Solar panels are on more than 3.5 million Australian rooftops, and feed-in tariffs (FiTs) remain a key factor in the financial equation. In 2025, understanding how feed-in tariffs work—and how to maximise your solar earnings—can make a significant difference to your energy bills.
What Is a Feed-In Tariff?
A feed-in tariff is the rate your electricity retailer pays you for excess solar energy you export to the grid. When your solar panels produce more electricity than your home uses, the surplus flows back to the grid, and you receive a credit on your bill.
- Export rate (c/kWh): The amount you're paid per kilowatt-hour exported. Rates vary by retailer, state, and plan.
- Net metering: You're only paid for the net excess—what you export after meeting your own consumption.
- Bill credits: Feed-in credits reduce your electricity bill. If you export a lot, you may end up with a bill close to zero (or even in credit).
Feed-In Tariff Rates in 2025
Feed-in tariffs have declined significantly from the generous rates of a decade ago. In 2025, typical rates are:
| State/Territory | Typical FiT Range (c/kWh) |
|---|---|
| NSW | 3–8c |
| VIC | 3–7c |
| QLD | 3–10c |
| SA | 3–8c |
| WA | 2.5–10c (varies by provider) |
| TAS | 6–9c |
| ACT | 6–10c |
| NT | 8.3c (regulated) |
Rates vary significantly between retailers. Some offer flat rates; others offer time-varying rates that pay more for exports during peak demand periods.
Why Have Feed-In Tariffs Fallen?
Several factors have driven rates down:
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Solar saturation: With so much solar on the grid, daytime wholesale electricity prices have dropped—sometimes to zero or negative. Retailers pay less because solar exports are worth less during sunny periods.
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End of legacy schemes: Generous government-backed FiTs from the early 2010s have expired, leaving most households on lower retailer rates.
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Grid costs: Retailers argue that managing distributed solar adds grid costs, which reduces what they can pay for exports.
How to Maximise Your Solar Value
With lower feed-in tariffs, the focus has shifted from exporting to self-consumption—using as much of your solar generation as possible.
1. Shift Usage to Daylight Hours
Run dishwashers, washing machines, and pool pumps during the day when your panels are producing.
2. Install a Battery
A home battery stores excess solar for use at night, reducing your reliance on grid electricity. Battery payback periods are improving as prices fall.
3. Use a Hot Water Diverter
Divert excess solar to heat your hot water tank during the day, instead of exporting for a low FiT.
4. Consider an EV
If you have an electric vehicle, charge it during the day using your solar production.
5. Compare Feed-In Tariffs
Don't ignore the FiT when comparing electricity plans. A retailer offering 8c/kWh vs 4c/kWh can make a big difference if you export a lot.
Time-Varying Feed-In Tariffs
Some retailers now offer time-varying FiTs, paying more for exports during peak demand periods (e.g., late afternoon when solar production is falling but demand is high).
- Peak export rates: 10–15c/kWh during peak periods
- Off-peak export rates: 2–5c/kWh during solar-heavy midday hours
These plans can be valuable if you can shift some of your solar export to peak times—for example, by using a battery to store midday solar and export later.
2025 Policy Updates
Several developments are shaping the feed-in tariff landscape:
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Solar export limits: Some networks are imposing export limits (e.g., 5kW) during peak solar periods to manage grid stability. This may reduce your ability to export.
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Two-way pricing: Regulators are exploring "two-way" tariffs where households pay for importing and receive payment for exporting, with rates varying by time and location.
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Virtual Power Plants (VPPs): Some retailers offer VPP programs where your battery can be dispatched to the grid during peak demand, earning higher returns than standard FiTs.
Real-World Example
The Patels in Brisbane have a 6.6kW solar system. In 2025, they export around 10kWh per day on average. On a 5c/kWh FiT, that's 50c per day or about $180 per year. By switching to a retailer offering 8c/kWh and installing a hot water diverter, they increased their effective return and cut their grid imports, saving an additional $300 per year.
The Bottom Line
In 2025, feed-in tariffs alone won't make you rich—but they're still an important part of the solar equation. Focus on self-consumption, compare FiT rates when switching retailers, and consider batteries or hot water diverters to maximise your solar investment.
Understanding the Regulatory Landscape
As solar energy becomes more prevalent in Australia, understanding the regulatory landscape is crucial for maximising your solar investment. Key regulatory bodies such as the Australian Energy Regulator (AER), the Australian Competition and Consumer Commission (ACCC), and the Australian Energy Market Operator (AEMO) play significant roles in shaping the solar feed-in tariff environment.
AER and Consumer Protections
The AER oversees the electricity market and ensures that consumers are treated fairly. They provide guidelines on how retailers should present feed-in tariffs, ensuring transparency and preventing misleading claims. It's important to stay informed about your rights as a consumer, which can be found on the AER's website.
ACCC's Role in Competition
The ACCC ensures that the energy market remains competitive, which can influence the feed-in tariffs offered by retailers. By promoting competition, the ACCC helps drive innovation and potentially better rates for consumers. You can learn more about their initiatives on the ACCC's website.
AEMO's Influence on Grid Stability
AEMO manages the electricity grid's stability and has a vested interest in the integration of solar energy. They are involved in initiatives like the Distributed Energy Resources (DER) program, which aims to enhance the grid's ability to handle solar exports. Understanding AEMO's projects can provide insight into future changes in feed-in tariffs.
Navigating Retailer Options
Choosing the right electricity retailer can significantly impact your solar earnings. With numerous options available, it's essential to compare not only feed-in tariffs but also other terms and conditions.
Comparing Retailers
When comparing retailers, consider the following:
- Contract Terms: Some retailers may lock you into long-term contracts, while others offer more flexibility.
- Additional Fees: Be aware of any hidden fees that could offset the benefits of a higher feed-in tariff.
- Customer Service: Reliable customer service can be invaluable, especially when dealing with billing issues or technical support.
Utilising Online Tools
Several online platforms can help you compare electricity plans, including feed-in tariffs. Websites like Energy Made Easy provide tools to compare offers based on your location and energy usage patterns.
FAQ
What are the current trends in solar feed-in tariffs?
Feed-in tariffs have generally decreased over the years due to solar saturation and lower wholesale electricity prices. However, some retailers offer time-varying rates that provide higher returns during peak demand periods.
Can I switch retailers if I'm not satisfied with my feed-in tariff?
Yes, you can switch retailers if you're not satisfied with your current feed-in tariff. It's important to compare offers and consider any exit fees or contract terms before making a decision.
How do solar export limits affect my earnings?
Solar export limits can restrict the amount of electricity you can send back to the grid, potentially reducing your earnings. It's important to understand any limits imposed by your network provider and consider strategies like battery storage to optimise self-consumption.
Sources
- Australian Energy Regulator (AER)
- Australian Competition and Consumer Commission (ACCC)
- Australian Energy Market Operator (AEMO)
- Energy Made Easy
Author
This article was written by Jamie Thompson, an energy consultant with over a decade of experience in the Australian renewable energy sector. Jamie specialises in helping households and businesses maximise their solar investments through strategic planning and market analysis.
FAQ
How often should I review this type of product?
At least once per year and again when your circumstances change.
What should I compare first?
Start with eligibility, total costs, key exclusions, and cancellation terms.
Where can I verify guidance?
Check official Australian regulators and government websites before making decisions.