· 1 · Energy · 4 min read
Solar Feed-In Tariffs Australia: What You'll Earn in 2025
Got solar panels? Here's what you need to know about feed-in tariffs and how to maximise your solar earnings in 2025.
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:
-
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.