Are Solar Feed-in Tariffs Ending in Australia? Here’s What You Need to Know in 2026
Solar feed-in tariffs across Australia have fallen sharply over the past decade, leaving many households wondering whether they are being phased out entirely. The short answer is no. Feed-in tariffs are not “ending”, but they have shifted from generous government incentives into market-based payments that reflect the real-time value of exported solar electricity.
In 2026, that value is usually low during the middle of the day, because so many homes now export residential solar at the same time. The real financial win from solar has moved away from exports and toward using more of your own generation at home.
What is a solar feed-in tariff?
A solar feed-in tariff (FiT) is the credit you receive from your electricity retailer for excess solar energy you export to the grid. When your rooftop solar system produces more power than your household is using, the surplus flows into the network and appears on your bill as a feed-in credit.
It’s worth separating two different types of value:
- Self-consumption: Solar you use in your own home offsets electricity you would otherwise buy from the grid (often around 25–40 cents per kWh, depending on your plan and location).
- Exports: Solar you send to the grid is usually paid at a much lower rate (commonly a few cents per kWh).
From 2008 to 2012, several states offered “premium” feed-in tariff schemes to accelerate adoption. Some rates were as high as 44–60 cents per kWh. These were designed as temporary market-building incentives and were closed to new applicants many years ago.
Why are solar feed-in tariffs so low in 2026?
The drop in feed-in tariffs is not a failure of solar. It’s a direct result of how successful rooftop solar has become.
Australia now has over 4.22 million PV installations, and that level of adoption creates a predictable pattern: huge solar supply hits the grid at the same time (roughly late morning to mid-afternoon), pushing wholesale electricity prices down. When wholesale prices are low, the market value of exported solar is low, and feed-in credits follow.
In some places, the situation is intensified by network congestion and export constraints. Distribution networks are increasingly managing exports to protect grid stability during periods of high rooftop generation.
Typical solar feed-in tariff rates in Australia (2026)
Feed-in tariff rates vary by state, retailer, and plan, and they change frequently. In 2026, most standard feed-in tariffs sit somewhere around 3 to 10 cents per kWh for daytime exports, with occasional higher “headline” offers that come with trade-offs elsewhere in the plan.
The important takeaway is this: comparing feed-in tariffs alone is rarely a good way to choose an electricity plan. The biggest benefit of solar comes from self-consumption, not exports.
Feed-in tariffs by state
New South Wales (NSW)
NSW closed its premium Solar Bonus Scheme to new applicants in 2011. Most households now receive market-based feed-in tariffs set by retailers.
If you want a benchmark reference point, IPART publishes solar feed-in tariff benchmark ranges that many retailers cluster around. In practice, NSW rates often land in the mid-single digits, but the exact number depends on your plan structure and retailer strategy.
Queensland (QLD)
Queensland’s premium 44 cent Solar Bonus Scheme is closed to new customers. Legacy customers who qualified early typically remain on that scheme (if they keep eligibility) until 1 July 2028.
For everyone else, Queensland feed-in tariffs are market-based. The Queensland Competition Authority (QCA) publishes benchmark guidance that can help you judge whether a retailer offer looks reasonable.
We spoke with Energy Solution Centre, a solar installation company on the Gold Coast, about how customers are responding to lower feed-in tariffs. Their team said the most common question they now hear is whether solar still makes sense without the old 44 cent rate.
Their answer is consistently yes, but for different reasons than a decade ago. Households that shift energy use into daylight hours are often seeing payback driven primarily by bill savings, not export income.
Victoria (VIC)
Victoria’s premium feed-in tariff schemes closed in 2011. Victoria previously had a regulated minimum feed-in tariff, but the Essential Services Commission (ESC) notes there is no minimum feed-in tariff from 1 July 2025, and retailers may set their own rates.
Most Victorian customers still receive low market-based export credits, and some retailers may offer higher rates under specific plan conditions.
South Australia (SA)
South Australia phased out its premium feed-in tariff in 2013. Current feed-in tariffs are market-based.
SA also has extremely high rooftop solar penetration, which means daytime exports are often worth less than many households expect. On the flip side, SA’s retail electricity prices can make self-consumption especially valuable.
Western Australia (WA)
WA operates differently to the eastern states because its main grid is not part of the National Electricity Market.
For many households, export credits fall under Synergy’s Distributed Energy Buyback Scheme (DEBS), which replaced the older Renewable Energy Buyback Scheme (REBS) for eligible new and upgraded systems.
Tasmania (TAS)
Tasmania has a regulated minimum feed-in tariff rate determined each financial year by the Tasmanian Economic Regulator.
As with every state, self-consumption remains the bigger driver of solar savings than exports.
Are feed-in tariffs still worth it?
Feed-in tariffs alone are not a reason to install solar, and they never really were. The main reason solar is valuable is that it reduces how much electricity you need to buy from the grid.
When you use your own solar power, you save the full retail electricity rate. That saving is often three to six times larger than the value of exporting the same energy for a low feed-in tariff.
In 2026, solar is still “worth it” for most households because the economics have moved toward self-consumption .
A quick reality-check example
If you self-consume 1 kWh of solar:
You avoid buying ~30 cents worth of grid electricity (typical retail rate).If you export 1 kWh instead:
You might earn ~5 cents via feed-in tariff.Same solar generation. Two very different outcomes.
What to do now as feed-in tariffs decline
The best response to lower feed-in tariffs is not panic. It’s optimisation.
- Shift daytime loads: Run dishwashers, washing machines, pool pumps, and heating/cooling during solar hours.
- Heat water during the day: Hot water systems (especially heat pumps) can soak up a meaningful chunk of solar generation.
- Use smart timers: Many appliances can be scheduled so you don’t have to think about it daily.
- Understand your tariff: Time-of-use pricing can change what “best” looks like for your household.
- Consider batteries carefully: Batteries can increase self-consumption, but they only make sense when the numbers work for your budget and usage profile.
What’s changing next: export limits and “two-way pricing”
One of the emerging trends in Australia is that networks are becoming more active in how they manage rooftop solar exports. This can take different forms:
- Export limits: some systems are capped in how much they can send to the grid at once.
- Time-based export value: higher value for exports during late afternoon/evening, lower value at midday.
- Two-way pricing proposals: in some regions, export charges may be proposed to manage congestion during peak solar hours.
The Australian Energy Regulator’s Export Tariff Guidelines explain how networks must justify any future proposals for two-way pricing, and the concept of a basic export level that should remain available for solar customers.
This doesn’t mean solar is becoming “bad”. It means the grid is adapting to a world where households are both consumers and generators. The most future-proof approach is still the same: use more of your solar at home and treat exports as a bonus.
Which company provides high feed-in tariffs?
There is no retailer that consistently offers the “best” feed-in tariff. Rates change frequently, and retailers compete using different mixes of:
- feed-in tariff rates
- usage rates (c/kWh you pay to consume from the grid)
- daily supply charges
- time-of-use peak/off-peak structures
- discount conditions and contract terms
A plan with a high headline feed-in tariff can still be a poor deal if the usage rate or supply charge is significantly higher.
When comparing plans, focus on the total bill outcome, not a single number.
Conclusion: should you be worried about declining feed-in tariffs?
No. Lower feed-in tariffs do not mean solar has stopped being worthwhile. They simply reflect the reality that daytime solar exports are no longer scarce in Australia.
If you already have solar, you are still ahead. Your system is reducing the amount of electricity you need to buy at full retail rates.
If you’re considering solar in 2026, the question isn’t “how much will I earn exporting power?” It’s “how much grid electricity can I avoid buying?”
That shift in thinking is the real update for 2026 — and it’s the reason solar still makes sense even as feed-in tariffs continue to fall.
Frequently asked questions
Are solar feed-in tariffs being phased out completely?
No. Feed-in tariffs are not being phased out. They’ve transitioned from government-funded premiums to market-based rates that reflect wholesale electricity values.
Why did my feed-in tariff drop from 44 cents to less than 10 cents?
The 44 cent rate was part of a temporary premium scheme. Those programs closed years ago and remaining legacy contracts are expiring. Today’s rates reflect the much lower market value of daytime exports.
Is solar still worth installing if feed-in tariffs are low?
Yes, because the main value comes from self-consumption. Using solar in your home offsets electricity you would otherwise buy at much higher retail rates.
Can I get a better feed-in tariff by switching retailers?
Sometimes, but feed-in tariffs change often and the “best” offer can disappear quickly. Compare the whole plan, especially usage rates and supply charges.
Will feed-in tariffs increase in the future?
Standard midday tariffs are likely to stay low as long as rooftop solar continues growing. However, time-based export rewards may become more common as grids try to encourage exports when they’re actually useful.
What’s the fastest way to improve solar savings in 2026?
Shift more power use into the middle of the day. This is often the biggest improvement you can make without spending more money on hardware.