Feed In Tariff Guide for Australian Homes

A sunny Saturday can produce far more electricity than your household needs at midday. Your solar system powers the home first, then sends surplus energy to the grid. This feed in tariff guide explains what you are paid for that exported power, why the advertised rate is only part of the picture, and how to make decisions that support lower electricity bills over the long term.

What is a feed-in tariff?

A feed-in tariff, often called a FiT or solar export rate, is the credit your electricity retailer gives you for each kilowatt-hour (kWh) of solar electricity exported from your property to the grid. It appears on your electricity bill as a credit, usually in cents per kWh.

The key word is exported. If your panels produce 5 kWh while your home is using 2 kWh, the first 2 kWh are used in the home and the remaining 3 kWh may be exported. You receive the feed-in tariff only for those 3 kWh.

For most households, using solar electricity as it is generated is more valuable than exporting it. Retail grid electricity typically costs substantially more per kWh than the amount paid for exported solar. That gap is why daytime appliance use, smart energy management and battery storage can have such a meaningful effect on savings.

Feed-in tariff guide: how your solar credit is calculated

Your bill is based on two separate energy flows. You pay for electricity imported from the grid when your solar system is not meeting demand, such as at night or during periods of high household use. You receive a credit for the solar electricity that is exported.

For example, imagine a household imports 400 kWh over a billing period and exports 250 kWh. The retailer charges its applicable usage rate for the 400 kWh imported, then applies its feed-in tariff to the 250 kWh exported. Supply charges, controlled-load tariffs and any other plan charges still apply.

This is why a high feed-in tariff does not automatically mean a lower bill. A plan may offer a strong export rate but have a higher daily supply charge or more expensive electricity imports. In other cases, the top export rate is limited to a certain number of kWh per day, with a lower rate paid after that threshold.

Your meter records imports and exports separately. Most solar customers need a compatible digital or smart meter so the retailer can measure both accurately. Your installer, electricity distributor and retailer each play different roles in connecting the system and arranging metering.

Why rates differ between retailers and states

Feed-in tariff arrangements vary across Australia. Some customers may be on older government-supported schemes with specific eligibility rules, while most newer solar customers receive retailer-funded market offers. These rates can differ by state, retailer, distribution area and electricity plan.

Retailers can also change market feed-in tariff rates, subject to the terms of the plan and relevant regulation. Export values may be flat throughout the day or vary by time of use. A time-varying offer can pay more during particular grid-demand periods and less when solar generation is abundant across the network.

The practical point is that solar owners should review their electricity plan periodically rather than assuming their original offer remains competitive. A tariff that suited a home before solar, a battery, an EV or a change in household routines may no longer be the best fit.

Compare the whole electricity plan, not just the export rate

When comparing solar electricity plans, start with your actual consumption and export data. A retailer’s headline FiT is useful, but it needs to be considered alongside the charges that have the biggest impact on your final bill.

Look at these four areas together:

• the usage rate for electricity you import from the grid
• the daily supply charge
• the feed-in tariff rate, including any daily export cap or tiered rate
• time-of-use, controlled-load or demand charges that apply to your property

A household that exports large amounts of solar with limited evening use may value a stronger export rate. A family that uses considerable energy after sunset may benefit more from lower evening import rates. The best plan depends on how and when your home uses electricity, not simply on the largest number shown in an advertisement.

Commercial sites need an even closer assessment. Businesses may face demand charges, complex tariffs and operational loads that occur during solar-producing hours. In many cases, increasing on-site solar consumption can be more financially valuable than maximising exports. Load monitoring and tailored system design help identify where that value sits.

How to keep more of your solar generation

Improving solar self-consumption means using more of the energy your panels generate before it reaches the grid. It does not require running every appliance at midday, but shifting flexible loads can make a material difference.

Consider scheduling a dishwasher, washing machine, pool pump or hot-water system to run during the middle of the day where practical. EV charging can also be timed to coincide with solar production, particularly for households with regular daytime parking. Smart controls can automate some of these decisions and reduce the need to manage them manually.

It is worth balancing savings with everyday convenience. A household where everyone is away during daylight hours may have less capacity to shift loads than a home with daytime occupancy. Likewise, a business should not disrupt productive operations simply to chase a marginal tariff benefit. The goal is a practical energy plan that suits the way the property operates.

Does a battery make sense when you receive a feed-in tariff?

A solar battery stores surplus generation for use later, usually during the evening when household demand remains high and solar production has dropped away. Rather than exporting every spare kWh for a modest credit, you may use stored solar to avoid purchasing electricity from the grid at a higher retail rate.

That does not mean a battery is automatically right for every solar owner. Its value depends on your export volume, evening electricity use, retail tariff, battery size, system configuration, available incentives and budget. Backup power requirements also matter. Not every battery system provides backup during an outage, and those that do may support only selected circuits unless designed for whole-home backup.

A battery should be sized around your consumption profile and goals, rather than simply around the amount of solar on the roof. An oversized battery that regularly sits unused may take longer to deliver value. A system that is too small may not cover enough evening demand. The most suitable option comes from assessing interval data, solar production, future loads such as an EV, and the level of energy independence you want.

Solar system design still matters

Feed-in tariffs are only one part of solar performance. Panel orientation, roof space, shading, inverter capacity and local export limits can all influence how much energy your system produces and exports.

Distribution networks may impose export limits to protect local grid stability. In some areas, flexible or dynamic export arrangements allow exports to vary according to network conditions. This can be preferable to a fixed low export limit, but it means system design, inverter settings and approved equipment need to be handled correctly.

A quality solar solution should focus first on meeting the property’s own energy needs. For a home, that usually means designing for household consumption across the year, not solely for maximum exports. For commercial and industrial facilities, it means aligning generation with operational demand, tariff structures and the site’s longer-term energy strategy.

Questions to ask before choosing a solar plan

Before switching retailers or accepting a new electricity offer, ask whether the advertised FiT applies to all exported electricity or only a capped daily amount. Confirm the import rates by time period, the supply charge, contract conditions and whether the plan suits your meter type.

It is also useful to review a recent bill alongside your solar monitoring data. The bill shows what you imported and exported, while monitoring can reveal when those flows occur. Together, they provide a clearer view of whether changing plans, adjusting appliance timing or considering battery storage could improve outcomes.

For businesses, examine at least 12 months of billing and interval data where available. Seasonal operations, refrigeration, machinery, air conditioning and opening hours can change the financial case considerably. Tax and accounting treatment may also apply to solar income and energy assets, so business owners should seek advice suited to their circumstances.

A feed-in tariff is best viewed as a useful credit for genuinely surplus energy, not the main reason to install solar. The strongest results usually come from a tailored system that reduces grid purchases, performs reliably for years and can adapt as your energy needs change. SAE Group can assess your usage, roof, tariff and future plans to help build a solar and battery solution around the value that matters most to your property.