Which electricity retailer offers the best solar feed-in tariff?

Solar feed-in tariffs are arrangements where a solar system owner is paid for the solar energy that they send into the grid. At one point in time, feed-in tariffs were mandatory in every state in Australia, and the rates they offered were quite generous.

Much has changed, however, since we first published this article in 2009. State-mandated feed-in tariff incentives are no longer available to new solar customers in almost all of Australia’s states and territories. Instead, rates are largely voluntary for electricity retailers in most states; they usually fall in the range of 6-15¢/kWh – generally lower than price of retail electricity purchased from the grid. (Those who signed up for these before the deadlines for the various feed-in tariffs may continue to receive the set rates for the duration of the term of their incentives.)

Because feed-in tariffs are voluntary in many states, solar system owners must shop around to find a retailer that offers them a favourable rate.

Why feed-in tariffs aren’t the only factor you should consider

Everyone wants to get the greatest possible value out of their solar installation; feed-in tariff rates are only one piece of the puzzle.

Until a couple of years ago, feed-in tariff incentives were virtually the main determinant in the economic viability of going solar in Australia. Since then, however, solar PV system prices have fallen considerably, meaning that an investment in a solar PV system is still worthwhile, but how to best use a system has changed.

When feed-in tariffs were higher than the cost of grid electricity, it made sense for homes & businesses to try to export as much power as possible, as this would maximise savings.

The shift to solar self-consumption

These days, the opposite is true: in order to maximise investment in a solar system, the system’s owner would see the most benefit from endeavouring to consume as much of the electricity that they generate as possible (‘solar self-consumption‘). This is because direct consumption of any solar power generated means less electricity that needs to be purchased from the grid (at rates between 20-30¢/kWh, depending on the retailer and region), whereas exporting the power will earn system owners credits on their power bill to the tune of only 6-10¢/kWh.

What is clear is that the bias for ‘self-consumption’ virtually defines the business case for going solar in Australia today. The aim of this article is to help solar shoppers to keep themselves informed about what their excess solar power is worth so that they can ensure that they are getting the most out of their system.

Beware of high solar feed-in tariff ‘bait’

A higher solar feed-in tariff rate from your electricity retailer does not necessarily mean a better overall deal – make sure that you consider each retail electricity plan as a whole. You can try our Solar-friendly Retail Plan Comparison Tool to get a more complete picture.

NSW – VIC – QLD – SA – WA – ACT – NT – TAS

The Victorian government introduced a new minimum feed-in tariff from 1 July 2017. The rate is subject to regular reviews and will fluctuate annually. The rates in the table below reflect the current feed-in tariffs on offer in the state.

(N.b. The Victorian government has recently introduced a ‘time varying feed-in tariff‘ whose rates are not reflected below.)

At the moment, there is no mandatory minimum feed-in tariff rate for southeastern Queensland (Energex network). Instead, individual electricity retailers assign a value to exported solar power as they see fit. Some retailers offer more than others, and some retailers offer nothing.

If you are a resident of regional Queensland (Ergon network), however, there is a mandatory minimum that you will receive for exported solar power (check the QCA’s website for current rates).

At the moment there is no minimum solar feed-in rate in South Australia. Instead, electricity retailers set their own feed-in rates voluntarily – so solar homes need to shop around to find the best possible deal.

Read more about feed-in tariffs in SA

At the moment, the mandatory minimum feed-in tariff rate for the southwestern region of Western Australia is set by government-owned network company Synergy. The rates have been updated recently to reflect the growing penetration of solar into the grid. As of 1st July 2024, the solar feed-in tariff in WA for Synergy customers is as follows:

• Solar power exported into the grid between 3 pm and 9 pm earns 10 cents per kilowatt-hour (kWh);
• Solar power exported into the grid between 9 pm and 3 pm earns 2.0 cents per kilowatt-hour (kWh)

This time of export stipulation would favour solar panels installed on the west-facing aspect of the roof to maximise evening solar power generation and battery storage which could be used to shift exports to later in the day.

If you are a resident of the regional Horizon Power network, the mandatory minimum that you will receive for exported solar power will depend on where you are. Horizon offers between 3¢/kWh and 10¢/kWh for exported solar power depending on the town and whether local solar capacity quotas have been reached already. A full list of the rates can be found here. Also note that in some areas export control devices may be required for solar system owners.

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At the moment, there is no mandatory minimum feed-in tariff rate in the ACT. Instead, individual electricity retailers assign a value to exported solar power as they see fit.

Feed-in tariff rates in the Northern Territory will depend on your electricity retailer but are not listed in a comparator site. A list of retailers operating in the region can be found here.

Tasmania is technically an open market for retail electricity, but there is little competition in the state so far. Current regulated rates can be found on the Tasmanian Energy Regulator’s website.

Read about solar feed-in tariffs in your state:

NSW – VIC – QLD – SA – WA – ACT – NT – TAS

Best feed-in tariffs NSW

Best feed-in tariffs VIC

Best feed-in tariffs QLD

Best feed-in tariffs SA

Jeff has consulted on over 20MW of commercial solar projects, ranging from SMEs to ASX top 100 companies. Jeff has also provided independent advice to 100s of residential solar, battery and EV charging customers across every state in Australia. He holds an MBA from the Australian Graduate School of Management and is an expert in business strategy and financial analysis.

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