How Does the Solar Feed-in Tariff Work in Australia?
A solar feed-in tariff (FiT) is the rate per kilowatt-hour (kWh) your electricity retailer pays for surplus solar power your system exports to the grid. It's a separate thing from the solar rebate — the FiT is an ongoing credit on your power bill for exported power, while the solar rebate (STCs) is a one-off discount applied to the upfront cost of your system. Confusing the two is the most common reason people think they're not getting "the rebate" when what they're actually questioning is their export rate.
Quick answer: Australia doesn't have one national feed-in tariff — regulation is state-based, some states set a mandatory or benchmark rate and others leave it to the market, and even within a state, actual offers vary by retailer and plan. The only reliable way to know what you'll be paid is to check your state regulator's current position and compare live retailer offers, not rely on a single quoted figure.
This guide is for homeowners with (or considering) rooftop solar who want to understand what they're actually being paid for exported power and why it differs from a quote's headline rebate figure. It covers what a feed-in tariff is, how the rules differ across NSW, QLD, VIC and the other states, what moves your own rate, and how to compare offers properly — including how a home battery changes the maths on exporting versus using power yourself.
What is a solar feed-in tariff?
A feed-in tariff is the price per kWh an electricity retailer credits you for solar power your system generates but your household doesn't use at the time — power that flows back out to the grid instead. It shows up as a credit line on your regular power bill, not a separate payment.
- Import price — what you pay per kWh for power you draw from the grid.
- Feed-in tariff / export rate — what you're credited per kWh for power you send back to the grid.
- The gap matters — feed-in tariffs are almost always lower than import prices, which is why using solar power directly in the home is usually worth more than exporting it and buying it back later. See export vs self-consumption below.
This guide covers residential feed-in tariffs for grid-connected home solar systems — the case that applies to the vast majority of Australian homeowners. Commercial and large-scale exporters sit under different rules and aren't covered here.
Feed-in tariff vs the solar rebate — they're not the same thing
These two get mixed up constantly, so it's worth being precise:
- The solar rebate (STCs) is a one-off, upfront discount built into your installer's quote when you buy a system — see our full solar rebate guide for how it's calculated. It reduces what you pay to install the system.
- The feed-in tariff is an ongoing per-kWh credit you earn every billing cycle for exported power, for as long as you own the system. It doesn't reduce your install cost — it's part of your ongoing running savings.
- The battery rebate is a third, separate incentive again — the federal Cheaper Home Batteries Program, covered in our battery rebate guide.
All three can apply to the same household at different points: the rebate and battery rebate reduce what you pay upfront, the feed-in tariff pays you back over time for what you export.
How feed-in tariff rules differ by state
Unlike the federal STC rebate, feed-in tariffs are regulated at state level, and the approach isn't consistent across Australia. In short: there is no single Australian feed-in tariff — each state either sets a minimum, publishes a benchmark, or leaves it to the market, and the mechanism itself varies by state.
| State | Regulator / mechanism | Approach |
|---|---|---|
| NSW | Independent Pricing and Regulatory Tribunal (IPART) | Publishes an annual benchmark range; retailers set their own rate, typically within or above it |
| VIC | Essential Services Commission | Sets a mandatory minimum feed-in tariff each financial year |
| QLD | Queensland Competition Authority (QCA) (regional) / market (SEQ) | Regional Queensland (Ergon area) gets a QCA-set benchmark; South East Queensland is deregulated and retailers compete on rate |
| SA | Market-based | No mandated minimum — retailers set rates competitively |
| WA | Synergy / Horizon Power | State-owned retailers set buyback rates directly under government schemes, rather than multiple retailers competing |
Structural summary — mechanisms and regulators as of 2026. Rates themselves change at least annually in most states, so check the regulator link for the current figure rather than a number quoted elsewhere.
Because NSW and QLD are the two most-asked-about states, it's worth being specific: in NSW, IPART's benchmark is a range, not a single mandated number, so two NSW retailers can legally offer quite different rates — comparing actual offers matters more than the benchmark itself. In QLD, whether you get a regulator-set benchmark or a fully market rate depends on whether you're in the Ergon (regional) or Energex (South East Queensland) network area.
What affects your feed-in tariff rate
Within whatever your state allows, several things move what you're actually offered:
- Which retailer you're with — the biggest factor in deregulated markets, since retailers compete on this rate.
- Plan type — some retailers reserve their best export rate for a specific solar plan rather than their standard plan.
- Time-of-use export tariffs — a growing number of plans pay a different rate depending on when you export (e.g. lower around solar midday peak, higher in the evening), rather than one flat rate all day.
- Your network / DNSP area — the distribution network business your address sits in can influence which plans and export tariffs are available, separate from your retailer's own pricing.
- System size and export limits — some networks cap how much you can export, which affects how much of your solar production actually qualifies for the feed-in rate; see our installation cost guide for how system sizing decisions get made.
How to compare feed-in tariff offers properly
"What's the best feed-in tariff" doesn't have one national answer — here's how to check it for your own address:
- Use an independent comparison tool. Energy Made Easy (run by the Australian Energy Regulator) covers most states; Victorians can also use Victorian Energy Compare. Both let you compare plans including feed-in rates for your address and usage.
- Check your state regulator's current benchmark (see the table above) as a sanity check against what retailers are quoting you.
- Compare the whole plan, not just the export rate. A slightly lower feed-in tariff paired with a meaningfully lower import price can still leave you better off overall — run both numbers against your actual usage, not the export rate in isolation.
- Check the rate is published, not verbal. A legitimate offer is stated on the retailer's website or in your plan terms.
- Re-check periodically. Rates in most states change at least yearly, so a rate that was competitive last year may not be now.
Export vs self-consumption: which is worth more?
Because feed-in tariffs are typically lower than retail import prices, using solar power directly in your home is usually worth more per kWh than exporting it and being paid the feed-in rate. Running appliances — dishwasher, washing machine, hot water, EV charging — during daylight hours when panels are producing shifts more of your usage to self-consumption instead of export.
A home battery changes this calculation by storing solar power generated during the day for use at night, instead of exporting it for the feed-in credit and then buying it back at the higher import rate after dark. Whether a battery pays for itself faster than simply exporting depends on your own feed-in rate, import price, and usage pattern — there's no single answer that holds for every household. See our battery rebate guide for how the federal discount affects that maths, and our battery installation guide for what the process looks like.
Put together: your feed-in tariff, your state's rules, and whether a battery makes sense for your usage pattern are three separate questions with three separate answers — worth checking all three against your own address rather than a single quoted "average" rate.
Common questions
What is a solar feed-in tariff in Australia?
It's the rate per kWh your electricity retailer credits you for surplus solar power your system exports to the grid. It shows up as a credit on your power bill and is separate from any upfront solar rebate.
Is the feed-in tariff the same as the solar rebate?
No. The solar rebate (STCs) is a one-off discount on your system's install cost. The feed-in tariff is an ongoing per-kWh credit for exported power, paid for as long as you own the system.
Is there a minimum feed-in tariff in Australia?
It depends on your state. Victoria sets a mandatory minimum; NSW publishes a non-binding benchmark range; South Australia and South East Queensland are largely deregulated. Check your state regulator for the current position.
What's the best feed-in tariff in NSW or QLD?
There's no single answer — it changes by retailer, plan and year. Compare current offers via Energy Made Easy or your state regulator's benchmark rather than relying on a fixed figure quoted elsewhere.
Does a home battery make the feed-in tariff less important?
It changes the maths. A battery lets you store solar power for night-time use instead of exporting it at the feed-in rate and buying it back later at a higher import price — whether that's worth it depends on your own rates and usage.