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 every plan 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 home battery to store midday solar and use it in the evening peak, avoiding both low feed-in rates and high evening buy rates.
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.
Frequently asked questions
What is a solar feed-in tariff?
It is the rate your retailer pays you for solar power you export to the grid, credited on your bill in cents per kWh. You only earn it on exported energy. Solar you use in your home instead saves you the higher retail usage rate.
Why are feed-in tariffs falling?
So much rooftop solar now floods the grid in the middle of the day that wholesale prices during sunny hours have collapsed. Since a midday kWh is worth little on the wholesale market, retailers have cut what they pay for exports, and the trend is expected to continue.
Should I choose the plan with the highest feed-in tariff?
Not automatically. A high feed-in rate is often paired with higher usage or supply charges, and most solar homes buy more power than they export at a premium. Compare the whole plan on your real usage. EnergySorted values your feed-in on every plan to find the cheapest overall.
Do I still get paid for old premium feed-in tariffs?
Most government-mandated premium schemes have closed to new customers, though a small number of legacy customers may still be on them until they expire. New solar systems receive the current retailer feed-in rate, which is much lower.
How can I get more value from my solar as feed-in rates drop?
Focus on self-consumption: run appliances during daylight, consider a battery to shift solar into the evening peak, and charge an EV during the day. These all replace expensive grid power rather than exporting cheaply.
Does a battery help now that feed-in tariffs are so low?
Yes, that is much of the point. A battery stores midday solar you would otherwise export at a low rate and lets you use it in the evening peak instead of buying expensive grid power. Whether it pays off depends on your usage and the gap between your buy and feed-in rates, so work the maths on your own numbers.
What is a time-varying feed-in tariff?
It pays different feed-in rates depending on the time of day, often more for exports during the evening peak than at midday when solar floods the grid. It rewards batteries and east or west-facing panels, and pairs naturally with a time-of-use tariff.
How often should I re-check my feed-in rate?
At least once a year, because feed-in and usage rates move constantly and retailers quietly adjust them. Our guide on how often you should switch energy plans explains why an annual check keeps solar homes from drifting onto a stale deal.
Should I install a bigger solar system to earn more feed-in credits?
Usually not. Because exports now earn so little, an oversized array mostly sells power back cheaply. It is generally better to size to your daytime use and store or shift surplus. See whether solar is worth it for how sizing drives the return.
Can wholesale prices ever make my exports worthless?
During sunny middle-of-the-day hours, wholesale prices sometimes fall to zero or go negative because so much solar is being exported at once. That is exactly why feed-in rates have dropped, and why using or storing your own solar beats exporting it for near-nothing.
Do feed-in tariffs vary between states?
Yes. Feed-in rates differ by state, network and retailer, and the market rules vary too. Your state pricing guide gives the local picture, but you should still compare individual plans on your real export figures, since two retailers in the same state can pay very different rates.
General information only, current at the time of writing. Not financial advice. Rebate schemes and rules
change; always confirm details with your retailer or state government energy site.
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