Complete guide to solar feed-in tariffs in Australia. Learn how feed-in tariffs work, current rates by state, and how to choose the best solar tariff for maximum savings.
What is Solar Feed-in Tariff? Complete Guide for Australian Homeowners
A solar feed-in tariff is the rate you're paid for excess electricity your solar panels generate and export back to the electricity grid. If you have solar panels or are considering installing them, understanding feed-in tariffs is crucial for maximizing your solar investment and reducing your electricity bills.
With solar installations growing rapidly across Australia, getting the right feed-in tariff can significantly impact your return on investment. The good news is that tools like Huglo compare solar feed-in tariffs from all Australian electricity providers, helping you find the best rates for your location and solar system size.
How Solar Feed-in Tariffs Work
When your solar panels produce more electricity than your home consumes, the excess power flows back into the electricity grid. Your electricity retailer pays you a feed-in tariff for this excess solar energy, which appears as a credit on your electricity bill.
Here's how the process works:
- Solar panels generate electricity during daylight hours
- Your home uses solar power first - this electricity is "free" since you're using what you generate
- Excess power flows to the grid when production exceeds consumption
- Your electricity meter records the export amount
- You receive credits on your bill based on your feed-in tariff rate
The key to maximizing savings is using as much of your solar power as possible when it's being generated, while also securing the best possible feed-in tariff rate for excess exports.
Types of Solar Feed-in Tariffs in Australia
Gross Feed-in Tariffs
- All solar electricity generated goes to the grid
- You're paid for 100% of your solar production
- You buy all your electricity consumption from the retailer
- Less common in modern installations
- Generally offered at lower rates
Net Feed-in Tariffs
- Only excess electricity is exported to the grid
- You use your solar power first, then export surplus
- Most common type in Australia today
- More beneficial for typical households
- Better for maximizing self-consumption
Time-of-Use Feed-in Tariffs
- Different rates depending on when electricity is exported
- Higher rates during peak demand periods
- Lower rates during off-peak times
- Becoming more common as the grid evolves
- Can maximize returns with battery storage
Current Solar Feed-in Tariff Rates by State
Feed-in tariff rates vary significantly across Australia and between retailers. Here's an overview of typical rates as of 2025:
New South Wales
- Range: 5-20 cents per kWh
- Average: 8-12 cents per kWh
- Best rates: Often from smaller retailers
- Notes: No minimum mandated rate; competitive market drives rates
NSW Regional Comparisons:
Victoria
- Range: 3.3-15 cents per kWh
- Minimum: 3.3 cents per kWh (mandated by government)
- Average: 5-10 cents per kWh
- Notes: Strong competition among retailers
VIC Regional Comparisons:
Queensland
- Range: 6-20 cents per kWh
- Average: 8-15 cents per kWh
- Notes: Some of the highest feed-in tariff rates in Australia
- Regional variations: Rates may differ between Ergon and Energex areas
QLD Regional Comparisons:
South Australia
- Range: 5-18 cents per kWh
- Average: 8-12 cents per kWh
- Notes: High solar penetration drives competitive rates
SA Regional Comparisons:
Western Australia
- Range: 2.5-10 cents per kWh
- Average: 3-7 cents per kWh
- Notes: Regulated market with limited competition
Australian Capital Territory
- Range: 8-20 cents per kWh
- Average: 10-15 cents per kWh
- Notes: Government support for renewable energy drives higher rates
ACT Regional Comparisons:
Tasmania
- Range: 8-12 cents per kWh
- Average: 9-11 cents per kWh
- Notes: Limited competition but decent rates
Important: These rates change frequently as retailers adjust their offers. Always check current rates when comparing plans.
Factors That Affect Your Feed-in Tariff Earnings
Solar System Size
- Larger systems generate more excess power
- Optimal sizing balances self-consumption with exports
- Over-sizing may not be cost-effective if feed-in rates are low
Household Energy Usage Patterns
- Daytime usage reduces exports but provides maximum savings
- Evening/night usage increases grid purchases
- Energy-efficient appliances can improve solar utilization
Seasonal Variations
- Summer months typically generate more solar power
- Winter months may see reduced exports
- Weather patterns affect daily generation
Local Solar Penetration
- High solar adoption in your area may affect future tariff rates
- Grid constraints can impact available tariff rates
- Time-of-use pricing may become more common
How to Maximize Your Solar Feed-in Tariff Benefits
1. Choose the Right Retailer
Not all electricity providers offer the same feed-in tariff rates. Some strategies:
- Compare all available rates in your area
- Consider smaller retailers who often offer competitive rates
- Look beyond just the feed-in rate - consider your overall electricity costs
- Check for promotional rates that may increase over time
2. Optimize Your Energy Usage
To get the most from your solar energy system:
- Run appliances during the day when solar is generating
- Use timers for dishwashers, washing machines, and pool pumps
- Heat water during peak solar hours if you have electric hot water
- Consider energy-efficient upgrades to reduce overall consumption
3. Consider Battery Storage
- Store excess energy for use when solar isn't generating
- Reduce reliance on feed-in tariffs for surplus power
- Provide backup power during outages
- Time-shift energy usage to avoid peak rates
4. Monitor Your System Performance
- Track your exports to understand your patterns
- Identify issues quickly to maintain optimal generation
- Adjust usage habits based on production data
- Calculate actual returns from your feed-in tariff
Comparing Solar Feed-in Tariffs: What to Look For
Beyond the Rate
When comparing feed-in tariffs, consider:
- Overall electricity rates for power you buy from the grid
- Daily supply charges that apply regardless of usage
- Contract terms and any lock-in periods
- Customer service quality and billing accuracy
- Additional solar perks some retailers offer
Hidden Costs and Conditions
Watch out for:
- Minimum export requirements for premium rates
- Peak export limits that may affect large systems
- Seasonal rate variations that could impact annual returns
- Contract exit fees if you want to switch providers
The Total Picture
The best feed-in tariff is one that maximizes your overall electricity savings, not just export earnings. This is where comprehensive comparison becomes essential.
Feed-in Tariffs vs. Self-Consumption
While feed-in tariffs provide income from excess solar, self-consumption typically offers better financial returns:
- Self-consumption savings: 25-45 cents per kWh (avoiding retail electricity costs)
- Feed-in tariff earnings: 3-20 cents per kWh (varies by provider and location)
This means using your solar power directly provides 2-5 times more value than exporting it. However, feed-in tariffs are still important for:
- Times when you can't use all generated power
- Overall system economics and payback calculations
- Providing income during high-generation periods
For more ways to optimize your energy usage alongside solar, check out our introduction to energy savings guide.
Future of Feed-in Tariffs in Australia
Market Trends
- Time-of-use tariffs becoming more common
- Battery storage integration affecting traditional models
- Grid services creating new revenue opportunities
- Virtual power plants offering alternative arrangements
Regulatory Changes
- Network costs increasingly affecting tariff structures
- Grid stability requirements may influence rates
- State government policies continue to evolve
- Federal renewable energy targets driving long-term support
How to Switch for Better Solar Feed-in Tariffs
1. Research Your Options
Start by identifying all available retailers in your area and their current solar feed-in tariff rates. This can be time-consuming if done manually.
2. Calculate Total Savings
Don't just compare feed-in rates - calculate your total annual electricity costs including:
- Feed-in tariff earnings from exports
- Costs for electricity purchased from the grid
- Daily supply charges
- Any additional fees
3. Use a Comprehensive Comparison Tool
Huglo makes this process simple by comparing solar feed-in tariffs from all Australian electricity providers. You can see exactly how much you'll earn from your solar exports and pay for grid electricity with each provider, giving you a complete picture of your potential savings.
4. Make the Switch
Once you've identified the best deal:
- Contact your chosen retailer (Huglo provides direct links to providers)
- Provide your National Meter Identifier (NMI)
- Schedule the switch (typically takes 10-20 business days)
- Monitor your first few bills to ensure rates are correct
Common Solar Feed-in Tariff Mistakes to Avoid
1. Focusing Only on Feed-in Rates
The highest feed-in tariff may come with high usage rates, resulting in overall higher costs.
2. Ignoring Contract Terms
Some attractive introductory rates may decrease after an initial period.
3. Not Considering Your Usage Patterns
High daytime users may benefit less from high feed-in tariffs than low daytime users.
4. Forgetting About System Performance
Poor system maintenance can reduce both self-consumption benefits and feed-in tariff earnings.
Solar Feed-in Tariffs and Electricity Plan Selection
When choosing an electricity provider, solar feed-in tariffs should be part of your overall consideration alongside other factors covered in our guide on how to choose the best electricity provider in Australia.
Key considerations include:
- Total annual costs including both purchases and feed-in earnings
- Customer service quality for billing inquiries and system issues
- Plan flexibility if your solar or usage patterns change
- Additional renewable energy options some providers offer
Compare Solar Feed-in Tariffs by Region
To help you find the best solar feed-in tariff rates in your specific area, we've created detailed comparisons for each major distribution network and region across Australia:
By State
By Distribution Network
By Major City
Each comparison shows current feed-in tariff rates from all available retailers in your distribution area, helping you identify the best deals for your specific location.
Ready to Find the Best Solar Feed-in Tariff?
Understanding solar feed-in tariffs is just the first step. To truly maximize your solar investment, you need to find the provider offering the best combination of competitive feed-in rates and affordable electricity prices for your specific situation.
Rather than manually researching dozens of electricity providers and their varying solar tariff rates, Huglo compares 100% of the Australian electricity market to find the best solar deals for your location and usage patterns. Simply enter your postcode and solar system details to see personalized recommendations that could significantly boost your solar savings.
With Huglo, you can easily compare:
- Feed-in tariff rates from all providers in your area
- Total annual costs including both exports and purchases
- Customer ratings and service quality
- Contract terms and conditions
Best of all, once you find the perfect solar-friendly plan, you can go directly to the provider's website to sign up - no need to search for contact details or navigate multiple websites.
Conclusion
Solar feed-in tariffs are a valuable component of solar system economics, providing income for excess electricity you generate. While self-consumption typically offers better returns than exporting power, feed-in tariffs make solar systems more financially attractive and help accelerate payback periods.
The key to maximizing your solar investment is finding the right balance between competitive feed-in tariff rates and affordable electricity prices for power you purchase from the grid. With rates varying significantly between providers and changing frequently, regular comparison is essential.
Remember that the best solar feed-in tariff is one that maximizes your total electricity savings, not just your export earnings. By understanding how tariffs work, comparing all your options, and choosing a provider that offers great value across your entire electricity needs, you can ensure your solar system delivers maximum financial and environmental benefits for years to come.
Whether you're planning to install solar panels or already have a system generating clean energy, taking the time to optimize your feed-in tariff can result in hundreds of dollars in additional savings annually. In Australia's competitive electricity market, there's likely a provider offering exactly the solar-friendly deal you're looking for.