If you have solar panels on your roof, you have probably seen a line on your power bill about a feed-in tariff. It is the credit your electricity retailer pays you for the extra solar power your home sends back to the grid. The idea is simple, but the rate you get depends on where you live, who your retailer is, and what plan you are on. This guide explains what a solar feed-in tariff is, how it works, what the current rates are, and how to get more value from yours.
Quick answer: A solar feed-in tariff, often shortened to FiT, is the rate your retailer pays you, in cents per kilowatt-hour (c/kWh), for the surplus electricity your solar panels export to the grid. It shows up as a credit on your power bill.
How does a solar feed-in tariff work?
Your solar panels make electricity during the day. Your home uses what it needs first. Any power left over flows out through your meter and into the grid, and your retailer pays you for it at the feed-in tariff rate in your plan.
Three things make this happen:
- Your inverter turns the direct current from your panels into the alternating current your home and the grid use.
- Your smart meter measures how many kilowatt-hours you export, separately from what you import.
- Your retailer multiplies your exports by your feed-in tariff rate and applies the result as a credit on your bill.
If you export more than you import over a billing period, your bill can show a credit balance. Whether that credit rolls forward to the next bill or gets paid out to you depends on your retailer’s terms, so check your plan document. And remember, panels only export while the sun is up — see our guide on do solar panels work at night for what happens after dark.
What are the current feed-in tariff rates?
There is no single national feed-in tariff in Australia. Who sets your rate depends on your state, and in most states your retailer sets it. Here is the position for 2026–27:
| State or territory | Position for 2026–27 |
|---|---|
| New South Wales | IPART all-day benchmark 3.4–6.5c/kWh. Retailers do not have to follow it. |
| Victoria | No regulated minimum since 1 July 2025. Retailers can pay as little as 0c/kWh. |
| Tasmania | Regulated minimum 9.276c/kWh for eligible customers. |
| Queensland | Retailers set their own rates in South East Queensland. Regional Queensland has a regulated rate of 6.006c/kWh from 1 July 2026. |
| South Australia | No legal minimum for new customers. Retailers set their own offers. |
| ACT | No legal minimum for new customers. Retailers set their own offers. |
| Western Australia (Synergy) | DEBS pays 10c/kWh for exports from 3–9pm and 2c/kWh at other times, on the first 50 kWh exported each day. |
| Northern Territory | No single legislated rate. It depends on your retailer and arrangement. |
Most market offers pay somewhere between 1c and 10c per kWh. A benchmark is not an offer, and a regulated minimum may not apply to your system or plan. Your plan document states the rate you will actually receive, and offers can change at any time.
Why are feed-in tariffs so low now?
When rooftop solar was new, governments paid premium feed-in tariffs of 44c to 66c per kWh to encourage people to install panels. Those schemes are closed to new customers. The legacy schemes in South East Queensland and South Australia run until 2028, and only for customers who were already on them.
Today the value of an exported kilowatt-hour is set by the market, and midday is when solar power is worth the least. Millions of rooftops are all exporting at the same time, so the wholesale price of electricity in the middle of the day is often very low, sometimes close to zero. That is why your export credit is a few cents while the power you buy back in the evening costs 30c or more.
Net vs gross feed-in tariff
You may see these two terms, and the difference matters:
- Net feed-in tariff: you are paid only for the surplus power your home does not use. This is what almost every new system gets.
- Gross feed-in tariff: you are paid for every kilowatt-hour your system produces, whether you used it at home or exported it. This only applies to customers still on the old premium schemes.
If you are on a net tariff, every kilowatt-hour you use yourself is a kilowatt-hour you do not sell for a few cents and then buy back for thirty cents or more.
Feed-in tariff vs using your own solar: the maths
Because the import price is so much higher than the export price, using your own solar power is usually worth far more than exporting it. A simple example shows why:
- Export 4,000 kWh in a year at 4c per kWh and you earn $160.
- Use an extra 1,000 kWh of your own solar at home instead of buying it at 30c per kWh and you save $300.
That extra 1,000 kWh used at home is worth almost twice as much as all 4,000 kWh you exported. As a rule of thumb, self-consumption is worth three to thirty times more per kilowatt-hour than exporting, because you pay 30–38c to buy power and earn only 1–10c to sell it. This is also why a battery can make sense: it stores your daytime surplus so you can use it in the evening instead of exporting it cheaply. See solar panels vs solar battery for the full comparison.
Time-varying rates and export charges
Feed-in tariffs are not always one flat rate. Watch for these:
- Time-varying rates: some plans pay more for evening exports and less for midday exports. Western Australia’s DEBS is the clearest example, paying 10c from 3–9pm and 2c at other times.
- Export caps: a headline rate may apply only to a limited number of kilowatt-hours each day, with a lower rate after that.
- System-size caps: some offers exclude systems above a stated inverter or panel capacity.
- Export charges: in South Australia, SA Power Networks introduced an export tariff from 1 July 2025, where charges can apply to exports above certain daily thresholds between 10am and 4pm. Network export tariffs were also introduced in New South Wales in 2024.
- Promotional rates: a high headline rate may be a short-term offer. Check the end date and the ongoing rate before you switch.
Always compare the whole plan — import rate, daily supply charge, and feed-in tariff together — because a plan with a high feed-in tariff can still cost you more overall.
How to find your feed-in tariff
Your feed-in tariff should be on your electricity bill. Look for a line called “Solar feed-in tariff” or “FiT” with a rate in cents per kWh, usually near the usage summary. Note the rate, the date it started, any daily or system-size cap, any time band, and when the plan expires.
If you cannot find it, check your latest plan document online or call your retailer. To compare plans, use the government’s free comparison tool, Energy Made Easy, and put your actual import and export figures through it rather than guessing. Shortlist the lowest total annual cost, then read each plan’s Basic Plan Information Document before switching.
How to get more from your feed-in tariff
- Use power while the sun shines. Run the dishwasher, washing machine, and pool pump during the day so that power is used at home instead of exported for a few cents.
- Consider a battery. A battery stores your surplus for the evening, when grid power is most expensive. It does not suit every home, so check the payback first.
- Compare the whole plan, not just the headline rate. A slightly lower feed-in tariff on a plan with a much cheaper import rate can leave you better off.
- Watch caps and promo end dates. A headline rate that only applies to the first few kilowatt-hours a day, or that drops after three months, may not be worth switching for.
- Recheck once a year. Rates, eligibility, and export rules can all change separately, so review your plan at least annually.
Frequently asked questions
What is a feed-in tariff?
A feed-in tariff is the rate your electricity retailer pays you for excess solar power that your system sends to the grid. It is measured in cents per kilowatt-hour (c/kWh) and applied as a credit on your bill.
What is the average feed-in tariff in Australia?
There is no reliable national average. In 2026–27, New South Wales has a 3.4–6.5c/kWh benchmark and Tasmania has a 9.276c/kWh regulated minimum, while several states let retailers set the rate. Most market offers pay between 1c and 10c per kWh, so compare your whole plan instead of relying on a national average.
Is a feed-in tariff taxable?
For most households, feed-in tariff credits are not treated as taxable income. If you run a business from home or your system is unusually large, check with the ATO or your accountant.
Can my feed-in tariff change?
Yes. Retailers can change feed-in tariff rates, usually after giving you notice. Some plans fix the rate for a set period while others use a variable rate, so check your plan terms and review your rate each year.
Do I need a smart meter to get a feed-in tariff?
Yes. A smart meter is what measures how much power you export, and your retailer needs that reading to pay you. Smart meters are being rolled out to all homes, with the rollout due to reach 100% by 30 November 2030.
What happens if I export more power than I use?
If your exports are worth more than your imports over a billing period, your bill can show a credit balance. Whether that credit rolls forward or can be paid out depends on your retailer’s terms.
