Solar Feed in Tariffs

A Feed in Tariff (FIT) is the amount you’re paid per unit (kilowatt hour – kWh) of unused electricity that you don’t use and therefore sell back to the grid.

Currently, most state governments mandate a minimum retailer feed in tariff rate which your energy retailer will provide to you. In states where a retail feed in tariff is voluntary (WA, NSW & Qld), many retailers will offer you one anyway. This means that, regardless of where you live, you can still make a good return on the excess power your system produces.

State Current Rate Comments
QLD 6-10c/kWh Varies by retailer more info
VIC min of 8c/kWh Reviewed annually, will be reduced to 6.2c/kWh by 2015 more info
SA min of 6c/kWh Effective from July 1st 2014 more info
TAS 5.5c/kWh Reviewed annually more info
ACT 7.5c/kWh Reviewed regularly
NSW up to 8c/kWh Varies by retailer more info
WA 7.135c/kWh or 10-50c/kWh Varies by retailer and area in which you live more info
NT 27.13c/kWh Reviewed regularly

While the incredible feed in tariff rates of a few years ago are no longer available, the effect of these cuts on the attractiveness of installing solar has been neutralised by the massive reductions in the costs of system hardware (panels and inverters) over the same period.

For example, a 20 panel 5kW system would have set you back between $17,000 and $25,000 2 years ago after rebates. Now, you’ll pick up the same size system with top quality components for between $6,000 and $9,000. This is due mainly to the crash in the prices for solar panels worldwide.

So, yes, you’re getting paid less for what you export to the grid but at the same time, you’re paying much less for the system which at the end of the day is making larger systems accessible to more people.

The amount you get paid as a Feed in Tariff matters mainly if you install a larger system that produces more power than you would expect to use between 9am and 3pm each day. If you’re simply offsetting your current usage or reducing the amount you draw from the grid, you wouldn’t have been paid for exporting much power anyway and the feed in tariff isn’t as important.

If on the other hand you install a large system (5kW – around 20 panels) and live in a small house on your own plus don’t consume power during the day, you’d like to be paid a high rate for that power you’re exporting. This is an extreme example of a system size not matching the occupant but most people will need to do the numbers and figure out the system that offers the best return for the money invested. We recommend getting a few no obligation quotes and having the installers go through the numbers with you.

Solar Payback Calculator You can also work out your returns using our calculator here

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Well put simply, solar's a great investment if:

  • You own your own home
  • Your average bill is over $100
  • You have enough room on your roof to fit at least 8 solar panels
  • Don't have too much shade over your roof between 9am and 3pm
  • You plan on being in the house longer than 3 years

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