If you have solar panels or you are thinking about getting them, the solar feed-in tariff is one of the first numbers people obsess over. In simple terms, a solar feed-in tariff (FiT) is the credit your electricity retailer pays you for the surplus power your panels export to the grid. In 2026, feed-in tariff rates across Australia are lower than they used to be, which changes how you should think about getting the most value from your system.
This guide explains what a FiT is, how it shows up on your bill, why rates have fallen, the typical ranges by state, and why self-consumption and a battery now matter far more than chasing the highest feed-in tariff.
What Is a Solar Feed-in Tariff?
A solar feed-in tariff is a per-kilowatt-hour (kWh) rate paid to you for electricity your system sends back to the grid. During the day, your panels often generate more power than your home is using. Rather than wasting that energy, your inverter exports it to the grid, and your retailer credits you for it.
It is worth being clear about the difference between two numbers on every power bill:
- The usage rate (or supply rate) is what you pay to buy electricity from the grid, often around 25c to 45c per kWh depending on your state, retailer and time of day.
- The feed-in tariff is what you are paid for exporting, typically only a few cents per kWh in 2026.
Because you usually buy power for far more than you are paid to export it, the smartest strategy is to use your own solar power directly rather than sending it to the grid for a small credit. More on that below.
How a Feed-in Tariff Appears on Your Bill
On a typical bill, your retailer tallies up the total kWh you exported over the billing period and multiplies it by your feed-in tariff rate. That dollar figure appears as a credit that reduces your overall bill.
For example, if you exported 300 kWh in a quarter and your FiT is 5c per kWh, you would receive a $15 credit. It is helpful, but it rarely wipes out a bill on its own. This is exactly why understanding the full picture matters before you assume a high feed-in tariff equals big savings.
Why Feed-in Tariff Rates Have Fallen
Many Australians remember the early days of rooftop solar when generous feed-in tariff rates of 40c to 60c per kWh were on offer. Those legacy schemes have largely closed to new customers. Today’s solar feed-in tariff rates are far lower, and there are a few clear reasons:
- The grid is flooded with cheap solar in the middle of the day. When millions of rooftops export at once, the wholesale value of that midday energy drops sharply, sometimes close to zero.
- Feed-in tariffs are no longer heavily subsidised. Most states have shifted away from mandated premium rates toward market-based rates that reflect the real value of exported power.
- Upfront support has moved to other incentives. The federal Small-scale Renewable Energy Scheme (SRES) still lowers the upfront cost of a system through small-scale technology certificates (STCs), and that scheme steps down each year before ending in 2030. The newer Cheaper Home Batteries Program, which began on 1 July 2025, offers roughly 30 per cent off an eligible battery. In other words, the support has shifted from paying you for exports to helping you cut the upfront cost of solar and storage.
The takeaway is that a falling feed-in tariff does not mean solar is a worse investment. It means the value now comes from using your own power instead of buying it at retail prices.
Typical Feed-in Tariff Rates by State (2026)
Feed-in tariff rates vary by state, by retailer and even by the time of day. The figures below are approximate ranges only and change frequently, so always confirm the current offer with your retailer before signing up.
| State / Territory | Typical solar feed-in tariff range (approx.) |
|---|---|
| New South Wales | ~3c to 9c per kWh |
| Victoria | ~3c to 8c per kWh |
| Queensland | ~4c to 10c per kWh (regional and SEQ differ) |
| South Australia | ~3c to 8c per kWh |
| Western Australia | ~3c to 10c per kWh (often time-varying) |
| Tasmania | ~6c to 9c per kWh |
| ACT | ~5c to 10c per kWh |
| Northern Territory | ~varies, sometimes around retail in some cases |
These ranges are indicative and not guarantees. Regional networks, retailer competition and government settings all move these numbers around, so treat the table as a starting point for comparison rather than a fixed promise.
Single-rate vs Time-varying Feed-in Tariffs
There are two broad styles of feed-in tariff you will encounter.
Single-rate (flat) feed-in tariffs
A single-rate FiT pays the same amount per kWh no matter when you export. It is simple and predictable, which suits households that cannot easily shift their solar exports to a particular time of day.
Time-varying (peak) feed-in tariffs
A growing number of retailers offer time-varying feed-in tariffs that pay more for power exported during the early evening peak, when demand is high and the grid values energy most. These can pay a higher headline rate, sometimes well above the midday rate, but only for exports during specific windows.
Time-varying FiTs reward households with a battery. You can store cheap or self-generated daytime power and export it during the high-value evening window, capturing a better rate than you would by exporting at noon.
Why Self-consumption and a Battery Now Matter More Than the FiT
Here is the single most important idea in this guide. Every kWh of solar you use yourself avoids buying that same kWh from the grid at the retail rate. If you pay 35c per kWh to buy power but only earn 5c per kWh to export it, then using your own solar is worth seven times more than exporting it.
That maths is why self-consumption beats chasing the best feed-in tariff. Practical ways to lift self-consumption include:
- Running the dishwasher, washing machine and pool pump during daylight hours.
- Pre-cooling or pre-heating your home while the sun is shining.
- Charging an electric vehicle during the day where possible.
A home battery takes this further. It stores your excess daytime solar and releases it at night, so you buy far less from the grid after dark. With the federal battery rebate cutting roughly 30 per cent off eligible systems since 1 July 2025, batteries are more affordable than they were, though they still represent a significant investment. You can explore accredited battery storage installers to compare options.
How to Find a Good Feed-in Tariff Plan
Chasing only the highest feed-in tariff can backfire if the plan has high usage rates or steep daily supply charges. To find genuine value:
- Compare the whole plan, not just the FiT. Look at usage rates, supply charges and any conditions on the feed-in tariff.
- Watch for capped or tiered FiTs. Some plans pay a high rate only on the first few kWh exported each day.
- Check whether a time-varying FiT suits your household, especially if you have or plan to add a battery.
- Use a reputable, accredited installer. Choosing a Clean Energy Council accredited installer or a CEC-Approved Retailer helps ensure your system is sized and configured to maximise self-consumption, which matters more than the export rate.
You can also compare solar companies and browse solar companies by state to find installers who understand your local network rules and the best plans available in your area. For example, households in New South Wales face different network conditions than those in regional Queensland.
Frequently Asked Questions
What is a good solar feed-in tariff in Australia in 2026?
In 2026, a competitive flat feed-in tariff is often somewhere in the range of roughly 5c to 10c per kWh, though this varies by state and retailer. A higher headline FiT is not always better if the plan also charges higher usage or supply rates, so always compare the full plan.
Why is my feed-in tariff so low now?
Feed-in tariff rates have fallen because the grid receives a flood of cheap solar in the middle of the day, which lowers the wholesale value of that energy. Government support has also shifted toward cutting upfront costs through the SRES and the battery rebate rather than paying premium export rates.
Is it better to use my solar or export it for the feed-in tariff?
Using your own solar is almost always better. You typically pay far more to buy power from the grid than you earn by exporting it, so self-consumption saves more money than chasing the best feed-in tariff.
Do feed-in tariffs differ by state?
Yes. The solar feed-in tariff by state varies widely because of different network rules, retailer competition and government settings. The ranges in this guide are indicative only, so confirm current rates with retailers in your state.
Will a battery help me get more from a feed-in tariff?
A battery lets you store daytime solar and use it at night, slashing the power you buy from the grid. With time-varying feed-in tariffs, a battery can also export stored energy during high-value evening windows for a better rate.
Ready to Get More From Your Solar?
A falling feed-in tariff is not a reason to skip solar. It is a reason to size your system well, lift your self-consumption and consider storage. The right installer makes all the difference. Compare quotes from CEC-accredited installers today by browsing our directory and compare solar companies to find a trusted local expert.