Solar Feed in Tariffs in Australia: Get Paid for Your Solar Energy

There are many benefits to investing in a residential solar PV system. You rely less on the electricity grid, reduce your greenhouse gas emissions through renewable energy technology, and can even increase the value of your home. But, did you know that you can get paid for the electricity your solar panels generate? If you use less electricity than you generate, the excess is sent back to the grid. Your energy provider, in turn, will pay you for the excess electricity as credit on your energy bills. This is known as a feed in tariff. To discover everything you need to know about feed in tariffs, and how to earn the most from your solar PV system, keep reading below.

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What is a solar feed in tariff?

When your solar PV system is generating more electricity than your home needs, that excess electricity isn’t wasted. Rather, that solar energy gets sent back into the electric grid. Your energy provider, in turn, pays you for the excess electricity you generate which show up as credits on your energy bill. This is your solar feed in tariff.

• How do solar panels reduce my electricity bill?
• Reduce your dependency on the electricity grid, by generating your own energy
• Get paid for any excess energy you generate and send back into the grid

Solar feed in tariffs vary depending on your energy provider and electricity plan. Almost all energy providers offer some sort of feed in tariff, but the actual amount can range from less than 5c/kWh up to 20c/kWh or more. If you have solar panels, it’s important to understand how much electricity your household consumes, as well as how much electricity your panels generate, in order to choose the best solar feed in tariff for your lifestyle.

How to choose the right solar feed in tariff

Energy providers offer a wide range of solar feed in tariffs but it’s important to understand your solar PV system and household’s energy consumption habits before choosing the highest FiT you can find. Oftentimes, electricity plans with a higher than average solar feed in tariff will have less (or no) discount off the reference price, while choosing an electricity plan with a higher discount will often mean a smaller feed in tariff.

As you can see, a general rule of thumb is if you know you’re going to be generating (but not using) a lot of electricity through your solar panels, you’ll probably be better off choosing the higher solar feed in tariff even if it means a lower total discount off your electricity plan. Otherwise, it probably won’t be worth it to forego the bigger discount if you end up using most of the energy your solar panels generate anyways.

Average solar feed in tariff in Australia

The average solar feed in tariff varies widely by state. Currently, Victoria is the only state to set a minimum feed in tariff, meaning all energy providers must offer at least 10.2c/kWh as their solar feed in tariff in Victoria. In other states, however, feed-in-tariffs can range from as little as 5c/kWh (or less) to over 20c/kWh.

Best solar feed in tariffs in Australia

If you’ve decided your solar PV system is large enough, and you’ll end up exporting more energy than you use, you’ll probably want to find the best solar feed in tariff on the market. While most energy providers offer some sort of solar feed in tariff, these are among the highest available in each state.

Solar feed in tariffs NSW

New South Wales residents enjoy a lot of choice when it comes to their energy provider and solar feed in tariffs. Many providers in the state are increasing their FiT rates, so those who live there can earn even more with their excess electricity.

Solar feed in tariffs ACT

Due to the regulation of the energy market in the ACT, solar feed in tariffs aren’t as high as in other states. However, if you don’t yet have solar panels, but are interested in installing them onto your home, it might be worth looking into Origin Energy’s Solar Boost Plus plan which offers 20c/kWh if you purchase your solar PV system through them.

Solar feed in tariffs VIC

As stated, Victoria is the only state to have a minimum solar FiT. All energy providers must offer at least 10.2c/kWh for the solar energy their customers generate. While on the one hand, this is great for people looking for a lower FiT but higher discount, this also means that there are fewer high solar feed in tariffs for those with bigger solar PV systems

Solar feed in tariffs QLD

If you live in South-East Queensland, you can choose your energy provider and therefore shop around for the best solar FiT. If you live in rural or regional Queensland, where Ergon Energy is the only energy provider, your solar feed in tariff is set by the Queensland government.

Solar feed in Tariffs SA

While South Australia has some of the highest electricity rates on the market, customers also get access to some relatively high solar feed in tariffs. Many energy providers in the state have recently increased their maximum feed in tariff rates, so you now have more providers to choose from if you’re looking to maximise your solar output.