Electricity Feed-in Tariffs in Australia

Got solar panels? Or thinking about getting them? Then let us introduce you to the feed-in tariff — your new best mate when it comes to shrinking your electricity bill.

This little incentive is one of the main reasons going solar is such a good deal in Australia. And while it might sound like something out of a farming handbook, it’s really just a fancy way of saying:
“The grid pays you for your leftover solar power.”

Let’s break it down, Rebate Spy style — so you know exactly how it works, what to expect, and how to squeeze the most out of your solar setup.

First Things First: What Is a Feed-in Tariff?

A feed-in tariff (FiT) is the rate you get paid for the electricity your solar panels export back to the grid.

Basically:

• You use what you need in your home

• Any extra power your system generates goes back into the grid

• Your electricity retailer pays you for that surplus

Simple. Sunny. Smart.

Think of it as getting credit for your “leftovers.” Except this time, your leftovers are rays of sunshine turned into dollar signs. 💸

🏡 How Does It Work in Practice?

Here’s what happens behind the scenes:

1. Your solar panels generate power during the day

2. Your home uses what it needs (TVs, fridge, air con, coffee machine)

3. Extra solar energy gets exported to the grid

4. Your electricity provider pays you a feed-in tariff for each kWh exported

That credit then appears on your electricity bill — and if you’re exporting heaps, you could end up with a very happy surprise at bill time.

💰 How Much Is the Feed-in Tariff?

Ah, the golden question. The answer? It depends.

Feed-in tariffs aren’t set nationally — they vary by:

• State or territory

• Your electricity retailer

• Whether the tariff is a minimum government rate or a market offer

Here’s a quick look at the current ballpark rates (as of 2024):

⚠️ Heads up: These are rough guides — the actual rate depends on your electricity plan. Some retailers offer “premium” FiTs if you meet certain conditions, but others might lowball you. That’s why it always pays to shop around.

There's a great resource on the WATTever website where you can compare feed-in tariffs and find the best one for you. Click here to check it out.

🎯 How Can You Maximise Your Feed-in Tariff?

If you’ve got solar, here’s how to make the most of it:

1. Use appliances during the day - Try to match your usage with when your panels are producing power. Washing machine, dishwasher, AC — daytime is prime time.

2. Choose a great electricity plan - Not all FiTs are created equal. Compare offers using sites like Energy Made Easy & WATTever or talk to your provider about solar-friendly plans.

3. Size your solar system right - A system that overproduces can lead to more feed-in credits — but make sure it matches your home’s needs and local rules.

4. Consider a battery - Batteries let you store excess energy for use at night — but they also reduce how much you export. Sometimes it’s better to go big on FiTs, sometimes on self-consumption. We can help you decide.

📉 Will Feed-in Tariffs Disappear?

Feed-in tariffs have been falling in recent years — and yep, that’s deliberate.

Why? Because electricity retailers want to encourage solar owners to use more of their power at home instead of sending it all to the grid. More demand on the grid = more strain on infrastructure.

But don’t panic — FiTs are still around, and they’re still a great way to offset your power bill. Even if the rates aren’t as generous as they used to be, they’re better than nothing (and way better than sending your power back for free!).

🤔 Are Feed-in Tariffs Taxable?

For most homeowners: Nope! 🎉

If your solar system is residential and you're not running a business from home, your feed-in credits are generally not considered taxable income.

BUT — if you're earning significant income from solar (or using your system for a business), best to check with your accountant or the ATO to be safe.

🕵️ Need Help Choosing the Right Solar Plan?

That’s where Rebate Spy comes in. Whether you’re just starting your solar journey or want to squeeze every last cent out of your setup, we’re here to:

• Help you understand your options.

• Show you what rebates and FiTs you qualify for.

• Connect you with top-rated installers who know their stuff.

Click here if you're ready to speak to a reputable installer.

🌞 Final Thoughts: Feed-in Tariffs Are Still a Win

Even with lower rates than the glory days, feed-in tariffs are still a key part of the solar savings puzzle. Every kilowatt-hour you export = less you pay on your energy bill. And with the right system and plan, those credits can add up fast.

So if you've got a roof, the sun, and a desire to stick it to your power bill — what are you waiting for?

👉 Explore your solar and rebate options with Rebate Spy
👉 Compare feed-in tariffs and energy plans here