How Solar Feed-In Tariffs Work in Australia: A State-by-State Guide
For many Australian households, installing solar panels isn’t just about reducing electricity bills—it’s also about the potential to earn money by exporting excess power back to the grid. This is where solar feed-in tariffs (FiTs) come in. But with different rates set across states and energy retailers, understanding how much you can earn can feel complicated. Here’s a clear, state-by-state breakdown of how feed-in tariffs currently work.
What Is a Solar Feed-In Tariff?
A feed-in tariff is the amount you are paid for each kilowatt-hour (kWh) of excess electricity your solar system sends back to the grid. Rather than wasting unused solar energy, households can offset their bills or receive credits on their account. While rates have declined compared to the early days of solar, they remain an important incentive for homeowners.
Feed-In Tariffs by State
New South Wales (NSW)
In NSW, feed-in tariffs are not government-mandated but set by retailers. Typical rates range between 4c and 10c per kWh. Shopping around for the best deal is key, as retailers offer different rates depending on your plan.
Victoria
Victoria sets a minimum feed-in tariff, currently around 4.9c per kWh, though retailers may offer higher rates. Some also provide time-varying FiTs, meaning you could earn more by exporting during peak demand hours.
Queensland
In South East Queensland, rates are determined by retailers, usually sitting between 5c and 10c per kWh. Regional Queensland customers on the Ergon Energy network may receive a regulated FiT, which is generally higher and consistent across the region.
South Australia
Retailers set FiT rates in South Australia, with most offering 5c to 12c per kWh. With the state’s strong solar uptake, choosing a retailer with competitive export rates can make a significant difference.
Western Australia (WA)
WA has a government-regulated scheme known as the Distributed Energy Buyback Scheme (DEBS). Rates vary depending on the time of day: around 2.5c per kWh during daylight hours and 10c per kWh in the late afternoon and evening when demand is higher.
Tasmania
Tasmanian households on the Aurora Energy network receive a regulated FiT of about 10c per kWh, one of the more stable rates in the country.
Northern Territory (NT)
The NT offers a standard FiT of around 8c per kWh, with some legacy systems still benefiting from older premium rates.
Maximising Your Solar Returns
While FiTs provide additional income, the real savings come from self-consumption—using your solar power at home rather than exporting it. Pairing solar with battery storage can further increase savings by allowing you to use stored energy during peak hours when tariffs are lower.
Solar feed-in tariffs remain a valuable benefit for Australian households, but the key is to compare providers and understand your state’s scheme. By optimising both your electricity use and your export potential, you can make the most of your solar investment while supporting Australia’s renewable energy transition.
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Damien Frearson
