Price Factors, Tariffs and 2026 Rules
Solar feed-in tariffs in 2026: how they work, Victoria's minimum ended, and what to compare
How solar feed-in tariffs are set in each state in 2026, why Victoria no longer has a minimum, flat versus time-varying rates and why self-consumption usually matters more.
A solar feed-in tariff (FiT) is the credit your retailer pays for each kWh your rooftop solar system exports to the grid. In most of Australia in 2026, feed-in tariffs are set by retailers, not by government, and they are typically far lower than the price you pay to buy electricity. In Victoria, the Essential Services Commission no longer sets a minimum feed-in tariff: following an amendment to the Electricity Industry Act 2000, the last minimum rates applied until 30 June 2025, and from 1 July 2025 retailers set their own feed-in tariffs, which cannot be below zero. Because exports earn so little compared with what you pay for grid power, using your own solar generally saves more than exporting it, and a plan with a high feed-in tariff is not automatically the cheapest overall.
Who sets feed-in tariffs in each region
| Region | How feed-in tariffs are set (2026) | Where to check |
|---|---|---|
| New South Wales | Retailer-set; IPART publishes a benchmark range for guidance | Energy Made Easy, IPART |
| South East Queensland | Retailer-set | Energy Made Easy |
| Regional Queensland | Regulated feed-in tariff set by the QCA for eligible customers in the Ergon area: 6.006 c/kWh for 2026–27 (down from 8.660 c/kWh) | Queensland Competition Authority |
| South Australia | Retailer-set | Energy Made Easy |
| Victoria | Retailer-set since 1 July 2025; no minimum, not below zero | Victorian Energy Compare, ESC |
| Tasmania, ACT | Retailer or regulator arrangements apply | Energy Made Easy, state regulator |
| Western Australia, Northern Territory | Government-set buyback schemes for eligible customers | State government sites |
Arrangements outside the main east coast markets change from time to time, so confirm details with the official source for your state before relying on a rate.
Flat and time-varying feed-in tariffs
- Flat (single rate): the same credit for every exported kWh.
- Time-varying: higher credits in the late afternoon and evening, when exports are most valuable, and lower or zero credits in the middle of the day.
Some retailers also cap the high rate at a number of kWh per day, or only pay it on certain plans. Read the plan's fact sheet.
Two-way network tariffs
Distributors can now apply export pricing at some times of day under national rules that allow two-way tariffs: a small charge for exporting during the busiest solar hours, offset by rewards at other times. Whether and how a retailer passes that on varies. In some plans this shows up as a very low or zero midday feed-in rate. In Victoria, a retailer's feed-in tariff cannot go below zero cents. Check how your retailer treats exports if you are comparing plans.
Why self-consumption usually wins
Illustrative example only. A household buys power at 30 c/kWh and is offered a feed-in tariff of 4 c/kWh.
- Every kWh of solar used at home avoids paying 30 c: worth $0.30.
- Every kWh exported earns 4 c: worth $0.04.
So shifting one kWh of use from evening to midday is worth roughly 26 c, about 7.5 times the value of exporting it. Running the dishwasher, washing machine, pool pump or hot water during the day can do more for your bill than chasing a slightly higher feed-in tariff.
The solar exports worked example shows the full arithmetic for a year, and the solar payback calculator estimates how long a system takes to pay for itself.
Comparing plans when you have solar
A plan with a high feed-in tariff can carry higher usage rates or supply charges. The right test is the total annual cost for your household:
Annual cost = supply charges + (grid kWh × usage rates) − (exported kWh × feed-in tariff)
Illustrative comparison: you buy 4,000 kWh from the grid and export 5,000 kWh a year.
| Plan | Supply | Usage rate | FiT | Annual cost |
|---|---|---|---|---|
| Plan A (high FiT) | 120 c/day | 34 c | 8 c | $438 + $1,360 − $400 = $1,398 |
| Plan B (low FiT) | 100 c/day | 29 c | 3 c | $365 + $1,160 − $150 = $1,375 |
Plan B costs about $23 less despite the much lower feed-in tariff. If your exports were 8,000 kWh, Plan A would earn $640 and cost $1,158 versus $1,285 for Plan B, so the answer flips. That is why comparison sites ask for solar export data.
The free midday offers and solar households
From 1 July 2026 the Solar Sharer Offer gives three free hours of grid power around midday in DMO regions, and Victoria's Midday Power Saver does the same from 1 October 2026. These plans are aimed partly at households without solar, but solar owners can compare them too: if your panels already cover your midday use, free grid power in that window adds little, and what matters is the rest of the tariff and the feed-in rate. See Solar Sharer and Midday Power Saver.
Batteries and feed-in tariffs
A home battery stores midday solar for the evening peak, increasing self-consumption. The federal Cheaper Home Batteries Program, which began on 1 July 2025, provides an upfront discount on eligible batteries through the small-scale renewable energy scheme. Some retailers also offer virtual power plant plans. These are separate decisions with their own costs and risks; get quotes and read the plan conditions before signing. The pricing overview and reference price guide explain the rest of the bill.
FAQ
Why did my feed-in tariff drop?
Retailers can change feed-in tariffs under the terms of your plan, usually with notice. Many lowered rates as midday solar output grew. Compare current plans if your rate fell.
Can a feed-in tariff be negative?
In Victoria, not below zero. In other regions, check your plan: export charges at certain times are possible under two-way network tariffs, depending on how the retailer passes them through.
Do I need to tell the comparison site I have solar?
Yes. Without export data, the comparison cannot value feed-in credits, and the cheapest plan shown may be wrong for you.
Is a premium feed-in tariff from years ago still paid?
Some legacy government schemes have closed and others may still apply to eligible customers. Check with your retailer and state government.
Sources
- Essential Services Commission — minimum feed-in tariff page: no minimum from 1 July 2025
- Energy Made Easy — compare plans with solar
- IPART — NSW solar feed-in tariff benchmarks
- Clean Energy Regulator — small-scale technology certificates and battery program
- Victorian Energy Compare — Victorian solar plans
