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What was the solar premium feed-in tariff and when did it end?

The solar premium feed-in tariff (PFIT) scheme started in 2009 to provide extra support for Victorians installing rooftop solar systems at a time when solar panels were relatively expensive. The scheme was legislated to run for 15 years, and closed to new applicants at the end of 2011, having met its capacity.

The scheme offered eligible solar customers with small-scale systems of 5kW or less a PFIT credit of at least 60 cents/kWh for excess electricity fed back into the grid.

Important information

  • The PFIT scheme ended on 1 November 2024.
  • Retailers are no longer obligated to pass on PFIT credits.
  • Solar customers who were benefiting from the PFIT scheme will continue to receive a solar feed-in tariff rate from their retailer. They must offer solar customers at least one of the minimum feed-in tariffs, and they are free to offer above (but not less than) these minimum rates set annually by the Essential Services Commission.
  • Your retailer should have contacted you to discuss your solar feed-in tariff rate options before the scheme ended.

If I was receiving a premium feed-in tariff credit, what should I expect?

Circumstances where your PFIT credit ended before 1 November.

There are some scenarios where changes to your system or your circumstances may have led to your PFIT credit stopping earlier. Some common scenarios which can mean you are ineligible for the PFIT credit before the end of the scheme include:

  • You added extra solar panels, even if the overall system size remained 5kW or under prior to the end of the scheme.
  • You moved house, as the PFIT is linked to the property where the solar panels were originally installed, you could not take the PFIT credits with you to your new home.

How to continue saving with solar now the PFIT scheme has ended

Solar customers benefit most by using as much of the electricity generated by their solar system as possible and therefore avoiding paying retail prices for electricity while their system is generating during the day.

To maximise your savings with solar:

  • run electricity-intensive appliances like washing machines, dishwashers, and pool pumps during the day when the sun is shining rather than exporting to the grid
  • consider setting a timer to run your appliances during the day even if you are not at home, or switch them on just before leaving the house.

The potential savings for individual households will vary depending on the mix of appliances in the home, the proportion of solar generation which the household self-consumes, and the household’s location and solar system size.

For more information visit how to get the most out of solar.

Explore new ways to help manage your energy costs

Solar technology has improved rapidly since 2009. Given the above potential savings, you could consider upgrading to a new, more efficient system that could better support your energy needs.

Solar Victoria has expanded its eligibility criteria for its solar system rebates to include households with existing systems over 10 years old.

If this eligibility change applies to you, a solar panel rebate can bring down the cost of replacing your solar panels or expanding the number of solar panels you currently have.

You may also be eligible for a hot water rebate and a solar battery loan through Solar Victoria.

More information on what you can do to maximise your solar saving can be found at feed-in tariff ending.

Understanding solar feed-in tariff rates

A high PFIT credit rate provided extra support for early adopters and helped drive solar industry development in Victoria at a time when solar panels were relatively expensive and solar technology was evolving.

Now, solar feed-in tariff rates are lower due to the reduced cost of solar systems and given the solar industry is well established and Victorians continue to choose to install solar to offset their electricity costs.

Current solar feed-in tariffs rates reflect the value of solar exports at the time when the excess solar generation is being sent into the electricity grid and are lower than retail electricity rates.

When retailers on-sell the exported solar electricity to their customers, they incur additional costs, such as network charges and retail overheads, to comply with relevant obligations.

From 1 July 2025, electricity retailers will have greater flexibility in setting feed-in tariff rates. This will make it easier for electricity retailers to offer competitive prices and innovative tariff packages, including a wider range of feed-in tariffs to help their solar customers maximise the value of their investment.

Feed in tariff rates have been decreasing over time due to declining daytime wholesale electricity market prices. This reflects the changing value of solar exports, given increasing solar generation across Victoria and low wholesale electricity prices during daylight hours (when most excess solar generation is being sent back into the grid).

For more information about feed-in tariffs visit Solar feed-in tariff.

Why did the PFIT scheme close?

The PFIT scheme was legislated in 2009 to provide early adopters of a solar systems with a guaranteed feed-in tariff for 15 years from the scheme’s commencement date.

Under the legislation, the scheme ended on 1 November 2024.

The PFIT scheme was funded by electricity distribution businesses who pass on the costs of the scheme through increases in the tariffs they charge all Victorians, including customers without solar systems.

It was considered that these increased costs would be an unnecessary and unfair burden to other Victorians, particularly as the price of solar systems continued to fall and the solar industry was sufficiently established. Most other states and territories have also closed similar premium schemes.

Page last updated: 19/05/25