Many solar PV system owners sell excess electricity that their system generates to their electricity retailer for a rate per kilowatt-hour (kWh), known as the feed-in-tariff.
What are feed-in tariffs?
Feed-in tariffs are paid in cents per kilowatt-hour (c/kWh) exported. In addition, energy companies can offer solar customers a choice between a single rate or a time-varying tariff.
Single rate feed-in tariffs apply regardless of the time of day or day of the week. However, a time-varying tariff pays different rates depending on the time of day.
Victoria’s independent regulator, the Essential Services Commission (ESC), sets feed-in tariff rates annually.
What is the minimum feed-in tariff?
The minimum feed-in tariff is the minimum rate that must be paid for electricity exported from eligible systems back into the grid.
Retailers must offer you at least the minimum tariff, but they are free to offer you above this minimum.
You can find more information on solar feed-in tariffs on the Essential Services Commission website
Feed-in-tariff or self-consumption?
The short answer is self-consumption. Using the electricity as it is generated by your system means that you can avoiding paying retail prices for your electricity while your system is generating during the day.
A great start is to run major appliances like the dishwasher and washing machine during the day, rather than at night when your electricity will have to be bought from your electricity retailer. Since installing solar panels, around two-thirds of Solar panel rebate customers, say they have become more conscious of the way they use energy and of those, 80% set their appliances to use power during the day.
You can also use the Victorian Energy Compare tool to check that you are on the right retail energy plan for your home and lifestyle.
Page last updated: 25/11/22