Solar Feed-in Tariff in Australia 2026

What's a Feed-in Tariff?

When your solar system generates more power than you're using, the excess flows back to the grid. Your electricity retailer buys it from you at a "feed-in tariff" rate. You get credited on your bill.

Example: Your 6.6kW system generates 25 kWh on a clear day. You use 15 kWh. The remaining 10 kWh goes to the grid. At 8c/kWh, that's $0.80 credit.

Current Feed-in Rates (2026)

Range: 5–12c/kWh depending on state and retailer.

By state (typical):

NSW: 6–12c/kWh (varies widely)
Victoria: 5–10c/kWh
Queensland: 6–12c/kWh (varies by network: Energex vs Ergon)
South Australia: 7–12c/kWh (plus DEBS export scheme)
Western Australia: 7–12c/kWh (via DEBS)
ACT: 5–10c/kWh
Tasmania: 5–8c/kWh

Best rates: NSW and QLD have the highest variation; some retailers pay 12c/kWh.

Worst rates: Tasmania, because it's a small hydro-focused market.

How Rates Have Declined

Historical:

2010–2012: 44c/kWh (generous early adopter rates)
2015: 10–15c/kWh (declining as solar penetration grew)
2020: 5–10c/kWh (lower as solar became commonplace)
2026: 5–12c/kWh (now variable; some retailers are low, others competitive)

Why the decline? Electricity retailers don't want to buy solar power at high rates. As solar penetration increased, they reduced offers. Simple supply-and-demand.

Future trend: Expect slow decline (to 3–8c/kWh by 2030) as more solar is installed. This is why battery storage is becoming important (self-consumption matters more than feed-in).

Why Self-Consumption Beats Feed-in

Consuming your own solar is worth more than exporting it:

Example:

Your consumption rate: $0.35/kWh
Feed-in rate: 8c/kWh
Difference: $0.27/kWh

For every kWh you consume yourself instead of exporting, you're $0.27 richer (you avoid paying $0.35 for grid power, plus you lose 8c export credit).

Strategy: Maximize self-consumption before worrying about feed-in rates.

Time-of-Use Tariffs

Some retailers offer time-of-use (ToU) rates, where feed-in varies by time of day:

Example (NSW retailer):

Peak (5–9pm): 12c/kWh (high!)
Shoulder (7am–5pm, 9–10pm): 8c/kWh
Off-peak (10pm–7am): 3c/kWh

Strategy: If you have a battery, charge during shoulder/off-peak, discharge during peak. You can "buy" at 3c/kWh and "sell" at 12c/kWh. Profit margin: 9c/kWh.

This is why ToU tariffs are attractive for battery owners.

Shopping for the Best Rate

Check current retailers in your area. Visit iselect.com.au, canstar.com.au, or go direct to AGL, Origin, Endeavour, etc.
Ask specifically: "What's your feed-in tariff for solar?" (Don't just ask consumption rates.)
Compare apples-to-apples: Are they flat-rate or time-of-use? Flat rates are simpler; ToU requires smarter consumption.
Factor in consumption rates: Some retailers have low feed-in but high consumption (and vice versa). Net bill savings matter, not just feed-in.
Bundle discounts: Sometimes bundling solar + consumption on one plan gives a discount (e.g., 1–2% off).

Example comparison:

Retailer A: 8c/kWh feed-in, $0.38/kWh consumption, no bundling
Retailer B: 6c/kWh feed-in, $0.34/kWh consumption, 10% bundle discount on consumption = effective $0.306/kWh

Retailer B looks worse on feed-in but better overall (lower consumption rate).

Fixed vs Variable Feed-in Rates

Fixed: Some retailers offer fixed rates for 1–2 years. Protects you from rate drops. Usually 7–9c/kWh.

Variable: Rates change quarterly or annually. Could be 12c/kWh this year, 8c/kWh next year.

Strategy: If you think rates will drop (likely), lock in a fixed rate. If you think rates will stay stable, variable is fine.

State-Specific Schemes

South Australia (DEBS):

Synergy (main retailer) buys solar at a set DEBS rate (~8–10c/kWh)
Simple, stable, transparent
No shopping around; everyone gets the same rate

Western Australia (DEBS):

Similar to SA; Synergy sets the rate
Stable, simple

NSW/VIC/QLD:

Deregulated; retailers set their own rates
Must shop around to get best deal

Impact on Solar ROI

High feed-in rate (12c/kWh): Improves ROI slightly (exports are worth more). But export-heavy usage (low self-consumption) is inefficient. Payback might extend from 4 to 5 years.

Low feed-in rate (5c/kWh): Reduces ROI for export-heavy usage. But encourages self-consumption and battery adoption, which is better long-term.

Middle ground (8c/kWh): Standard rate. Payback is typically 4–6 years.

The key: Feed-in rate matters less than your self-consumption percentage. If you use 70% of generation on-site, feed-in rate barely affects payback.

Optimizing Feed-in With Batteries

If you have a battery:

Charge during shoulder/off-peak: Store cheap grid power.
Use solar for self-consumption first: Charge devices, run appliances during sunny hours.
Export excess during peak: If time-of-use tariff, export at 12c/kWh instead of shoulder-hour 8c/kWh.
Discharge battery during peak: Peak electricity is expensive ($0.35–0.40/kWh). Discharging battery = avoiding that cost.

Example (with 10kWh battery and ToU tariff):

Morning/midday: Solar charges battery (self-consumption)
5–9pm (peak): Discharge battery, avoid $0.38/kWh grid cost. Savings: $0.38/kWh per kWh discharged.
Off-peak: Charge battery from grid at 3c/kWh, sell during peak at 12c/kWh. Margin: 9c/kWh.

Net benefit: $0.38/kWh (self-consumption savings) + $0.09/kWh (arbitrage margin) = $0.47/kWh effective benefit. Much better than 8c/kWh flat feed-in.

Future: Falling Feed-in Rates

As solar penetration increases, feed-in rates will fall. Expect:

2026: 5–12c/kWh (current)
2028: 4–10c/kWh (lower)
2030: 3–8c/kWh (significantly lower)

This is why battery storage and self-consumption are becoming critical. You can't rely on feed-in rates funding solar economics. You need self-consumption.

Dynamic Pricing (Emerging)

Some forward-thinking retailers are experimenting with "dynamic" feed-in rates that change hourly based on grid need:

High demand hours: 15–20c/kWh
Normal hours: 8c/kWh
Low demand hours: 2c/kWh

This rewards you for exporting when the grid needs it most (evening peaks) and penalises you for exporting when it's not needed (midday, when everyone has solar).

Not yet common, but watch for this evolution.

Practical Advice

Don't obsess over feed-in rate. It matters 20% as much as self-consumption (80% of benefit comes from avoiding grid consumption, not from export credit).
Shop every 2 years. Rates change. Switching retailers is free.
If you have a battery, get a ToU tariff. The ability to export during peak hours (12c/kWh+) vs shoulder (8c/kWh) is worth shopping for.
Factor feed-in into ROI, but don't overweight it. A system with 70% self-consumption is good regardless of feed-in rate.
Be prepared for rates to fall. Don't assume 8c/kWh forever. Budget conservatively.