Solar Feed-in Tariffs Compared: State by State Analysis
Solar feed-in tariffs (FiTs) are payments or bill credits that eligible solar customers receive for electricity their solar system exports to the electricity grid.
The amount you receive depends on where you live, your electricity retailer, your energy plan, the type of solar system you have and, in some states, whether you are covered by a regulated or legacy feed-in tariff scheme.
Feed-in tariffs can be useful, but they should not be the only factor you consider when choosing an electricity plan or deciding whether to install solar.
What Is a Solar Feed-in Tariff?
When your solar panels generate more electricity than your home or business is using at that moment, the excess electricity may be exported to the electricity grid.
Your electricity retailer may provide a credit for this exported electricity. The amount is usually calculated in cents per kilowatt-hour (c/kWh).
For example, if your system exports 10 kWh of electricity and your retailer pays a feed-in tariff of 6 c/kWh, you would receive a $0.60 credit for those exports.
However, the value of solar is not limited to the feed-in tariff.
In most cases, using your own solar electricity can provide greater value because it allows you to avoid purchasing electricity from the grid at the retail electricity rate. IPART specifically notes that the largest benefit of solar is generally from using the electricity generated by your system rather than exporting it.
How Solar Feed-in Tariffs Work?
A typical grid-connected solar system works like this:
Solar panels → Inverter → Home/business → Excess electricity → Grid
During the day, your solar system first supplies electricity to your property.
If your solar generation is greater than your electricity consumption, the surplus may be exported to the grid.
Your retailer then applies the applicable feed-in tariff to eligible exports and provides the credit according to your electricity plan.
If your solar system is not generating enough electricity, such as at night, you can purchase electricity from the grid.
If you have a battery, excess solar electricity can instead be stored and used later, depending on the system configuration.
Solar Feed-in Tariffs by Australian State and Territory
Feed-in tariffs are not the same across Australia. Each state and territory has different arrangements, and retailer offers can change over time.
New South Wales
In NSW, electricity retailers generally set their own solar feed-in tariff offers.
IPART publishes annual benchmark ranges to help consumers understand the estimated value of solar exports. For 2026–27, IPART’s all-day benchmark is 3.4 to 6.5 c/kWh. Retailers are not required to offer a tariff within this range and may offer higher, lower or no solar feed-in tariff depending on their plans.
IPART also publishes time-of-day benchmarks because the wholesale value of electricity can vary significantly throughout the day. In 2026–27, some late-afternoon and evening benchmark periods are substantially higher than the middle-of-day benchmark periods.
What this means for NSW customers
Rather than choosing an electricity plan based only on the highest advertised FiT, compare:
- Feed-in tariff
- Electricity usage rates
- Daily supply charge
- Time-of-use pricing
- Solar export limits
- Any conditions attached to the FiT
A plan with a higher feed-in tariff may still be more expensive overall if its electricity purchase rates or supply charges are higher.
Victoria
Victoria changed its approach to solar feed-in tariffs from 1 July 2025.
Retailers now have greater flexibility to set their own solar feed-in tariff rates. Retailers must provide a credit for eligible exported solar electricity, and the feed-in tariff cannot be below $0 per kWh.
This means the old Victorian system of a government-regulated minimum feed-in tariff should not be presented as the current general arrangement.
Retailers may offer different structures, including single-rate and time-varying feed-in tariffs.
What this means for Victorian customers
The best electricity plan is not necessarily the one with the highest FiT.
You should compare the complete plan, including:
- Solar feed-in tariff
- Electricity usage rates
- Daily supply charges
- Time-of-use rates
- Solar export conditions
- Battery compatibility and requirements
For many households, increasing solar self-consumption can provide more value than exporting large amounts of electricity at a relatively low FiT.
Queensland
Queensland has different feed-in tariff arrangements depending on where you live.
In South East Queensland, electricity retailers generally offer market-based feed-in tariffs.
Regional Queensland has a separate regulated solar feed-in tariff for eligible customers. For 2026–27, the Queensland Competition Authority estimated the regional solar feed-in tariff at 6.006 c/kWh, excluding GST.
Eligibility for the regional tariff depends on factors including location, retailer, system capacity and electricity consumption.
Queensland also has legacy arrangements, including the historical 44 c/kWh Solar Bonus Scheme, which should not be confused with current market feed-in tariffs.
What this means for Queensland customers
Always check whether your property is in South East Queensland or regional Queensland and whether you qualify for any legacy arrangement.
For current customers, compare the complete electricity plan rather than relying on an old Solar Bonus Scheme rate.
South Australia
In South Australia, electricity retailers set their own retailer feed-in tariff rates and policies.
The South Australian Government does not set a general mandatory retailer feed-in tariff rate. Retailer offers can therefore differ depending on the electricity provider and plan.
South Australia also has a legacy distributor feed-in tariff of 44 c/kWh for certain eligible solar systems connected during earlier periods. This is not a standard rate available to new solar customers. Eligibility depends on the original connection date and other conditions.
What this means for South Australian customers
New solar customers should compare current retailer offers rather than assuming that legacy 44 c/kWh rates are available.
If you already receive a legacy feed-in tariff, check with SA Power Networks and your retailer before changing, upgrading or adding equipment to your solar system because alterations can affect eligibility.
Western Australia
Western Australia uses different arrangements from the National Electricity Market states.
Eligible customers can receive payments under the Distributed Energy Buyback Scheme (DEBS) for electricity exported to the grid from eligible distributed energy systems, including rooftop solar.
For Synergy customers, the published DEBS rates are:
- 10 c/kWh for electricity exported between 3 pm and 9 pm
- 2 c/kWh for electricity exported between 9 pm and 3 pm
Most Horizon Power customers have a 10 c/kWh peak rate and a 3 c/kWh off-peak rate, although some regional locations have different arrangements.
The time-of-export structure is designed to place greater value on exports during periods when electricity demand and system costs are higher.
Western Australia also has historical feed-in tariff schemes that are different from the current DEBS arrangements.
What this means for Western Australian customers
In WA, the timing of your electricity generation and consumption can be particularly important.
Using or storing solar energy during the middle of the day and managing exports around higher-value periods may provide better value than simply maximising total exports.
Australian Capital Territory
In the ACT, current solar feed-in tariffs for new customers are generally provided by electricity retailers and are not regulated as a standard retailer FiT rate.
Retailers can offer different rates, and customers should compare the complete electricity plan rather than looking only at the export rate.
The ACT also has a legacy Small and Medium-scale Feed-in Tariff Scheme that was closed to new entrants. Eligible legacy systems can continue receiving payments for the remaining period of their original arrangements.
What this means for ACT customers
If you have a newer solar system, compare current retailer offers.
If your property has an older solar installation, check whether it is covered by a legacy feed-in tariff before making major changes to the system.
Northern Territory
The Northern Territory has a distinctive feed-in tariff arrangement that includes a higher payment during a defined peak export period.
From 1 July 2025, the standard regulated feed-in tariff for electricity exported between 3 pm and 9 pm increased to 18.66 c/kWh for regulated customers.
The structure is designed to encourage solar and battery customers to export electricity when demand on the electricity system is higher.
What this means for Northern Territory customers
Battery storage and energy management can be particularly relevant because stored solar electricity can potentially be used or exported at times when electricity has greater value, subject to the system and connection arrangements.
Customers should still check the current electricity plan and applicable export conditions with their retailer.
Tasmania
Tasmania has a regulated minimum feed-in tariff for eligible small renewable energy generators.
For 1 July 2026 to 30 June 2027, the regulated minimum feed-in tariff is 9.276 c/kWh. This rate applies to eligible customers under the regulated scheme.
Eligibility includes requirements relating to the system, Australian standards, import/export metering and system capacity.
What this means for Tasmanian customers
The regulated minimum provides a baseline for eligible customers, but it is still important to check your retailer’s electricity plan and any additional terms.
Using solar electricity directly at your property can also reduce the amount of electricity you need to purchase from the grid.
FAQs
What is the Function of the Solar Feed-In Tariff?
The current solar feed-in tariff system operates by providing payments to solar system owners for the surplus energy they sell back to the grid. For instance, if a solar system owner produces 10 kWh from their solar panels but only consumes 5 kWh in their home, the excess 5 kWh can be sold back to the grid for a solar feed-in tariff.
What Factors Are Considered in Calculating the Solar Feed-In Tariff?
The calculation methods for solar feed-in tariffs vary from state to state. In some regions, such as New South Wales (NSW), the Independent Pricing and Regulatory Tribunal issues guidelines, but the exact calculations and payments are determined by individual retailers. Other areas, like Victoria (VIC), have minimum solar feed-in tariffs set by the government, subject to regular updates.
Is the Solar Feed-In Tariff Subject to Taxation?
The taxation of solar feed-in tariffs depends on the circumstances of the solar PV system adoption. While there is no specific legislation regarding the taxation of feed-in tariffs, if you can demonstrate that your solar system is not intended to generate profit, you may avoid having your tariff receipts classified as taxable income. Most households with solar systems aim to reduce power bills rather than generate income, but it is advisable to consult an accountant or contact the Australian Taxation Office (ATO) for personalized guidance.
What Makes a Solar Feed-In Tariff a Good Choice?
A good feed-in tariff varies depending on the state or territory in which you reside. It’s essential to compare different tariffs and consider factors beyond just the tariff rate. Some retailers may offer high feed-in tariffs but charge higher electricity purchase rates, which can offset the benefits. Location plays a significant role in determining the best feed-in tariff, and browsing through updated lists on our blog can help you find the most favorable options in your state.
Why Solar Feed-In Tariffs Have Experienced a Downward Trend
Initially, the government provided generous subsidies to promote the solar industry, resulting in high feed-in tariffs. As solar adoption increased and the market matured, these premium offers were phased out. Currently, feed-in tariff rates are primarily set by electricity retailers, and they have decreased as the cost of power on the wholesale market during the daytime has reduced due to the widespread installation of solar systems.
Are solar feed-in tariffs ending?
No, solar feed-in tariffs are still available from most retailers, even though they have decreased over time. The premium feed-in tariff system that once accounted for the high cost of solar PV systems has been phased out, but retailers continue to offer feed-in tariffs based on wholesale power costs and individual pricing structures. Solar panel adoption remains a worthwhile investment, especially given the competitive prices available through our platform. Feel free to contact us for more information.