity flowing into the grid during the day. This can push down the price of solar exports and lower the feed-in tariff rates offered to households.
- Network and Infrastructure Costs: Moving electricity across long distances costs money. Regional and remote areas might see higher or lower feed-in tariffs depending on how much it costs to maintain the local grid.
- Legacy Schemes: Some early solar adopters are still on premium legacy feed-in tariffs from the early days of solar energy in Australia. These deals aren’t available to new customers anymore, but they show how different the market used to be.
Impact of Retailer Competition
In most states, where feed-in tariffs aren’t locked in by the government, electricity retailers set their own rates.
This creates a bit of a solar marketplace, with companies competing to offer better deals to win new customers.
Some retailers throw in bundled offers with higher feed-in rates, but they might bump up other charges like daily supply fees. It’s worth comparing the total cost of the plan, not just focusing on the feed-in number.
Finally, urban areas with lots of energy providers usually have stronger competition, which leads to better feed-in rates. In more rural spots, where choices are limited, the rates can be lower.
Factors That Influence Solar Feed-In Tariffs in Australia
Energy Demand
Energy demand plays a big role in how much you’ll get paid for your solar exports.
When lots of people are using electricity — like on hot summer afternoons — your solar power becomes more valuable.
On the other hand, when demand is low, especially during mild sunny days, the price for exported energy can drop.
In states with a high supply of rooftop solar and not enough daytime demand, feed-in tariff rates often end up lower because there’s so much energy flooding the grid at once.
State Regulations
State regulations can either protect your feed-in tariff or leave it up to the market.
For example, Victoria has a regulated minimum FiT, meaning retailers must pay you at least a set base rate.
In states like NSW, Queensland, and South Australia, retailers have more freedom to set whatever rates they want.
This difference in rules is one of the biggest reasons rates jump around across Australia.
Retailer Policies
Retailer policies make a big difference too. Some electricity companies offer generous feed-in rates to attract solar customers.
Others might set a low FiT but balance it out with lower overall energy prices.
It’s worth checking the fine print. Some higher feed-in tariffs come bundled with higher daily supply charges, so looking at the full cost of the plan — not just the feed-in number — can save you more in the long run.
Solar System Size
Solar system size also affects how much you earn. Bigger systems usually export more energy back to the grid, but once your exports reach a certain point, some retailers lower the rate they pay you for extra electricity.
In some states, there are even system size limits to qualify for certain feed-in tariffs. For example, systems over 10kW might be treated differently when it comes to rates or eligibility.
Always double-check with your energy retailer if you’re planning to install a bigger system.
Solar Feed-In Tariffs vs Solar Rebates: What’s the Difference?
A solar feed-in tariff is a payment you get when your solar panels send extra electricity back into the grid.
Your energy retailer pays you for every kilowatt-hour you export, and this usually shows up as a credit on your electricity bill. The more power you send back, the more credit you build up.
A solar rebate, on the other hand, is a discount that helps cover the upfront cost of buying and installing a solar system.
In Australia, this usually comes through the federal government’s Small-scale Renewable Energy Scheme (SRES), where homeowners receive a certain number of certificates that are sold to lower the price of the system.
The two work very differently;
- A rebate helps you afford solar panels in the first place by making the system cheaper to buy.
- A feed-in tariff helps you save money after your system is installed, by reducing your ongoing electricity bills.
When it comes to saving the most over time, the rebate usually delivers the bigger immediate benefit because it knocks thousands off the cost straight away.
But feed-in tariffs keep helping you year after year by shaving money off your bills, especially if you export a lot of solar energy during the day.
How to Maximise Your Solar Feed-In Tariff in Australia
Getting the most out of your solar feed-in tariff starts with picking the right electricity retailer. Different companies offer different rates, and the difference can be pretty big.
It’s smart to compare offers across a few providers, not just looking at the feed-in rate, but also checking daily charges and usage rates. Sometimes a retailer will offer a higher feed-in tariff but charge more elsewhere.
Timing your electricity use is another easy way to boost savings. Try to run heavy appliances like dishwashers, washing machines, and pool pumps during the day when your solar panels are producing the most power.
Using your own solar energy means you buy less electricity from the grid, which saves you more than just relying on feed-in credits.
If you’ve got the roof space and the budget, upgrading to a larger solar system can help too. Bigger systems generate more electricity, giving you more to use and more to export.
Just be careful — some electricity retailers place limits on system sizes for their best feed-in tariff deals.
It’s worth double-checking the fine print before upgrading, so you don’t accidentally miss out on better rates.
Government Policies and Solar Feed-In Tariff Incentives
Australia’s approach to solar feed-in tariffs and renewable energy incentives has shifted a lot over the past 15 years. Both the federal and state governments have played big roles in making solar more accessible and affordable.
At the federal level, the Renewable Energy Target (RET) was set up to boost the amount of renewable electricity across the country.
One key part of this is the Small-scale Renewable Energy Scheme (SRES), which provides upfront discounts on solar installations through Small-scale Technology Certificates (STCs).
The number of certificates you get depends on the system size, your location, and the year you install.
For bigger systems, the Large-scale Renewable Energy Target (LRET) supports owners through Large-scale Generation Certificates (LGCs) that can be sold for ongoing income. The SRES is still active but will phase out by 2030.
State governments ran a different strategy. Between 2009 and 2013, many states offered premium feed-in tariffs to rapidly encourage solar uptake. These tariffs were often:
- Gross tariffs, paying for all solar generation (not just the exported surplus)
- Subsidised by state governments, making them higher than retail electricity prices
- Fixed long-term, offering guaranteed high rates for 10 to 20 years
- Closed to new customers once solar became cheaper and widespread
As solar technology dropped in price, most of these premium schemes were phased out. Today, in 2025, feed-in tariffs are usually set by retailers and tend to move with wholesale electricity prices.
There are still valuable incentives for new solar adopters. Federally, the SRES can slash system costs by up to 30%. States like Victoria offer rebates that cover up to half the cost of solar or batteries.
New South Wales provides interest-free loans and shared solar grants, while South Australia, Western Australia, and the ACT focus heavily on battery rebates and support for lower-income households.
In some areas, local councils throw in extra rebates, making solar even more attractive for first-time buyers.
Is the Solar Feed-In Tariff Worth It in 2025 and Beyond?
Whether the solar feed-in tariff is still worth it in 2025 depends on a few important factors, but overall, solar remains a smart investment for most Australian households.
The payback period for a typical rooftop solar system is still relatively short by historical standards. Most systems installed today take about 4 to 6 years to fully pay off through energy savings and feed-in tariff credits.
This is pretty good considering solar panels last 20 years or more, giving owners plenty of time to enjoy low electricity bills once the system is paid off.
Declining feed-in tariff rates do affect how fast you can recover your investment. In 2025, feed-in tariffs are lower than they were even five years ago.
Retailers are paying less for exported solar because of the massive amount of rooftop systems already feeding into the grid.
This makes self-consumption even more important — the more solar energy you use at home during the day, the less electricity you need to buy at full retail prices, which offers bigger savings than exporting excess power.
Looking ahead, there are a few important trends shaping the future of solar in Australia:
- Battery storage is becoming cheaper, helping households store and use their own solar energy at night
- Time-varying tariffs are on the rise, offering better rewards for exporting solar at peak demand times
- Virtual power plants (VPPs) are expanding, allowing solar owners to join together and sell energy back to the grid more efficiently
- Government incentives continue to focus on supporting storage solutions and smart solar management instead of just feed-in tariffs
While feed-in tariffs alone won’t make you rich, combining solar with smart energy habits and possibly a home battery keeps rooftop solar a solid and reliable way to cut electricity costs well into the future.
Key Takeaway
Getting a good deal on your solar feed-in tariff is still a big win for Aussie homeowners. Saving money by using your own solar power during the day, plus getting a little extra for the energy you send back to the grid, adds up over time.
It’s a simple way to lower your bills, stretch the value of your solar system, and make the most of all that sunshine.
Keeping an eye on your feed-in tariff and how much energy your system is producing really matters.
Plans change, rates shift, and the best way to stay ahead is by knowing exactly what you’re signed up for.
Small changes, like switching retailers or tweaking how you use power during the day, can make a real difference to your bottom line.
If you’re ready to get the most out of your solar setup — or thinking about upgrading, adding a battery, or even going off-grid — check out Off Grid WA.
We help Aussies take full control of their energy, with smarter solar solutions designed for real savings.
Visit Off Grid WA today and see how we can help you power your home better, smarter, and cheaper.
Frequently Asked Questions
How much do you get paid for solar feed-in tariffs in Australia?
Most people get paid between 5 to 10 cents per kilowatt-hour (c/kWh), depending on where they live and which retailer they’re with. Some deals offer a bit more if you shop around, but rates have come down compared to a few years ago.
Which Australian state has the highest solar feed-in tariff?
Queensland often has some of the highest feed-in tariffs when you look at retailer offers, sometimes reaching over 10c/kWh. But rates change often, and the best deals depend on your retailer and location within the state.
Can I choose my own feed-in tariff provider?
Yes, you can. In most parts of Australia, you’re free to pick your own electricity retailer, and different companies offer different feed-in tariffs. It’s smart to compare both the feed-in rate and the overall cost of the plan before switching.
What happens if my feed-in tariff drops after I sign up?
If you’re on a fixed-term contract, your feed-in rate usually stays the same for the agreed period. If you’re on a variable plan, your retailer can change the rate with notice. Always check your contract terms so there are no surprises later.
Are solar feed-in tariffs taxable in Australia?
For most homeowners, solar feed-in income isn’t taxable if it’s just helping to power your home and lower your bills. If you run a business or make significant income from solar, you might need to declare it. It’s always best to double-check with a tax adviser if you’re unsure.
How can I find the best solar feed-in tariff deals?
Start by comparing offers from different energy retailers. Look beyond just the feed-in rate — check daily charges, usage rates, and any hidden fees. Websites that compare energy plans make it easier to spot the best overall value for your situation.
Will solar feed-in tariffs end in Australia?
Solar feed-in tariffs aren’t disappearing anytime soon, but they are getting smaller. As more people install solar, the value of exported energy drops during the middle of the day. Future savings will rely more on using your solar energy at home or storing it in a battery, rather than exporting it back to the grid.
