Last update April 2nd, 2026 at 04:27 pm
Do you have solar panels on your roof? If so, you may earn credits for the extra power you send to the grid. These credits come from a solar feed-in tariff (FiT). But FiT rates have changed a lot in recent years. This guide explains how they work in 2026 and what each state currently pays.
What Is a Solar Feed-in Tariff?
A solar feed-in tariff is the rate your energy retailer pays you for surplus solar power. Your solar panels make electricity during the day. First, your home uses what it needs. Then, any leftover power flows into the grid. Your retailer pays you for that export. The payment shows up as a credit on your power bill.
It is important to know that a FiT is separate from solar rebates. Rebates cut your install cost upfront. A FiT gives you ongoing credits for what you export.
How Feed-in Tariffs Have Changed
Early FiT rates were very generous. South Australia launched the first scheme in 2008. It paid 44 cents per kilowatt-hour (c/kWh). NSW once paid 60c/kWh. Those rates no longer exist. Today, most households earn between 2c and 10c/kWh for daytime exports.
Why did rates fall so much? The answer is simple. Solar is now everywhere. Australia leads the world in rooftop solar, with over 40% of homes now powered by it. So many systems export power at the same time — midday — that the grid gets flooded. Consequently, the value of that daytime power drops. Furthermore, the cost of solar panels has also fallen by more than 50% since 2012. Therefore, high FiT rates are no longer needed to drive solar uptake.
Feed-in Tariff Rates by State in 2026
New South Wales
NSW has no mandatory minimum FiT. Instead, IPART sets a benchmark range. For 2025–26, that benchmark is 4.8 to 7.3c/kWh for an all-day flat rate. Retailers do not have to follow this range. However, it gives you a useful guide when comparing plans. Some retailers offer up to 12c/kWh. Always compare the full plan — not just the FiT rate.
Useful link: IPART Solar Feed-in Tariff Benchmarks
Victoria
Victoria made a big change in July 2025. The Essential Services Commission no longer sets a minimum FiT. Retailers now set their own rates. The only rule is that they cannot go below 0c/kWh. As a result, the average minimum FiT in Victoria for 2025–26 is just 1.1c/kWh. Some retailers offer more. ENGIE offers up to 11c/kWh and AGL and EnergyAustralia offer up to 8c/kWh. Check with your retailer for current offers.
Queensland
Queensland splits into two zones. In South East Queensland, retailers set their own FiT rates. Typical rates sit between 3c and 10c/kWh. In regional Queensland, the Queensland Competition Authority sets a regulated rate. For 2024–25, that rate was 12.377c/kWh. Check the QCA website for the latest figure.
Useful link: Queensland Competition Authority
South Australia
SA has no minimum FiT. Retailers set their own rates. Daytime export rates typically range from 2–5c/kWh. However, some battery-linked plans pay much more during peak evening hours. SA also has some of the highest electricity prices in the country. Therefore, using your own solar power — rather than exporting it — saves you the most money here.
Western Australia
WA operates under the Distributed Energy Buyback Scheme (DEBS). Synergy pays different rates depending on the time of day. From 3pm to 9pm, the rate is 10c/kWh. From 9pm to 3pm, it drops to 2c/kWh. Most households average under 3c/kWh across the full day. In some remote areas, Horizon Power pays much higher rates.
Useful link: Synergy DEBS and Horizon Power
Tasmania
Tasmania has a regulated minimum FiT. The Office of the Tasmanian Economic Regulator sets it each year. For 2025–26, the minimum rate is 8.782c/kWh. Some retailers offer higher rates. Tasmania generally offers some of the more stable FiT conditions in the country.
Northern Territory
In the NT, Jacana Energy and Rimfire Energy offer feed-in tariffs. Jacana’s standard all-day rate is 9.33c/kWh. From July 2025, Jacana also introduced a peak rate of 18.66c/kWh between 3pm and 9pm. This rewards solar owners who export during high-demand hours.
Australian Capital Territory
The ACT has no mandated minimum FiT. Retailers set their own rates. Typical offers range from 7c to 12c/kWh. Shop around to find the best deal for your usage pattern.
What Matters More Than Your FiT Rate
Here is the key point many solar owners miss. Your FiT rate is not the most important number on your bill. The biggest saving comes from using your own solar power at home. You avoid paying grid power at around 25–40c/kWh. In contrast, you only earn 3–10c/kWh by exporting that same power.
Therefore, the smart move is to use more solar at home. Run your dishwasher and washing machine during the day. Add a home battery to store midday solar for evening use. Moreover, battery-linked plans can pay 10–25c/kWh for exports during peak evening periods. So a battery helps on both sides — it cuts what you buy and improves what you earn.
Summary
Feed-in tariffs have played an important role in the growth of solar energy in Australia. They have evolved, reflecting changes in technology, market conditions, and policy goals.
Understanding the specifics of these tariffs and how they vary by state can help homeowners and businesses make informed decisions about solar energy investments.