Best Solar Feed-in Tariffs by State: What Counts as a Good Rate?

Many Australian homeowners begin to consider installing solar panels with the question, “What’s the best solar feed-in tariff?” It may seem logical to compare the rates provided by the various electricity retailers; however, there is more to the story than that.

A feed-in tariff can certainly help lower your electricity bills, but it’s only one part of the overall value of a solar system. The best solar solution comes from knowing how feed-in tariffs operate and what makes for a good deal.

What Is a Solar Feed-in Tariff?

A solar feed-in tariff (FiT) is the amount your electricity retailer pays for the excess solar energy your system exports back to the grid.

Throughout the day, your solar panels generate electricity to power your home. In case there is extra power produced and not consumed by your premises, the excess will be fed into the network and you will get paid for that according to the relevant feed-in tariff.

While feed-in tariffs provide an additional financial benefit, they should be viewed as one part of your overall solar savings rather than the primary reason for investing in solar.

Feed-in Tariffs Across Australia

Feed-in tariffs aren’t the same across every state or electricity retailer. Some states have regulated minimum rates, while others allow retailers to determine their own offers based on market conditions.

State	How Feed-in Tariffs Work
Victoria	Minimum feed-in tariffs are reviewed periodically, with retailers offering different plans.
New South Wales	Retailers determine their own feed-in tariff rates.
Queensland	Most feed-in tariffs are retailer-based and vary between electricity plans.
South Australia	Competitive retailer market with different export payment structures.
Western Australia	Feed-in arrangements depend on the applicable energy scheme and location.
Tasmania	Rates differ depending on retailer and electricity plan.

Because feed-in tariffs continue to evolve, comparing your entire electricity plan is often more valuable than focusing on the export rate alone.

What Counts as a Good Feed-in Tariff?

Rather than asking, “Which retailer offers the highest feed-in tariff?”, a better question is: “Which electricity plan delivers the greatest overall value for my household?”

When comparing solar plans, consider factors such as:

• Feed-in tariff offered
• Electricity usage rates
• Daily supply charges
• Your daytime electricity consumption
• Battery compatibility
• Future energy needs, such as EV charging

A slightly lower feed-in tariff combined with lower electricity rates may often deliver greater annual savings than a plan advertising a higher export payment.

Why Using Your Own Solar Energy Matters More

One of the biggest misconceptions about solar is that exporting electricity generates the greatest financial return. In reality, households often save more by using the electricity their solar system produces rather than exporting it to the grid.

Every unit of solar energy you use directly is electricity you don’t need to purchase from your retailer. Since the cost of buying electricity is typically much higher than the amount paid through most feed-in tariffs, increasing self-consumption generally delivers better long-term savings.

Simple changes such as running appliances during daylight hours, scheduling pool pumps, or charging an electric vehicle while the sun is shining can significantly improve the value of your solar system.

For households that use more power in the evening, a solar battery may also help store excess daytime solar energy for later use instead of sending it straight back to the grid. 

Choosing the Right Solar Plan

Before selecting a retailer or comparing feed-in tariffs, take a step back and evaluate your overall energy usage.

Ask yourself:

• How much electricity do you use during the day?
• Are you planning to install a solar battery in the future?
• Does your household have an electric vehicle?
• Are you comparing the full electricity plan rather than just the feed-in tariff?

Answering these questions will help you choose a solution that matches your lifestyle rather than simply chasing the highest advertised rate.

The Bottom Line

While feed-in tariffs continue to play a key role in the cost-saving process, they are not everything when it comes to how much money you can save with your solar panels. Knowing your own energy consumption, picking the proper energy plan, and optimizing self-consumption will often mean much more.

Here at Sunburn Solar, we work with home owners to look past the numbers surrounding feed-in tariffs and create solar installations which provide maximum benefits now and in the future. We will assist you with choosing the proper solar system and educate you about the various energy plans.

Speak with our team to find the right solar solution for your home.