Australian Solar Feed-In Tariff Rates - Compare by State & Retailer

What is a Solar Feed-In Tariff?

A solar feed-in tariff (FiT) is the rate — measured in cents per kilowatt hour (c/kWh) — that your electricity retailer pays you for any excess solar energy your system exports to the grid. So when your solar panels produce more electricity than your home is using, instead of that energy going to waste, you get paid for it.

It’s worth noting that a feed-in tariff is separate from Government Solar Rebates and Incentives, which help reduce the upfront cost of installing a solar system.

Your retailer buys your surplus solar energy and on-sells it to other homes and businesses — those without solar, or those consuming more power than their panels are generating at that time. Your FiT earnings appear as a credit on your electricity bill, reducing what you owe each quarter.

How Are Feed-In Tariff Rates Calculated?

Your feed-in tariff earnings are based on the number of kilowatt hours (kWh) you export to the grid, multiplied by your FiT rate in cents per kWh. The more your system exports — and the higher your rate — the bigger the credit on your bill.

That said, the greatest value from your solar system comes from the energy you use yourself, not what you export. Maximising your self-consumption — by running appliances during daylight hours — will always deliver bigger savings than chasing a higher feed-in tariff rate.

How Have Feed-In Tariff Rates Changed Over Time?

When feed-in tariffs were first introduced in Australia, rates were significantly higher — in some states as much as 44c–66c per kWh. These premium rates were designed to incentivise early adopters and accelerate solar uptake across the country.

As solar became mainstream, those rates came down considerably. However, so did the cost of going solar — installation prices have dropped by more than 50% since 2012. The real value of solar today lies in reducing your electricity bills through self-consumption, with the feed-in tariff acting as a welcome bonus on top.

What is a Good Feed-In Tariff Rate?

Feed-in tariff rates in Australia vary considerably by state and retailer — and it’s worth keeping them in perspective. While a good FiT is a nice bonus, the biggest savings from solar come from the energy you use yourself, not what you export. That said, if you are exporting, it’s still worth making sure you’re on a competitive rate.

As a general guide for 2026:

• Above 8c per kWh — excellent rate, among the best currently available
• 4c–8c per kWh — competitive, in line with the better end of the market
• 1c–4c per kWh — below average; worth comparing other retailers
• 0c per kWh — more common than you might think, and not necessarily a bad deal overall. Some retailers offset this with lower usage rates, so always compare the full plan — not just the FiT

The key takeaway: don’t choose an electricity plan based on the feed-in tariff alone. A retailer offering 0c FiT with low usage rates may save you more overall than one offering 8c FiT with high usage charges.