Feed-in Tariffs Explained
A feed-in tariff (FiT) is the rate your energy retailer pays you for electricity you export to the grid from your solar system. Understanding how FiTs work helps you maximise your solar investment.
How feed-in tariffs work
During the day, your solar panels may produce more electricity than your home uses. This excess is exported to the grid, and your retailer credits you at the FiT rate. At night or when your usage exceeds generation, you buy electricity at the retail rate.
The key insight: your FiT rate is always much lower than your retail rate. Typical FiT rates are 4–8¢/kWh, while retail rates are 25–35¢/kWh. This means every kWh you use directly from your solar is worth 3–5x more than one you export.
What affects FiT rates?
- •Your state — some states have regulated minimum FiTs, others are fully deregulated
- •Your retailer — rates vary significantly between retailers
- •Time of export — some retailers offer time-varying FiTs (higher during peak demand)
- •Your plan type — some plans offer higher FiTs but higher usage rates (or vice versa)
Current FiT landscape by state
Rates change frequently, but as a general guide: - SA — typically 5–8¢/kWh, some higher offers available - QLD — 4–7¢/kWh, varies by distributor region - NSW — 4–7¢/kWh, fully deregulated - VIC — 4–6¢/kWh, minimum FiT set by Essential Services Commission - WA — DEBS scheme with time-varying rates (3–10¢/kWh depending on time)
How to maximise your solar value
- **Self-consume as much as possible** — run appliances during the day
- **Use timers** — set your dishwasher, washing machine, and pool pump to run during solar hours
- **Consider a battery** — stores excess for evening use instead of exporting at low FiT rates
- **Compare retailers** — even a 2¢/kWh difference in FiT adds up over a year
- **Check time-of-use options** — if your retailer offers time-varying FiTs, you may earn more during peak periods