If you have rooftop solar, or you’re thinking about it, you’ve probably noticed that solar feed-in tariffs aren’t what they used to be. A decade ago, many households were paid generously for every kilowatt-hour (kWh) they sent back to the grid. In 2026, export rates are much lower, they vary widely between retailers and states, and in some areas they can drop to zero at certain times of day. This guide explains how solar feed-in tariffs work in Australia today, what the official benchmarks look like, and how to get the most value from your solar system when export payments are small.
What Are Solar Feed-in Tariffs?
A feed-in tariff (FiT) is the credit your electricity retailer pays you for each kWh of surplus solar electricity your system exports to the grid. Your panels first power whatever is running in your home. Anything left over flows out through your meter, and your retailer records those exports and credits you on your bill.
Feed-in tariffs are usually quoted in cents per kWh (c/kWh). For example, if you export 8 kWh on a sunny day and your retailer pays 5 c/kWh, you earn 40 cents for that day’s exports. By comparison, the electricity you buy from the grid typically costs several times more per kWh than you’re paid for exports. That gap is the single most important thing to understand about solar economics in 2026.
Flat-rate vs time-varying feed-in tariffs
- Flat-rate (all-day) FiT: you receive the same rate for every kWh exported, whatever the time of day.
- Time-varying (time-of-day) FiT: the rate changes through the day. Midday exports, when the grid is flooded with solar, typically earn little or nothing, while exports in the late afternoon and evening can earn more.
- Tiered FiT: some retailers pay a higher rate for the first few kWh exported each day, then a lower rate after that.
Why Solar Feed-in Tariffs Have Fallen
Early state-based solar schemes paid premium rates to kick-start the industry. Most of those schemes have closed to new customers. Today, export rates largely reflect the wholesale value of electricity at the time it’s exported, and that value is low in the middle of the day because millions of Australian rooftops are generating at once.
Large volumes of midday solar also create technical challenges for local networks, such as voltage rises. That’s one reason some areas now have export limits or dynamic export settings. (We cover this in more detail in our guide to solar export limits.)
Solar Feed-in Tariffs by State in 2026
The rules differ around the country. In most states, retailers set their own feed-in tariffs. Regulators in some states publish a minimum rate or a benchmark. Here’s where things stand for the 2026–27 financial year, based on the regulators’ own published information.
New South Wales
NSW has no mandatory minimum feed-in tariff. Instead, the Independent Pricing and Regulatory Tribunal (IPART) publishes benchmark ranges to help customers judge offers. For 2026–27, IPART’s all-day solar feed-in tariff benchmark is 3.4 to 6.5 c/kWh. IPART also publishes time-of-day benchmarks. Retailers can offer rates within these ranges, but they aren’t required to.
Victoria
Victoria used to have a minimum feed-in tariff set by the Essential Services Commission. Following a change to the Electricity Industry Act 2000, there has been no minimum feed-in tariff from 1 July 2025. Retailers set their own rates, which can’t be below zero. Victorian solar owners should compare offers carefully, because rates now vary much more from one retailer to the next.
Queensland
In South East Queensland, retailers compete and set their own feed-in tariffs. In regional Queensland, the Queensland Competition Authority (QCA) sets a regulated rate. For 2026–27, the regional Queensland feed-in tariff is 6.006 c/kWh, down from 8.660 c/kWh the previous year.
Other states and territories
In South Australia, the ACT and Tasmania, as well as in Western Australia’s separate market, rates and rules are set differently, and some households may still be on older or legacy arrangements. Check your current plan and your state’s energy regulator, or use the government comparison sites (Energy Made Easy, or Victorian Energy Compare in Victoria), to see what’s available at your address.
The Solar Sharer Offer: Free Midday Power
A big change for 2026 is the federal government’s Solar Sharer Offer, which started on 1 July 2026 in NSW, South East Queensland and South Australia (the areas covered by the Default Market Offer). Eligible households with a smart meter can access up to 24 kWh of free electricity during a three-hour window in the middle of the day. The Australian Energy Regulator sets the exact window for each area.
You don’t need solar panels to opt in. However, solar owners should look closely before switching. The free window lines up with the hours when your own panels are already producing the most. Also, plans like this can have higher prices outside the free window. Ask any retailer what feed-in tariff, if any, applies on their Solar Sharer plan, and compare the whole plan against your current one using your real usage data.
Self-Consumption Beats Exporting
With export rates in the single digits of cents per kWh, every unit of solar you use yourself is usually worth far more than a unit you export. Each kWh you use at home is a kWh you don’t have to buy from the grid at the full retail price. That’s why the best solar strategy in 2026 is about self-consumption, not chasing the highest feed-in tariff.
Practical ways to use more of your own solar
- Shift appliances to daytime: run the dishwasher, washing machine and dryer on a timer between mid-morning and mid-afternoon.
- Heat water with the sun: a heat pump hot water system on a daytime timer turns surplus solar into stored hot water.
- Pre-cool or pre-heat your home: run reverse-cycle air conditioning during solar hours on hot or cold days, so the house needs less energy in the evening.
- Charge your EV at midday: a solar-aware home EV charger can top up your car from surplus solar instead of exporting it.
- Add a home battery: store daytime surplus to use in the evening peak, when grid power is usually most expensive.
Do Low Solar Feed-in Tariffs Make Batteries Worth It?
Low feed-in tariffs widen the gap between what you earn for exports and what you pay for imports. That gap is exactly what a battery captures. Instead of exporting a kWh for a few cents, you store it and use it at night in place of grid power. Combined with the federal Cheaper Home Batteries Program, this has made batteries a much more common addition to solar systems. Whether one pays off for you depends on your evening usage, your tariff and the battery’s size and cost. Our guide Is Battery Storage Worth It? walks through the numbers.
How to Compare Feed-in Tariff Offers
The plan with the highest feed-in tariff isn’t always the cheapest overall. Retailers sometimes pair a generous export rate with higher usage charges or supply charges. When comparing solar plans:
- Know your numbers. Download your interval data from your retailer or distributor, or check your bills to see how much you import and export each quarter.
- Compare the whole bill. Look at the usage rates, daily supply charge and feed-in tariff together, not the FiT on its own.
- Check the conditions. Some higher rates only apply to the first few kWh each day, need a specific battery or app, or only apply in certain time windows.
- Use the official comparison tools. Energy Made Easy (most states) and Victorian Energy Compare are free, independent government sites.
- Review every year. Benchmarks and retail offers change, usually from 1 July, so set a reminder to check your plan.
Should Feed-in Tariffs Change How Big a System You Install?
Lower export rates don’t mean solar is no longer worthwhile. A well-sized system still cuts the amount of grid power you buy. What it does change is the design focus. Rather than maximising exports, a good installer looks at when you use energy, whether you plan to add a battery, heat pump or EV charger, and any export limit on your connection. For many households, it still makes sense to install a generous system, especially if more electric appliances are on the way. Our guide on how to size solar panels explains the trade-offs.
Solar Feed-in Tariffs FAQ
Is there a minimum solar feed-in tariff in Australia?
There’s no national minimum. Regional Queensland has a regulated rate set by the QCA. NSW has non-binding IPART benchmarks. Victoria removed its minimum from 1 July 2025, and rates there can’t go below zero. Elsewhere, rules vary by state and retailer.
Can my feed-in tariff be zero?
Yes. Some time-varying plans pay nothing for exports during the middle of the day. Read the plan’s fact sheet carefully so you know when, and how much, you’ll be paid.
Will a battery reduce my feed-in tariff earnings?
Usually, yes, because you’ll export less. But each stored kWh you use later replaces a kWh you’d otherwise buy at the full retail price, which is normally worth much more than the export credit.
Do I need a new meter to receive a feed-in tariff?
You need a meter that can measure exports, typically a smart or bi-directional meter. When a new solar system is connected, your installer and retailer arrange the meter change if it’s needed.
Get More From Your Solar With Sunloop Energy
Feed-in tariffs will keep changing, but the strategy that works is simple: generate your own power, use as much of it as you can, and store or shift the rest. Sunloop Energy designs and installs solar systems, home batteries, heat pump hot water, air conditioning and EV chargers that work together to boost your self-consumption and cut your bills. Request a free quote from Sunloop Energy today and we’ll help you build a system that makes sense for your home and your energy plan.
