Feed-In Tariff (FIT) Australia 2025: Your Guide to Solar Savings

Feed-In Tariffs (FITs) have been a cornerstone of Australia’s solar revolution, rewarding homeowners for exporting excess energy back to the grid. But as state policies evolve and wholesale energy prices fluctuate, understanding the 2025 FIT landscape is crucial for anyone looking to make the most of their rooftop solar investment.

How Feed-In Tariffs Work in 2025

A Feed-In Tariff is a credit you receive on your electricity bill for each kilowatt-hour (kWh) of solar power your system exports to the grid. In 2025, FITs in Australia remain a mix of government-regulated minimums and retailer-set rates, varying by state and even by energy provider.

• State-by-state differences: Victoria and Queensland maintain regulated minimum FITs, while NSW, South Australia, and others rely on market-driven rates.
• Retailer competition: Retailers may offer higher FITs as part of bundled energy plans, but these often come with trade-offs like higher usage rates.
• Time-varying tariffs: More providers now offer time-of-export tariffs, rewarding exports during peak demand (e.g., evening hours) and lowering rates during midday solar surges.

For example, Victoria’s regulated minimum FIT for July 2025 is 4.9c/kWh (single-rate), down from 5.1c in 2024, while some retailers in NSW offer up to 10c/kWh for evening exports.

Recent Policy Updates and Trends

Australia’s FIT landscape is shifting in response to grid stability concerns and the growing penetration of rooftop solar. Key 2025 developments include:

• Minimum FIT reductions: Most states have reduced minimum FITs for 2025 to reflect lower daytime wholesale electricity prices, driven by abundant rooftop solar generation.
• Flexible export limits: Networks in SA and Queensland are rolling out flexible export schemes, allowing higher exports during periods of high grid demand but limiting them during solar ‘traffic jams’.
• Incentives for batteries: Some retailers offer premium FITs for homes with battery storage that export during peak demand, supporting grid reliability and providing greater value for smart energy management.

Regulators are encouraging households to use more solar on-site, as exporting excess power is now less lucrative than in the early days of high, government-backed FITs.

Maximising Your Solar Earnings in 2025

With FITs trending lower and tariffs more complex, it’s essential to rethink your solar strategy. Here’s how to get ahead:

• Compare retailer offers: Don’t just look at the advertised FIT. Factor in usage rates, daily supply charges, and any conditions on higher FITs.
• Shift your usage: Run appliances like dishwashers and washing machines during the day to consume more of your own solar generation, reducing your reliance on expensive grid power.
• Consider battery storage: Batteries let you store midday solar and export (or use) it during peak-price periods, capturing higher time-varying FITs or avoiding peak grid rates altogether.
• Monitor export limits: Check if your network imposes flexible export limits and optimise your exports accordingly.
• Stay informed: FIT rates and policies change regularly—review your plan and the market at least once a year.

For instance, a Sydney household that shifts just 20% of its solar usage on-site and exports during evening peaks could save hundreds more annually compared to a passive exporter.

The Future of FITs: What’s Next?

Looking forward, expect further evolution. With rooftop solar now Australia’s largest generator, networks and governments are exploring:

• Dynamic tariffs: Real-time pricing to reward exports when the grid needs it most.
• Community batteries: Shared storage solutions that can boost export values for neighbourhoods.
• Virtual Power Plants (VPPs): Programs where households pool battery resources, earning premium FITs for supporting the grid during critical periods.

Staying flexible and tech-savvy will help households keep reaping the benefits of their solar investment, even as the energy market matures.