Solar Feed-in Tariffs explained (by State)

One of the key benefits of having solar panels is the line on your electricity bill labelled "feed-in tariff".

If you're wondering what a feed-in tariff (FiT) is, or why it has been getting smaller over time, this guide is designed to explain everything you need to know about solar FiTs and what applies in your state right now.

What is a solar feed-in tariff?

A solar feed-in tariff (FiT) is a payment from your electricity retailer for the extra solar electricity your system exports back into the grid.

When your solar panels generate more power than your home is using, the excess flows out through your meter, and your retailer credits you for it on your bill, usually in cents per kilowatt-hour (c/kWh).

This comes from the retailer, not the government.

In most states, retailers set their own feed-in tariff, choose whether to offer a single flat rate or a rate that changes depending on the time of day, and can change that rate whenever they like.

This is why two households in the same street, on the same network, can be on very different feed-in tariffs simply because they're with different retailers or different plans.

Why solar feed-in tariffs have been falling

Feed-in tariffs have dropped in almost every state over the past few years. This is because rooftop solar now generates so much power in the middle of the day that the wholesale value of that electricity has fallen, sometimes to zero or below.

Regulators that set feed-in tariff benchmarks, such as IPART in NSW and the QCA in Queensland, calculate the rate using an "avoided cost" method.

In other words, they estimate what it would have cost the retailer to buy that same electricity from the wholesale market instead of from your rooftop. 

As wholesale prices during solar hours have fallen (because so much solar is already on the grid at that time), the benchmark feed-in tariff has fallen with it.

In NSW, IPART's own guidance explains that a retailer paying you for exported solar still has to cover network charges, environmental scheme costs, and running costs before it resells that electricity, which is why the feed-in tariff will always sit well below the price you pay to buy electricity.

None of this means your solar system stopped being worth it. It means the value has shifted from "sell everything back to the grid" toward "use as much of your own solar as you can, and treat the feed-in tariff as a bonus for the surplus."

Solar export charges (the "solar tax")

Some households have also started seeing a separate charge, sometimes nicknamed a "solar tax," for exporting electricity during the middle of the day. This is different from your feed-in tariff.

From 1 July 2024, the Australian Energy Regulator approved network businesses in some states introducing export tariffs alongside the traditional feed-in tariff.

These typically work as three parts: a basic export level you can export for free each day, export charges that may apply if you export large volumes beyond that level in the middle of the day, and export rewards for exporting during the evening peak, when the grid actually needs it, on top of the normal feed-in tariff.

IPART notes that these are set by your local network operator, not by the state energy regulator, so the details depend on which distribution network you're connected to.

If your bill includes one of these charges, check with your network distributor for the specifics rather than assuming it applies to your whole export volume. For most rooftop systems, the free daily export threshold is generous enough that typical households rarely reach it.

How feed-in tariffs are set, state by state

Every state and territory handles feed-in tariffs differently. Some have a regulator-set minimum that retailers must at least match, while others leave it entirely to the market. Here's how each one works for the 2026-27 financial year.

New South Wales

NSW does not mandate a feed-in tariff. Retailers choose whether to offer one and what to pay. Instead, the Independent Pricing and Regulatory Tribunal (IPART) publishes an annual benchmark range as a guide to a reasonable rate.

For 2026-27, that benchmark is 3.4 to 6.5 c/kWh for an all-day flat rate, down from 4.8 to 7.3 c/kWh in 2025-26, reflecting lower forecast wholesale prices during the times solar is exporting.

Retailers aren't required to fall within this range and can set their feed-in tariff above or below it.

A handful of NSW retailers also offer time-varying rates that pay far more for exports during the evening peak than the flat-rate benchmark, and far less through the middle of the day.

IPART publishes a separate benchmark for each network's peak window, since wholesale prices behave differently depending on which network you're on:

Outside those peak windows, the benchmark drops sharply. Across all three networks, the middle of the day (roughly 10am to 3pm or 4pm, when solar is generating most heavily) is benchmarked at just 3.1 to 4.4 c/kWh for 2026-27, and overnight exports sit only slightly higher.

Only a small number of retailers currently offer this time-of-use structure rather than a flat rate.

Victoria

Victoria deregulated its feed-in tariff from 1 July 2025 and this remains the case for 2026-27. The Essential Services Commission (ESC) previously set an annual minimum rate that all retailers had to pay, but following an amendment to the Electricity Industry Act 2000, it no longer sets a minimum feed-in tariff at all.

Retailers must still credit solar exports (they can't set a rate below zero) and must give notice before changing your rate, but there's no mandated floor to compare against.

Queensland

Queensland has two separate feed-in tariff markets depending on your network:

• Regional Queensland (Ergon Energy network): The Queensland Competition Authority (QCA) sets a mandatory flat-rate feed-in tariff each financial year. From 1 July 2026, that rate is 6.006 c/kWh, down from 8.66 c/kWh in 2025-26, reflecting lower wholesale energy costs during solar export hours.
• South East Queensland (Energex network): There's no mandated minimum. Retailers compete on rate, so what you're offered depends entirely on your plan and provider.

Queensland also has a legacy Solar Bonus Scheme paying 44 c/kWh to eligible households who connected solar before July 2012, which remains in place until 30 June 2028 for those still on it.

South Australia

South Australia has had no regulator-set minimum feed-in tariff since 1 January 2017, when the Essential Services Commission of South Australia (ESCOSA) formally ended its role in setting a floor rate.

ESCOSA still monitors the market to check solar customers can access offers comparable to those without solar, but the rate itself is entirely up to the retailer.

Western Australia

WA's arrangement is structurally different from the eastern states. Most WA households are served by the government-owned retailer Synergy (in the South West Interconnected System) or Horizon Power in regional areas, rather than a competitive retail market.

The feed-in tariff runs through the Distributed Energy Buyback Scheme (DEBS), which pays a time-varying rate up to the first 50 kWh exported daily. For 2026-27, that's 10 c/kWh for exports between 3pm and 9pm and 2 c/kWh for exports at any other time.

DEBS replaced the earlier flat-rate Renewable Energy Buyback Scheme (REBS) for new and upgraded systems from 2020.

Tasmania

Tasmania is one of the few states that still regulates a mandatory minimum. The Office of the Tasmanian Economic Regulator (OTTER) sets the rate annually, based on the same avoided-cost approach used elsewhere.

From 1 July 2026, the regulated rate is 9.276 c/kWh, up 5.6% on the 2025-26 rate, payable by Aurora Energy, the state's primary retailer.

Australian Capital Territory

The ACT has no mandated feed-in tariff. The Independent Competition and Regulatory Commission (ICRC) regulates ActewAGL's standing offer electricity prices generally, but the feed-in tariff paid to solar households is set by the retailer, not the regulator.

A legacy premium feed-in scheme paying 30 to 45 c/kWh was closed to new applicants back in July 2011; those contracts run for 20 years from connection and are gradually expiring. 

It's worth noting the ACT Government also runs a large-scale feed-in tariff (LFiT) scheme, but that's a wholesale contract with large renewable generators to help meet the territory's 100% renewable electricity target. It has no direct connection to the rate paid to rooftop solar households, and shouldn't be confused with it.

How to actually compare feed-in tariff offers

A higher feed-in tariff isn't automatically the better deal. Regulators in nearly every state make the same point: retailers sometimes pair an eye-catching feed-in tariff with a higher usage rate or supply charge, which can leave you worse off overall once your total bill is calculated.

When comparing electricity plans as a solar household, look at the whole picture rather than the feed-in tariff line alone:

• Your total annual cost, not just the export credit, based on your actual usage and export volumes
• Whether the rate is flat or time-varying, and whether that structure suits when your system actually exports (most rooftop solar exports around the middle of the day)
• Any export caps, since some plans only pay the advertised rate up to a daily kWh limit and drop to a lower rate after that
• Contract conditions, including whether the rate is guaranteed for a fixed term or can be changed with notice

This is also where self-consumption comes in. Because retail electricity prices are consistently higher than feed-in tariff rates in every state, the electricity you use directly from your panels is worth several times more than the electricity you export.

Shifting appliance use, such as running the dishwasher or charging an EV, into daylight hours when your system is generating will usually save you more than chasing a slightly higher feed-in tariff.

Compare electricity plans that fit your solar system

Feed-in tariffs change every year, and the right plan depends on your export volume, your usage pattern, and which state and network you're on.

Contact Utility Club to compare electricity plans to see how feed-in tariffs, usage rates, and supply charges stack up for solar households in your area.

If you're setting up power at a new address, our moving guide covers what to organise before connection day.

Photo by Nuno Marques on Unsplash