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Guide · Feed-in tariffs

Solar feed-in tariffs, and why a battery beats them

Feed-in rates have fallen across Australia. Here is what that means for your bill, and why storing your solar now beats selling it.

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A feed-in tariff is what your retailer pays you for solar you send to the grid. The catch is that it is now worth very little, often just a few cents per kWh, while the power you buy back in the evening costs around 30 cents or more. A battery turns that losing trade into a saving.

~3c vs ~30c
Typical feed-in rate versus evening import rate per kWh (indicative). A battery lets you use your own solar instead of giving it away.

Why feed-in tariffs keep falling

When rooftop solar was rare, retailers paid generously for exports. Now that millions of Australian homes export at the same sunny time of day, that energy is worth far less to the grid, so feed-in tariffs have dropped almost everywhere. Generous legacy tariffs are being phased out, and new customers are offered only a few cents.

Indicative feed-in rates by state

Rates change often and vary by retailer, so treat these as a guide only. Across NSW, VIC, QLD, SA and WA, most new feed-in tariffs now sit in the low single-digit cents per kWh. Some retailers offer a higher rate for a limited number of kWh, then drop to near zero. Your free rebate check looks at your actual tariff.

How a battery changes the maths

Instead of exporting your surplus solar for a few cents and buying it back at peak rates, a battery stores it so you use your own power after dark. The lower your feed-in tariff, the bigger that saving. It is one of the main reasons a battery is worth it for most solar homes, and you can put numbers on it with the savings calculator.

What is a solar feed-in tariff?
A feed-in tariff (FiT) is the rate your electricity retailer pays you for the solar power you export to the grid, measured per kWh. It is usually much lower than the rate you pay to buy power back.
Why are feed-in tariffs so low now?
As more homes added solar, the value of daytime exports to the grid fell. Many feed-in tariffs are now just a few cents per kWh, while you might pay 30 cents or more to buy power in the evening. That gap is exactly what a battery closes.
Does a low feed-in tariff make a battery worth it?
Yes. The lower your feed-in tariff, the less you earn by exporting solar, and the more you save by storing it to use after dark instead. We model this for your home, see are solar batteries worth it?
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