Solar feed-in tariffs are payments for excess electricity exported to the grid. Many solar 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) for electricity exported and are included as a credit on your electricity bill. Currently, electricity retailers offer solar customers a choice between a single rate or a time-varying feed-in tariff.

Single rate feed-in tariffs apply regardless of the time of day or day of the week the excess solar generation is exported. However, a time-varying tariff pays different rates depending on the time of day.

How are feed-in tariffs set?

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.

Retailers will still be required to:

  • offer you a credit for your exported solar electricity – meaning retailers cannot set their feed-in tariffs rates below zero; and
  • provide solar customers updates on any changes to their feed-in tariff rates prior to updating the rates.

Victoria’s independent energy regulator, the Essential Services Commission (ESC), continues to maintain its oversight role to ensure that electricity retailers terms and conditions are fair and reasonable.

How do they compare - Feed-in-tariff or self-consumption?

If you want to make the most savings from your solar system, then the short answer is self-consumption. Using the free solar power that is generated by your solar system means that you can avoid paying higher retail prices for your electricity when the sun is shining.

A great start is to run major appliances like the dishwasher, washing machine and hot water heat pump during the day, rather than at night when your electricity will have to be bought from your electricity retailer.

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

You can find more information on how to get the most out of your solar on the Solar Victoria website.

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.

What was the regulated minimum feed-in tariff?

Victoria’s independent energy regulator, the Essential Services Commission (ESC), previously set minimum feed-in tariff rates annually. The minimum feed-in tariff was the minimum rate that had to be paid for electricity exported from eligible systems back into the grid.

Retailers were required to offer you at least the minimum rate, but they were free to offer you above this minimum. Many retailers in Victoria offered feed-in tariffs above the minimum rate set by the ESC.

Minimum feed-in tariff rates had been declining over time due to falling daytime wholesale electricity prices (when solar is generating), resulting in the ESC’s final FIT determination for 2025-2026 setting a near zero feed-in tariff flat rate.

The Victorian Government deregulated the solar feed-in tariff to remove unnecessary red tape and regulatory burden, given that the minimum rate was set at effectively zero.

This is good news, with deregulation expected to enable solar customers to access a greater range of more flexible feed-in tariffs, while maintaining consumer protections.

The rates set by the ESC for the 2024-25 financial year continue to apply until 30 June 2025.

You can find more information on how the ESC used to set minimum solar feed-in tariffs on the Essential Services Commission website.

Page last updated: 19/05/25