Australia’s love for solar is no secret. With over 3.7 million solar power systems installed nationwide as of 2024, more households are looking to turn sunlight into savings. While generating your own electricity cuts bills, there’s another perk many overlook: the Solar Feed-in Tariff (FiT). This incentive rewards you for exporting excess solar energy back into the grid.

But here’s the catch—feed-in tariffs aren’t always straightforward. Rates vary between states, energy retailers, and plans, which can leave households confused about how much they’re really earning. That’s why we’ve created this step-by-step guide to understanding Solar Feed-in Tariffs, helping you make sense of the details and maximize your return.

1. What is a Solar Feed-in Tariff?

A Solar Feed-in Tariff is the credit you receive from your electricity retailer for each kilowatt-hour (kWh) of unused solar energy exported back into the grid. Instead of wasting surplus power, you’re essentially “selling” it to your provider.

1. Example: If your home generates 20 kWh in a day but only uses 15 kWh, the leftover 5 kWh gets sent back. With a feed-in tariff of 8 cents per kWh, you’d earn 40 cents in credits.

These credits reduce your electricity bill, and in some cases, can even create a surplus balance.

2. Types of Feed-in Tariffs in Australia

Not all tariffs are the same. Understanding the structure helps you pick a plan that matches your energy habits:

1. Flat-rate FiT: A fixed rate (e.g., 7c/kWh) regardless of the time of day.

2. Time-varying FiT: Higher rates during peak demand hours (like late afternoon) and lower rates during off-peak.

3. Premium FiTs: Older, government-backed schemes offering higher rates—no longer available for new customers but still active for some early adopters.

👉 Pro Tip: Platforms like Comparable let you compare feed-in tariff rates across different energy providers so you can identify which plan maximizes your return.

3. How Rates Differ Across States

Feed-in tariffs aren’t set nationally; they’re influenced by state regulations and retailer competition. For instance:

1. Victoria: Retailers must offer a minimum FiT set by the Essential Services Commission (around 4.9–11.3c/kWh in 2024).

2. New South Wales & Queensland: No mandated minimum, so rates vary widely by provider. Some plans pay as little as 5c, while others offer up to 15c during peak times.

3. South Australia: Similar to NSW—rates depend heavily on the retailer.

This variation highlights why comparing providers is essential. A household in Brisbane might earn double the credits simply by switching to a plan with a higher tariff.

4. Step-by-Step Process to Maximise Your Solar Feed-in Tariff

Step 1: Check Your Current Plan

Review your electricity bill to see your current FiT rate. Many households are surprised to learn they’re earning below-average credits.

Step 2: Audit Your Energy Usage

Look at when you use the most power. If you consume most of your energy during the day, you’ll export less—meaning a higher FiT rate might not benefit you as much as a cheaper base rate.

Step 3: Compare Retailer Offers

Use a trusted comparison tool like Comparable to evaluate different providers. Don’t just focus on FiT—check usage charges, supply fees, and contract terms to avoid overpaying elsewhere.

Step 4: Factor in Time-of-Use Tariffs

If your household is flexible (e.g., running appliances in the evening), a time-varying FiT might give you higher credits.

Step 5: Make the Switch

Once you’ve chosen a better plan, switching providers in Australia is usually seamless—no new hardware, just a plan change.

5. Real-World Example

Let’s say a Sydney household exports 10 kWh daily.

1. On a plan with 6c/kWh, they earn 60 cents a day (~$18/month).

2. On a plan with 12c/kWh, they earn $1.20/day (~$36/month).

That’s an extra $216 a year—just by switching plans.

6. Common Mistakes to Avoid

1. Chasing FiT only: A high FiT with inflated usage rates can cost more overall.

2. Ignoring contract details: Some “bonus” tariffs expire after 12 months.

3. Overestimating exports: If you consume most power during the day, FiT plays a smaller role.

Final Thoughts

A Solar Feed-in Tariff can significantly boost your solar investment, but only if you understand how it works and choose the right plan. Since rates vary by state and provider, households that take the time to compare options through platforms like Comparable often save hundreds each year.

The key isn’t just finding the highest tariff—it’s balancing FiT rates with overall energy plan costs to ensure you’re truly ahead. With the right approach, your solar panels don’t just power your home—they power your savings.