What a feed-in tariff actually is
A solar feed-in tariff (FiT) is the rate your electricity retailer pays you for every kilowatt-hour of solar power you export to the grid — that is, the power your panels make that your home does not use at the time. It shows up as a credit on your bill, measured in cents per kWh, offsetting your usage and supply charges.
It is important to be clear about the distinction: you are only paid the feed-in rate on exported energy. The solar you use directly in your home the moment it is generated is not paid a feed-in tariff — instead it saves you the much higher retail usage rate you would have paid to buy that power. That difference is the whole reason self-consumption is now worth far more than exporting.
Why feed-in tariffs keep falling
Early feed-in tariffs were set by state governments at premium rates to kick-start rooftop solar, and some legacy schemes paid many times the retail rate. Those government-mandated premium schemes have almost all closed. Today most feed-in tariffs are set voluntarily by retailers and reflect the wholesale value of energy at the times solar is exported.
Here is the catch: so many homes now export solar in the middle of the day that wholesale electricity prices during those sunny hours have collapsed — sometimes to zero or even negative. Because a midday kilowatt-hour is worth very little on the wholesale market, retailers have steadily cut what they will pay for it. This is a structural trend, not a temporary dip, and feed-in rates are widely expected to keep drifting down.
Reading a feed-in offer properly
- Single-rate feed-in
- One flat rate paid for all exports regardless of the time of day. Simple to understand and compare.
- Time-varying feed-in
- Different feed-in rates by time of day, often paying more for exports in the evening peak than at midday. Rewards batteries and east/west solar.
- Headline vs effective rate
- Some plans advertise a high feed-in rate that only applies to a capped number of kWh per day, then drops. Always check for caps.
- Feed-in cap
- A daily or per-kWh limit on how much export is paid at the headline rate. Exports above the cap earn less or nothing.
Why a high feed-in tariff can still be the wrong plan
It is tempting to chase the biggest advertised feed-in number, but that can cost you money. A plan with a headline feed-in rate often claws it back with higher usage rates or a steeper daily supply charge. Because you buy far more power than a typical solar home exports at a premium, a plan with a modest feed-in but low usage rates frequently works out cheaper overall.
The only way to know is to cost the whole plan — supply charge, usage rates and feed-in together — against your real export and import figures. That is exactly what EnergySorted does. Because it is independent and takes no retailer commissions, it has no reason to steer you toward a flashy feed-in headline; it simply values your feed-in on all 16,000-plus plans and ranks them on the total you would actually pay.
How to protect your feed-in value as rates fall
- Shift heavy loads — pool pump, dishwasher, washing, hot water — into daylight hours so you self-consume solar instead of exporting it cheaply.
- Consider a battery to store midday solar and use it in the evening peak, avoiding both low feed-in rates and high evening buy rates.
- If you have or plan an EV, charge it during the day to soak up solar you would otherwise export.
- Re-compare your plan at least once a year — feed-in and usage rates move constantly, and a plan that suited you last year may not now.
- Always compare the whole plan, not just the feed-in headline, so the usage and supply charges do not quietly eat your credits.