What Is a Solar Feed-In Tariff?
A solar feed-in tariff (FIT) is the rate your energy retailer pays you for excess solar electricity that your panels generate and export to the grid. FITs are measured in cents per kWh (c/kWh).
There are two types:
- Flat (single-rate) FIT: A fixed rate paid for all exported solar power, regardless of time of day.
- Time-varying FIT: A higher rate during peak periods and lower rate during off-peak (e.g. solar sponge tariffs).
Typical FIT Ranges by State (2026)
| State | Typical FIT Range (c/kWh) | Minimum FIT |
|---|---|---|
| NSW | 5.0 – 12.0 | No regulated minimum |
| VIC | 0.0 – 8.0 | Deregulated from 1 Jul 2025 (floor $0, no minimum) |
| QLD (SE) | 5.0 – 11.0 | No regulated minimum |
| QLD (Regional) | 6.0 – 13.0 | No regulated minimum |
| SA | 5.0 – 12.0 | No regulated minimum |
| WA | 3.0 – 7.0 | Synergy buys at ~3 c/kWh |
| TAS | 5.0 – 8.0 | No regulated minimum |
Retailers Offering the Best FITs in 2026
Generally, smaller retailers offer higher feed-in tariffs to attract solar customers:
- Red Energy: Often offers 10 — 12 c/kWh FIT in NSW and QLD
- Powershop: Competitive FITs plus carbon-neutral electricity
- Momentum Energy: Good FITs in VIC and SA
- Origin Energy: Offers FITs around 5 — 10 c/kWh depending on location
- AGL: Solar Savers plan with competitive FITs
Note: Retailers offering higher FITs may have higher usage rates or supply charges. Always compare the total annual bill, not just the FIT in isolation.
How to Maximise Your Solar Savings
- Self-consume first: Using solar power directly in your home is worth far more than exporting it (you avoid paying 25 — 35 c/kWh for grid electricity).
- Shift appliances to daytime: Run dishwashers, washing machines, and pool pumps during sunlight hours.
- Consider a solar battery: Store excess solar for evening use. Battery payback periods are improving.
- Compare annual bills: Use the Energy Made Easy or Victorian Energy Compare tools to compare offers including FIT.
Why Feed-In Tariffs Keep Falling
The mechanism behind falling FITs is simple supply and demand. Rooftop solar has grown so fast that on sunny days, solar alone can meet a large share of midday demand — pushing wholesale electricity prices toward zero or even negative at lunchtime. Retailers therefore value midday exports less, and pass that on: Victoria's regulated minimum fell from 9.9 c/kWh in 2018–19 to 3.3 c/kWh in 2024–25 and was then removed entirely from 1 July 2025. Expect the trend to continue in 2026–27, which is why self-consumption — using your own solar power instead of exporting it — is now the main way to make solar pay.
The Solar Sharer Offer: A New Way to Use Your Solar
From 1 July 2026, eligible households in NSW, South East Queensland and South Australia can opt in to the Solar Sharer Offer: three hours of free grid electricity a day (11am–2pm in NSW/QLD, 12pm–3pm in SA), capped at 24 kWh. You do not need solar panels, but if you have them, the free window effectively extends your solar hours — run the dishwasher, dryer and pool pump in that window and save your battery (if you have one) for the evening peak.
How to Choose Between a High FIT and a Cheap Plan
A retailer offering 12 c/kWh may pair it with higher usage rates, while a 5 c/kWh plan could be cheaper overall. The only reliable method: compare total estimated annual bills — including usage, supply charge and expected export credits — on Energy Made Easy or Victorian Energy Compare. As a rule of thumb, every 100 kWh you shift from grid use to self-consumption is worth roughly $25–$35 in avoided purchases in 2026, which is usually several times what you would earn exporting the same energy.
Battery Storage Economics in 2026
Batteries change the solar equation by letting you store midday generation for the evening peak, when grid electricity costs 30–45 c/kWh. A typical home battery system costs roughly $10,000–$15,000 installed, and payback estimates in 2026 commonly sit between 8 and 12 years — improving as battery prices fall and evening rates rise. The economics work best in states with high evening rates (SA, NSW, VIC) and for households that currently export most of their solar. If a battery does not stack up yet, the cheaper alternative is shifting usage into daylight hours and, where available, the Solar Sharer Offer's free window.